“One’s own employees ought to be one’s own best customers. Paying high wages is behind the prosperity of this country.”
~ Henry Ford
By Catherine Austin Fitts
The debate continues regarding the benefits of continuously squeezing labor.
Median household income in the United States has been on a downward trend since 2000 while essential household expenses have been rising. This squeeze is at the heart of the “slow burn.” There are numerous reasons, including the significant payment of taxes to a federal government who is wholly out of compliance with the laws related to financial management [see Solari Missing Money] while continuously acting against the interests of the citizens and taxpayers. [If you doubt this, please watch Sir James Goldsmith explain how it was done globally and read my on line book about how it was done domestically]
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Commentators often attribute this development to technology. This is rubbish. If government spending, regulations and enforcement actually functioned within the boundaries of the Constitution, the explosive technological wealth available and created through the black budget would have flowed to a far wider constituency. In addition, technological innovation publicly available would have benefited smaller and new players as opposed to large corporations backed up by governmental enforcement operating outside the boundaries of the law.
Corporations themselves are now facing a conundrum. Bloomberg reports this week:
“The number of people on payrolls in the U.S. is still 1.5 million below the number in 2008, even after a 5-year-old rally that has boosted the value of stocks by $14 trillion. A 167% advance of the Standard & Poor’s 500 index during the past 57 months has been driven by reduced costs and record-low borrowing costs boosting corporate profit, analysts say. Employee compensation relative to net corporate profit is at its lowest level since 1966.”
We have an accumulated pile on impacting American income – unemployment, debasement of the currency, government intervention in favor of centralization of the economy, now Obamacare. The proof is in the pudding – American corporate retailers now face a holiday season with significantly diminished sales. Suddenly, we have the President calling for a higher minimum wage. We are going to mandate higher income for the people whose income is being destroyed by other federal mandates.
One wonders if the President will soon propose that the increased wage be mandated to go to the preferred corporate retailers.
My latest copy of Men’s Health notes that the City of Washington is one of the highest in the country in organic sales.
It would appear that the regulatory targeting and destruction of small farm and small business income in the heartland of American is so profitable that the lobbyists and lawyers of the capital city can afford to buy organic.
Related Reading:
What a Higher Minimum Wage Does for Workers and the Economy
