PART 2: JEFFERSONIAN PROGRESSIVE TAXATION
P.S. What can you do to end plutocracy and Reaganism in America? You can help a real democratic candidate for real Capitalism win an election, or even become one yourself. How? Consider the following:
The five core policies of real Capitalism --- printed on a sign as they appear to the right of the picture of my book above, and my $5 contribution limit were so popular that I was personally able to collect 2600 signatures to get my name on the 2014 ballot for a U.S. House seat. ( even registered Republicans were asking permission to sign in support )
And so, using that platform, a few people could collect the 13,000 raw signatures needed to get a real democrat on the ballot for a U.S. Senate seat.
The rest of a democratic campaign is even easier: Set up a website promoting real Capitalism, ask people to read it, to recommend it to others, and to vote -- particularly in the primaries!
If enough of us choose to actively support such campaigns all over our country , and to reject all candidates running "big-money" campaigns , the plutocratic predator class can't retain control of our government.
2014 primary post-mortem: Logic is uncommon sense. Mass 6th democrats had five choices in their 2014 primary and they picked Seth Moulton, -- the most plutocratic !! ( almost 80% of his record-setting "big-money" campaign war-chest came from members of the financial services industry. )
2016 primary post-mortem: I personally asked over 40,000 people to sign my nomination papers and all but 2,317 refused ( I needed 2,500 ) ; -- so the predator owned Moulton ran unopposed. The fact that Ninety-five percent of us would not spare a minute to sign a nomination paper exposed the shocking breadth and depth of our civic irresponsibility ; It's time to face reality , -- we have the government we deserve.
I am a democratic candidate for Congress from the 6th District of Massachusetts, - and so, unlike "new Democrats", I don't want money, I want time. Please take the time to read this website carefully; Particularly the historical arguments against Oligarchic Socialism ( Reaganism ), and for the five core policies of classical ( Real ) Capitalism -- all five of which have been opposed by a majority of lawmakers from both political parties for the last 30 years. ( Why? -- Bribery !! ) What is Oligarchic Socialism ?? -- The government, media, and means of production all controlled by a mega-rich predator class.
1. tariffs on products made by slave wage labor abroad, and
a living minimum wage at home
2. Jeffersonian geometrically progressive taxes on estates
and all forms of personal income
3. federal regulations that promote fair enterprise
4. a publicly owned national currency
5. publicly supported federal lawmakers
In every society throughout history there have been three classes of human behavior; the predatory, the productive, and the parasitic. The primary economic activity of predators and parasites is always wealth acquisition, — they are "the takers" .
America's mega-rich, less than 1% of us, now have a combined net worth ( assets minus liabilities ) of over twenty trillion dollars, and the bottom 40% ( which includes the parasites ) have a combined net worth of Nothing. Why?? -- Because the free trade, regressive tax policies of bribed lawmakers from both political parties have been "redistributing" wealth from our producers to our predators for decades. The responsibility for that is ours !! -- and If We the Voters don't stop nominating "big-money" candidates in our primaries America will remain the world's largest free-trading, flat-taxing oligarchic socialist banana republic.
What is oligarchic socialism ?? -- The government, media, and means of production all controlled by a mega-rich predator class.
Want to help end it ??? -- Write-in my name in November.
After graduating from a western Pennsylvania H.S. in 1960 I attended college full time at night while working days in a Shenango Valley tube mill. All but one of that valley's tube and steel mills are now gone; - bought, looted, and dismantled by predators financed by Wall Street. The predators and their financiers became fabulously wealthy; the towns and the people of the valley were devastated.
During the 1980's I was GTE Sylvania's High Pressure Sodium R&D and manufacturing engineering manager; -- based at their Manchester N.H. plant, but with international responsibilities.
In 1988 our Manchester plant was still manufacturing both our parts and products entirely in America, paying our factory workers over $10 an hour, and making a 15% profit; -- but we were already considering a core economic policy of Reaganomics -- maximize profits by moving manufacturing to Third World nations; -- he said we should become a " service economy".
I quit Sylvania in 1988, and a few years after I quit most of their manufacturing jobs were in Mexico. Why? Slave wage labor, -- and contrary to Reaganite propaganda, that is the primary reason tens of millions of American jobs remain abroad today. Reaganism became our nation's disgrace.
Consequently I gave up engineering entirely, studied economic history and theory for about ten years, made a run for Congress in 1996, and in 2011 published a book titled For a Fair America; the cure for our sick economy . Reaganism is the sickness, and Capitalism is the cure.
This website, a summary of that book, uses historical writings and facts to show Why we must scrap the predatory, money based economic scheme that Ronald Reagan gave us, and replace it with the productive, labor based policies of real Capitalism, prescribed by rational men, - Adam Smith, Lincoln, Locke and Jefferson among them. Those Capitalist policies include the following:
1. Tariffs on products made by slave wage labor abroad, and a Living minimum wage at home.
2. Jeffersonian progressive taxes on estates and All Forms of personal income -- including stock
grants, options, dividends, and capital gains.
