ON Economics of revolution
Posted on October 5, 2014 by Carl Herman
HERE A SERIE OF SHOCKING NEWS FROM CARL HERMAN POSTED ON http://www.washingtonsblog.com/
Technological evolution has been parasitized by a .01% who
cause average American families to devolve from an economy in the 1950’s and
‘60s where one adult wage-earner could successfully raise a family and gain
wealth, to today’s economy where over 75% of two adult wage-earners struggle to
raise a family and cannot gain wealth.
Excerpt of the first section from
David’s book, The Economics of Revolution, with adaptions of Part 1 here, and Part 2 here:
An extensive analysis of economic conditions and government policy
reveals that the need for significant systemic change is now a mathematical
fact. Corruption, greed and economic inequality have reached a peak tipping
point. Due to the consolidation of wealth, the majority of the population
cannot generate enough income to keep up with the cost of living. In the
present economy, under current government policy, 70% of the population is now
sentenced to an impoverished existence.
Let’s take an in-depth look at the evidence.
I: THE ULTRA-RICH .01%
To see how corrupt the United States government has become,
just follow the money. According to the most recent Federal
Reserve Flow of Funds report, US households currently have an all-time
high $82 trillion in overall wealth. If that wealth were spread out
evenly, every US household would now have $712k. However, as of the end
of 2013, the median household only had $56k in wealth. From 2007 – 2013,
overall wealth increased 26%, while the median household lost a shocking 43% of their wealth. If
median wealth continues to decline at this rate, over 50% of US households will
be bankrupt within the next decade.
The fact that the majority of households are losing so much
wealth in a time of record-breaking overall wealth demonstrates how
systemically corrupt the economy has become. To begin to grasp the scale
of corruption, let’s analyze how much wealth has been consolidated within the
economic top 1% of the population.
The latest comprehensive look at wealth distribution data reveals that the
“ultra-rich” economic top 0.01% of US households now has an all-time high 11.1%
of overall wealth. The next tier, the 99.9% – 99.99% has 10.4%, and the top 99%
– 99.9% has 18.3%. In total, the top 1% now has an all-time high 39.8% of
wealth.
When we correlate wealth distribution percentages with the
$82 trillion in overall wealth reported by the Federal Reserve, it reveals that
the top .01% has a stunning $9.1 trillion in wealth. In total, the top 1% has a
mind-blowing $32.6 trillion.
To begin to comprehend wealth of this magnitude, one
trillion is equal to 1000 billion. $32.6 trillion written out is
$32,600,000,000,000.00.
Having that much wealth consolidated within a mere 1% of the
population, while a record number of people toil in poverty and debt, is a crime
against humanity. For example, it would only cost 0.5% of the 1%’s
wealth to eliminate poverty
nationwide. Also consider that at least 40% of the 1%’s accounted
for wealth is sitting idle. That’s an astonishing $13 trillion in wealth
hoarded away, unused.
Once you truly understand how much $32.6 trillion is, and
realize how just a fraction of that wealth could dramatically evolve society
for the benefit of all, the argument for significant systemic change is
solid. However, as scandalous as these statistics are, they do not factor in
trillions of dollars more in unaccounted for offshore wealth,
which makes the overall situation sound significantly better than it actually
is and hides the true depth of the crisis from popular consciousness. (We
will analyze hidden wealth in section 4.)
Looking toward the future, current trends reveal that the
rate in which inequality is growing is increasing rapidly. Overall wealth increased
by $1.5 trillion in the first quarter of 2014. If wealth keeps increasing at
the current rate, there will be an increase of $6 trillion in 2014. How
will this wealth be distributed? If you look at income gains since 2009, 95% of them have gone to the top 1%.
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THREE OF MY ECONOMICS ANALYSES:
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