Subhead

The book that our political class and the mega-rich don't want published





Wealth Redistribution


[Pages 27-32]

As defined by Wikipedia: “Wealth Redistribution is the transfer of income, wealth or property form some individuals to others caused by a social mechanism such as tax laws, monetary policies or tort law. Most often it refers to progressive redistribution form the rich to the poor, although it may also refer to regressive redistribution from the poor to the rich.” In the brainwashed minds of 99 percent of Americans “wealth redistribution” means one thing and one thing only: “socialism.” The term socialism means a lot of different things to Americans but at its core, to most Americans, it means ‘taking their money and giving it to sorry ass deadbeats to lazy to work.’

First off, most Americans, don’t have two nickels to take and give to anyone. God help the deadbeats if they need your paltry pennies. So put your fears of socialism to rest. Secondly, as already documented, when your parents pass away, if they haven’t already, you’re still not going to have “two nickels to rub together” since only those atop the pyramid inherit any real money. Even if you got more than $100 K it’s still “chicken feed” a.k.a. “two nickels to rub together” when you equate it to real wealth in the grand scheme of things. In other words, you’re not an America royal and never will be so get over worrying about someone coming to take your money . . . you don’t have any and more than likely never will. Nonetheless, make no mistake whatsoever; this is not a push and introduction of a socialist state in America. As clearly and unequivocally stated early on, this book was written by a capitalist who has earned well within the top 20 percent of American salaries and someone who doesn’t want the government coming to take my “two nickels” any more than you do. So let the hair on the back of your neck lay back down and settle in for the actual truth about “wealth redistribution” in America.

Referring to the definition above for “wealth redistribution” . . . it mentions a type of wealth redistribution called “regressive redistribution.” Ever heard of the term on cable or network news? You won’t! Go into the den, turn on that wide screen TV you’re still paying on and start flipping channels to listen for the term “regressive redistribution.” What do you have via our “technological revolution,” 500 channels, maybe more? Sit and flip from channel to channel 24/7 for the next year or so and you are NOT going to hear the term anywhere, any time, on any channel — especially on one channel in particular a.k.a. the “freedom and liberty” channel. You can and will find socialism talked about 24/7/365, but “regressive redistribution” you’re not going to hear about. Let’s investigate and explain what it is and then the reason you’ve never heard of it will become clear.

An unsophisticated definition of “regressive redistribution” can be summed up in one word called “stealing.” While the word “stealing” is rather harsh and abrasive, it gets worse. It’s not just stealing, it’s stealing from those in America that can least afford it. If you prefer, you can call it weaseling, hoodwinking, manipulating, bamboozling or whatever you wish, but at the end of the day it’s just good old common “stealing.”

“Regressive redistribution” in America is essentially a wildly sophisticated, multi-faceted pyramid scheme where massive wealth is flowing in one single direction ONLY . . . upwards toward a very small percentage of the mega-rich. Very curious, that “progressive redistribution” gets all the media attention when the true culprit in the death of the American Dream is “regressive redistribution.” Unless you are in the tiny small percentage of Americans at the very top, it’s your wealth, from your hard work, that’s leaving your pockets every single day through “regressive redistribution” that is to be alarmed about . . . not socialism!

Everyone has heard of “trickle down” economic theory that is currently experiencing a popular political resurgence. Via that theory over the past 30+ years what has actually occurred and is continuing to occur is massive “GUSH UP” redistribution of wealth. Unlike trickle down economics however, “GUSH UP” economics is no “theory” . . . this theory actually works. It has proven to work over the past 30+ years and is getting stronger by the day. Please don’t confuse “gush” with the word “trickle” . . . gush means a money tsunami! A tidal wave and the type of flood that Noah built his ark to survive.

Why you have never heard of “gush up economics” and the massive wealth being stolen from you and accumulated atop the pyramid is actually quite simple — they [the mega-rich] don’t want you to know about it. If you were one of them would you? Of course not! Instead you’d rather have everyone you can buy off banging on the socialism drum 24/7 distracting the American people from what’s really happening.

