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Archive for May, 2018

Income inequality and genetically modified foods (GMOs) are interrelated. Just like tumors and other health maladies, GMOs help income and wealth inequalities grow.

GMO’s entered the US food chain in 1994. The United States Food and Drug Administration (FDA) had approved GMO’s for the US food chain for humans in 1992. The GMO corporations provided the evidence of its safety, which, reportedly, were tests demonstrating that rats fed GMO food for three months did not develop health problems.

The folks at the FDA apparently did not care what happened to GMO fed rats after three months. What mattered is that pesticides and herbicides were genetically placed within the seeds of food plants, such as corn, canola, and soy. As the seeds grow into plants, so, too, do the pesticides and herbicides. When you eat corn, canola, and soy, you eat the pesticides and herbicides. More than 80 percent of corn, canola, and soy grown in the US today are GMOs. So are large amounts of many other crops.

Numerous studies show GMOs cause health issues. For example, a study in France found that rats fed GMO foods for over three months developed all sorts of health issues, such as tumors and other organ damage (Click here for more information). Also, see the video above.

Why are we eating this poison on such a massive scale? The answer is simple. GMO plants have the herbicides and pesticides in them. The pesticides kill bugs that bite into the plant, while the herbicides kill weeds that might otherwise grow within a few feet of the plant. That makes GMO crops less labor intensive, thereby reducing labor costs, and raising profit margins.

Increased profit margins mean higher corporate earnings and share prices than would otherwise be the case in the absence of GMOs. That’s why many corporations use GMOs, such as Kelloggs, McDonalds, Purina, Quaker Oats, PepsiCo, Swansen, Heinz, and on and on. The list is almost endless.

GMO’s are one of the reasons why income and wealth inequality are at such high levels. The rich disproportionately benefit from rising corporate profits and share prices. Currently, the top 1 percent own more wealth in the United States than the bottom 90 percent. For more information see The 1 Percent Own More Wealth Than the Bottom 90 Percent. The top 1 percent are stealing up to 37 percent of all income created in the United States nowadays, compared to just 8 to 10 percent in 1980. See The rich are now getting more than 36 percent of all income.

There is one more advantage the rich derive from GMO foods. Profits can be increased on GMO foods without raising prices. In some cases, prices might even decline while profits rise. In the face of rising inequality, the increase in food prices is slowed by using GMO crops. Otherwise, prices might rapidly increase, resulting in consumer dissatisfaction and even perhaps food riots. Cheap food depresses the discontent of the masses, helping to keep them in line even as the rich rob them of their health and money.

Ultimately, your health is being redistributed to the rich via GMOs, increased corporate profits, and rising share prices, and your government has approved this health and income redistribution scam.

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Do you ever wonder how much of your income has been redistributed to the rich since 1980? How much would you be earning now if the rich were only getting the same share of our total national income as they did back in 1980 or so? Back then the 1 percent stole only about 8 to 9 percent. We got the rest.

Now, thanks to the entire corrupt Republican Party, and the vast majority of corrupted Democratic Party politicians, the rich are officially stealing anywhere from 24 to 37+ percent of the total national income, depending on whose figures you are using. This is thanks in large measure to such Democratic Party politicians as Wall Street Senator Ron Wyden, as well as both Clintons’.

We can use Oregon as an approximate gauge for the entire nation since Oregon is only slightly above average in personal income compared to other states.

The figures in the graph above show that the typical Oregonian would be earning “nearly 3 times as much” today “had inequality remained at the 1980 level. Oregon’s actual median income in 2014 was $33,484, compared to $29,150 nationally.

In 2014, the average working Oregonian would have earned about $92,050, or nearly three times as much, had the 1 percent been only stealing from the rest of us at the same rate as they had been back in 1980. That suggests the average US citizen would have been earning around $83,000 a year in 2014, rather than the paltry $29,150.

Imagine how strong the demand for goods and service would be today for the 99 percent if the 1 percent had not rigged each of the three branches of the US government in their favor through corrupt politicians in both major political parties, and their complete corruption of the United States Supreme Court. (See the-editorial-the-rich-dont-want-you-to-read-corruption-of-the-united-states-supreme-court-what-the-rich-and-their-corporate-so-called-news-media-dont-want-you-to-know–JohnHively.Wordpress.com for more on this.)

