AN UNDERSTANDING OF AMERICA’S ECONOMIC CHAOS OF 2011 AND AMERICA’S 2012 POLITICAL ELECTION; WHO’S TO BLAME AND WHO TO ELECT

OK folks, this is not an opinion, mine or anyone else’s; these are facts, “The study by the Congressional Budget Office, released this week, found that income has become dramatically concentrated, shifting heavily toward the top earners between 1979 and 2007.”

http://www.huffingtonpost.com/2011/10/26/income-inequality_n_1032632.html

This is what a few of us have been trying to say for some time now; it is not socialistic or even anti-capitalism, it is strictly a matter of how some American governmental legislation and Supreme Court cases has favored (and been ‘bought’) by the wealthiest Americans.

From the standpoint of allowing a citizen to profit from their own inventiveness and ingenuity, capitalism is not only a ‘good thing’, it should actually be a Constitutional Right in a democracy such as America; however, like all civil rights in a democracy, the rights of an individual should not become a liability and/or become a disadvantage to and at the expense of, any or all other American citizens.

In America and in some other places in the world, the freedom of the people has been usurped by the power of the wealthy to essentially enslave the people.

Historically, during the Medieval Times when Christianity spread over Europe, royalty, which was in essence wealth, often willed their fortunes to the Church in benevolence or perhaps to win the favor of God and eternity and the Church began to hold a majority of the wealth (land) at that time (another inequitable distribution of wealth) to the point that royalty and the cities (populace government) simply took the wealth (lands) away from the church, resolving the problem. It was from this point in history (after 1800) that the working Middle Class of Society emerged, of course.

Modern economists get quite concerned about profits, competition, and markets (the stock market and the free market) but do not seem to concern themselves with the distribution of wealth or poverty in our day; consequently, from 1979 to 2007 the wealthy have become wealthier, poverty has increased considerably in America during the last decade, and America’s working Middle Class has began to disappear from the economic scene.

A case in point would appear to be that all of Sam Walton’s (of WalMart) children, his widow’s estate, and his brother’s children are individually one of the richest people in the world according to Forbes Magazine. It is no secret that the success of WalMart was due to keeping labor costs low by paying minimum wages, hiring only part-time labor which received no benefits, and preventing labor unions from organizing the employees.

WalMart, the largest employer in the world, consequently has almost singlehandedly increased poverty in America in the last decade and eliminated proportionately the working Middle Class in America.

The United States Constitution of 1787, marked the beginning of a new looming American political democratic Republic; however, America’s Constitution did not even address an American economic system except to adopt the British Common Law precepts and perhaps the right of a citizen to profit from his own endeavor, if that can be extrapolated from the Constitutional Bill of Rights; at the same time, America recognized and established a socialistic nationalized US Postal System and a Public School System in the Northwest Ordinance of 1787.

Today, America is an economic crisis; Americans are understandably confused. Economic forces in American Society are vying for a selfish advantage and in the milieu of American media, politics, and economic institutions there is considerable confusion and subterfuge.

The basic economic struggle in America is between the have and the have-nots, between wealthy and the poor, which essentially is between employer and employee. For resolution, if the American society and the economy are to be stable, there can be no winners or losers; there must be a stabilizing compromise. The inequitable distribution of wealth in America is a sign that there is something definitely wrong; the fact America is experiencing record unemployment and record profits for corporations is a key indication of the problem.

Ultimately, everything is about power.

Wealth is power; production is power.

The wealthy have the power of the dollar; Labor has the power of production or work stoppage. Nothing is made without the wealth to produce it and nothing is ever made without labor; that is a truism today.

The difference between profits and the cost of labor to produce a product or to provide a service is what the economy is all about. The cost of labor can be reduced by machines but machines must of necessity be produced by labor. This is really not all that difficult to understand or comprehend but it never seems to be understood by employers or employees.

One other concept that seems never to be understood by employer or employee is that employees are also consumers and employers are totally dependent upon consumers for profit.

The Great American Depression of 2011 is ultimately caused by the ignorance of the wealthy and of the working Middle Class about their dependence upon each other.   What hath God and the American democratic Republic wrought?

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