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Archive for September, 2012

In 2007, members of the 1 percent raked in 23.5 percent of the total U.S. national income, which was around 14 trillion dollars. Since then the 1 percent have been stealing even more, about 93 percent of all income growth, which has been roughly 1.55 trillion dollars. If you add it all together, the mathematical result is a disaster for economic recovery. The 1 percent has now stolen via government legislation over 30 percent of the nation’s total income, compared to only 7 to 8 percent thirty-two years ago.

This means the 99 percent have less and less income to spend. The standard of living for the 99 percent has dropped from 92 percent of total national income thirty-two years ago, to 76.5 percent five years ago, to roughly 69.5 percent at the midway point of 2012.

The rich don’t spend the vast majority of their money on consumer goods. They invest it in things like stocks, bonds, gold and politicians. That’s why the 1 percent are a drain on the economy. They suck the rest of us financially dry.

The economy is teetering on the brink of collapse since consumer spending accounts for 2/3 of all economic activity and business spending is dependent on consumer demand. The lack of demand is why American corporations are sitting on nearly 6 trillion dollars worldwide. In other words, and as an aside, did I mention that the rich have way more money than they need and are proving to be a parasitic drain on the rest of the nation’s citizens?

The Trans-Pacific free trade treaty will redistribute more income from the 99 to the 1 percent, as has all free trade treaties. This income redistribution aspect of free trade treaties is precisely why our presidents, senators and congress people have supported them during the last thirty years.

Deregulation and privatization scams have also been primary conduits of income redistribution. Wall Street Senator Ron Wyden, President Obama and Mitt Romney are key supporters of legislation that redistributes income from the 99 to the 1 percent. These Wall Street drones have led the United States to the brink of disaster.

Check out the links below for related information.

Striking it Richer:The Evolution of Top Incomes in the United States

/eight-key-charts-about-the-growing-income-inequality-in-the-united-states–johnhively.wordpress.com

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Greece is in Flames and Revolution!

Molotov cocktails, tear gas and stun grenades are flying all over Greece. Over a million people are taking part in protests. Yesterday, 50,000 were rioting in the streets of Athens near the Parliament building over budget cuts that have benefited the bankers and wiped out the Greek economy. The riots have begun as the government begins discussion of a third round of budget cuts that will result in steep cuts in wages and pensions. 25 percent of the Greek population is unemployed, 50 percent of its young people have no jobs. Austerity, which means rewarding the bankers that serve as a financial conduit for the 1 percent, does not work. It only destroys the Greek economy and redistributes income from the 99 to the 1 percent. Mitt Romney has similar plans for the United States.

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People are pouring into the streets of Madrid and other Spanish cities to let their leaders know what they already know; budget cuts and austerity programs are not working. With unemployment skyrocketing (above 20 percent) amid the second recession in four years, people are saying they’ve had enough of the conservative bull shit lies and government measures that reward dishonest bankers while destroying the Spanish economy.

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According to a study by the Economic Policy Institute (EPI), Mitt Romney’s budget plan would destroy jobs.

His plan includes cutting taxes on the rich. Those kind of reductions destroy jobs because CEO’s seek to get investors with the newly available cash to purchase their stocks and bonds. That means a bidding war usually begins among CEOs. The best way to attract the cash is to raise profits, dividends and share prices. And the best way to do that is to cut jobs, wages, salaries and other employee compensation, and that typically means sending jobs overseas. The EPI study does not count this reality in ascertaining the certainty that the Romney plan will kill jobs in this country.

Romney’s plan is simple enough. Redistribute income from the 99 to the 1 percent by cutting taxes on the rich, and paying for the reductions by killing government jobs. People will be fired so the rich can have more tax cuts. Great Plan! Of course, those jobs have a multiplier effect throughout the economy; they support other jobs in the private sector, and so the EPI study understates the jobs losses under “Dumbed-Down Wall Street Mitt the Twit Romney.”

The gist of the study is thus:

“* The budget plans put forward by Mitt Romney would lead to small job gains of 87,000 in 2013 and a loss of 641,000 jobs in 2014, relative to current policy, if his proposed tax cuts were fully deficit-financed.
* If some of Romney’s proposed individual income tax cuts were revenue-neutral (he has said that they would be, but has not specified what “base-broadening” adjustments he would make to the tax code to accomplish that), his plans would instead lead to employment losses of 608,000 in 2013 and roughly 1.3 million in 2014.
* The weaker job growth and outright job losses under the Romney plan are driven by his proposal to cap government spending at 20 percent of gross domestic product (GDP), a move that implies very large cuts to overall spending.”