When inflation is factored into income growth, notice which economic class has gotten the big raises since 1980 in the graph below, and which has not. Note also that the information presented is based on income tax returns, so the US rich have gained quite a bit more than it appears since they have stashed trillions of dollars abroad in Switzerland, Panama and elsewhere.

This means the real income gains of the rich are vastly understated. Thank you Ron Wyden. Thank you Bill Clinton. Thank you Hillary Clinton. Thank you all of you bought off Democrats and Republican politicians. Thank you corrupted US Supreme Court

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As expected, since the Trump and Republican Party tax cuts were written to benefit the rich and their corporations, only the rich and their corporations are benefiting from them, for the most part. The tax cuts were intended to increase income and wealth inequality in favor of the billionaires and multi-millionaires, and that is precisely what they have done, according to a perusal of a story in the May 11, 2018 issue of the Wall Street Journal (Buybacks Surge, Steadying Market, Wall Street Journal).

The Journal reported “U.S. companies are buying back their shares at a record pace, providing fresh support during a rocky stretch for the stock market when many investors have rushed for the exits. S&P 500 companies that have reported earnings for the first three months of 2018 bought $158 billion of their own stock in the quarter…. About 85% of S&P 500 components (companies which are also known as corporations) have reported so far.”

The Journal reports corporations can do this since the “new tax law” is “freeing up cash.” This is something corporations badly need since total US corporate profits fell during the fourth quarter of 2017. One can be reasonably suspicious that before-tax corporate profits during the first quarter of 2018 might also have fallen, especially since the US and world economies are at the tail end of an economic expansion. Those first quarter statistics are not yet available.

One can be reasonably suspicious that, as I pointed out in a previous story, much of the tax cut money would be used by corporations and the rich to fuel the stock market higher, rather than create jobs building products for which there is no demand.

The S&P 500 peaked at $2853.53 on January 26 of this year. It has been down ever since, influenced to a large degree by the fall in fourth-quarter profits. The Dow also peaked in January and has been down since then. This is likely why investors are fleeing the stock market.

When the Journal reporters write about “investors,” they are not writing about you and me. They are writing about billionaires, multi-millionaires, Wall Street Banks like Goldman Sachs, hedge funds, wealth fund managers, and other financial institutions that invest mostly for rich people.

So corporate managements are buying their own shares and taking them off the market. This is done in order to push share prices higher, which is a simple case of supply and demand. Reduce the supply of shares on the market, and this should jack up prices, so long as no other variables happen to come along. One of which is the decline in corporate profits.

Of course, there is something else CEO’s of corporations are doing to entice investors into the market.

They are taking the savings from tax cuts and offering higher dividends, which are payments made to shareholders. Notice these payments will go mostly to billionaires and millionaires, along with the higher priced shares due to the buybacks.

So the stock market bubble continues thanks to the Trump/Republican tax cuts for the rich and their corporations. Naturally, this only increases income and wealth inequality. Worst yet, with a recession right around the corner, all that money in buybacks and increased dividends is simply throwing good money after bad.

As a final note, I should point out that the Journal reporters (Ben Eisen and Akane Otani) are either stupid, poor reporters, or liars. They write, “The S&P 500 is up only modestly for the year.” Apparently, they do not count the month of January as being part of the year 2018 because that is when the S&P 500 reached its peak value, at least according to Yahoo. On the other hand, they write, “…many analysts believe major indexes would have suffered losses without the support of buybacks.” This is, of course, the purpose of the buybacks.

There is no doubt about the purpose of the tax cuts for the rich; increase income and wealth inequality in their favor and at the expense of the 99 percent. The federal government is now looking at reducing programs for the infirmed, the needy, the elderly, children, and others, in large measure due to the tax cuts. The federal deficit is now growing, thanks to the tax cuts. Fewer taxes collected mean fewer dollars for government programs that benefit anybody except the rich.

The federal government and the United States Federal Reserve Bank will only print up trillions of dollars to save the rich. The rest of us, being cannon fodder for the rich, are expendable.

For more information on this see Breakdown-of-the-26-trillion-the-federal-reserve-handed-out-to-save-rich-incompetent-investors-but-who-purchase-political-power–JohnHively.Wordpress.com

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