3. Federal regulations that promote Fair enterprise.
4. A Publicly Owned national currency.
5. Publicly Supported federal lawmakers.
All Five of these Capitalist policies have been opposed by a majority of lawmakers from Both political parties for the last 30 years. Why? Because lawmakers from Both political parties have been selling their souls ( and their votes ) to the mega-rich for campaign contributions and/or retirement jobs worth millions.
This is plutocracy, and these two forms of bribery must end. Unfortunately, thanks to five cretins on our Supreme Court who can't see that money doesn't speak, it buys; that end remains voluntary. Consequently my campaign will not accept more than $5 from any individual or organization, and after retirement from lawmaking I would not accept pay for any form of work in the future.
But this website has far more important news:
It shows How we can end plutocracy and Reaganism in America, and replace them with democracy and Capitalism.
It shows How Capitalism would create tens of millions of jobs; eliminate our national debt; restore our infrastructure; protect our environment; finance care for our disabled, sick, and elderly; and ensure life supporting after-tax incomes for all.
So Please read the rest of this website, and carefully consider the historical arguments and policies that it presents; - before you vote wherever you vote in this country.
Now I have a confession to make: Prior to 1990 I was a Reaganite. I voted for Kennedy in 1960; but for Goldwater in 64, Nixon, and Reagan twice because I was so afraid Lyndon Johnson's 'Great Society' would take from the producers and give to the parasites until there were no willing producers left.
Just as we Reaganites argued, Equality in a parasitic Communist state is wrong; -- every adult able to work for a living should be required, by law, to do so.
On the other hand, in a country as resource and climate rich as America, every adult worker could and should, by federal law, receive a wage that will support their family, - a living minimum wage that Reaganites have always opposed.
Why federal law? Because otherwise corrupt businessmen will move to slave wage states just as they now move to slave wage nations.
Note: Because of outsourcing, excessive immigration, and Reaganite opposition to a living minimum wage, the hourly wages of the majority of adult workers in America fall between the minimum wage of $7.25 an hour and a living wage for a family of four, thereby forcing wives and children to work; -- an indicator of true Reaganite "family values".
What is Fair enterprise? Take a plane ride at night, very high, anywhere in the world, and look down; you will see points of light everywhere, - marking buildings and industries, outlining the roads, and flooding the cities. Those points of light are High Pressure Sodium lamps. There are billions of them lighting the world today.
I was hired right out of college in 1966 by GE's Dr. Kurt Schmidt, the holder of the original HPS lamp patent granted to him that very year - 1966. Dr. Schmidt was paid less than 100 dollars for his patent. Burning behind his desk during my job interview was one of the first HPS lamps ever made. Lamps of that design failed in a few weeks, - they were useless. And so for the next 20 years Dr. Schmidt, I, and thousands of other engineers and co-workers from corporations at home and abroad worked to improve HPS lamps, building on each others' ideas, many of us receiving a number of patents of our own, until almost all HPS lamps would burn at least six years.
None of us were paid more than a few hundred dollars for any of our patents; but by saving from our salaries most of us were able to accumulate hundreds of thousands in wealth, some of us millions during our careers, and the CEO’s of our companies tens of millions. As a result of this generous but reasonable compensation, HPS lamps could be and were produced in America for $8, by workers paid a living wage of $10 an hour, and sold at a 15% profit for $11. That was Fair enterprise.
Now consider the methods of typical Free enterprise ( Reaganite ) 'superstars' like Bill Gates and Steve Jobs : Because Microsoft massively overcharged customers for its programs ( copied for a few dollars ) , -- customers consequently less able to afford anything else, -- the Microsoft stock Gates owns is worth tens of billions. Until Steve Jobs moved their factories to China in 2002 his Apple stock was worth only $7 a share; - Chinese slaves made him a billionaire.
How do corrupt corporate 'leaders' like these two get so much stock ? They issue company stock that should all be sold to finance company operations ; - but grant most of the stock to each other instead ( through interlocking boards of directors ).
Why do corporate looters prefer stock grants over salaries ? Because stocks are not taxed unless they are sold.
But Gates and Jobs at least produced something; - most of our predators produce Nothing.
--- like corporate raiders, spawned by Wall Street in the 1980's, who buy asset rich companies, and then recover the purchase price and extract great profits for themselves by issuing debt against the assets of the companies; -- the debt of course to be repaid by layoffs, wage and benefit cuts, and harder work for the remaining employees. If the companies fail and everyone loses their jobs, so what; - the predators already have their money. What do these predators produce ? -- Nothing!