Who would promote job growth most in the near term?–Economic Policy Institute

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Why doesn’t the US government do something about global warming? And that means putting an end to free trade treaties that allow US corporations to ship and or create jobs in nations with lower wage and lower environmental standards. The problem, of course, is that to do so would push corporate profits down and that would mean dividends and share prices and a ton the paper wealth of the 1 percent would vanish. That would leave the rest of us better off since the rich would no longer be able to purchase the votes of politicians, like Wall Street Senator Ron Wyden.

Anyway, click the link below for the complete story of a sail boat crossing the Arctic Ocean last August.

Global Warming is Real: You can Cross the Arctic Sea in a Sailboat

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By 2012, a good three years after the end of the last recession, fully 49.1 percent of the US population received some form of government assistance compared to 30 percent in 1980. The under President Jimmy Carter, the economy had just staggered out of a severe recession. During the period from June 1980 to June 1981, the economy created nearly three million jobs, in a nation that was more than 2/3s smaller in population and gross domestic product than the current economy. What happened to cause such giant differences between then and now?

The US government was taken over by the 1 percent. The result has been a massive redistribution of income and wealth from the 99 to the 1 percent via free trade legislation, deregulation and privatization scams, as well as profitable wars for the 1 percent and stuff like that. The result is that the rich have stolen via legislation about 30 percent of all US income, whereas they received 7-8 percent in 1980.

That means the 99 percent only receive 70 percent of the total US income, and the result is they have less money to spend. More of them need government assistance to get by, and that’s why the economy is so weak, as well as why more and more people receive some form of government assistance.

By the way, the 1 percent are stealing 93 percent of all income growth in the US, at least since 2008. That means more people are going to be on government assistance in the coming years; the demand for goods and services by the 99 percent will diminish. This will weaken the economy more and result in an epic economic disaster. This process continues under President Wall Street Barack Obama. Most likely this disaster will begin in the next few years, but it could be ten years away. In reality, the economy is teetering on the edge of disaster as I write this, and we are most likely in the midst of a slow motion collapse.

One more point needs to be made, most of the rich are rich because of the ability to control government legislation. They can purchase the votes of politicians like Wall Street Senator Ron Wyden. The ability to buy the votes of politicians like one could purchase the services of whores on the streets is the biggest government welfare program of them all.

By the way, since the ascendency of Richard Nixon as president in 1969, Jimmy Carter is looking like a hell of president compared to either the elder or the younger and dumber Bush’s, and compared to Obama. Let’s get something straight, next to Reagan and Clinton, by any measurement, Carter is probably the third best president since 1969. He might even be number one.

Related stories.

Eight Key Charts About the Growing Income Inequality in the USA–JohnHively.wordpress.com

The Ponzi Scam Called Wall Street: Why it matters that the US Added only 96,000 jobs in August 2012–Johnhively.wordpress.com

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A few days ago, the New York Times announced that thousands of workers had (and are still) rioting at the Foxconn Technology factory in Taiyuan, China. Five thousand police had to be called in to quell the riot. Windows were shattered, police cars overturned and fires were set.

One source reported that components for the Apple I-Phone number five are made at the factory.

The cause of the riot is not clear, but some sources say there was an incident between security and workers that triggered the riot. But the reason is probably more widespread than that.

Why are these jobs overseas? The authors of the story, David Barboza and Keith Bradsher, report that “Analysts say worker unrest in China has grown more common because workers are more aware of their rights, and yet have few outlets to challenge or negotiate with their employers.”

In other words, beside the massive difference in pay between workers in the US and in China, the Chinese workers have virtually no rights in the workplace to negotiate pay increases, hours worked, overtime pay, as well as health, safety and environmental standards.

Foxconn has had problems with workers committing suicide on-the-job last year at one of their factories that produced exclusively for Apple, Inc. Here’s another fact; this riots demonstrates that the race to the bottom in China continues, as well as in the USA. The difference between the old wages here in the USA, as well as the higher amount of dollars needed to maintaining higher factory standards, worker safety and environmental standards here, compared to in China, go into the pockets of the rich, (such as the late Steve Jobs, Bill Gates and Wall Street Mitt the Complete Twit Romney) via higher corporate earnings, surging dividends, and rising share prices. That’s why the jobs are in China and not in the USA, where they belong. Standards are higher in the USA.

The rest of us 99 percenters are made to suffer lower standards of living, as our income is redistributed to the 1 percent via trade treaties that all US jobs to be exported or created in foreign nations.

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