The Dow is at a record high and so are corporate profits – so why
does it feel like most of the country is deeply suffering right now?
Real household income is the lowest that it has been in a decade,
poverty is absolutely soaring,47 million Americans
are on food stamps and the middle class
being systematically destroyed. How can big corporations be doing so
well while most American families are having such a hard time? Isn’t
their wealth supposed to “trickle down” to the rest of us?
Unfortunately, that is not how the real world works. Today, most big
corporations are trying to minimize the number of “expensive” American
workers on their payrolls as much as they can. If the big corporation
that is employing you can figure out a way to replace you with a worker in China
or with a robot
it will probably do it. Corporations are in existence to maximize
wealth for their shareholders, and most of the time the largest
corporations are dominated by the monopoly men of the global elite.
Over the decades, the politicians that have their campaigns funded by
these monopoly men have rigged the game so that the big corporations are
able to easily dominate everything. But this was never what those that
founded this country intended. America was supposed to be a place
where the power of collectivist institutions would be greatly limited,
and individuals and small businesses would be free to compete in a
capitalist system that would reward anyone that had a good idea and that
was willing to work hard. But today, our economy is completely and
totally dominated by a massively bloated federal government and by
absolutely gigantic predator corporations that are greatly favored by
our massively bloated federal government. Our founders tried to warn us
about the dangers of allowing government, banks and corporations to
accumulate too much power, but we didn’t listen. Now they dominate
everything, and the rest of us are fighting for table scraps.
In early America, most states had strict laws
the size and scope of corporations. Individuals and small businesses
thrived in such an environment, and the United States experienced a
period of explosive economic growth. We showed the rest of the world
that capitalism really works, and we eventually built the largest middle
class that the world had ever seen.
But now we have replaced capitalism with something that I like to
call “corporatism”. In many ways, it shares a lot of characteristics
with communism, and that is why nations such as communist China have
embraced it so readily. Under “corporatism”, monolithic predator
corporations run around sucking up as much wealth and economic power as
they possibly can. Most individuals and small businesses cannot compete
and end up getting absorbed by the corporations. These mammoth
collectivist institutions are in private hands rather than in government
hands (as would be the case under a pure form of communism), but the
results are pretty much the same either way. A tiny elite at the top
gets almost all of the economic rewards.
There are some out there that would suggest that the answer to our
problems is to move more in the direction of “socialism”, but to be
honest that wouldn’t be the solution to anything. It would just change
how the table scraps that the rest of us are getting are distributed.
If we truly wanted a return to prosperity, we need to dramatically
shift the rules of the game so that they are tilted back in favor of
individuals and small businesses. A much more pure form of capitalism
would mean more wealth, less poverty and a more equitable distribution
of the economic rewards in this country.
But it will never happen. Most of our politicians are married to the
big corporations and the wealthy elitists that fund their campaigns.
And most Americans are so uneducated that they believe that what we
actually have today is “capitalism” and that the only alternative is to
go “to the left” toward socialism.
Very few people out there are suggesting that we need to greatly reduce the power of the federal government and
reduce the power of the big corporations, but that is exactly what we
need to do. We need to give individuals and small businesses room to
breathe once again.
With each passing year, things get even worse. In fact, the founder
of Subway Restaurants recently said that the environment for small
businesses is so toxic in America today that he never would have been able to start Subway
if he had to do it today.
For much more on how small business is being strangled to death in the United States, please see my previous article entitled “We Are Witnessing The Death Of Small Business In America
What I want to do now is to discuss some of the results that “corporatism” is producing in America.
First of all, we continue to see incomes go down even though we live in an inflationary economy.
As Time Magazine
recently reported, personal incomes took a huge nosedive during the month of January…
Data released by the Commerce Department last week showed that personal income fell 3.6% in January, the
biggest decline in 20 years. The drop was even bigger when taxes and
inflation are taken into account. Real personal disposable income fell
by 4%, the biggest monthly drop in half a century.
But this is part of a longer term trend. Median household income in the U.S. has declined for four consecutive years
, and it is now significantly lower than it was all the way back in 2001
Real median US household income — that’s “real,” as in
“adjusted for inflation” — was $50,054 in 2011, the most recent data
available from the US Census Bureau. That’s 8% lower than the 2007 peak
Meanwhile, big corporations are absolutely raking in the cash. The following is from a recent New York Times article
“So far in this recovery, corporations have
captured an unusually high share of the income gains,” said Ethan
Harris, co-head of global economics at Bank of America Merrill Lynch.
“The U.S. corporate sector is in a lot better health than the overall
economy. And until we get a full recovery in the labor market, this will
The result has been a golden age for corporate
profits, especially among multinational giants that are also benefiting
from faster growth in emerging economies like China and India.
Today, corporate profits as a percentage of U.S. GDP are at an all-time high
, but wages as a percentage of U.S. GDP are near an all-time low
Just check out the following chart. Corporate profits have absolutely exploded over the past decade…
Meanwhile, wages as a percentage of GDP continue to fall rapidly…
Most of the jobs being created in America today are “low wage” jobs.
Tens of millions of Americans are working as hard as they can only to
find that they can barely put food on the table and provide a roof over
the heads of their children. The ranks of the “working poor
” are exploding and the middle class continues to shrink.
Many of you that are reading this article are members of the working
poor. You know what it is like to stare up at your ceiling at night
wondering how you are going to pay the bills next month.
Today, most Americans are living very close to the edge financially. A recent article by NBC News staff writer Allison Linn
shared some of their stories. The following is one example…
Crystal Dupont knows what it’s like to try to live on the federal minimum wage.
