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Posts Tagged ‘income inequality’

globalization
There is a great right-wing Republican conspiracy to rewrite history, And there is a Democratic Party conspiracy to rewrite history. All of this is to misinform us, to divide the 99 percent, making it easier to financially rape us on behalf of the 1 percent.

The first duty of each major political party is to listen to their respective voter bases and tell them what they want to hear in terms of social issues. The second duty of the respective leadership of each political party is to reach relatively secretly across the aisle to each other, and use the levers of government to financially rape and pillage the 99 percent on behalf of the 1 percent.

The Trans Pacific Partnership (TPP), a massive income redistribution scam the political big boys call an international trade agreement is the most recent case in point. The TPP has almost nothing to do with trade.

The leading parasites of the Republican Party want us to believe that fewer governmental regulations and tax cuts for the rich will unleash greater prosperity. And it does, for the rich. The leadership doesn’t want you to know that the big money boys exercise quite a bit of market and political power, and they use this to rape and pillage the rest of us financially.

When this era tax cuts for the rich and fewer regulations began in 1981, the rich went from capturing 8 percent of all the income in the USA to 37 percent today. The US middle class has declined from 61 percent of the population in 1970 to 49 percent today. That’s what occurs when the government redistributes income from the 99 to the 1 percent. But the Republicans are not alone in causing these numbers. Far from it.

The Democratic Party has a different voter constituency than the Republican Party, such as labor unions. So the Democratic leadership has unleashed a rainstorm of misinformation over the last several years about how technology is destroying jobs, thereby creating a job shortage. Economists have been predicting this result for over two hundred years, and they’re still wrong. What we’ve discovered over those 20 decades is that technology creates more jobs than it destroys, but the leadership doesn’t want us to know this.

Think about how the computer industry displaced the typewriter industry and created tens of millions more jobs than the old industry supported. The same thing is also true of the auto industry transplanting the horse and buggy manufacturers. Notice nobody is suggesting that technology is replacing workers in China, Vietnam or Germany, for that matter. To see how this propaganda works, chech out A Review of Robert Reich’s AfterShock–JohnHively.wordpress.com

The news media always falls in line and prints whatever lies the leadership’s present, depending on the biases of the editors, and their advertisers.

The Dems and their allies point to technology as the primary culprit because the leadership has continuously supported exporting tens of millions of US jobs since Democratic President Bill Clinton caved in to Wall Street and signed NAFTA. Wall Street has since prospered, while main street is eviscerated, along with the American dream.

Like the Republican leadership, the Democratic leadership hide their real motives behind patently false propaganda in order to rape us financially. In the meanwhile, both leadership’s will issue proclamations about wars against women, and wars against Christmas, and rally the base around bathrooms for transgender people or wars against guns.

Don’t fall for this propaganda. Instead of remaining divided on social issues, unite on economic issues, like the Trans Pacific Partnership.

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How equal should income in the United States be? The corollary question should be, What is an Economy for? Let’s begin with the later question.

In the USA, from 1933 until 1981, the laws and regulations the US government enacted were intended to increase gross domestic product and spur demand so that a vast majority of Americans experienced rising standards of living.

So with that out of the way, we can determine roughly how equal income and wealth distribution should be in the United States. But first, a little lesson. The United States government determines the distribution of income and wealth via legislation and trade treaties. Since 1981, the rich have been in control of our government. He who has the gold makes the rules.

So if a rising economic tide lifts most boats, and gives most everybody a better future, then that’s about what we want.

The current business expansion (the current rising tide) is leaving everybody behind since the 1 percent have been taking 99 percent of all income growth since 2009. Today, that translates into the 1 percent stealing 37 percent of all income produced in the United States, up from 8 percent in 1980. The economy lifted a lot more people upward back in 1980. As a nation, we were all better off then than now.

In four years under President Jimmy Carter, 1977-81, the US gained more than nine million private sector jobs, and with rising average real wage rates. That’s better per year than job growth under President Ronald Reagan and President Bill Clinton. And Carter did this as the US experienced two recessions. In addition, the US gross domestic product was only 40 percent of what the US produces today, and the population was 60 percent of what it is today.

More jobs were created under Jimmy Carter than under President George W. Bush and President Barack Obama combined. Under the later two, family income dropped $7,000 a year because they focused (along with Reagan, the first Bush and Bill Clinton) mostly on passing legislation that redistributed income from the 99 to the 1 percent, such as Wall Street deregulation scams and free trade schemes.

