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Archive for the ‘wealth redistribution’ Category

The war against the middle class is being fought in the halls of government at all levels. Stand together and fight. It’s your only chance to win against the financial might of the 1 percent. They’ve purchased Republicans and Democrats to do their legislative bidding, such as Wall Street Senator’s Ron Wyden, and Mitch McConnell. The financial game has been rigged against you.

Their strategy is simple. With of the help of their corporate press, on the right and on the left, the 1 percent and their politicians divide us by social issues; such as abortion, gun rights, race, illegal immigration; and then with our eyes on the social issues, they wipe us out financially by redistributing our incomes to the 1 percent via legislation, such as trade treaties that ship our jobs overseas, privatization and deregulation scams that increase prices for us and profits for them, and holding down the federal minimum wage below both inflation and productivity gains; and the difference between what wages should be and what they are at the lower levels goes into the pockets of the 1 percent via higher corporate profits, dividends and share prices.

That’s precisely why corporate profits and share prices are currently at all time highs, and wages and job growth are at all time lows, and that’s for any business expansion in the history of the United States. Thank you Koch Brothers, thank you Supreme Court Corporate Hack John Roberts, thank you Ron Wyden!

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95 percent of all income growth in the United States during the six years of the reign of President Obama has gone to the 1 percent, and most of that has gone to the top 1/10th of 1 percent. The 1 percent have used their ill gotten gains to corrupt government and enact legislation that redistributes income from the 99 to the 1 percent, such as privatization scams, deregulation schemes, and free trade treaties. The government also refuses to raise the minimum wage to follow such economic factors as productivity gains or inflation. The result of all of this is a downward pushing of wages of the US jobs that haven’t been shipped overseas. The difference between the old wages (or rather what they should be) and the new lower wages goes straight into the pockets of the rich via higher corporate profits, rising dividends, and surging share prices. That’s how income inequality has been created. That’s why the US economy is a rigged game in favor of the 1 percent.

That’s precisely why US worker pay as a percentage of Gross Domestic Product is at an all time low, and this depresses the demand for goods and services, and that is why the US economy is so historically weak; income inequality.

President Obama and Wall Street Senator Ron Wyden have been getting ready to serve up more of this inequality via the Trans Pacific Partnership, the largest income redistribution treaty of all time. They’re calling it a free trade treaty.

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Modern inequality began with the tax cuts for the rich of President Ronald Reagan. That gave the rich enough money to purchase the government and begin their war against the middle class. Those tax cuts created income inequality and massively corrupted government at all levels, as well as both major political parties.

Who who has the gold makes the rules. That’s how government operates. That’s why the US federal government passes legislation championed by conservatives, such as Wall Street Senator Mitch McConnell and liberals such as Wall Street Senator Ron Wyden, are always sponsoring such legislation, such as free trade treaties which legally pave the way for corporations to ship jobs overseas. The difference between the old wages in the USA and the new lower wages overseas, goes straight into the pockets of the rich.

The result of all of this is that the 1 percent have stolen about 31 percent of all income created in the USA compared to about 8 percent when Ronald Reagan became president of the USA.

The result is a massive drop in consumer demand per capita, stagnant wages, and weak job growth. This is the weakest economic recovery in US history and we owe it all to President Ronald Reagan.

Tax cuts for the rich destroy jobs. Tax increases on the rich creates jobs by providing the rich with less money to corrupt government.

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A new study by the Wall Street rating agency called Standard and Poor’s reveals what many already know. High income inequality suppresses the demand for goods and services, depressing GNP growth, and leading to more severe economic crashes than would otherwise be the case.

Here’s what the report won’t tell you. The rich invest their money in the political markets and in other investment areas such as stocks and bonds.

The money going into the political markets is used to convince politicians to pass legislation that redistributes income and wealth from the 99 to the 1 percent, such as free trade treaties. In other words, government corruption is far greater during times of inequality, and also because of it.

The investment money that goes into corporate stocks push up the value of those assets. It’s just a bidding process. So when more people purchase shares of any corporations than those who are selling their shares, the value of those shares go up. The same thing is true of bonds. None of these purchases add to GNP growth, and all of these purchases can result in redistributing income from the 99 to the 1 percent.

When corporate shares head down in value, CEO’s typically cut jobs or employee compensation, or ship jobs overseas to lower wage nations, which pushes profits higher, resulting in rising share and bond prices. The result is nothing more than income redistribution.

And so when inequality rises, it snowballs via the methods above, until such time as somebody decides such inequality is a bad thing. That only happens during the most severe economic crisis’s, such as during the Great Depression when there’s less money to go around to corrupt government.

Check out the story by clicking on the link below.

Wall Street Analysts Research: High Inequality Makes US Vulnerable to Crashes–Billmoyers.com

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Inflation redistributes income from the 99 percent and delivers said income to the 1 percent. This is a no-brainer, making inflation nothing more than an income redistribution scam that those on the right and those on the left lie about, although maybe they just don’t know, which is unlikely. Case in point is a Paul Krugman op-ed below.

Krugman claims there is little inflation nowadays, while his right wing opponents claim there is ton’s of inflation and its caused by the Federal Reserve. They’re both right and they’re both wrong, kind of, but not really.

Krugman claimed in his op-ed that inflation is close to zero, and that’s true, kind of. In reality, inflation is currently closer to 8 percent if it was measured as it was back in 1980. Since then the government has switched the way it measures inflation twenty times, and all of these changes show less and less inflation. That is why inflation as measured today is less than 3 percent when it’s probably slightly above 8 percent. The purpose of doing this was to keep people from protesting and getting mad about their loss of real spending power, such as happened back in the 1970s.

Conservatives rightfully claim the inflation numbers are understated, which is remarkably true. However, Republicans claim this is caused by the Federal Reserve and its massive printing of money, which is perhaps a tad true, but mostly false.

Inflation mostly comes from corporate planning. Publicly traded limited liability corporations must always have rising share prices, which is largely a product of increasing profits and dividends. The best way to ensure these constantly increasing returns on investment is for corporate competitors to gather together and plan price increases. Thousands of corporations plan their prices rises in tandem, for the most part, and that’s why we have inflation.

When corporations raise their prices in tandem, it’s called a conspiracy in restraint of trade, a violation of the law, but the government almost always looks the other way, which is a function of corruption. This is not to suggest that to some degree competition doesn’t exist in the corporate world, because it does, but it’s a minor nuisance to our captains of industry which is quickly eliminated when the competition gets too hot, and saner minds quickly impose a truce on any hostilities since the primary enemy of the corporations are their unwitting customers.

Guess who pays the cost of this non-competition? You do. When the price of tuna, or lettuce, or gasoline, or cars, or airline tickets rise due to corporate planning, the difference between the old prices and the new higher prices goes from your pockets into those of rich shareholders.

That’s what the politicos and corporate fat cats don’t want you to know, so they keep the argument within unrealistic and narrow lines of debate.

See Krugman’s op-ed below.

http://www.nytimes.com/2014/07/07/opinion/paul-krugman-conservative-delusions-about-inflation.html?_r=0

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