--- or like the savings and loan CEO's of the 1980's, who ( after Reagan foolishly deregulated S&L's and gave them FDIC protection against loss ) used FDIC insured money to give fraudulent loans to swindlers building imaginary homes and malls in deserts, and to give themselves tens of millions in compensation packages. What did these predators produce ? --- Nothing!
--- or like the "investment" bankers of the last decade, deregulated by Reaganites and guided by Goldman Sachs, who knowingly financed and packaged tens of thousands of designed to fail jumbo NINJA home loans into tens of billions worth of designed to fail Mortgage Backed Securities and fraudulently sold them all over the world; - but not before they bought a law ( the CFMA of 2000 ) which allowed them to create the derivatives they needed to place tens of billions in bets that those securities would fail. What did these predators contribute to the economy ? --- Nothing!
--- or like the hedge fund market manipulators of today, most of them now working directly with government insured banks since the repeal of the Glass--Steagall Act, who are using the large pools of depositors' money now available to them to buy futures contracts on stocks or commodities ( place bets on the direction of short term prices ), and then buy or short sell just enough of the stocks or commodities to collect on their bets. What are these predators contributing to our economy ? --- Nothing!
--- or like that sweet old man in Omaha, Warren Buffett, who spent most of his life eating hamburgers, drinking Coke, and talking on the phone with his investment bankers at Goldman Sachs. Did Warren Buffett produce the fifty billion dollars worth of wealth that he now owns by his labor, or did he take it from the producing class with the help of Goldman Sachs ? -- There is only one rational answer to that question.
All of these free enterprise activities should be forbidden by law or penalized by progressive taxation, and before the Reaganites took control of our government all of them were. Bribed Reaganite lawmakers ( from both political parties ) turned our "shining city on a hill" into a swamp and the scum rose to the top.
" Every new regulation concerning commerce or revenue presents a new harvest to those who watch [ or buy ] the change, and can trace its consequences; a harvest reared not by themselves, but by the toils and cares of the great body of their fellow-citizens." -- James Madison
Fact: Laws can always make wrong legal, but they can never make wrong right. There never was and there never will be a fair way to "make" a great fortune. And that is why as Jesus said: " It is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God. "
America's predators ( about 0.3% of us ) now have a combined net worth of over twenty trillion dollars and the bottom 40% a combined net worth of Nothing. Why? Because the flat tax, slave wage policies of privately owned ( bribed ) Reaganite lawmakers from Both political parties have been "redistributing" wealth from our producers to our predators for decades.
( Fact: The effects of Reaganomics have been entirely redistributive because it did not increase the inflation adjusted rate of GDP growth; -- Eisenhower years +3%, Kennedy/Johnson +4.85%, Nixon/Ford +2.8%, Carter +3.25%, Reagan +3.4%, Bush I +2.2%, Clinton +3.9%, Bush II +2.1%, Obama +1.4% )
Notes on other Reaganite myths:
Fact: The Reaganites' global slave wage economy benefited multi-national corporations far more than it did American consumers. The profits of the S&P 500 are up over 900% since the 1980's primarily because their global labor costs fell while our CPI continued to rise.
Fact: Carter didn't cause the inflation of the 1970's, and Reagan didn't end it. OPEC's tenfold oil price increase beginning in 1973 [ Nixon was president ] started the inflation, and OPEC"s overproduction [ the "oil glut" ] caused a tenfold oil price decrease beginning in 1981 [ Reagan's first year ] that ended it.
Fact: Reagan did not end Soviet style socialism, he adopted it. Reaganism, Plutocratic Mercantilism, and Oligarchic Socialism all rest on the same corrupt foundation; -- control of both the government and economy by a mega-rich predator class.
Fact: The mega-rich are not "the makers". All human creations, -- including HPS lamps, 'my' book, computers, and their programs, -- are the product of the labor of millions. Without that labor we would all be hunter-gatherers or subsistence farmers. ( If you still doubt this, read the essay "I, Pencil" written in 1957 by a libertarian economist. )
Addendum (Feb. 2013): How do policies that favor 1% of Americans become law ?? Bribed Republicans and 'Democrats' collaborate to disguise them. Consider the tricks they used to sneak a three trillion dollar estate tax cut for the richest of the richest 1%, past us:
In 2002 a Republican Congress 'temporarily' cut the top marginal estate tax rate from 55% to 50%. They also dropped the rate to zero for one year, 2010; -- a cunning set-up for a permanent rate 'increase' to far less than 50%.
