Saturday, February 21, 2009

Go Stimulate Yourself

The idea of stimulus is to put money in the pockets of consumers who will spend, creating demand for goods and services and as a result, stimulate the economy.

But America is a religion that worships the rich. They believe that wealth comes FROM the rich and 'trickles down' to the rest of us. They also believe that the rich know best and should be held in some paternal role in society.

These are irrational notions. Religious-like.

Stimulus bailouts to the rich are symptoms of that mentality. The rich are not going to spend any significant portion of that money. They will use it to secure, prop up, and increase the capital that they have.

It looked as if Obama was on the right track as far as stimulus goes with his homeowner affordability plan. But we can see now that it is just another gimmick to further bolster Fortress Twit Class.

The plan does nothing to decrease the principal on what people owe. With plunging house prices, many still owe more than their home is worth.

If you look at it, you can see that it is carefully designed to ensure that the money lenders carry none of the weight of the crisis whatsoever. It is just another scheme to move billions of tax dollars into the hands of America's elites.

The basic idea of Keynesian demand side economics is to give money to the average Joe so he can buy things. Henry Ford had the same idea. The stimulus packages have done the opposite. They have taken wealth from the average Joe (for a long, long time) and gave it directly to the very rich.


How is this supposed to help the economy?

The idiots trucked and shipped manufacturing jobs to where wages were cheap over the past 30 years to increase their profits. They are not patriotic Americans. They are moved only by wealth. They sold out America. They have done far greater damage than Bin Laden or a plane load of Bin Ladens could have done. They have been far more subversive than any communists, socialists, or anarchists could be. They have stole America's wealth and shipped it away - to themselves.

And now they are being paid large chunks of tax dollars for their efforts.

They have been eroding away the standard of living for decades and printing phony capital to make it look as if nothing is wrong. In one season, all the chickens have come home to roost. The big lie is over.

The most important lesson in all this is that the rate of profit generally decreases through time. One hundred years ago it was easy to make profit from a unit of labour. But now, capitalism has matured and for that reason, strategies that are obviously contrary to the citizens best interests are the only ones available to them.

Manufacturing is simply a necessary evil in the process of developing capital. If the capitalist can make capital without it, he certainly will.

And he certainly did in recent years. He did it through criminal leveraging and manipulation of other people's money. The phony housing bubble was the last kick at the can in efforts to pretend the American standard of living has mystical powers. It doesn't. Except maybe for the ultra rich who are still raking it in through stimulus packages and bailouts.

That well will also run dry.

Watch now for that class, with all its wealth, increase its control over the American state.

1 comment:

Brian Cornelius said...

Unfortunately, economics points in the exact opposite direction, as even FDR's own Secretary of State pointed out: he said that as much money as they had put into the economy they had failed, miserably, in stimulating the economy from the bottom up.