Capitalism versus Welfare State, I Can’t Tell the Difference Anymore

Economic plans by Democrats versus Republicans, Liberals versus Conservatives, all are off target. In my honest opinion, I don’t think either party’s economic plans will work. Neither address the issue that Americans can’t support a standard of living that they desire, an extravagant and self centered culture promoted by media and banks all so willing to lend you the money, and a government and economy controlled by the super wealthy to funnel wealth to them.

As of 2001, the top 20% of the country controlled about 85% of the country’s total net worth.

In 1983, the top 20% of the country controlled about 81% of the country’s total net worth. Up 4%.

As each decade goes by, the weath continues to be funnelled upwards, squeezing the remaining 80% of the people in the United States. Worse for the bottom 15%. (Data source:

This is across both Democratic and Republican controlled White House and Congress.

And we witness this everyday and we accept it. The laws protect businesses more than individuals. Wealth hides behind legal corporate structures and are better protected than individual bankruptcy laws. Individuals bare more tax burden for the country than corporations. Between individual income tax and social security, the Federal government in 2008 collects nearly 85% of its tax revenue while corporations only had to carry the rest.  (Data source:

How many of us know all those “executive perks” for top management?  John Thain was redecorating his office while Merrill Lynch was in dire trouble and using taxpayer’s money, he was paying out bonuses to the top ranks and laying off the lower ranks.

How many of us know those lobbyists working for top management influence and infiltrate our government? William Lynn who’s job it was to get government defense business for Raytheon Corporation is now Deputy Secretary of Defense.

So why do laws and government actions continue to disfavor those faceless 80% (240 million Americans)?

This week alone, more 71,400 new job cuts were announced.  Hence, an already impatient President Obama has renewed sense of urgency to convince the holdout Republican Congresspersons to vote for his Economic Stimulus Plan.  Behind close doors, they are negotiating revisions.  But will President Obama be successful if there are fundamental economic philosophical differences?  Texas Congressperson Ron Paul and others believes it’s the absolutely the wrong thing to do because it’s interfering with the free market. In addition, where is the borrowed money coming from?

Ron Paul and Dick Armey on Fox Business News


What do you think?

1 Comment »

  1. January 27, 2009 @ 8:03 AM

    The World is in desperate need of a new economic thinker, who offers something completely new.

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