And that is exactly what happened. In Dec. of 2012 a 'Democrat' Senate wrote (and Obama signed) the American Taxpayer Relief Act which gave the 1% a permanent 40% estate tax rate, -- 10% lower than the temporary 2002 rate, and 15% ( three trillion dollars ) lower than the rate would now be if our 'Democrat' Senate and President had let the temporary 2002 Bush tax cuts expire. ( Note: That law did let the temporary payroll tax cut for the working poor expire. )
What is the Capitalist alternative to flatter estate taxes? - In his book "Rights of Man" Thomas Paine, a favorite of Jefferson, suggests a twenty to one wealth ratio between the richest and poorest producing families in a society.
Do some arithmetic; Our national net worth ( wealth ) is over 50 trillion dollars and we have about 100 million families, - or $500,000 per family. Twenty times the average family wealth then, is ten million dollars.
So let's be far more generous to our rich than Paine suggested; No estate tax on the first $10 million ( 20 times the average wealth per family ), rising progressively from there to a top marginal rate of 80% over $50 million. [ the pre- Reagan top rate was 77% over $10 million ] This top rate would hit only the richest of our richest 1% and yield at least 16 trillion dollars, enough ( in combination with Jeffersonian income taxes ) to eliminate our national debt upon their demise; -- and their heirs would still be the richest of the richest 1%.
But suppose that our mega-rich decide not to pay, and they leave America instead? Under U.S. law renunciation of citizenship does not relieve tax liability, and tax evasion is a criminal offense. If we could catch Bin Laden, we can catch them.
In summary, despite all of our problems, there really is hope; because the majority have the votes to elect Lincolnites. ( think real Democrats )
What would Lincolnites do to cure our morally ill economy ? Tax estates and income progressively; Eliminate all federal taxes on household income under $40,000 a year; End outsourcing by restoring tariffs on slave wage nations; End overseas military occupations and secure our borders; Eliminate corporate taxes in exchange for a living minimum wage ( at least $15 an hour today ) for all working adults; Nationalize the Federal Reserve; and raise the annual revenue that we need to rebuild our infrastructure, restore the environment, and provide services for our disabled, sick, and elderly.
How would Lincolnites raise that revenue? Through Jeffersonian geometrically progressive marginal tax rate increases, starting to rise at $250,000 a year, on any combination of all forms of household income --- including stock grants, options, dividends and capital gains.
Why any combination of all forms of income ?? To eliminate loopholes that allow massive theft and accumulation of wealth by 'entitled' predators.
Rising to what level ?? At minimum the pre-Reagan top rate of 70% on marginal household income over $400,000 a year.
America now has a government of, by and for the predators because they are bribing our lawmakers with campaign contributions and/or promises of retirement jobs worth millions. ( these two forms of bribery make term limits nonsensical )
But let's be honest, not critical; -- how many of us would refuse to sell a few votes for a retirement job worth millions, -- particularly if " everyone else is doing it " ??
Laws are the soul of a nation, and lawmaking is the most important job in a nation. The bribing of our lawmakers must be stopped, and there is only one sure way to stop it; -- entirely public financing of campaigns, commensurate pay, and mandatory retirements for life on generous government pensions.
Consequently our laws should mandate entirely public funding of federal campaigns, and ban pay for work of any kind by 'retired' lawmakers.
The cost would be less than five billion dollars a year; -- a small price to pay for a government of, by, and for All of our people.
Dec.11, 2014: The House spending bill includes Reaganite riders that significantly increase freedom for predators to scam or to bribe. One weakens regulations on derivatives, the other increases donor campaign spending limits by hundreds of thousands. Closet Reaganites Obama and Harry Reid are urging House Democrats to vote for the bill. It should be opposed until those riders are removed.
Dec. 12, 2014: It wasn't; -- Washington's fealty to its mega-rich funders continues.
Feb. 2016: Proselytizing 'fundamentalists' from every religion have something very dangerous in common ; -- an egomaniacal certainty that they know "the will of God". Consequently freedom of religion must also mean freedom from religion.
March 2016: We Democrats must face reality. Obama fooled us; - he was in fact a "new Democrat" owned by the oligarchs. Want proof? His choice of Rubin and Summers, his 'justice' department's failure to prosecute the banksters, the American Taxpayer Relief Act of 2012 ( spearheaded by his VP Joe Biden ) which gave the mega-rich a three trillion dollar estate tax cut, and the TPP. Bill Clinton, the first "new Democrat", was no better; -- he gave us NAFTA, capital gains tax cuts, repeal of Glass-Steagall, and the Commodities Futures Modernization Act which deregulated derivatives. Bernie Sanders is trying to give us the first real Democrat president in 35 years; - are we foolish enough to nominate Hillary, another predator owned "new Democrat", instead ??
March 2016: Why am I running for Congress at my age on this platform ? -- because someone should run on it in the Mass. 6th ( and everywhere else in our country ) .
