Unfortunately, this the limited one-factor thinks––jobs and labor input––that fails to acknowledge the far more powerful engine of creating and making available products and services––productive non-human capital assets––the result of constant technological invention and innovation. Face it, employment is not sufficient enough to secure economic prosperity for the majority of Americans when the reality is that tectonic shifts in the technologies of production eliminate jobs and devalue the worth of labor. What is essential to redefine capitalism is to empower EVERY citizen to become an owner of the wealth-creating, income-producing capital assets that result in the creation of products and services that improved peoples lives. The system, as presently structured, prevents Americans without savings and equity––the 99 percent––from participating as a productive capital owner contributor and from acting fully as a customer with money for the products and services produced by physical assets––advanced tools, machines, super-automated processes, robotics, computerized operative asset, etc. 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. Under a reformed system paradigm with the focus on creating a democratic growth economy, the ownership of productive capital would be spread more broadly as the economy grows, without taking anything away from the 1 to 10 percent who now own 50 to 90 percent of the corporate wealth. Instead, the ownership pie would desirably get much bigger and their percentage of the total ownership would decrease, as ownership gets broader and broader, benefiting EVERY citizen, including the traditionally disenfranchised poor and working and middle class. Thus, productive capital income would be distributed more broadly and the demand for products and services would be distributed more broadly from the earnings of capital and result in the sustentation of consumer demand, which will promote economic growth. That also means that society can profitably employ unused productive capacity and invest in more productive capacity to service the demands of a growth economy that can produce general affluence for EVERY citizen. Influential economists and business leaders, as well as political leaders, should read Harold Moultons The Formation Of Capital, in which he argues that it makes no sense to finance new productive capital out of past savings. Instead, economic growth should be financed out of future earnings (savings), and provide that every citizen become an owner. The Federal Reserve, which has been largely responsible for the powerlessness of most American citizens, should set an example for all the central banks in the world. Chairman Janet Yellen and other members of the Federal Reserve need to wake-up and implement Section 13 paragraph 2, which directs the Federal Reserve to create credit for local banks to make loans where there isnt enough savings in the system to finance economic growth. We should not destroy the Federal Reserve or make it a political extension of the Treasury Department, but instead reform it so that the American citizens in each of the 12 Federal Reserve Regions become the owners. The result will be that money power will flow from the bottom up, not from the top down––not for consumer credit, not for credit that doesnt pay for itself or non-productive uses of credit, but for credit for productive uses to expand the economys rate of growth. The Capital Homestead Act (cesj.org/learn/capital-homesteading/capital-homestead-act-a-plan-for-getting-ownership-income-and-power-to-every-citizen/ and cesj.org/learn/capital-homesteading/capital-homestead-act-summary/) would grow the U.S. economy faster in a non-inflationary way, create new private sector jobs, finance new productive capital and provide capital incomes for all Americans from the bottom-up by enabling them to own trillions annually in new capital formation and transfers in current assets . . . without taking private property rights away from billionaires such as Nick Hanauer over their existing assets. The wage system is the cancer. The ownership system is the answer to address the problem Beinhocker and Hanauer want to solve. If you want to change the gross economic inequality infecting our nation support the Platform of the Unite America Party.
Posted on: Sun, 12 Oct 2014 00:05:32 +0000
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