Gordon Gekko Lives – Tom Rossi

I’ve been wondering lately (okay, for many, many years) how people can still hold onto conservative ideas about the economy. Social issues are one thing – there is a legitimate debate about abortion, for example, but for some people, economics seems to be even more of a religious issue than that. People just hold onto their beliefs, despite a wealth (pun intended) of evidence to the contrary.

To track down some of the reasoning of the followers of the tired, old religion of conventional, “free-market” economics, I interviewed démodé economist Charles “Chipmunk” Griedesgud at the Gordon Gecko Center for Economic Satire in Slashington D.C.

Presented here are some highlights of the interview. The entirety of the interview will be published in book form by the same publishers that put out Bill O’Reilly’s weekly treasures. It will be called, Killing… something or other.

Me: Thank you for allowing me to interview you, Mr. Griedesgud.

Griedesgud: Please, call me “Chip”.

Me: Fifth generation at Yale?

Chip: Exactly.

Later…

Me: Ha ha! I’m sure your cat didn’t see THAT coming! Oh… Ahem. The main thing I’ve been wondering about, Chip, is how people can still believe that giving corporations big tax breaks leads to more jobs. The corporations don’t seem to create jobs anymore; they just build factories overseas or buy robots to do the work. Don’t people know these things?

Chip: If we cut taxes on corporations, they will build factories and make jobs… in China and Mexico.

Me: How does that help us?

Chip: But then, you see, the Chinese and Mexican workers will become more affluent.

Me: Uh huh.

Chip: Meanwhile, American workers will accept lower and lower paying jobs…

Me: Waiting for the good part.

Chip: …which will eventually allow them to make the commodities that are demanded by the newly affluent foreign workers.

Me: Yeah. Great.

Chip: So, it still trickles down; it just might go through a couple of extra steps.

Me: Wow. I can’t understand how I never thought of that.

Chip: I sense a little sarcasm in your voice.

Me: Me? Nooooooo.

Chip: Would you, instead, have no job creation at all? I mean, if we balanced things more toward the mythical “middle class,” then there wouldn’t be the concentration of wealth at the top that it takes to start the projects and businesses that do just that.

Me: But isn’t that exactly what happened between the 1950’s and the 1970’s, America’s greatest period of economic growth and shared prosperity? The progressive tax structure taxed the super-wealthy and their corporations heavily, and they all kept right on growing anyway, along with the well-being of their workers and the workers’ families.

Chip: That approximately three-decade period was essentially an illusion of economic bliss. In reality, the so-called “middle class” was stealing from the providers – the wealthiest Americans, who could have built a much LARGER economy, and created even more jobs. They did this through forming alliances known as “unions” and through other underhanded methods.

Me: Those bastards!

Later…

Me: So, what could we expect if we were to follow your prescription, which seems to be the way we’re headed, anyway?

Chip: Well, economic growth and prosperity, of course! Our economy could be growing like the Chinese! And why not?

Me: Do you mean the Chinese economy, or the Chinese population?

Chip: Take your pick.

Me: But won’t this scenario mean that those countries make the same “mistakes”, as you call them, that we made? And won’t they be hurting their economies?

Chip: Yes! That’s exactly what we want! There are two ways to look at winning a competition – you can perform better than the others, or they can perform worse than you!

Later…

Me: So, you say we could head into a period of fantastic economic growth and prosperity. But the “middle class” can’t share in that prosperity, lest they sabotage the whole process.

Chip: That’s exactly right. You asked me about the benefits before: the average income would rise beyond anything we’ve seen.

Me: But wouldn’t that just be a result of the outliers? Wouldn’t the income median and mode be dismally low?

Chip: Well, thanks to years of effort, nobody knows what those even mean. We’ve trained people very effectively to think that averages are everything. We’ve kept telling them about the average income in America being so high and we even invented a term called “GDP per Person” that throws them way off. Complaining about your income just makes people feel ashamed now.

Me: Wow. Just… wow.

Later…

Me: Well, thank you, Mr. Griedesgud, for the interview. I suppose you’ll be going back to work for the rest of the day?

Chip: Work? What work? This story hasn’t changed since 1890! I’m going to dinner with some lobbyists at the “Oval Room”. I love a restaurant with a punny name!