April 2016: Reaganites believe that the parasites are the successful ( dangerous ) takers; Lincolnites believe that the predators are the successful ( dangerous ) takers. The richest of our richest 1% have a combined net worth of 20 trillion dollars, and the bottom 40% have a combined net worth of nothing; -- So which side is right ??
April 2016: " they see things as they are through thousands of millions of dollars, and that is a pretty thick coating. This immense pecuniary interest has its influence upon their minds. " -- Abraham Lincoln
Republicans and "new Democrats" say the "big-money" they take does not influence them; -- history and logic say otherwise.
June 2016: In every society throughout history there have been three classes of human behavior; the predatory, the productive, and the parasitic. The primary economic activity of predators is always wealth acquisition, — they are "the takers”.
America's mega-rich, less than 1% of us, now have a combined net worth of over twenty trillion dollars. The Reaganite claim that so few produced so much wealth by their labor is ridiculous! Like the 'entitled' Lion of Aesop, they took the shares of others, flat taxes allowed them to keep what they took, and America has tens of millions of working poor struggling to survive with a net worth of Nothing as a result.
Fact: The responsibility for that is Ours !! If We the Voters don’t stop nominating and electing “big-money” candidates America will remain the world’s largest free-trading, flat-taxing, oligarchic socialist banana republic.
What is oligarchic socialism ?? -- The government, media, and means of production all controlled by a mega-rich predator class.
Who alone can end oligarchic socialism in America ??? -- us.
QUOTES FROM ADAM SMITH, THE FOUNDING FATHER OF ( REAL ) CAPITALISM; ---
PART 3: FAIR ENTERPRISE
PART 5: PUBLICLY SUPPORTED FEDERAL LAWMAKERS
HUMANS ARE FAIR, ANIMALS ARE FREE
WHICH OF THE TWO DO WE WANT TO BE ?
John Gutta for Congress
" A nation may be said to consist of its territory, its people, and its laws. "
--- Abraham Lincoln
America's territory is one of the richest on earth in climate and natural resources. Our people have a range of abilities equal to any other. And so, by process of elimination, our laws must be the cause of our sick economy. This is good news. Territories and people are hard to change. Laws can be changed with a pen and paper; -- and the goal of the laws must be justice.
" Do unto others as you would have them do unto you !! "
This Biblical mandate for justice, common to all major religions, became the American Dream; -- " one nation, under God, indivisible, with liberty and justice for all. "
Why justice? -- and why not freedom? Ask yourself a question; -- Was the American Revolution fought to make us free to be as unfair as England, or to end the freedom of England to be unfair?
The answer is obvious: The American Revolution was not a war for freedom, it was a war against injustice. We were a resource rich foreign territory being economically raped by England. ( a fact that American advocates for military occupations of oil rich foreign territories conveniently forget )
But to establish justice for all, laws must limit the freedom of all. Why? Again the answer is obvious: Look at the people around you; -
are any two of us equal in strength, intelligence, ambitions, empathy and morality?
Of course not! -- no two humans ever were equal, and no two humans ever will be.
Because humans are not equal, they cannot be free, and justice must be the first and highest priority of governments.
This self-evident, timeless truth was noted by many great men of history; ---
" Human nature will not change. In any future great national trial, compared with the men of this, we shall have as weak and as strong, as silly and as wise, as bad and as good . . if all men were just, there still would be some, but not so much, need of government. " --- Abraham Lincoln
" Still one thing more fellow citizens -- a wise and frugal government, which shall restrain men from injuring one another, which shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned." --- Thomas Jefferson
" Every man, so long as he does not violate the laws of justice, is left perfectly free to pursue his own interest in his own way." -- Adam Smith in Wealth of Nations
" Society is produced by our wants and government by our wickedness; Were the impulses of conscience clear, uniform, and irresistibly obeyed, man would need no other lawgiver. Government, like dress, is the badge of lost innocence. " --- Thomas Paine in Common Sense
Putting these flowery arguments in blunt, modern language; There will always be some who are strong but unfair; some who are smart but unfair; and so governments are necessary to see that no one is free to rob others by force -- the power of a superior body, or to cheat others by fraud -- the power of a superior mind.
What then, is the meaning of the word "liberty" in our pledge of Allegiance and the Preamble to our Constitution? Abraham Lincoln answered; ---
" The world has never had a good definition of the word liberty, and the American people just now, are much in need of one. We all declare for liberty; but in using the word we do not all mean the same thing. With some the word liberty may mean for each man to do as he pleases with himself, and the product of his labor, while with others the same word may mean for some men to do as they please with other men, and the product of other men's labor. Here are two, not only different, but incompatible things, called by the same name, liberty. And it follows that each of the things is, by the respective parties, called by two different and incompatible names -- liberty and tyranny. "
The messages from our past are clear: liberty is not a right to be free; it is an obligation to be fair.
