Sin, sin, sin! You’re all sinners! You’re all doomed to perdition!
In the absence of justice, what is sovereignty but organized robbery.
In this unnecessary, fabricated debt ceiling crisis we’re all stumbling through, it is telling what is not being discussed and debated as our economic system collapses and real misery awaits for perhaps 80 percent of us, especially disastrous for those with the least amount of influence and power.
The actual reality
In the American economy consumers represent about 70 percent of the economic output. Over the past 40 years or so that wealth has been transferred upward, the majority of Americans are now broke. There is no demand and there will likely be none for a very long time. That means no business investment and expansion and no jobs.
In the late 1970s the top 1 percent had about 9 percent of the country’s income, which meant there was more than 90 percent for the rest of us. In 2007, just before the global economy imploded, the put upon rich took in approximately 24 percent, which meant the rest of us had about 77 percent to divide up. The political and corporate grifters in America may tell you the rich are the “job creators.” They’re not.
If so inclined you could find the real economic reality of this United States by looking through material published by such organizations like the Institute for Policy Studies, IRS data, and economists such as Peter Diamond and Emmanuel Saez.
If the rich–individuals and corporations–actually paid something like their “fair” share today, we might not be considering some remarkably moronic policies at the present time, which have nothing to do with reviving the economy, preserving and protecting our environment, educating our children and creating some small amount of fairness in our society. Back in the 1950s, the Ozzie and Harriet era idealized by the tea baggers, the top 400 (1955) paid 51 percent of their total income in taxes. In 2008 this bunch paid only 18 percent.
In short, if rich individuals and corporations, who are collecting $1 million or more a year, were to pay taxes at the same annual rates as they did back in 1961 the Treasury would be collecting an extra $716 billion a year.
Last but certainly not least is Social Security, what the grifter class wants to dismantle. At the present time Social Security pays out about 39 percent of a worker’s pretirement earnings. What if we were to raise it by another ten percent? Keep in mind, according to Richard Freeman, labor economist, the hourly earnings of working people went down by some 8 percent from 1973 to 2005, while productivity went up by more than 55 percent.
As well, if we were to raise the cap (payroll tax) on the 6 percent of earners making over $106, 800 a year, there would not be a deficit in the SS trust fund as projected in 2037. This is a discussion unto itself but one that will have to be forced on the grifters.
What do we choose
The reality in America today is that we are not remotely talking about issues that could strengthen this country. We had a national temper tantrum in November 2010, and we the electorate threw the incumbents out at the national and state level. We were angry and rightfully so. It does however pay to be informed. In our desire to get rid of the bums, we voted in a national nightmare that is capable of doing real damage to the country, at all levels.
There are now very good reasons to be pessimistic if we merely sit back and passively wait for bad things to happen, regardless of whether or not we ultimately raise the debt ceiling.