-Tom Rossi

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Tom Rossi is a commentator on politics and social issues. He is a Ph.D. student in International Sustainable Development, concentrating in natural resource and economic policy. Tom greatly enjoys a hearty debate, especially over a hearty pint of Guinness.

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Time for Healthcare Insurers to Compete – Roger Ingalls

It’s that time of the year again for us micro-business owners. We need to renew medical insurance policies for our employees and just like clockwork the price goes up another 10%. The increases are illogical and completely counter to everything we’ve learned about capitalism.

When it comes to the insurance or financial industry, if any Conservative or Libertarian thinks the American Economic System is a free market, they’re either a fool or extremely gullible. What we have now is an Oligarchy; a few large insurance companies loosely coordinating policies and pricing. There is no longer true competition in this or any other financial industry.

The big healthcare insurers are publicly traded companies and, therefore, are managed by Wall Street. This means they must meet two critical criteria to stay within the good graces of for profit investors: 1) increase year over year revenue and 2) maintain or increase year over year profit margin. In today’s economic climate and in a real free market, this would be impossible for insurance companies. But yet, they continue to set profit records and growth. How is this possible? Simple…we don’t have a free market. Just to clarify, this has nothing to do with Obamacare; it’s deregulation of industry going back to the early 1980s and accelerated in the early 2000s.

Let’s look at this more closely. Because of the Great Recession, many Americans are unable to continue buying their healthcare coverage so, today; fewer people actually have health insurance. This means insurance companies have fewer customers now than they did last year or even the year before. Fewer customers usually mean lower revenue but somehow they miraculously managed to increase year over year revenue and profit. To appease Wall Street, insurers just simple charged their customers more. Without a free market, we, as consumers, have no choice.

You may be thinking there are four or five big insurance companies so we do have a choice, right? No, we don’t. These few companies are unable to differentiate themselves because they are publicly traded and must cozy up to investor wishes by not straying from profit and growth path. This is why insurance prices from company to company don’t really vary. One may offer lower monthly premiums but the copays are higher and at the end of the day (or year), it all comes out to about the same.

There’s only one way to infuse a dose of competition into this industry and that is by allowing the public, of all ages, to buy into Medicare. This is truly a different type of offering to the consumer and would provide real competition for the insurance companies. Make these companies fight for customers by offering value.

Let’s bring back a free market economy, let’s have a little competition.

Thanksgiving from the Mind of a Social Activist – Roger Ingalls

What are you thankful for? I’ve decided to take some liberties and put myself inside the heads of various characters, people and organizations in an attempt to say what is really on their minds. If retail giants can bastardize Thanksgiving why can’t I use it to make political statements? It’s all in good fun. Happy Thanksgiving.

Wall Street, “We’re thankful for gullible conservatives.”

Kardashians, “We’re thankful for Spanx.”

Justices Antonin Scalia and Clarence Thomas, “We’re thankful for gifts from the Koch brothers.”

The Financial Industries, “We’re thankful we get to write the regulations that govern us.”

Walmart Executives, “We’re thankful Americans prefer cheap crap over worker’s rights.”

Westboro Baptist Church, “We’re thankful we’ve created God in our own image.”

Global Warming Deniers, “We’re thankful for data culling.”

California School Board, “We’re thankful kids make good propaganda tools.”

Kermit the Frog, “I’m thankful most Americans don’t eat frog legs.”

Smokey the Bear, “I’m thankful for wildwood flowers…out here in the deep forest where no one’s around, smokey has a whole different meaning.”

Prison Industry Authority (PIA), “We’re thankful incarceration is big business and criminalizing human behavior doesn’t concern us as long as we get paid.”

Pharmaceutical Industry, “We’re thankful the Feds still won’t allow people to grow their own cheap medicine otherwise we’d be obsolete.”

Republican Politicians, “We’re thankful Americans don’t understand that Military personnel are government employees otherwise they’d understand we’re responsible for the biggest increase in government spending.”

Factory Farms, “We’re thankful military explosives and chemical fertilizers are one and the same; it makes availability cheap.”

Insurance Industry, “We’re thankful people don’t understand that business practices dictated by Wall Street eliminate a free market economy.”

Banking Industry, “We’re thankful people don’t understand that business practices dictated by Wall Street eliminate a free market economy.”

Fossil Fuel Industry, “We’re thankful people don’t understand that business practices dictated by Wall Street eliminate a free market economy.”