Please stop right now!! Go back to the beginning. Read and reread the historical quotations again. Think hard on what they are telling us; -- because in these few quotations are the essence of a nation, the nature of mankind, and the purpose of laws.
To my mind, these quotations present a self-evident argument for a political party advocating liberty and economic justice. And to my mind, these quotations, in combination with the quotations in the chapters that follow, conclusively prove that the platform of that party must include five Capitalist policies; -- fair trade, Jeffersonian pro-gressive taxation, fair enterprise, a publicly owned national currency, and publicly supported federal lawmakers.
( Note: All five policies are essential ; but , because of bribery , all five have been opposed by a majority of lawmakers from both political parties for the last 30 years !! )
But mine is only one 74 year old mind, and I have only one vote.
If liberty and economic justice are to be established in America, a majority of votes are needed.
This need for a majority of votes is good news; because it tells us that the liberty and justice of Capitalism, as defined and defended in writing by great leaders of history, can be established in America without the votes of the millions of TV Newspeak junkies and talk-radio dittoheads who won't read and think for themselves.
Unfortunately, in spite of this good news, America still has a bribed President and Congress promoting the free trade, flat tax policies of Ronald Reagan !! Why?? -- because a majority of us continue to support " big - money " ( predator controlled ) candidates in our primaries.
"Ours is a government of laws and not of men" wrote John Adams.
It necessarily follows that the quality of our laws is determined by the quality of the humans that we choose to write them ; -- The responsibility is ours !!
All of which leads to what might be the most important of all self-evident truths; -- A government of the people and by the people can be no wiser than the majority of the people.
" Labor was the first price, the original purchase-money that was paid for all things. It was not by gold or by silver, but by labor, that all the wealth of the world was originally purchased. "
( Note: This is an argument for a labor based economy. )
" Money, no doubt, makes always a part of the national capital, but it makes always the most unprofitable part of it. The great wheel of circulation [ money ] is altogether different from the goods that are circulated by means of it. "
( Note: This is an argument for a publicly owned currency. )
" By preferring the support of domestic to that of foreign industry, he [ a busi-
nessman ] intends only his own security; and by directing that [ domestic ] industry in such a manner as its produce may be of greatest value, he intends only his own gain, and he is in this led by an invisible hand to promote an end [ the good of his country ] which was no part of his intention."
" By means of glasses, hotbeds, and hotwalls [ heated greenhouses ], very good grapes can be raised in Scotland, and very good wine too can be made of them -- at about thirty times the expense for which equally good wine can be brought from abroad. Would it be a reasonable law to prohibit the importation of all foreign wines? "
( Note: Adam Smith is arguing for domestic manufacturing and natural advantage;
not Reaganite outsourcing for slave wage advantage. )
" The ultimate object [ of Capitalism ] is to enrich the country by an advantageous balance of trade. It discourages the export of the materials of manufacture [ natural resources ], and of the instruments of trade [ machinery and factories ], in order to give our own workmen an advantage. It encourages the importation of the materials of manufacture, in order that our own people may work them up more cheaply, and thereby prevent a greater and more valuable importation of the manufactured commodities."
( Note: Read this statement by Adam Smith again carefully and you will see that the Reaganites have us doing exactly the opposite. The effects? --- high domestic unemployment, depressed producing class wages, trade deficits, and soaring profits for our predator class. )
" In reality high profits tend much more to raise the price of work than high wages. The rate of profit of merchants and master manufacturers is naturally low in rich, and high in poor countries, and it is always highest in the countries which are going fastest to ruin."
( Note: This is an argument for Jeffersonian progressive taxation. Thanks to the Reaganites' flat tax rates and outsourcing the aggregate profit of our predator class is now over twenty trillion dollars, and we are on the road to ruin. )
" A man [ adult ] must always live by his work, and his wages must be at least sufficient to maintain him. They must even upon most occasions be somewhat more; otherwise it would be impossible for him to bring up a family."
( Note: This is an argument for a minimum wage that will support a family. Which should be offset by tax relief and/or subsidized apprenticeship programs for small business owners. )
" Whenever the legislature attempts to regulate the differences between masters and their workmen, its counselors are always the masters. [ Beware the laws ] which the clamour of our merchants and manufacturers have extorted [ bought ] from the legislature for the support of their own absurd and oppressive monopolies; Like the laws of Draco, these laws may be said to be all written in blood."
( Note: This is an argument for publicly supported lawmakers. )
" The proposal of any new law or regulation of commerce which comes from this order [ merchants and master manufacturers ] ought never to be adopted till carefully examined with the most suspicious attention. It comes from an order of men who have an interest to deceive and oppress the public, and who accordingly have, upon many occasions, both deceived and oppressed it."
