The new Banana Republic -- the USofA

I always thought that a few numbers can go a long way in putting things in perspective. Here, let's look at the dynamics of income distribution and taxation in the US:


NYT column

The richest 1 percent of Americans now take home almost 24 percent of income, up from almost 9 percent in 1976. As Timothy Noah of Slate noted in an excellent series on inequality, the United States now arguably has a more unequal distribution of wealth than traditional banana republics like Nicaragua, Venezuela and Guyana.

C.E.O.’s of the largest American companies earned an average of 42 times as much as the average worker in 1980, but 531 times as much in 2001. Perhaps the most astounding statistic is this: From 1980 to 2005, more than four-fifths of the total increase in American incomes went to the richest 1 percent.

See the trend?

I definitely see the trend.What a sad situation, but we cannot blame it only on the rich.

The poor do not have financial literacy (although this is a problem of the system we live in) and the minute they get some money the end up spending it. They are encouraged by the media, and by their peers to spend, spend, spend... Spend all their money on mostly useless physical objects in order to improve their so-called "social status"..

The rich use their money to create more money; they have that money work hard for them. They take calculated risks to ensure that they are practically guaranteed a ROI. They diversify their income.... They know that this is real safety and true income.

The poor think the best and safest way to an income is having a job (which is merely 1 source of income). Depending on someone else for your income and financial wellbeing. The rich see that (playing safe) as the biggest risk ever, and akin to financial suicide.

Of course with this I am disregarding all corruption and greed which of course does exist, but isn't the whole story.

Here's some interesting info to think about:
What Would You Do if Your Income Disappeared?

Obviously they need to print some more new dbills to keep up with the trend.

We are a Banana Republic, and eventually it will start to burst out in all places for all to see at one time.

It's just like mining isn't it...
Once the country dries up they'll move to another and start drilling the money out of others pockets.
Okay... that won't happen if they're actually in control: they need the (out-of-kilter) balance or else there's no incentive. What happens when there's only one rich person left? Kind of devalues their loot!
Power is just a mirage

This is very disturbing...


clearly this 1% is paying too much in taxes...they should be getting 98% of the money...

quick, form a tea party to protect them from the greedy middle class (assuming the middle class still exists by the time I hit post).

Drill baby drill!

Originally posted by TheBandit795
The rich use their money to create more money; they have that money work hard for them. They take calculated risks to ensure that they are practically guaranteed a ROI. They diversify their income.... They know that this is real safety and true income.

This is true...this is actually a fatal flaw in capitalism...the rich will become richer, they will do things to ensure the continued fueling of their finances, from purchasing politicians to favor their business practices, creating hedge funds, binding stock markets for controlled inflation and deflation of prices based on manipulation, and over a few generations of inheritance and status quo, the wealthy will become superrich, creating a vast divide.

the counter to this...well...there is no counter to this...the eventual progression will be a ever increasing wealth focus until the only possible outcome will be revolution or a complete failure of the economy, lock, stock, and barrel....

however, it was a fun right...say no to all socialism will equal saying yes to total financial meltdown...be it now, or in 50 years...the result is inevitable, period.

reply to post by TheBandit795


that was the most enlightening kick in the nuts I've ever seen. Thanks and ouch.

Time to read up on some things...

-B.M

In Oz, we had a politician (Treasurer and later Prime Minister) named Paul Keating who said pretty much the same thing about Australia back in 1986.

If this Government cannot get the adjustment, get manufacturing going again, and keep moderate wage outcomes and a sensible economic policy, then Australia is basically done for. We will end up being a third rate economy... a banana republic. * Speaking to John Laws on Radio 2UE, May 14, 1986.

We only just averted this coming to fruition. Hopefully America can too.

reply to post by SaturnFX

Well then who is to blame? Capitalism creates the chance for everyone to be inspired and useful to the economy. I agree that the banking system is flawed way on top, but it is the cards we are dealt so deal with it and use it to our advantage ethically. I am also sure that most of the propaganda on websites that are anti banks are from poor people who are just lazy. Everyone should aspire to be their best and not expect everything to be done for them by their Government.People should know not to buy anything on debt that they can't afford,

I suppose like 99% of the problems with countries comes from lack of or useless education, but instead of complaining about the banking system, get off your ass and educate the masses. Don't spread the word in our financially ineptness, spread the word on how we improve our knowledge in money.

