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]