( Note: This is an argument for fair enterprise. Study the philosophy of business school 'superstars' who are bribing lawmakers from both parties with campaign contributions and/or promises of retirement jobs worth millions; -- anything legal goes, profits first, products second, the environment and people last. )
" Every man, so long as he does not violate the laws of justice, is left perfectly free to pursue his own interest in his own way."
( Note: This is Adam Smith's declaration for liberty and economic justice !! )
Clearly, Adam Smith would have wanted a "democratic socialist" ( closet Capitalist ) like Bernie Sanders in the White House, and a lot fewer new Democrats and Republicans ( oligarchic socialists ) in Congress. "We the People" should too.
PART 4: A PUBLICLY OWNED NATIONAL CURRENCY
P.P.S. Hot button positions: ---
Affordable care: If you have health you need health insurance; -- public option for all.
Illegal immigration: Secure our borders, but provide a path to citizenship for those already here.
Federally mandate a living minimum wage for all working adults, and restore
tariffs on slave wage nations to create tens of millions of additional jobs -- more
than enough for everyone.
Gun rights: Allow recreational shooting and hunting in restricted areas, and carrying in populated areas
by local law enforcement permit. Weapons of mass slaughter should be banned.
Run instant point-of-sale background checks by pictured citizenship card.
Territorial waters: 6th district commercial fishing grounds are for 6th district fishermen.
Reproductive rights: Pro-contraception; -- Earth is overpopulated.
( abstinence is anti-sex contraception )
Right to life: Mandatory adoption of all unwanted children by registered pro-life activists.
( children placed by lottery )
Abortion rights: Pro-choice up to 20 week pain threshold, health and quality of life reasons afterward.
( see right to life above )
Gay rights: harm no-one.
4 dead in Benghazi: 3,000 dead in NYC ( and two hopeless wars ) because the Bush
administration ignored FBI warnings about known terrorists taking flying
lessons in Florida.
Middle east policy: Get out and stay out militarily; -- unsophisticated tribal religious fanatics can't
be pacified, and they should be no threat to us. ( see Bush above )
Palestine policy: The U.N. made the Holy Land of three major religions a Jewish state. The U.N. should
correct that mistake by making it a neutral, U.N. controlled and policed religious shrine.
( to the dismay of Bible literalists, this would avoid Armageddon )
PART 1: TARIFFS AND A LIVING MINIMUM WAGE
" Government, possessing the power to create and issue currency and credit as money, and enjoying the right to withdraw currency and credit from circulation by taxation and otherwise, need not and should not borrow capital at interest. " -- Abraham Lincoln
Which brings us to the greatest predators' scam of them all; - that privately owned corporation, cunningly called the "Federal" Reserve, that buys all of our currency from us ( the nation ) for pennies a note, and then lends it back to us ( the nation ) for face value plus interest.
The proof for this statement is contained in quotations from economics textbooks, primarily those from pages 237 and 238 of a Federal Reserve bankers' handbook - "The Federal Reserve System" edited by H.V. Procknow, vice president of The Federal Reserve Bank of Chicago --
" All paper currency is in the form of Federal Reserve Notes issued by Federal Reserve Banks. . Federal Reserve Banks are owned by the member banks in their districts. . Federal Reserve Notes are produced at the Bureau of Engraving and Printing in denominations ranging from $1 to $10,000. . The Reserve Banks pay only the cost of producing their notes, about one cent per note, no matter what the denomination."
So there it is in print for anyone to read; -- All the currency of America was produced by our government and sold to private bankers for a penny a note no matter what the denomination. The bankers then lent it back to the government, or to the general public, for face value plus interest.
The interest on "their" currency has been compounding since 1913, and our combined public-private debt to the bankers is now tens of trillions of dollars; almost all of it unpayable interest because less than two trillion dollars worth of currency exists.
The producers of our currency, the printing press operators, didn't charge our nation tens of trillions of dollars in unpayable interest; predators who produced Nothing did.
To demonstrate that the interest is unpayable, lend a dollar to a friend at 5% interest; -- obviously he can repay you by working for someone else in our nation who pays him the dollar and the interest.
But now let your friend represent the entire nation including the government, and the dollar all of the currency; -- your friend could return your dollar, but where could he get the interest? The answer is obvious; -- there is nowhere he could get it.
Furthermore, if he returned the dollar ( the principal ), there would be no currency left in the nation and almost all economic activity would end.
How did "We the People" get in such a stupid mess? Surely not one of us, as an individual, would be fool enough to sell all our currency for a penny a note and borrow it back for face value plus interest. Why then, as members of our nation, was every one of us fool enough to do exactly that ??Because as individuals we watch for such tricks; but as members of our nation we each rely on others to watch for us -- and so no-one at all does the watching. ( The responsibility is ours! )
And now the bankers' bribed puppets in Washington are telling us that even though we have all sorts of work to be done ( like educating our young, repairing our nation, and caring for our sick and elderly ) , the physical resources to do the work , and tens of millions of unemployed or under-employed Americans willing and able to do the work ; -- the work can't be done for the want of a pile of green paper !!