And me, “I’m thankful for beer and cookies.”

I Don’t Hate Capitalism – Roger Ingalls

As a former C-level executive of a famous semiconductor capital equipment enterprise, I’m often asked why I speak so negatively about the free market and public companies. In truth, I believe capitalism and investment into business by the public are fantastic ideas. However, I despise large corporations and Wall Street for collaborating to redefine the Constitution, undo worker’s rights, shift tax burdens and influence the judicial branch of government.

The foundation for big business collaboration was laid in the early 1970s and has grown into a monstrous institution over the past 40 years. Any conservative, professional or free-market fighter who does not believe large corporations and Wall Street have conspired to gain total financial control is not a true student of business.

All one has to do is read the Powell Memorandum of 1971 to realize that the seeds of collaboration were planted by a “soon to be” Supreme Court Justice (appointed during the Nixon administration) and then nurtured by his friend at the U.S. Chamber of Commerce. It’s a great document. The memo defines the problem, identifies the enemies and suggests solutions. Unfortunately, the defined enemies were the Middleclass and their advocates. The Powell solutions gained traction under the corporate-friendly Reagan Administration and the downward economic spiral of the Middleclass began.

I’m not against business and I’m not against a free market. I’m against corporations conspiring to create great wealth at the expense of the Middleclass. I’m against Wall Street’s destructive and increasing single-minded focus that says monetary profit is the only measure of corporate success.

A return to shared prosperity is needed to recreate a healthy economy. We need an economy based on tangible products and services and not on speculation and not on financial transactions.

We need a Powell-esk agenda for the Middleclass and champion to nurture it.

Fast Track to Hell: Paul Ryan – Roger Ingalls

I’m from the great state of Wisconsin and proud of it. It’s the home of the Green Bay Packers; the football team that’s won almost twice as many world championships than any other team. It’s a team owned by the community while all other teams are private hobby organizations for fat-cat Wall Street insiders. There’s something sweet about a community team that’s more successful than the bankers’ dream teams.

Wisconsin is also known as the home of Harley Davidson, historic development center for electrical power tools and machining, an original leader in electron-beam microscopy, super computers and, of course, organized labor. It is even rumored that a thousand years ago the Knights Templar buried the Holy Grail somewhere in the Dairy State between the Virgin apex of Green Bay and the Kensington Stone in Minnesota. This is why Wisconsin is often referred to as God’s Country.

Wisconsin does have its embarrassments: Jeffrey Dahmer, Ed Gein and four out of the last twelve gun related mass murders (in the last twenty years) have been committed in the state. However, the biggest embarrassment was republican Senator Joe McCarthy who was responsible for massive civil rights violations during the 1950s. Current Governor Scott Walker is a rights violator too but is considered a pantywaist by comparison to McCarthy.

Presidential candidate Mitt Romney has selected Paul Ryan (republican representative for WI 1^st congressional district) as his running mate for the 2012 election. Paul Ryan goes beyond embarrassment for the state; he is pure evil. He is an agent for Wall Street and is pushing an agenda that continues the transfer of middleclass wealth into the hands of the one-percenters. Here are a few of his ideas:

1)      Privatize Social Security – he wants to turn your social security money over to the same bankers and Wall Street companies that crashed the world-wide economy in 2008 and stole the common man’s wealth and gave it to the 1% fat-cats.

2)      Eliminate Medicare for those who earned it – he wants to give us a partial coupon and then make us buy healthcare plans from Wall Street backed insurance companies. For profit insurance companies don’t care about people’s health, they care about making money for their shareholders. The only competition Wall Street’s insurance companies have is Medicare. All insurance companies offer essentially the same coverage so there really isn’t a free market choice other than Medicare. Once Medicare is gone, the people will be powerless and under the thumb of for profit-only Wall Street. Under his plan, getting the medicine and treatment we need will be a bigger fight than we have now.

It’s my opinion that Paul Ryan is pure evil and is trying to fast track the American middleclass into a hellish existence for the benefit of his Wall Street backers. Why does he have to come from my state of Wisconsin? I guess in a Biblical sense, the Antichrist must originate from God’s Country.

Algaculture: Farming Worth Subsidizing

Last week I blogged about farm subsidies and how they limit variety, make people fat and destroy the free-market economy. It wasn’t a very popular post so I assume most people don’t care to dig into the complexities of this subject. However, it is a very important issue so I’m going to discuss it again but with the focus of how I believe our tax dollars should be spent.