Meanwhile, during the thirteen years under Obama and Bush, out of pocket health care costs soared 85 percent, tuition and fees at colleges and universities rocketed 86 percent, child care costs rose 37 percent, housing jumped 28 percent, and the median net worth of middle class families has fallen 17 percent since 2010.

Yes, 8 percent of all income going to the 1 percent sounds about right, for starters.

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In poll after poll Bernie Sanders beats Donald Trump by wider margins than does Hillary Clinton. The most recent Fox News poll finds Clinton only up by 3 percent over the Donald, 42 to 39. In Connecticut, another recent poll shows Clinton over Trump 45 to 38, but Bernie stomps the Republican presidential candidate 54 to 35.

These are possibly the two worst candidates in US history. One is a known Wall Street shill who is going to screw the 99 percent over on behalf of her Wall Street buddies, while the other guy is a flawed billionaire businessman who inherited much of his wealth, and who has never held political office.

Look at the numbers above. In the national poll, 19 percent want somebody else to be president if it comes down to a choice between Trump and Clinton. Only 11 percent want somebody else when it comes down to a choice between Sanders and Trump.

People want change because we’ve been getting screwed for the last 35 years. Bernie Sanders represents change, while Hillary represents more Bill Clinton giveaways to Wall Street. As a senator, Hillary chose the big banks over main street time and time again.

Trump? We don’t know what he really stands for. The worse part is that the Republican Establishment is already attacking him via their many sources, such as USA Today. Of course, he’s also said a ton of things that aren’t true.

Change is on its way via a recession greater than the Great Recession of 2007-2009. Change is coming, but it’s not going to happen this year. That recession will strike somewhere between October of this year and June 2017. See The Next Recession Is Going to be A Big One!–JohnHively.Wordpress.com

Bernie Sander’s has built a people’s movement to retake our democracy. As this hurricane force of a recession plays out, the change is going to come. The next presidential election will see old ideas and politicians swept out of office, and the political revolution will sweep into office.

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Bernie Sanders Wall Street

On Tuesday, Bernie Sanders lost the California primary, as well as a few other states. On Thursday, Sanders gave somewhat weak signals that he is ready to support the Democratic Wall Street candidate. Bernie told reporters after meeting with Wall Street President Barack Obama at the White House that he will ally himself with Hillary Clinton in the fight against Donald Trump.

Regardless, Bernie Sanders has built a grassroots movement that can and will only get bigger. There’s a hurricane of a recession coming down the pike, with gale force winds. It’s going to be worse than the last recession because the economic policies the US government has been following for the last thirty-five years, and the last eight, have redistributed income and wealth from the 99 to the 1 percent, curtailing the demand for goods and services. See The Coming Recession: It’s Going to Be a Big One

Currently, the 1 percent steal 37 percent of all the income produced in the United States, compared to 8 percent in 1980. That means the 99 percent has less money to burn.

The current political and economic situation looks a lot like 1928. Then came the Great Depression storm, and then came President Franklin Delano Roosevelt, and the New Deal. In 1976, Gerald Ford defeated Ronald Reagan for the Republican presidential nomination. Four years later, after successfully negotiating with the Iranian government to keep the American embassy hostages until after the election, Reagan ushered in the modern tyranny of the 1 percent with Reaganomics when he became president. See Argo Helps Iran’s Dictatorship Harms Democracy–The Christian Science Monitor.

That era is about to end.

This coming recession means the next president is likely going to be a one term president.

Then it’ll be our turn. Bernie is 74 years old, and highly unlikely to run for president again. That means our political revolution against the 1 percent will sprout fruit most likely in the form of progressive majorities in the US house and senate, as well as the next US president. That could be Elizabeth Warren.

So while Bernie lost the Democratic primary election, he planted and cultivated a people’s movement to reclaim our democracy and take it back from the plutocrats of the 1 percent, such as Wall Street Senator Ron Wyden.

Our time is coming. Don’t give up. This Democratic primary fight was just the first round. Plenty of billionaires want you to give up, especially since we are on the verge of winning.

Think about the late Muhammad Ali. He didn’t give up against the most powerful government in the world when he refused induction into the US military because of his religious beliefs. It took some time, but he won! We will too!

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MBAApril152015

It’s unofficial, but true because your corporate media, Wall Street investment banks, and government officials don’t want you to know. The market for homes is being fixed like a corrupt poker game. The big banks are playing with a loaded hand, playing the 99 percent for fools, and they’re doing this by rigging the housing market; they’re artificially pushing home prices up. That’s the only way home prices can be rising, because home buyers aren’t buying.

