11/40. The American Jobs - Comedy...

Professors Right and Wrong debating on Jobs

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11/30. The Facts of the US Economy in 2 Minutes and 15 Seconds, and more...

Video series by Robert Reich, the US labor secretary under President Bill Clinton.

 

 

The US Economy in a nutshell:

The Middle Class, the Republican Party, and Economic Insecurity:

 

Invest in America:

Robert Reich - Military Industrial Congressional Complex:

“Beware Republican spending caps.”

 

 

Today USA is much wealthier than in Summer of 2008 before the financial crisis hit

Dinner Address by Robert Reich, in California Democratic Party Convention, Sacramento, CA, April 30, 2011. This dinner speech expands the content from the first video clip above over the US Economy. It shows how the US economy has evolved over the past several decades and also the root cause why we are now encountering the financial difficulties.

"The United States is currently wealthier than it was in 2008 before the crisis hit but most people do not know this. They are still scared after the house prices have plummeted and losing their pension money on stock markets. "

"The wealth just went to higher up. Nothing will happen to correct this injustice until the people get organized and demand correction. The social justice has always won in the USA. We just have to get the truth out!"

"Here is my constructive small, tiny criticism towards our current President Obama: be tougher with the GOP!"

"There are many smart thoughts to get this 8th largest economy in the world on it's feet again and here is an example: State Bank of California!"

 

Comments by GW:

The graphs below show the top executive pay development during the past decade and comparative country data since 1949.

ExecPay

The relative executive pay has grown fast during the past decades and that has taken the western societies out of balance. One can understand that the human trait is to want always a little more, "chutzpah", but that will not eplain it all. Some claim that we have yet another layer of people higher up, the real power brokers of the world, that have controlled it already for a long time through their banking empires and needed to confuse the people by adding another layer between them and the "slaves".

With increasing economic power the top earners and especially the banking empires have been able to influence the taxation and reduce their tax burden more than is acceptable.

Since 1980's the top tax rate in the USA has dropped from 70% with average tax burden around 50%-60% to about 17% of all their incomes be it earning and capital income taxed at 15%. This all while the middle class pays 20%-25% and the working class just barely survives.

Even today we hear from GOP that these top earners are the employment generators for the country and their tax burden must be reduce even further so they can create businesses. This is just just nonsense. Employment cannot improve if people are not employed and have income to buy products outside their basic needs to survive.

The ionly way to ignite economy in this kind of situation is to improve the nation's infrastucture,means education, roads, railways, power generation and ditribution networks, shipping lanes, and not forgetting to aid the new technologies to get their start-up capital.

The top earners have all the financial power but the people who really generate future wealth are the inventors like Steve Jobs and Bill Gates. They all started from the ground level armed with deep understanding and knowledge on their fields. They did not have much capitakl to start with but enough vision to risk it all. Too many of these visionaries are buried before they get their products off the ground and their efforts are the picked up by others even in other countries and the fruits of their labor end up benefiting only the new owners.

With growing complexity of the societies all people must be educated to the best level they can achieve regrdless of the economic environment. The best possible education to widest possible population brings the nation the ability to progress far beyond the others. Good examples here are the Nordic countries, Korea and Japan.

The future inventors are most the curious ones, scientists and engineers, on various fields and even levels.

They seldom have any financing at all to finance the development of their inventions and that is the major impediment and road block to the progress. The exacting inventions can today surface at the same time around the world with knowledge and education progressing roughly at the same speed and accelerated by the internet.

This all is numbers game and the 1% in the top does not have enough scientific and engineering talent to produce enough inventions to keep the society competitive and progressing. Of course also some of them is bound to have new ideas but unfortunately they are often too busy in managing their wealth to get these ideas forward while most are simply too far removed from the ground level to see the real problems from all angles. This group has the funds but not the numbers.

The 99% of the population have 3% of the top science and engineering talent that remains curious and with that crucial for the societies to remain on the crest of the progress. These 3% also know the knowledge and skills of all the 99% of the people. They could have elected any career that exists while the rest are missing the ability to comprehend higher math, a rare talent, that is critical in all scientific and engineering work. They are not the ones that would be fluent in Shakespeare, but they do not either need many words to understand what is going on around them.

After the World War II the USA remained financially in an enviable position as wars were fought elsewhere and the USA was supplying weaponry to all warring parties. This golden time lasted until mid 1980's when the executive pay started escaping to the stratosphere. The USA could produce evertything the world needed and the only problem was how to get these products to the world.

This need gave upper hand to financing activities, fields that most scientists and engineers have always considered as lesser challenge just by knowing their own capabilities and the capabilities of those handling tehse issues.

Those who ended up selecting accounting and economics found suddenly that they could ask almost anything they wanted for their pay and within a few years this got out of control. The science and engineering talents saw their value to disappear. Some stepped over to financing and Wall Street trusting initially that the economists would know what they were doing like their own peers did.

Unfortunately the economists had no facts. Some of us learned quickly that actually, economics is not a solid science in sense of the physical sciences. The models that remain intact are based on Keynesian and other belief systems that assume that the human behavior can be controlled and programmed, and additionally that the value of everything can be calculated. However, not so, the value we put on everything is highly subjective meaning different values for different people and nations, and more importantly the human beings are not rational and similar.

All economic models have failed as history has proven again and again and without science backing the new ones will fail too and lead to financial chaos just like the one we have today. The chaos is always utilized by the banking empires and other crooks.

The current political mantra of these economists in the USA is that we must pay all our national debt away. Should we do it? No, the money in circulation is part of this national debt. Only independent countries have their own money that is managed and controlled by their central bank. The Centra bank can increase or decrease the money in circulation as it sees fit. This bank then lends money further to private banks at iterest rate it sees fit who in turn can lend it further to the corporations and public.

By varying the interest rate the central bank impacts the economic activity in the country. In ancient Sumeria and Egypt the government kept the interest rate on all loans to the public and enterprises the same and fixed. Nobody was allowed to charge any other rate. All prises on public markets were based on weight system and the government controlled the weight ratios between everything that was sold, be it cereals, live cattle, meat, fish, gold, horses, donkeys, dogs, slaves, silver, firewood or anything else. Neither of these ancient countries had inflation.

If the government allows the private banks to control over the interest rate policy of that country like in the USA the population and enterprioses will become slaves for these private banks. This started in 1913 in the USA when Congress allowed a consortiou of private banks to create FED and gave it the right determine the interest rate levels "to maximize the economic growth of the nation". In real world this has ment maximizing the profits of the owners that are today the Banking Empires of the Western World.

The complication in the society arise from the variable interest rate of the money. This is an all overpowering tool of the Banking Empires to suck the financial strength from the enterprises and weakest in the society. This is blatant abuse and most of the time even criminal but as it is, still a legal way to transfer wealth from enetrprises and public to the owners of the Banking Empires. It has worked until now as the high interest rates have been lowered immediately when the anger on the streets has grown visible. This time may become different as the anger appears to be bordering the uncontrollable.

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