Instead of subsidizing grains, corn and other carbohydrate crops that get over-processed into unhealthy foods, we should fund farming methods that can efficiently turn plant life into alternative fuels. And I’m not talking about the inefficient use of corn to make ethanol which is a crazy waste of food and energy.

We should subsidize algaculture or algae farming. More than 50% of algae’s composition – by weight – is lipid oil which burns cleaner and more efficiently than fossil fuel based petroleum. Once the oil is removed from the algae, the leftovers can be turned into fertilizer and feedstock for animals.

To eliminate our reliance on imported oil, we would need approximately 50 million acres of algae farming compared to billions of acres of corn to produce ethanol. Algae is a much better crop choice for making alternative liquid fuels.

Can you imagine all the problems we could solve by using our farm subsidies wisely? We could eliminate our reliance on foreign oil. We would no longer have to fight wars in the Middle East. There would be a new farming community with massive job creation as well as support industries to refine algae oils. In addition, there would be less unhealthy products in our food system because high fructose corn syrup and grain-fed beef would no longer be priced below true market value.

I encourage you to learn more about farm subsidies and algae bio-fuels. We could have a healthier, greener and safer society by changing how we spend our tax dollars.

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Roger Ingalls is well traveled and has seen the good and bad of many foreign governments. He hopes his blogging will encourage readers to think more deeply about the American political system and its impact on US citizens and the international community.

Subsidies: Sickness and Profit

Have you ever wondered why the government subsidizes food that is bad for our health?

picture from fadingdesign.com

Government funds (our tax dollars) go to farmers that grow corn, wheat and soybeans resulting in artificially low prices for these foods. You may be asking, “what’s wrong with paying less for food?”

There are fundamentally two problems with our farm subsidy programs: 1) it reduces the variety of affordable foods and 2) the funds support crops that are turned into high-fructose corn syrup and hydrogenated fats.

Between 1975 and 1984 most soda manufacturers switched from sugar to high-fructose corn syrup because of price. You may find the correlation between the rapid rise of obesity and the introduction of soft-drinks with HFCS interesting (see figure below). In addition, there is a disturbing correlation between diabetes and the use of HFCS (below). Close to 70% of the packaged foods found on grocery store shelves are manufactured with HFCS or hydrogenated fats. Even the price of beef is artificially low because they are fed an unhealthy diet of subsidized grains instead of their natural meal of grass. The cattle are given doses of antibiotics to keep them from getting too sick for meat processing.

Foods that are healthier for us, such as vegetables, are not subsidized. Have you seen the prices for fresh veggies lately? They are outrageous! The good and healthy stuff is not affordable relative to unhealthy subsidized food. These government funded programs are pre-selecting our foods by artificially lowering prices for a small variety of farmed crops.

If we want a healthy society, we must re-create a free market by doing away with farm subsidies or by allowing equal funding for all crops. This will be very difficult because the large corporate-run farms receive over 70% of the subsidies. Their lobbyist and big banking partners will do all they can to eliminate a free market. In addition, a healthy society is not good for the pharmaceutical, health insurance and medical industries which also have strong lobby groups.

It’s an interesting dilemma; today’s corporate landscape of profit with sickness vs a change to health with a free market.

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Roger Ingalls is well traveled and has seen the good and bad of many foreign governments. He hopes his blogging will encourage readers to think more deeply about the American political system and its impact on US citizens and the international community.

Cultural Death by Capitalism

Unbridled capitalism has turned the abundance of choice into a lack of variety.  When Henry Ford held the monopoly on ‘horseless buggies’ and as he adopted the assembly line in its infancy, he was quoted famously as saying that “Any customer can have any car painted any colour they want, as long as that colour is black!”  Thus began the way of life we know today.

Despite this beginning of mass production taking shape, we were still a country of independence and unique subcultures.  When I was a kid, my family would drive across the country to Wisconsin and back to California in our black Ford Galaxy 500.  To my parents, three younger sisters and me, every gas station, food joint and motel was unique.  Each state was different from the next.  Soda pops were regional, as were toppings on national classics like burgers and hot dogs.  Service stations reflected their locations with souvenirs, such as the Jackalope – native to Wyoming.  We knew when we crossed a state line simply by looking around us.

