Tuesday, September 27, 2011

How the GOP Will Bring About the End of Capitalism

by Len Hart, The Existentialist Cowboy

The GOP gets away with a big lie! The GOP has convinced millions that the GOP is the party of smaller government coupled with smaller debts and deficits. The fact is: EVERY Democratic regime at least since World War II has presided over smaller debts and deficits than any GOP regime and --at the same time --has created more jobs and greater growth in GDP.

These are facts that can be confirmed at the U.S. Commerce Department B.E.A. and the Bureau of Labor Statistics to name just two. There is a table [Wikipedia] that lists the gross U.S. federal debt as a percentage of GDP by Presidential term since World War II. As the detailed version of the graphic above, it PROVES my point with detailed and verified numbers.

Now if you happen to believe that creating fewer jobs and --worse --exporting them to China is a good thing, then, by all means, vote GOP! Like clockwork, jobs will migrate and GDP will, naturally as a result, take a dive. And, by voting GOP, you will have helped bring about that outcome. Live with yourself! The GOP, in the meantime, will routinely lie to you about this issue if they cannot avoid it. I often wonder why it seems never to come up in debates.

At present, the gross federal debt as a percentage of GDP (83.4% at the end of 2009) is higher than it has ever been since the late 1940s. This is the Bush Jr legacy. By way of background, the debt briefly reached over 100% of GDP in the aftermath of World War II.


Debt of any type increases when money is borrowed. The Federal debt, likewise, increases whenever the government borrows money, whenever the Treasury or other agencies issue 'securities', very literally a 'promissory note'.

The public debt increases or decreases as a result of annual unified budget deficit or surplus. The federal government budget deficit or surplus is defined as the the cash difference between government receipts and government spending; it ignores intra-governmental transfers.

Some recent history

That outcome is clearly by design and by definition it is not Marxism. Nor ---as the 'brown suit' says --is wealth created by so-called 'free market capitalism'. Rather --it is unrestrained, free market capitalism that has, in fact, created every depression since the Great Depression which began with the stock market crash of 1929.

At the same time, the GDP, i.e, the annual gross domestic product, to the end of June 2011 was $15.003 trillion. That means that the 'gross debt' is about 98% of GDP; debt held by the public is about 67% of GDP.Elsewhere, one can expect the 'libertarian' CATO institute to shill for the upper, upper classes, i.e, the ruling elite of just 1 percent of the population.

The disaster Bush left Obama

The facts are clear enough and available to anyone who will bother to access the U.S. Commerce Department-B.E.A., the Bureau of Labor Statistics, and non-partisan think tanks. That rules out Brookings! In the video below, the CATO spokesman ignores the lessons of history and the stats I've posted above. The right wing would rather not mention these numbers. The right wing would rather you had never read or accessed them; the right wing would rather you remain uninformed, in the dark, ignorant! The right wing cannot sell its bullshit to informed and intelligent people.


With respect to the following video specifically, the 'battle ground' is imprecisely chosen. Progressives must take the higher ground while forcing the enemy into a boxed canyon. Liberals err by giving liars the benefit of doubt and letting spin doctors and their liar clients 'off the hook'. The GOP, rather, should be reminded of how wrong they are every day if not every hour. Perhaps --eventually --in the face of mountains of verifiable data, they will surrender or be buried.

With respect to the video, someone should include among their talking points that the transfer of wealth upward to just 1 percent is just as destructive to the economy as would be the utter destruction of all that wealth in a nuke, just as destructive as loading up dollars and assets on a ocean liner and shipping it abroad. It matters not where. That's true because the very, very wealthy invest their moneys offshore. The do not put the money back into a local economy as the Building and Loan had done in the classic film with Jimmy Stewart: "It's a Wonderful Life".

Wealth transferred to the elite --by way of unfair GOP tax cuts benefiting only the upper 1 percent --is, in effect, a transfer of wealth outside the economy. In other words, it is, by definition, a contraction of the economy.

The transfer of wealth occurs in numerous ways. Offshore bank accounts are typical and most often exploited by the elites. It is unfortunate that is is CAPITAL ---not labor --which controls U.S. wealth though it is labor that creates it. Every economist knows the truth of that. It's called the 'labor theory of value'.