Look at the graph above. You can see that the number of 30-year fixed mortgage applications hit a record low on December 9, 2012, well after the housing market began to heat up a few months earlier. Since December 9, the number of mortgage applications have inched up a bare fraction, and they’re back at near record lows. Roughly 80 percent of all home mortgages are 30-year fixed mortgages.

A quick look at all home mortgage applications called the price index, which includes 15-year flexible and 30-year fixed, shows almost the same pattern. The number of total mortgage applications have remained the same for the last three years.

If if the demand for houses is so low, and compared to the peak of the housing bubble in late 2005 it’s quite low, what is keeping house prices surging beyond 2005 home prices? Why are home prices exploding upward while demand is at a near 20 year low?

The evidence is clear. Demand is not pushing up home prices.

That means the supply is artificially drying up. Here’s how its done. The banks are keeping up to 90 percent of foreclosed homes off the market. See As Many as 90 Percent of All Foreclosed Properties Held Off the Market–The Street.  I’ve got a good and dear friend whose home should have been foreclosed years ago, but she’s still living in it.

The National Association of Realtors suggested the banks were keeping 3.4 million house off the market at one point. Other sources put the number at closer to six million.

These homes are just sitting there. I see them everywhere, although you might need to look close. There are several of them within the ten square blocks of where I live.

This quite naturally has driven up rental prices as people are no longer able to afford to purchase homes, and they must now rent. There is also evidence that a large number of rental units is being kept off the market, which could also be driving up rents.

The action of the banks is called a conspiracy in restraint of trade, and this action is against the law. It is also designed to redistribute income from the 99 percent to the banks and their shareholders, most of whom are members of the 1 percent. This conspiracy is a violation of the Sherman Anti-Trust Act.

Don’t expect Wall Street President Barack Obama to order his Wall Street attorney general to do anything about these criminal acts either. Obama’s biggest campaign contributions have been from members of the Wall Street gang, such as Goldman Sachs and Citigroup.

All of this market manipulation redounds to the benefit of Wall Street. Trillions of dollars of mortgage backed bonds held by hedge funds, mutual funds, investment banks, governments, and the 1 percent are worthless if the housing market declines by 8 percent or more, but they go up in value if the houses go up in value.

The Federal Reserve has been bailing out these incompetent investors for years with $26 trillion dollars of so-called loans that have never been paid back, and it’s unlikely they will ever need to be paid back since the Fed has already claimed they were paid back when it was impossible to have occurred. (See The 26 Trillion Dollar Bailout–JohnHively.Wordpress.com). The Fed has also purchased trillions of dollars of these bonds at their face value, rather than at their worthless value.

This conspiracy is a massive income redistribution scam.

On all levels, income is being redistributed from the 99 to the 1 percent through market manipulation, something Wall Street President Barack Obama and his Wall Street attorney general apparently approve of. Otherwise, they’d do something about the newest criminal activities of the banksters.

This shows how rotted to the core of corruption the US government has become, and how insane it is for people to believe that markets operate in some text book way featuring supply and demand.

From 2009 to 2015, 99 percent of all US income growth has gone to the 1 percent, an historic record, and by a wide margin. Nowadays, the 1 percent is stealing 37 percent of all income created in the United States, up from 17 percent when Obama took office, which was up from 8 percent in 1980. This has occurred for many reasons, and one of them is this conspiracy in restraint of trade.

Hillary Rodham Clinton is Wall Street’s chosen one. A vote for Hillary is a vote for more Wall Street scams, higher rents, higher housing prices, and more income and wealth being redistributed from the 99 to the 1 percent. This may be why Wall Street investment banks are betting big on Hillary. See Wall Street bets big on Hillary Clinton–JohnHively.Wordpress.com.

 

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To a remarkable extent, the level of inequality—which fell during the New Deal but has risen dramatically since the late 1970s—corresponds to the rise and fall of labor unionization in the United States; and US labor union participation rates corresponds with the number of free trade agreements the US government enters into, as well as the development of historic levels of income and wealth inequality.

According to the Economic Policy Institute, “As union membership has fallen over the last few decades, the share of income going to the top 10 percent has steadily increased. Union membership fell to 11.1 percent in 2014, where it remained in 2015 (not shown in the figure). The share of income going to the top 10 percent, meanwhile, hit 47.2 percent in 2014—only slightly lower than 47.8 percent in 2012, the highest it has been since 1917 (the earliest year data are available). When union membership was at its peak (33.4 percent in 1945) the share of income going to the top 10 percent was only 32.6 percent.”

