Plutocracy's trickle up economy- the reality of the AIG bonus and WW3.
dev carter
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Democracy in the plutocratic west is corrupt beyond salvation for a
few simple reasons.
There are two powerful camps at play here- the owners and the workers
but strange things are possible when there is collusion between them.
Under a true capitalist system the workers earn enough money to not
only fund their living expenses but also enough to save. In a well
managed capitalist economy the workers who save enough capital may
start their own businesses and become entrepreneurs- getting the
chance with ability and hard work to become upwardly mobile and join
the ranks of the middle classes. Conversely, the capitalists who do
not invest wisely or work efficiently and effectively to manage their
businesses may go broke, loose their capital and become downwardly
mobile and may end up joining the ranks of the workers or unemployed.
The key feature of a true capitalist free market system is this class
mobility- a two way street. But what happens when capitalist conspire
to ensure that key sectors of their economy are too important to fail?
The transformation from capitalism to plutocracy occurs when these
influential capitalists and the more powerful workers groups
democratically agree to the sweetheart deal whereby the capitalists
get political support for a state subsidy of some kind and the workers
get a right to negotiate higher wages in key sectors.
These corporate privileges and higher wages paid to the advantaged
sectors then undermine the savings ability of the workers in the
disadvantaged sectors due to higher inflation- so they lose their
capacity to save and are encouraged to take on temporary debt. Credit
card debt typically becomes permanent debt due to the permanence of
this corporatist collusion between capital and labor.
So called democracy in the West is a corporatist deal between capital
and labor, between party A and party B.
But having found a sure fire winner with one make-work-scheme, why not
build an accretion of make-works-schemes and call them our vital
interests?
Under true capitalism the free market economy is a trickle down
economy- workers earn sufficient income to save, but under plutocracy
or corporatist collusion the so called market economy is an unstable
trickle up economy where saving for the average worker becomes
impossible.
It is unstable because this corporatist collusion between party A and
party B unbridles the plutocratic state from the rigors of a global
free market. Who cares about free market realities when one has enough
vital interests to defend to stay in the black for an eternity and to
hell with those who don't- including other capitalists and
entrepreneurs?
If it is more profitable to debase the money supply and issue nickel
coinage instead of silver why not do so, as the corporatists have the
power to raise prices and advantaged sector wages? The underclass in
the non-corporatist economy is pushed further into debt with rising
inflation and declines in the purchasing power of their lower wages
paid with a debased currency.
If the corporatist need more cash, they don't need the market
discipline of buying a horde of gold or silver anymore before printing
more money.
If the proliferation of armaments for the purpose of escalating
conflict and the probability of then creating wars is a guaranteed
boom to the military sector of the corporatist economy, why not do so?
The underclass in the non-corporatist economy is then pushed further
into debt with a decline is government revenue allocated to public
infrastructure, healthcare, education and welfare.
Thus the plutocratic state is corporatist collusion to shift wealth
from trickle down to trickle up. The social pathological nature of
this evolution is evident in the ever growing malignant tumor of the
public and private debt mountains.
What this debt represents is the appropriated wages and profits of
the non-corporatist segment of the economy, plus interest.
Corporatist democracy is the problem, and it is little wonder that the
US government response is more of the same- to turn on the tap of
bailout and stimulus.
According to the plutocratic mindset, if 'trickle up' is good then a
'flood up' must be even better.
The AIG executive bonuses funded by a bailout are the tip of the
iceberg of the corporatist undermining of the capitalist state that
has been decades in the making- just the latest example of our
corporatist trickle up economy.
When all the fizz goes out of bailout and stimulus and any other
conjuring tricks the corporatist elites come up with, the masses will
need to consider radical national secularist surgery as this alone
address the real underlying problems of increasing asecularist
zealotry in domestic and foreign policy, currency debasement and an
unsustainable shift of wealth from the bottom and center to the right.
Only restructuring will make free markets truly free again and get
small 'c' capitalism back on its feet again, but this will require
radical surgery on the social pathology within.
The ever present danger is that the closer the scalpel, the more
attractive WW3 becomes to the plutocrats and their ideological
bedfellows- the Zionists and neocons. The recent Gaza offensive and
electoral triumph of the Zionist far right in Israel ensure that
plutocracy has a willing attack dog at hand- the nuclear armed Israeli
Zionist regime ideologically committed to plutocracy's survival at any
cost.
The recent ultra Zionist state sponsored attack on the northern
Israeli Arab town of Umm el-Fahm mirrors the rise of fascist violence
against the Jews in Nazi Germany. The rise of fascism and Zionism
mirrors similar wealth shifts, then as now, to the right.
What is worrying the Chinese and many in Europe is that the American
financial crisis has the smell of fait accompli.
It beggars belief that the US government, Wall Street and the
financial regulators never saw it coming and were genuinely surprised
by the financial crisis and resultant global turmoil.
What a pox doctor's clerk could figure out in half an hour, all the
advisors, professors and doctorate holding full-time tenured
specialists could not understand nor comprehend in a million man-hour
lifetime?
In short, it stinks of cover-up and collusion- and tacit agreement
between the corporatist elite that as structural reform is politically
impossible, global war is inevitable.
If one is on this path to global conflict what better instrument that
a trade in derivatives and credit default swaps to scuttle the global
economy and pull all the plutocratic regimes into a common military
alliance for plutocracy's survival.
If the growing millions of chronically impoverished or unemployed
represent a systemic threat to plutocracy, surely, they reason, less
of them must be a good thing.
Dev Carter