Macro-economics and macaroni-onics ?
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Macro-economics and macaroni-onics ?
Elitist governments of the day (US, Canada, GB, Au, France, Germany ) committed a major fraud on the citizens of capitalist societies. This was done in relative secrecy through the use of "pork like expenditures" did not issue cheques or receipts. This was achieved, unlike cash transfers to people, through targeted decreased corporate taxes to achieve targeted fiscal outcomes. Accounting and evaluation of these Tax Expenditures is virtually impossible because there are no established structures to value the expenditure. Given, that the spending was carried out through the corporate tax system it is a major spending program with no accountability in the public accounts of nations. For example the GAO in the US and Auditor General of Canada called for an accounting system to make transparent the new system's amounts, accounts, effectiveness and efficiency of tax expenditures. The only indications of this wealth transfer to the rich appear in the minutia of corporate tax codes. As private wealth grew with public funds, the argument that we cannot afford a society that puts people ahead of power became the wisdom of the day. Despite decreased spending in entitlement programs and in United States, the continuing lack of a public health care system, deficit budgets and national debt continued to grow. The Central Banks responded to inflation and the insatiable greed of the so-called elite by raising interest rates to almost twenty percent. As many will remember, this lead to a new phenomenon referred to as Stagflation (Economic stagnation and inflation at the same time, theretofore considered impossible). Stagflation hurt many sectors of the economy and lead to political unrest. Government and corporate elites used these unintended consequences as a rationale for further abandoning mixed economy Galbraithian structure. Given the rising prices and interest rates unions and the Public Service sectors were prompted to offset higher costs through wage negations. To finance the new wage negotiations companies increased prices and thus maintained huge profit margins. The process stagflation was self-sustaining. This form of economic organization has drawn political support mainly from those of us who are not struggling to feed, house, educate their children. Current investigation indicates that this consensus is waning as we devolve from a society to an economy.
YouTube | March 24, 2008