As you can see in the graph below, the share of US workers represented by labor unions began to drop in 1960 as electronic jobs, such as manufacturing televisions and radios, began to be exported more and more to places like Taiwan. That process began in the 1950s.

Union membership began to decline even more in 1964 when Mexico and the USA signed a treaty creating the free trade Maquiladora Zone inside Mexico. This zone runs along the US border, and is twelve miles wide and runs from the Gulf of Mexico to the Pacific Ocean. Corporations are allowed to import parts into the zone, assemble things there, and export the finished products into the United States duty free. Tens of thousands of US labor union jobs were exported into Mexico because of this treaty.

Other maquiladora zones have been created throughout Central America since then. What happened to the US textile industry? Much of it is in Central America. Roughly 225,000 former US textile jobs now reside in El Salvador alone.

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US labor union membership dropped from 28.5 to 25.4 percent from 1964 to 1980. Then, of course, Reaganomics and more trade treaties hit US workers. NAFTA struck, and the rest is history. The stock markets shot up as labor union members saw their jobs being exported. You can see the amazing coincidence in the graphs above and below. As the jobs were exported, the stock markets exploded upward. Roughly 35 million US jobs have been exported since 1990.

S&P500_(1950-12)

Nowadays, the top 1 percent are stealing 37 percent of all income produced in the United States, compared to 8 percent in 1980. That’s because when a job is exported the difference between the old higher US pay and the new lower third world country pay goes straight into the pockets of the rich via higher corporate profits, surging dividends, and soaring share prices.

This is the link between income/wealth inequality and trade agreements business leaders, politicians, academics, and the corporate press don’t want you to know about.

Corporate stocks and bonds, by the way, are wealth. Wealth is something of value that you own, while income is money coming in. So the rich get more income by shipping jobs overseas, and in the process, they inflate the value of their wealth, such as stocks and bonds. The rich get richer with every trade agreement.

Now President Obama, and several Wall Street Democrats, such as Hillary Clinton and Ron Wyden, have joined with the majority of Republicans in congress to redistribute more income from the 99 to the 1 percent via the Trans Pacific Partnership (TPP). The TPP is the largest income redistribution scam in US history, and the Wall Street Democrats and most Republicans are falsely marketing it as a free trade agreement. The Guardian News Paper calls the TPP “NAFTA on steroids.”

As more of those labor union jobs are exported, much of the tax base is exported with it. Actually that tax base is redistributed to the rich. As that tax base diminishes, the tax funds for fire, police, Social Security, public schools, slowly evaporates. And unionized public sector employees find themselves under attack.

It’s a big scam folks.

Protect your jobs! Protect your future! Fight against the TPP! Vote for Bernie Sanders!

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The video above tells all that is needed for you to know about what the Wall Street Democratic Establishment is planning for the Democratic convention in July, and for the future of the 99 percent.

Like the Democratic primaries, like the future of the 99 percent, the Democratic Convention is being rigged to the benefit of the 1 percent once again.

In other election news, the folks in Oregon who count the votes from last May 17th election haven’t been able to count them all, and won’t be finished until sometime in mid-June. It appears, however, that Bernie Sanders will have taken 60+ percent of the Oregon vote by then, meaning he has improved his mathematical chances of winning the primary election against Wall Street’s darlin’. It ain’t over yet! See The Real Democratic Primary Election Numbers in Oregon–John Laurits

The Democratic Party is not a political party. Rather it is a business establishment that sells government representation and legislation to the highest bidder, and always at the expense of the 99 percent. In that respect, it is no different than the modern Republican Party.

To differentiate differences between the two political parties, the leaderships create false and sometimes incredibly stupid issues. This is always to rally their grassroots and create a facade of solidarity of interest between the Wall Street factions of each party and their respective grassroots. They’ve been doing this for 35+ years.

feel the bern

These issues include bathrooms for transgender people, guns, religion, abortion, wars against women, wars against Christmas, and so much more. The sheep are easily led astray by manipulating their emotions, and this allows the leaderships of both parties to conspire together behind scenes to steal the livelihoods, income and wealth of the grassroots of both parties, and redistribute those things to the 1 percent. The Trans Pacific Partnership is an obvious example of this conspiracy.

Stop being a sheep. Organize against the tyranny of the 1 percent. For Democrats, don’t vote for the Wall Street candidate. This primary season isn’t over.

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