No Rest for the Debt-Addled Middle Class

“Capitalism is just doing its job – separating fools from their money – and giving people, not what they expect or what they hope for, but what they deserve.”

seems to me you could say that about any system. socialism, nazism, cronyism, mercantilism, free trade, mafia, communism … yep, it all fits.

Capitalism fairly separates fools from their money, where as what is going on now is in no way fair for the middle classes, whom are having their hard earned wages stolen from them, even before they have the chance to spend it.

There are many reasons for the current weakness in the middle classes, I would table one pernicious, insidious, and subtle way this is being achieved is through the loss of identity; just look at the way the middle class dress now, no longer the smart suite, distinctive, confidant, the well kept look; instead now they wear the working class jeans and t-shirt. The boss says these days throw away the tie, but he will use it to hang you by when it comes to review wages and conditions.

Smart dress is not the all that is wrong by a long shot, but it does help the ruling elite to treat the middle classes like sweat shop workers, and reduce the provision of capacious and elegant working environments down to shoe boxes with ease.

Further, the loss of identity has been so successful and skilfully applied the majority of the middle class are cheering their loss of status, as they have been conditioned to prefer the sophistry of the freedom to look poor and ware want “they” want instead of what they deserve.

Rather than go after the real (financial) terrorists on Wall Street (the privately owned Federal Reserve included), the people of United States Inc. choose to screw themselves even more by electing despots like Obama to plunder the country even more.

What the U.S. has is a fundamental lack of knowledge in what “capital” is, where it comes from, and how you get more of it. Folks, it doesn’t matter what political-economic system a country has, whether it be socialism, capitalism or otherwise, because “capital” is a universal requirement for all of them to work.

You may believe (albeit wrongly) that “capital” is a term associated with “capitalism.” An etymology dictionary reveals that the term “capital” was manifested in the 1620′s to develop a word for: “stock, property” (NOTE: there is no distinction made for private/public stock, property). It follows then that, if a country’s existing “stock, property” of “value” is decreasing, the economy of that country will decrease as well, and vice versa.

Effectively, an economy is a “balance sheet.” Currently the U.S. economy has alot of liabilities in comparison to its assets. If the U.S. is going to get out of the black hole it put itself in, it will have to increase its assets (production and export activity), decrease its liabilities (consumption activity) and increase its capital (retained earnings/savings). In the mean time, I agree with Young buck: “the American people are MORONS who are getting exactly what they deserve for aiding and abetting [domestic and foreign] fascists.”

Clearly, many people have no concept of “capital,” which is to say the key to understanding how ALL economic systems work. All systems require “capital” as an input, that’s the simple part. The hard part for most systems is ensuring “capital” is also an output. If “capital” is not an output of the system, then that means “capital” is being consumed/destroyed.

“Capital” is an input for building homes and developing real-estate. For a time, the building of homes and development of real-estate produced “capital” as an output. At some point however, building homes and the development of real-estate ceased to produce “capital” as an output, which means building homes and real-estate development became “capital consuming” activities. Effectively, we’ve destroyed a good portion of our “capital stock” in the U.S. by engaging in consumptive growth rather than productive growth.