How to Cook a Goose in Three Decades.
The Capitalist economic system is based on the private
production of goods & services for the consumption of
the private citizen and public institutions of government
and social functions. The Components of the system are
1. Employer (consumer)
2. Employee (consumer)
3. Government (consumer)
4. Social Institutions (consumer)
5. Consumer (employer – employee – government – social institutions.
The Two major parts for most of our American history
was the interaction between employee and employer.
In the earlier years of this nation the employers were
entrepreneurs with very few employees. The only large
employers were governments who only represented a
small part of the of the work force except in time of war.
Because of a shortage of labor outside of the plantation
slavery system of the South, the earlier years were marked
by a balance of economic strength between components in
the free market system. In someways the Plantation system
was a precursor to Corporate America. It was the ultimate
imbalance between Employer and employee.
Corporation began to become more important early in the
1800′s when some states began to grant them more flexible
powers of operations. In 1819, the U.S. Supreme Court granted
corporations a wider range of rights. The Corporation as a
whole was labeled an “artificial person,” possessing both
individuality and immortality. Because of the limited liabilities
of corporation they have become the primary method of doing
business of both the big and small employers.
One of the growing needs of larger employer units was a
constant and universal currency to conduct efficient
transactions in the market place of the growing consumer.
The tension between Banking power and government
power had made a National Entity impossible. The Greenbacks of Abraham Lincoln’s Treasury Department was the closest
creation until the birth of the Federal Reserve Banking System
in 1913. In the interim there were some major bank Panics
that wrecked havoc between the production and consuming
components of the capitalist economy. Unfortunately the
Federal Reserve did not prevent the Greed of Banking interest
from causing two large Economic disasters including the
Great Depression triggered by the levered Stock market
Bubbled of 1929.
The Banking reforms and Labor reforms of Roosevelt
during the 1930′s set up a stabilized condition between
the rise of Corporate Capitalism and Union Labor.
The Wealth spread between the Middle Class and the
wealthy elite narrowed and 50 Years of prosperity ensued.
Then came Reaganomics. The Banking reforms were gutted.
The Rich were give the larger slice of the Economic pie and
were trusted to trickle down on the Middle Class. He broke
the back of of the Union movement and made the wage
earner a slave without power to the Corporate Capitalist.
The Middle Class languished and is now dieing. The Corporate
Capitalist shifted the wealth to themselves at the same
percentage that existed under the imperial rule of Hoover and
the Bankers. Once again Bankers had the power to leverage
money to make money with out adding anything to the
The Corporate Capitalist that were engaged in the
Production, Employment, Consumption cycle were
in the meantime killing the Goose in the search of the
Gold they wanted so badly. Technology and offshore
job transfers were expanding the profit with great
rapidity while the purchase power of the working class
was rapidly declining while the Middle Class was sliding
into limbo. The economy was being carried on the backs
of the Credit cards that Banking was getting rich on and
the inflation of the Housing Boom was creating a spending
boom among the privilege class of home owners.
The Boom Busted, the Bankers begged, Bushed Bailed.
Every one carried home a Bonus and and all was happy
among the Financial Barons.