Referring back to our imaginary American Monopoly board, first understand that this board belongs to YOU. You, along with your parents and their parents, paid for it with 200+ years of sweat, toil and sacrifice. All together, the millions of Americans that worked, fought and died for America own this board and at one time almost everything on it. It is still the biggest and strongest economy in the entire world and we still have one of the highest standards of living in the entire world . . . for the time being anyway. If any reader feels guilty about this fact then simply close this book and pass it on to someone else — because this book is all about taking care of individual [average] American citizens and nothing else! In short, it’s about being proud to be an American, proud of the standard of living we’ve earned and all about keeping it from being stolen!

Underneath our collective American Monopoly board we all own, we typically have our money stashed under the edge. We like it, it feels good to have all those bills stashed under there and the more we have the better. That’s exactly the way it should be in a free enterprise system. This is America and we’re about “earning” money — lots of it, if that’s an individual American’s goal. “Earning” money however, is not the same as stealing it via political corruption and massive multi-national corporate monopolies manipulating the playing field and marketplace.

As we’ve worked and toiled and played the game, the way the rules say it’s to be played, something has changed over the last 10, 20, 30 years . . . our money under the edge of the American board is not getting larger. More than 30+ years ago Americans put the kids in daycare and almost all our spouses to work. Then we went out and got a second or even a third job. Based upon that fact alone, we should all be financially secure with a large majority well off, but that is not the case at all . . . Americans are losing their shirt. ‘What gives,’ most Americans are now asking? We waved the flag and voted like we’re supposed to, our spouse got a job, we went to college or trade school, joined the union at work, got another job on the side and still our money under the edge of the American Monopoly board is still not growing. It must be the economy in general . . .

The statistics say it’s not the economy at all. In the U.S., non-farm productivity between 1979 and 2009 rose 8.4 percent. 1 Productivity increased twice as fast in 2009 as it had in 2008 and twice as fast again in 2010.2 As a result, corporate profits grew 22 percent since 2007.3 With productivity and profits up it seems only fair that the wealth of average Americans would be up as well. Virtually everyone in America is and has been working harder and smarter for at least 20+ years or more. Even though most Americans are no Harvard economist, most of us understand that Gross Domestic Product (GDP) is the market value of final goods and services produced within the borders of a nation. America, as you probably know, is the largest economy in the entire world and in 1980 the GDP was just under $3 trillion. Since that time, it has risen steadily every single year without exception to reach 14+ trillion in 2010.


Most Americans don’t know how much a trillion is and it won’t fit on the screen of our calculator we got in high school. We do all know that just one trillion is a heck of a lot of money and a whopping $11+ trillion GDP increase in just the last 30+ years is phenomenal and huge beyond what our small brains can fathom. We realize of course that the population of America has increased significantly over that period of time and that only a small percentage of that $11+ trillion is actual profit, but any way you slice it — that’s billions and billions and billions of dollars in profits. As clearly demonstrated statistically, virtually none, if any, of those billions of dollars have gone into your pocket — since 90 percent of all Americans have experienced stagnant or dropping salaries and wages for three straight decades.4 Since we know that manufacturing jobs have been leaving the U.S. for more than 20+ years we know those billions were not reinvested into American manufacturing infrastructure. Since we know that 75 percent of non-home real estate is owned by the top 10 percent of Americans some of it went buy property (virtually none of it purchased by us peasants). Those billions of dollars also didn’t go to pay down the federal deficit and contrary to popular belief the money didn’t go to ‘those sorry people too lazy to work who are gaming the system via welfare.’ So the question is, where did all those billions in profits, over the last 30+ years, go?