 

“As a child, we frequently drove from the Bay Area north to Grass Valleyalong Hwy 49.  Auburn was a treat to stop in because of the rich gold-mining history displayed all throughout the town.  My grandparents took us to a local café and candy shop.  I was in my early twenties when I took my first solo trip along that drive.  In just a few short years, the local SPD grocery chain had grown and now resembled every other chain store in the strip malls that now populated the once desolate highway.  Ruby’s Gifts had moved and was no longer the charming store it once had been.  The same fast-foods were now as readily available on every corner here as back home in suburbia.  The lusciously quiet tree-lined drive was overrun with the very places I longed to escape from.” *

Thanks to the likes of Sam Walton and James Cash Penney, big box businesses have taken over the same routes, highways and countrysides that are laid out before my wife and I as we make the long trek on a cross-country roadtrip back home to Wisconsin.  Where I once saw sloppy diners, roadside motels that had us peeking out the windows for Norman Bates, and “last chance stops” – now on our drive we see the bright, familiar lights of Walmart, Best Buy, fast food chains, Shells and Chevrons.  In the entire state of Nebraska the only pizza we could find was the cardboard served at Pizza Hut. 

We hear it all the time from Libertarians and Republicans:  “No control or restrictions for the rich and big businesses!  The free market gives us abundance and choice!”  The problem with this is it gives advantages to people and entities that already have the edge.  Big money wipes out unique products with cookie-cutter economies on an epic scale.  Everything is a tired blur of a handful of logos from coast to coast.  Few sights to see – even the truck stops have all been taken over by McDonald’s and Subway – gone are the all-night greasy spoons with grizzled old haulers hunched over their bowl of chili with a cracked, worn coffee cup glued to their dirty hands. 

“If half the employed population spent $50 at local, independent businesses, it would generate more than $42.6 billion dollars nationwide.  For every $100 spent in locally owned stores, $68 returns to the community through taxes, payroll and other expenditures.  If you spend that same amount at a national chain, only $43 stays local.  Spend it online and none of it stays at home.” – The 3/50 Project.

While Americans have fought against socialism, we have in fact, through our capitalist greed, ended up with nothing more than the variety of a communist government store. 

 – Roger Ingalls

* featuring guest blogger Kymberlie Ingalls, www.WriterOfTheStorm.com

photes by jackalope.org and shadetreemechanic.com

Constitutional Treason: Boehner Debt Ceiling Conspiracy? (by Roger Ingalls)

U.S. Constitution – Article 3 Section 3, Treason against the United States, shall consist only in levying War against them, or in adhering to their Enemies, giving them Aid and Comfort. No Person shall be convicted of Treason unless on the Testimony of two Witnesses to the same overt Act, or on Confession in open Court.

(Canter and Boehner from Getty Images)

July 27, 2011, Speaker of the House, John Boehner, admitted that many members of his caucus want to create economic chaos by not approving a new debt ceiling limit. He unwittingly said this on Laura Ingraham’s conservative radio program.

Raising the Debt Ceiling to allow our country to pay its bills has been a relatively routine congressional process since the early 1900s. In fact, it has been elevated more than 100 times since the 60s. A small group of fanatically-right House freshman and Tea Party members are refusing to vote in favor of raising the ceiling until their desired changes to the US Constitution are made. Yes, they want the laws that have governed our country for over 200 years changed or they will send the United States of America into economic chaos.

(from loosechangeguide.com)

These Representatives appear to be using a strategy similar to the warfare tactics used by al-Qaeda when they brought down the World Trade Center. Al-Qaeda destroyed property and killed many people but their goal was to cause financial harm.

The United States is a free-market country and harming it by not allowing payment of obligations, ruining its credit rating and financially crippling its citizens is an act of war. If these House members have discussed, planned or intend to cause economic chaos, as stated by Speaker Boehner, they have commited an act of treason.

As citizens of this still Great Country, we should demand a congressional investigation into the possible treasonous activities of John Boehner and his caucus.

Call, fax, email, text and Twitter your Senators and House members to demand an investigation. Post on Facebook, Twitter, email and call your friends and family to encourage them to do the same.

We must not let a small group of fanatics dictate how we are governed.

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Roger Ingalls is well travelled and has seen the good and bad of many foreign governments. He hopes his blogging will encourage readers to think more deeply about the American political system and its impact on US citizens and the international community.