Dupont has no health insurance, so she hasn’t seen a doctor in two
years. She’s behind on her car payments and has taken out pawn shop and
payday loans to cover other monthly expenses. She eats beans and oatmeal
when her food budget gets low.
When she got her tax refund recently, she used the money to get ahead on her light bill.
“I try to live within my means, but sometimes you just can’t,” said
Dupont, 25. The Houston resident works 30 to 40 hours a week taking
customer service calls, earning between $7.25 and $8 an hour. That came
to about $15,000 last year.
It’s a wage she’s lived on for a while now, but just barely.
Sadly, the number of Americans that are “just barely” surviving continues to grow.
But if corporate profits are soaring to unprecedented heights, then who is getting all of those rewards?
The monopoly men of the global elite are.
Just check out the following video
does a great job of illustrating how corporatism has systematically
funneled all of the economic rewards in our system to the very top…
Once again, I want to make it very clear that I am not advocating
socialism as the answer in any way, shape or form. Socialism takes away
the incentive to create wealth and it almost always results in almost
all of the economic rewards going to a very tiny elite anyway.
As I said earlier, what we need is a return to a much more pure form
of capitalism, but this is so foreign to the way that most people think
that most people will not be able to grasp this.
It certainly would be possible to greatly reduce the power of the federal government and
reduce the power of the big corporations at the same time, but this is
so “outside the box” for most people that they cannot even conceive of
doing such a thing.
We need to create an environment where individuals and small
businesses can thrive once again. But instead, most of us are content
to continue “playing the game” and getting enslaved in even more debt.
For example, according to CNBC
, auto loans just continue to get larger and continue to get stretched out for longer periods of time…
American car buyers, attracted by new models and cheap
financing, are taking out bigger auto loans and stretching out the terms
of those loans to a new record length.
New analysis from Experian Automotive shows the average new car loan
in the fourth quarter of last year was $26,691 and stretched out over an
average of 65 months. The length of the average loan is one month
longer than the previous record set in the third quarter of last year.
What will they think of next?
Will we eventually have auto loans that get paid off over 10 years?
By the way, that is another way that the monopoly men of the global elite get all of our money. They enslave us to debt
, and we spend year after year of our lives slaving away to make them even wealthier.
They are very smart. There is a reason why they have 32 TRILLION dollars
away in offshore tax havens. They know how to play the game, and they
are very happy that most of the rest of us are asleep.
Fortunately, it appears that an increasing number of Americans are waking up.
For example, I wanted to share with you all an excerpt from a comment that one of my readers left on one of my recent articles
In the past year, I’ve been slowly but surely waking up
to the nonsense happening around me. There’s so many things I need to
simply get off my chest, so excuse the length of this post. Recently in
the past two years, I’ve gotten married and have been medically
discharged from the Marines after being injured in Afghanistan. Being 23
years old and married, my goal is secure a secure a future for my
family, but with the way things are going, I’m not exactly sure how much
of a future we’re going to have in 50 years. I can’t explain it, but
I’ve felt this need to change my attitude and motivations lately.
I started by turning off the garbage music, television and other
mindless entertainment that seems to plague my generation. It was easier
than it looked – I don’t miss most of it really. The next order of
business was to educate myself on world news, so that’s what I did.
Every day, like clockwork, I check all major mainstream news feeds (NBC,
Fox, Abc, CNN, Reuters, BBC, etc.) as well as not-so-mainstream news
sites – yours being one of them. It’s incredible how fast our world
changes and the manner in which it changes. The local 10 o’clock doesn’t
show anything but local news, sports, weather, lottery #’s and whatever
else they decide to throw in. It’s a night and day difference once you
start to actually research and see what’s happening all over the world.
Look at the number of comments about a news story on the economy and
then look at a celebrity story on the “news”….People are so blind, it
truly amazes me. My friends, family and classmates at college seem to be
under a spell of some sort. They’re distracted – and it’s contagious.
Nobody I know gives a damn about global affairs/economics. They’re more
interested in the newest iPhone, cars, shows, movies, and just about
anything else you can think of. I’m not saying there’s anything wrong
with these things, but my friends/family/peers are CONSUMED by these
distractions. When the election was taking place in 2012, every Tom,
Dick and Harry on Facebook had an opinion and rant. After the circus
ended however, everyone simply went back to posting about parties,
kittens, Farmville etc. It’s a huge joke. For me, it’s little terrifying
and exciting to see history unfolding in front of our eyes. This
country of ours is going through big changes now that will most
certainly affect our future, so I strive to adapt and prepare myself and
my family. I’m looking at buying my first home this summer. Right now I
live in an apartment right outside Philly and spend more money on rent
than most pay for a mortgage. I need a house with a little land to raise
chickens, grow fruits/vegetables, store canned food – and to be as
independent from the system as I can. For my job, I wanted a skill/trade
that people would always need, so I picked the funeral business. On the
side, I work in construction and have been learning everything there is
to know about building with my own two hands. I feel as though these
old forgotten skills are going to be handy in a short while.
Hopefully we can get a lot more people to wake up and start breaking out of “the matrix” of control that is all around us.
Right now, the system is designed to continually funnel more money
and more power to the very top of the pyramid. The global elite are
becoming more dominant with each passing day. Unless something dramatic
happens, at some point the American people will become so powerless
that they won’t be able to do anything about it even if they wanted to.
The idea of a very tiny elite completely dominating all the rest of
us goes against everything that America is supposed to stand for. In
the end, it will result in absolute tyranny if it is not stopped.
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