I've been seeing this statistic brought up many times. It doesn't seem like one that is mentioned in the mainstream media all too often however. What it does show is a trend in the U.S. economy. Like another poster said, we are a Banana republic, with the exception that it is dependent on war (and not bananas) to keep things afloat.

reply to post by kykweer


Yep thats right blame the lazy poor people for the financial crisis not the greed of bankers looking to make a quick buck. What is it with people blaming lazy poor people for the financial collapse, it seems the propaganda is coming from the ruling class's not lazy poor people. Who owns the media, not poor people, but rich people, who like to take the heat of their banking masters and divert it onto those who are disenfranchised from the system.

reply to post by Flighty


yeah considering how strong our dollar is to the US dollar they might learn a few things from us. they can start with humility.

Originally posted by SaturnFX

Originally posted by TheBandit795
The rich use their money to create more money; they have that money work hard for them. They take calculated risks to ensure that they are practically guaranteed a ROI. They diversify their income.... They know that this is real safety and true income.

This is true...this is actually a fatal flaw in capitalism...the rich will become richer, they will do things to ensure the continued fueling of their finances, from purchasing politicians to favor their business practices, creating hedge funds, binding stock markets for controlled inflation and deflation of prices based on manipulation, and over a few generations of inheritance and status quo, the wealthy will become superrich, creating a vast divide.

the counter to this...well...there is no counter to this...the eventual progression will be a ever increasing wealth focus until the only possible outcome will be revolution or a complete failure of the economy, lock, stock, and barrel....

however, it was a fun right...say no to all socialism will equal saying yes to total financial meltdown...be it now, or in 50 years...the result is inevitable, period.

Well, that was a clever way to try to scare us all into accepting Socialism. The whole "sky is falling" technique. Nice, I bet a lot of suckers will fall for that. We are going to have economic collapse no matter what.

Here is a short vid that Micheal Hudson explains what the US wants other countries to do but that would be suicidal to do .
The only way out for the bankers is to reap what they have caused . It makes sense to me that the US has been in India and agreed to give support for a seat on the security council at the UN if they are willing to keep the ponzie scheme going .
US Black Debt Hole: 'We want you all bankrupt!' www.youtube.com... peace

reply to post by woodwardjnr

No I primarily blame poor education.

I agree bankers are ****, but only those at the crest of banking.

Do you think that all rich people are bankers? Do you claim that ALL rich people own a part in the media?

If something like 1/6 of the american populas is living off the government, then yeah, the gap will be getting bigger. When a good chunch of Americans would rather collect then sacrifice then that will create a gap. How about the rich are rich becasue they earned it. Gates, Jobs, the facebook guys, and even former welfaire recipiant JK Rowlings. How many jobs did those guys create. The great part of freedom, is that if you have a great idea and willing to work hard, you too can be rich. That freedom is not a bannana republic. The son of a bartender does not have to be a bartender, and that is what makes capitalism great

Originally posted by kykweer
reply to post by woodwardjnr

 

No I primarily blame poor education.

I agree bankers are ****, but only those at the crest of banking.

Do you think that all rich people are bankers? Do you claim that ALL rich people own a part in the media?

edit on 10-11-2010 by kykweer because: (no reason given)

Still blaming the poor for being uneducated! How does a poor person get educated?

The situation has nothing to do with education it's the way capitalism works and is one of the findamental flaws of laissez-faire capitalism that the US aspires to. The UK (tory party) also aspires to the same free for all variety. Capitalism depends on unemployment and poverty it cannot work without it! It's astonishing simple:

Unemployment drives lower wages.
Full employment drives higher wages.

Lower wages creates more profit for the few. Higher wages reduces margins and thus lower profits and income for the few. How do you keep people unemployed? Very very simple, you do nothing! but say that the reason for unemployment is the lazy scroungers. Hey presto, no change needed because everything would be OK if people stopped being lazy good for nothing scroungers. Meanwhile the rich get richer as the poor get poorer...job done.

If the poor masses start to get a little agitated and start to realise what is going on then a hefty dose of nationalism is brought to bear : your jobs are being taken by immigrants. Well what you actually get is somebody who is quite wealthy (newspaper owners!) stating "our jobs are being taken....", honestly some people are so gullable.

I'd love to be a poor person in America over a rich person in a Banana Republic.

reply to post by TheBandit795


Great post,

It is true what you say. We do live in a consumer society, where the citizen is constantly encouraged to spend the money he earns. Less educated people have a tendency to spend it all, whereas better educated people invest, and spread their assets.

Which is why a society that has the ambition to create equal opportunities for it's citizens must invest heavily in education, which should be free and avaible to all.

Another way to evaluate Banana republicanism is to assess the level of corruption in a society. I see that the USA is currently on 17th place in the world. Not too bad, but nothing to be proud of either...

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