The answer: it went to buying up more wealth, stocks, bonds, trusts, property, diamonds, furs, mansions, Bentleys, caviar, second and third homes, pools, personal trainers, ski trips, world travel, passed down inheritance, influence buying, think tanks, lobbyists on K Street, political action committees, campaign contributions, retreats with members of Congress, so called philanthropy, art work, therapists, private schools, plastic surgery, fine dining, exquisite wines, wine cellars, chauffeurs, maids, nannies, pool boys, day spas, yachts, yacht clubs, country clubs, golf, polo, Ivy League educations, estates, security, shopping sprees in Rodeo Drive and the host of other extravagances that only American royalty can afford. Let’s not be petty and envious however, none of this stuff is cheap and it requires a lot of money. We know from all the statistics provided herein that virtually zero money has “trickled down” in the last thirty years, so let’s try to get an idea of how much money has been gushing upward:


  • The top 1 percent of U.S. households control 40+ percent of the nation’s private wealth. Just 25 years ago the top 12 percent controlled 33 percent. 5 That 40+ percent figure is more than the combined wealth of the bottom 90 percent of all Americans.6 A mere 20 percent of Americans at the top of the food chain own 84 percent of all the privately held wealth in the U.S.7
  • The top 10 percent of Americans now own 90 percent of all stock, bonds, trusts and business equity and at least 75 percent of non-home real estate in this nation.8
  • For 15 straight years previous to the Great Recession that began in 2007, the top 1 percent absconded with 50 percent of all the income earned in America. Currently half of all American income is going to the top 10 percent.9
  • When capital gains are included, the 1/10th of the top 1 percent collectively rake in more than $1 trillion a year.10
  • Since 1983, 43 percent of all the new financial wealth created by the U.S. economy went to the wealthiest 1%. A full 94% was absorbed by the top 20%, leaving just 6% of the financial wealth created during the 80s, 90s, and 2000s to the bottom 80% of Americans. Total real income growth during that same time period was similarly distributed, with 44% of increases amassed by the top 1% and 87% of total increases accruing to the top 20%.11
  • The total inflation-adjusted net worth of the Forbes 400 rose from $507 billion in 1995 to $1.62 trillion in 2007, before dropping back to $1.37 trillion in 2010.12
  • Overall income inequality is now at its worst since 1928, just previous to the start of the Great Depression.13
  • As of this writing, the U.S. has 496,000 households worth at least $30 M and more than 5.2 million worth more than $1 M. By 2020, households worth at least $30 M are projected to exceed 620,000 and more than 20 million U.S. households will be worth at least $1 M.14 The top 1 percent of households in the U.S. have seen a 281 percent rise in after-tax income since 1979.15 

Breakout Resource(s):

Income inequality: It wasn’t always this way
http://www.epi.org/economic_snapshots/entry/income_inequality_it_wasnt_always_this_way/

 

Anyone see a trend here? Is anyone with a calculator and a PhD in economics or math able to put a firm dollar figure on all the bullet points above? If calculated back to 1980, when the trend officially began, it’s trillions of dollars . . . how many trillions who knows? Is anyone out there in America scratching their heads asking themselves why these numbers and statistics aren’t being reported 24/7 by CNN, FOX, MSNBC, CBS, NBC or ABC news? Doesn’t it seem like there would be a multi-segment, week long exposé by all the networks, newspapers and major news websites to get the word out to the American people? Instead, all we in America hear about is the threat of socialism . . . why are we not hearing anything mentioned about the term “regressive redistribution” instead?

Clearly these trends raise a lot of questions and for most Americans who believe we live in a democracy that operates within a free enterprise system where most Americans have a chance to succeed . . . it should raise some serious concerns. These concerns are not that some people are getting filthy rich in America. In a capitalist system, the pursuit of wealth is the essential element that makes it work. After all, it’s what the free enterprise system is all about . . . making money. The real concern and questions are, ‘what does this kind of money atop the pyramid buy?’ ‘Can it buy a government?’ and ‘What does this type of money do to our imaginary American Monopoly board?’

While the complex mathematical calculations to arrive at the profit dollar figures represented by a growth to $14 T GDP over 30+ years are impossible to figure out, it’s not too difficult to figure out where the money went. Putting you on an investigative journey to uncover how all the money went to the top of the American food chain is what Part I of this book is all about. First let’s get some historical context by going all the way back to our founding fathers to see what they intended and move forward in time to see where these numbers and statistics were previous to 1980.