That capital has acquired a de facto ownership of the 'state' does not support any defense of 'capital', NOR does it disprove Marx whose views with regard to the 'labor theory of value' are mainstream despite the radical reputation that right wing morons have ascribed to Marx. The empirical evidence, meanwhile, proves that Marx was absolutely correct and is repeatedly confirmed --ironically --by GOP regimes.


The End of Capitalism? [video h/t Vera Narishkin]


13 comments:

Anonymous said...

stortingAs a liberal I understand full well that voting democrat is no longer an option to help my nation. Obama is a conservative, period, and I refuse to vote for him again after breaking all of his promises. While it is true that democrats gave the majority better representation in the past that is no longer true now, the democratic party has been taken over by conservatives.

Len Hart said...

Anonymous said...

While it is true that democrats gave the majority better representation in the past that is no longer true now, the democratic party has been taken over by conservatives.

The democratic party was not taken over by conservatives. Re-read the article! The 'system' has been seized! the MEDIA has been seized and your slanted take on it is the result! What you are saying is what 'they' WANT you to believe.

Secondly, you have no other viable choice but servile acceptance of slavery. If that's what you want, then there is nothing I can say to you that will make sense to you. Pity!

The ONLY option you have --as a progressive --is to TAKE OVER, more accurately, REGAIN the Democratic party!

In Germany, Hitler DID NOT create a new party. He took over the leadership of an existing party and infrastructure.

Stop being naive and thus kissups to the GOP! GET A FUCKING SPINE!

SadButTrue said...

If you're talking about capitalism as described by Adam Smith and based on a free market economy, the GOP put an end to that quite some time ago - during the Reagan/Poppy Bush regime in my estimation. What is left is nothing more than cronyism leaning heavily towards out and out fascism.

The problem with any arguments that pretend to support conservative ideology is that they exist in a vacuum, devoid of any connection to reality. It really has taken on all aspects of a cult religion.

Peel the veneer off of conservative thinking and all that's left is, "I've got mine. Screw everybody else."

Len Hart said...

SadButTrue said...

If you're talking about capitalism as described by Adam Smith and based on a free market economy, the GOP put an end to that quite some time ago - during the Reagan/Poppy Bush regime in my estimation.

The GOP are crooks, liars and hypocrites. There is a vast divide between what they really believe (if anything) and what they practice. You are correct --the GOP raison d'etre is the enrichment of those who are already very, very, very rich. Scrooge was a 'Republican' when he said: "Are there no workhouses? Are their no prisons? ...then let them die and decrease the surplus population".

It really has taken on all aspects of a cult religion.

Indeed! The GOP is not a political party; it is a crime syndicate with characteristics of a kooky cult.

Peerless Cynic said...

Good post. It’s one of my pet peeves that so-called conservatives recite the catechism of small government while, among other things, simultaneously expanding it through the security state and the military, as if the military were not part of government. Sadly, here in Canada that mantra has prevailed as well.

Len Hart said...

Peerless Cynic said...

Good post. It’s one of my pet peeves that so-called conservatives recite the catechism of small government while, among other things...

That's why the GOP is not a political party; it's a fucking cult and crime syndicate to boot! Bertolt Brecht described the same mentality when he wrote: "A man who does not know the truth is a just an idiot but a man who knows the truth and calls it a lie is a CROOK!" [all caps, mine]

Anonymous said...

The American people are starting to become enlightened...feeling the pain of Republican policies...but I fear full conciousness will not come quickly enough. But having the economy crash down around their ears will surely bring about their rude awakening.

Len Hart said...

Anonymous said...

The American people are ...feeling the pain of Republican policies...but I fear full conciousness will not come quickly enough

I share your concern! The regime of Ronald Reagan should have been the wake-up call. Reagan is revered because he did precisely what the GOP wanted him to do; he successfully enriched those already rich. He was complicit with the Iran/Contra conspirators; special prosecutor Lawrence Walsh said as much in his final report; Reagan pursued imperial policies while running up the highest debts and deficit of any President before him! And he lied to the American people about all of it. He was not only the very worst President since Nixon, he outdid Nixon and very nearly made one nostalgic for ol' trick Dick. The operative phrase, however, is very nearly. Nixon most certainly played THE key role with respect to America's current 'vassal state' status vis a vis China. Nixon sold out American industry just a Reagan sold out American labor somewhat later.

