On April, 4, 2014, Thom Hartmann writes on the Thom Hartmann Program:
Three decades of Reaganomics has left half of our entire nation in poverty. Thanks to economic policies that only benefit the one percent, nearly one fifth of all Americans live below the federal poverty line, and another 32 percent are officially low-income. And, those statistics would be even worse if we weren’t using an economic measure that is stuck in the 1950s. The federal poverty live was originally calculated based on the price of food six decades ago, but it hasn’t kept up with real costs.
Just since Reagan took office, food prices have doubled, housing prices have gone up three-fold, medical expenses are six times higher, and college tuition costs eleven times what it did in the 1950s. According to the Economic Policy Institute, a family of three has to take in at least $48,000 dollars a year just to break even, but half of our country struggles to get by on far less than that. While those at the top rake in an ever-expanding share of all income, more than one third of our nation is working harder for less money. And, our out-dated poverty measure means that they aren’t even eligible for a little financial assistance.
When we talk about making the rich pay their fair share, the right-wing screams of socialism and class warfare. Yet, they have no logical defense for an economic system that provides billions in tax breaks for the wealthy, but denies a living wage and a little help to the average working American. Reaganomics has devastated our middle class, stolen our retirements, and saddled our children with a trillion dollars in student loan debt. The only class warfare here is the one being waged by the rich against everyday Americans. The myth of trickle-down has been debunked, and the truth is that we need a new era of shared prosperity. It’s time to take back our economy and reboot the American Dream.
To reboot the economy will require a serious reform of the system.
The capitalism practiced today is what, for a long time, I have termed “Hoggism,” propelled by greed and the sheer love of power over others. “Hoggism” institutionalizes greed (creating concentrated capital ownership, monopolies, and special privileges). “Hoggism” is about the ability of greedy rich people to manipulate the lives of people who struggle with declining labor worker earnings and job opportunities, and then accumulate the bulk of the money through monopolized productive capital ownership. Our scientists, engineers, and executive managers who are not owners themselves, except for those in the highest employed positions, are encouraged to work to destroy employment by making the capital “worker” owner more productive. How much employment can be destroyed by substituting machines for people is a measure of their success––always focused on producing at the lowest cost. Only the people who already own productive capital are the beneficiaries of their work, as they systematically concentrate more and more capital ownership in their stationary 1 percent ranks. Yet the 1 percent are not the people who do the overwhelming consuming. The result is the consumer populous is not able to get the money to buy the products and services produced as a result of substituting machines for people. And yet you can’t have mass production without mass human consumption. It is the exponential disassociation of production and consumption that is the problem in the United States economy, and the reason that ordinary citizens must gain access to productive capital ownership to improve their economic well-being.
Binary economist Louis Kelso postulated: “When consumer earning power is systematically acquired in the course of the normal operations of the economy by people who need and want more consumer goods and services, the production of goods and services should rise to unprecedented levels; the quality and craftsmanship of goods and services, freed of the cornercutting imposed by the chronic shortage of consumer purchasing power, should return to their former high levels; competition should be brisk; and the purchasing power of money should remain stable year after year.”
Without this necessary balance hopeless poverty, social alienation, and economic breakdown will persist, even though the American economy is ripe with the physical, technical, managerial, and engineering prerequisites for improving the lives of the 99 percent majority. Why? Because there is a crippling organizational malfunction that prevents making full use of the technological prowess that we have developed. The system does not fully facilitate connecting the majority of citizens, who have unsatisfied needs and wants, to the productive capital assets enabling productive efficiency and economic growth.
Kelso said, “We are a nation of industrial sharecroppers who work for somebody else and have no other source of income. If a man owns something that will produce a second income, he’ll be a better customer for the things that American industry produces. But the problem is how to get the working man [and woman] that second income.”
The “how” is answered in the Agenda of The JUST Third Way Movement at http://foreconomicjustice.org/?p=5797, http://www.cesj.org/resources/articles-index/the-just-third-way-basic-principles-of-economic-and-social-justice-by-norman-g-kurland/, http://www.cesj.org/wp-content/uploads/2014/02/jtw-graphicoverview-2013.pdf and http://www.cesj.org/resources/articles-index/the-just-third-way-a-new-vision-for-providing-hope-justice-and-economic-empowerment/; Monetary Justice at http://capitalhomestead.org/page/monetary-justice; and the Capital Homestead Act at http://www.cesj.org/learn/capital-homesteading/capital-homestead-act-a-plan-for-getting-ownership-income-and-power-to-every-citizen/ and http://www.cesj.org/learn/capital-homesteading/capital-homestead-act-summary/.
http://www.thomhartmann.com/blog/2014/04/lets-reboot-american-dream
