Archive for April 23rd, 2012

College graduates are facing a life time of indentured servitude to the one percent. That’s what the student loan scam is all about, and that’s what free trade treaties are all about. When the government ships jobs overseas via free trade treaties, the difference between the old wages here and the new wages there go into the pockets of the one percent via higher corporate profits, rising dividends and soaring share prices. In other words, these treaties are a bunch of income redistribution scams. So are student loans.

The Associated Press reported that the job outlook for college graduates in 2012 is bleak. One out of two will be underemployed or unemployed. The report doesn’t mention why. The reason is simple. The jobs have been shipped overseas. The list of jobs gone or going away via free income redistribution treaties is long; jobs in manufacturing,computer programming jobs, engineering, call center jobs, and way more.

It’s easy to understate what we lose with the loss of manufacturing jobs. Every seventy jobs making stuff with your hands supports about thirty other kinds of jobs, like management, accounting, book keeping, attorneys, computer programmers, engineering, etc…. You ship away seventy manufacturing jobs and that means you ship away thirty other jobs that usually require a college degree. That doesn’t count all the engineering and computer programming jobs not directly associated with manufacturing employment. Those jobs are being shipped away, as well, at least a fair percentage of them.

This means the federal government is redistributing much of the tax base from working people to Wall Street and the wealthy by shipping away the jobs that support public services. This is why there are routine and continuous cut backs in education (teachers), librarians, nurses, counselors, accountants, lawyers, public administrators and other jobs that require college degrees. That’s what free trade does; it freely redistributes income and wealth, turning the rich into parasites and the 99 percent into the hosts.

The kids getting out of college today not only have dim job prospects, but they also have a ton of debt via student loans. The government wants to offer students more loans rather than grants. The reason is simple. The loans are bundled the same as home mortgages, and are then sold to Wall Street brokerages like Goldman Sachs. Investment firms slice and dice the government guaranteed loans, and then issue bonds backed by the loans. When students make their payments, most of it winds its way into the pockets of the bond owners, which are almost always members of the one percent. Remember, because the US government guarantees student loans, the bonds backed by student loans are also guaranteeing large profits to the one percent, with absolutely no risk of loss. None. Zero. That’s a pretty good scam.

He who has the gold makes the rules. That’s why grants are limited nowadays more so than in decades past. Student loans are where the money is. There is more student loan debt outstanding than total US credit card debt. And that pile will continue to grow.

One of the reasons for this continued growth are free trade treaties. As more free trade treaties are enacted, more of the tax base will be shipped overseas, state governments will be forced to raise tuition, which will force students to take out more student loans, which will force them into ever longer periods of indentured servitude to the wealthy, who have more money to buy politicians, who then enact more free trade treaties, which force state governments to raise the price of tuition, and hopefully by now you see all the interacting relationships.

On other point needs to be made; student loans have nothing to do with providing an educated work force. They’re all about redistributing income from the 99 percent to the one percent. Just like free trade treaties. They both financially weaken the 99 percent to strengthen the one percent.

And that’s why every member of the ninety-nine percent should call their congressmen and senators and oppose the largest free trade treaty since Nafta, the Trans Pacific Free Trade Agreement. That’s a treaty being negotiated by the US government to continue to redistribute income and wealth from the 99 percent to the one percent.

Associate Press Report on the Job Propects for College Graduates

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