MarkH said...

When Obama and the Dems have to fight to get FEMA funding you know things have gone awry. When the Right is happy to push the economy into the ground just to hurt Obama you know something is terribly wrong. The Left has to counter all that.

Len Hart said...

MarkH said...

When the Right is happy to push the economy into the ground just to hurt Obama you know something is terribly wrong. The Left has to counter all that.

You are absolutely correct! The GOP has proven 'GOP SCORCHED EARTH POLICY' is the only thing that they really believe in! For them --there is no morality, there are no restraints; they must WIN if it means the utter collapse of the economy if even members of their own party fall off they ladder. The REAL GOP constituency is just one percent of the U.S. population and this crooked, corrupt, psychopathic (I dare say: evil) one percent will, of course, swoop down upon the carcasses and FEED on them! DOWN WITH THE GOP!

Len Hart said...

I tire of the 'no differences' between the parties line. Too often, MOST often it is summoned up to justify staying at home on election day! Fact is --there are no guarantees that ANY candidate of ANY party will satisfy everyone! Such an ideal does not exist nor can we afford to INDULGE it.

NOT VOTING IS NEVER AN OPTION!

NOT VOTING concedes the nation to right wing, the ideologues, the M.I.C, the GOP!

NOT VOTING is how we got into the fucking mess we're in!

NOT VOTING --is what 'they' want you to do! NOT VOTING ensures that the ever powerful and well-heeled GOP machine will finish the job of making the United States a FASCIST NATION. NOT VOTING is surrendering! NOT VOTING is 'giving up', rolling over, taking it up the ass!

NOT VOTING is the GOP's best friend! If they ever gain absolute power, they may decide to do away with VOTING relieving you of one of the few options left you, relieving you of having to take responsibility for facilitating a right wing/fascist takeover. Welcome to BRAVE NEW WORLD!

Now --what can one do? GET INVOLVED IN PARTY POLITICS! If you don't like the Democratic party --INFILTRATE IT and urge everyone you know to infiltrate it.

ORGANIZE!

Read SAUL ALINSKY, a 'left leaning, liberal' and organizer who SCARED THE PANTS off the GOP! They were so frightened of him that they ADOPTED his policies and now use them against us! Who is to blame for that but the SUNSHINE LIBERAL who decides to sit on his ass and gripe because the world is neither perfect or fails to measure up to unrealistic, grown-up expectations.

Alinsky urged that REAL activists organize block by block, precinct by precinct, country by country. Some people, apparently, thinks that's too hard and won't do it. It's easier to post on FB or watch TV and bitch.

FIRST --you take back the Democratic party by taking back the neighborhoods. Again --it's hard work.

SECONDLY --you organize the neighborhoods to take back the party machines for progressives and/or liberals

THIRD --having taken back the DEMOCRATIC PARTY, you organize at the state level to get out the fucking vote. If the fucking vote is NOT gotten out, you lose. Simple as that! The GOP wins another one by default.

Now --if liberals/progressives are not willing to read Alinsky (the GOP has) or if liberals/progressives are not willing to work to reform the ONLY FUCKING PARTY you're gonna get give the corrupt system we have inherited, then there is really nothing else I can tell them; there is really little else as I can except: LEARN TO LOVE getting it up the ass because from here on out the GOP is GOING TO STICK IT TO YOU!

Bev said...

see what Dennis Kucinich is doing to help everyone with his NEED Act HR 2990, The Emergency Employment Defense Act.

Monetary Reform:

http://www.monetary.org/demonstrations

What do the Occupiers want? Mainly Economic Justice!

To get economic justice, you must have monetary justice and the AMI has been working at gaining monetary justice since 1996. We have made progress. Our research results, The Lost Science of Money by Stephen Zarlenga demonstrate that decades of research and centuries of experience shows that three things are absolutely needed:

The present form of the Federal Reserve System must be ended – it must become a part of our government – what people mistakenly think it is now! In the Treasury Department is best.

