I continue to discover a discontent that is not confined to New Yawk alone. Throughout the country, citizens are beginning to affirm an unsightly conviction, namely that the President doesn’t have our back! This is unusual for the simple reason that the vast majority of American Presidents implicitly knew that they represented NOT their own political party but the American people themselves as a whole. This common sense conviction is missing from the convictions of President Obama.
Nevertheless, the Presidential debates have highlighted the political, fiscal and monetary principles that underwrite our exceptionalism. Much to the dismay of ‘likely voters’ Team Obama is M.I.A.
How did this happen?
Everyone knows that governors make the best Presidents. This is easy to discern for they are always juggling between the scarcity of resources and imminent failure, that harsh rubric alone stimulates prudence.
At the heart of President Obama’s political craft are ideological convictions that are completely divorced from any empirical reality. We hired an ideologue. A person who implicitly believes (not thinks, for failure is an irritant) that the U.S. economy is tied to impersonal cyclical forces. We can see this throughout the writings of any progressive.
Lord Keynes’s ‘General Theory of Employment, Interest, and Money’ stipulates that labor alone is not the sole function shaping wages. Keynes noted that workers prefer a slight increase in pay in exchange for modest inflation. This means that most people are immune to knowing anything about the purchasing power of money. Quantity alone matters. Keynes and his Fabian cohorts exploited this ignorance by constructing a ideological system (Keynesian economics) that constantly raises prices (inflation) can be used to conceal declines in wages, therefore reducing an explicit antagonism between labor and government. In affect, creating both tax revenue and higher short run employment. All while damaging the purchasing power of the dollar.
This is the secret to Keynesian macroeconomics.
Why does it hurt us?
Because by numbing the American worker from recognizing declining wages we become numb to price signals too. And in a global world that’s damaging. The United States has competitors now, capital can move across the world in seconds. What the American worker doesn’t see is the corruption at the heart of this political economy. We are numb to rising prices. Couple this with emerging markets, and increases in digital technology in the workplace all lead to both declining wage-employment ratios.
Yes American median income has gone up five fold since 1971. But the U.S. dollars purchasing power has declined 81% since 1971. This is the acknowledged discontent. American citizens know from food shopping (commodities) that the medium of exchange (the dollar) is worthless. Not only is FAT BOY GOVMINT giving us a currency that’s not convertible to anything, but it continues its coercive formal policy of subsidies, massive credit (mis)allocation all while bailing out political favorites. The impact of this is real cumulative decline.
The organizing principle of our economy is a moral insight about the primacy of liberty and human freedom. We call this individual sovereignty! This gift grounded in nature, is stolen from every American by an unelected private banking cartel called The Federal Reserve, whose organizing principle is organizing a monetary system to benefit its political principals. Not the Republic!