Which raises a very interesting question: -- Why are a majority of Americans fools enough to believe That ???
The Capitalist remedy?? -- Nationalize the Federal Reserve ( and with it "their" notes ) to create a publicly owned currency and a central bank that, through federal deficit spending, injects all currency into our economy principal and interest free to the government at a rate tied by law to domestic wealth production.
The last condition, tied by law to domestic wealth production, is vitally important for two reasons: First; -- a nation always devalues its currency when it creates money at a faster rate than the labor of its people produce wealth at home.
Second; -- a nation always devalues its currency when it buys more wealth from abroad than the labor of its people produce and export from home.
Consequently a Capitalist economy must be domestic labor based; and a Capitalist nation should produce all of the goods and services that it can at home, and buy nonrenewable resources ( like oil ) from abroad.
" A nation may be said to consist of its territory, its people, and its laws. The territory is the only part which is of certain durability. Our national strife springs not from our permanent part, not from the land we inhabit, not from our national homestead.
Our strife pertains to ourselves -- to the passing generations of men. It is the eternal struggle between these two principles --- right and wrong; the one is the common right of humanity,
and the other the divine right of kings. It can without convulsion be hushed forever with the passing of one generation.
We shall nobly save, or meanly lose the last, best hope of earth."
---- Abraham Lincoln
Go back to the beginning and read the
today only the words are theirs,
the responsibility is ours.
For a Fair America,
" A man must always live by his work, and his wages must be at least sufficient to maintain him. They must even upon most occasions be somewhat more; otherwise it would be impossible for him to bring up a family. " -- Adam Smith in Wealth of Nations
Every American can't be a college educated genius as the weak minded now in Washington propose. Every society has people with a wide range of abilities, and people of all abilities need living wage jobs. Our domestic economy must provide those jobs once again. And it very easily can. Consider the following :
We now import over a trillion dollars worth of computers, cell phones, TV's, toys, furniture, appliances, tools, clothes, and car parts annually from countries like China, Mexico, Indonesia, and India; -- corrupt Third World nations where tens of millions are kept desperately poor so that they must accept less than $4000 a year and work 70 hours a week just to survive like animals in polluted slums or crowded barracks.
Do some arithmetic; -- one trillion dollars worth of Third World imports divided by 14 million workers equals a little over $70,000 a worker.
So; if we restored tariffs on slave wage nations and saved a trillion dollars by making products we now import, we would create 14 million manufacturing jobs worth $70,000 a year, eliminate our 500 billion dollar trade deficit, and have 500 billion left to buy all of the oil we need ( not want -- climate change is real ) at a fair market price; -- making expensive military occupations that invite terrorism unnecessary. We could even afford enough oil ( a nonrenewable national resource ) to put some back in the ground for future generations.
Note: Because the World Trade Organization mandates permanent most favored nation status (MFN) for all of its members, we should withdraw from the WTO. But in 2000, our Congress voted to remain in the WTO. The result? A massive increase in outsourcing to "most favored" slave wage members like China, Mexico, Indonesia, and India.
Fact: The Reaganites' global plantation economy was designed to benefit their predator class funders, not American producers. The profits of the S&P 500 are up over 900% since the 1980's in large part because outsourcing and increased immigration depressed domestic wages.
Over 2500 years ago a Greek named Aesop told a story about a lion, -- the king of the beasts :
" A lion and other animals formed a corporation to provide food. The fox made the plans; the birds found the food; the dogs tracked it down; the wolves dispatched it; the oxen carried it back; and the lion divided it.
After he divided it the lion took one share of the meat for himself because he was their leader, and he took the rest because he was the king of the beasts. The sinews and bones were all that he left. "
The wisdom of this ancient fable still applies today. Those at the top of corporations, including America Incorporated, decide the value of every member's contribution; including their own. And, like Aesop's predatory lion, they usually decide that they 'earned' and should get a lion's share of the profits.
The only antidote for this behavior is effective Jeffersonian progressive taxation ; ---
"legislators cannot invent too many devices for subdividing property . . exempt all from taxation below a certain point, and tax the higher portions of property in geometrical progression as they rise." -- Thomas Jefferson
Note: "Exempt all below a certain point" means no federal taxes of any kind ( including payroll taxes ) on the first $40,000 of household income, or the first $10 million of estates.
Why ? - Because the primary purpose of taxation in a Capitalist society is to recover wealth unfairly acquired by predators ( "the takers" ) and return it to the producers ( "the makers" ).
How equal should we be ? - history ( and logic ) suggest that the richest households should have no more than twenty times the average wealth of all households.