The accounting privilege that banks now have to create what we use for money out of debt, must stop once and for all. What’s called fractional reserve banking must be decisively ended.

The Congress must understand and be empowered to create new money and spend it into circulation as money, not debt. For example the $2.2 trillion dollars the Engineers tell us is needed for infrastructure over the next 5 years. As the system progresses, health care and education, and grants to the states are made.

Now some good news: Congressman Dennis Kucinich (D Ohio. 10th Dist) on September 21st, introduced HR2990 which does those very things!!!! Congressman Conyers of Detroit co-sponsored it.

We need to see that people realize there is a bill which achieves these goals, already in the Congress. That they can help by asking their representatives and Senators to support it. Also their school Boards, State reps and Senators, City Councils, newspaper editors, etc, etc, etc.

We have materials which can help them do all that, available for the asking, but first they have to become aware of HR 2990, and there are four attachments which will help you make it clear to them:

First, a half page Flyer announcing the HR 2990 which should be handed to everyone at a demonstration.

Second, “The Need for Monetary Reform”, a one page (double-sided) sheet for those who want to know more. It’s exactly 800 words and you can reprint it easily, even get it into newspapers.

Third, a fact sheet on HR 2990 describing what the bill does to stabilize America’s financial situation, including the creation of 7 million of jobs.

Fourth, our 32 page booklet, which includes some history, our answers to the 20 most frequently asked questions, the American Monetary Act, and much more. Copy and photocopy the one attached, or get pre printerd ones from us at 10 copies for $30.

I ‘m suggesting you print these out, photocopy several hundred of them and head to the nearest demonstration! Stay at least a few hours. Let me know what happens. To find the nearest demonstration to your location, Google: “Occupy(insert your city here)” and check it out.

Warm regards to you and good luck! Remember this is a non-partisan activity!

Stephen Zarlenga
AMI

..........

FACT SHEET

Congressman Kucinich’s Jobs Bill to Secure America’s Financial Sovereignty:

The Debt Stops Here

Congressman Kucinich will introduce a landmark bill to:

• Create millions of well-paying private sector jobs and rebuild America’s infrastructure
• Pay off the national debt as it comes due
• Reduce federal deficits or even eliminate them
• End the fiscal crisis at Federal, State and local levels
• Make the U.S. dollar a stable currency which maintains its purchasing power over time

All without raising taxes or borrowing.

WHAT IT DOES:

• Puts the Federal Reserve (Fed) into the Treasury to make our monetary policy truly
accountable to the Congress and the American people
• Ends the banks special privilege by no longer allowing them to create our money supply when they make loans, through a simple and non-disruptive accounting change
• Invests money to renew our crumbling infrastructure, making it fit for the 21st Century; creating real wealth and millions of good jobs at the same time

HOW IT WORKS:

more

Bev said...

See: http://www.moneyaswealth.blogspot.com/

Why Are We Short Of Money? Why?

The World Economy Trembles
Because Every Nation Is Short Of Money.

Yet.

Money Is The Easiest Thing In The World To Create.

It Is Done On a Computer.
Type It In. Press enter.
That Is, In Fact, How They Do It Now.

But, They Only Do It As A Loan.

Why?

Because You Let Them.

That's Stupid.
Don't Be Stupid.

You Can't Borrow Yourself Out Of Debt.

Ever.

snip

Think about it:

If the banks are the only ones who create money, and you have to give it back to them (loan payments) - two things happen.

1st. You have to give it back!! You never get to keep it in exchange for goods/services. In the aggregate (combined picture) you do the work, but can't keep the money.

Right!

Theft!

2nd. If the banks are the only ones allowed to create money, and then only as a loan, in the aggregate, you have to borrow to pay interest!

IMPOSSIBLE to get out of debt.

Nothing should be more clear,
especially with all this talk of raising the debt ceiling.

Why would a sovereign government with the Constitutional authority to create money, borrow a dime?

WHY WOULD IT NEED TO BORROW ANYTHING!?!?!?!?

In the U.S., Congress has the power to coin or create money and regulate its value.

ARTICLE 1, SECTION 8
U.S. Constitution

The Congress shall have Power ...
To coin Money, regulate the Value thereof...

So Do It!!

DEBT FREE
.......