On the Super Sale of Values in the Western World – When the American Dream turned into the American Drama and Europe Tries to Save its Pension System on the Back of the Legions of Highly Qualified Young UnemployedHinterlasse einen Kommentar
23. September 2014 von Sydney Polart ©
What kept the American Dream alive all this centuries of hardship is the parents believe that their efforts will grant their children a better future. The parent generation worked very hard to ensure that their children will have a better life than themselves. This was pretty much the bottom line of the American Dream together with the strong conviction that you can reach wealth if you only work hard to fulfill your dream.
This was the hope of so many generations of Americans, envisioning the prosperity of their country and their children’s future, even though if they themselves lived in misery, paying vast sums of money for their children’s education indebting themselves, or even never had the chance to send their kids to college. Or just think of the hard working immigrants in the big cities living amidst the brutal gangs of New York, or imagine the fate of the many farmers and miners working hard in the deep countryside, or the period of slavery in the USA with all its cruelties and barbary. Every single American endured all this hardships to ensure that their children will have a better life. This is where America is coming from; this is the dark part of America’s history. Coming from these dark ages how can it be possible then that in recent times the American Dream is in deep trouble?
Now many generations later, the children of farmers, miners, and former slaves, have earned even an MBA and are still unemployed. How can this be?
Until the 1980ies the business model of working hard and ensure a better life for your children, the American Dream, was working out very well as well as the possibility to work hard and get rich. But since then, since the liberalism was set through by the Reagan administration, supported in Europe by the liberalization of Thatcherism, in which the financial sector took over and so the City of London and Wall street started to dominate main street, the American Dream is only true for shareholders, because from ordinary working processes you cannot make enough money anymore. In the 1980ies it started that the financial world took off to make money with money and to constantly stay out of touch with the real world and real economy. This rise of the financial sector and its dominance over all other fields is a side-effect of the computerization which took all the financial products from the hands of former traders and gave it to software which multiplies the speed of trading up to 1000 times. This was the beginning of the process when the real economy unattractive for making money and the surreal financial products took over.
This exorbitant amount of money, out of the derivates of the financial sector, started to hijack the American Dream. Since then this is the trend to observe in the USA in which the American Dream for the ordinary people has slowly but surely died, as if ordinary Americans lost their dream, or see that they cannot fulfill their dream with normal work anymore, to stay positive and looking optimistic onto their children’s future. The shareholder value destroyed the American Dream.
So since the 1980ies the wind has changed and the backwind turned into headwind for so many Americans. The super sale of America has begun along with this mindset of economic liberalism of the free world trade starting in the 1980ies. More and more assets, more and more money, more and more jobs were outsourced and went overseas and made other regions across the globe prosper.
That many parts of the world are growing since then, can be seen as the only positive message about the economic liberalism. It’s not the fault of other regions wanting to have their piece of the cake, but it is the fault of America’s elites to act recklessly. Many US-companies followed this trend funding other regions in the world instead of investing in their own country and their own people.
It’s not a crisis of the economy; it’s a crisis of leadership and ethics. The elites in the USA lost their moral standards and their sense for responsibility, acting recklessly and just looking for maximizing their profits and the shareholder value instead. In the UK Margret Thatcher did the same and didn’t support any production industry jobs anymore and letting them die. Only the economic power house of the City of London was for Thatcher and her followers later on the center of attention and to be worth of to be politically supported and liberalized. The hard working people of the UK, which traditionally voted Labour, were seen and called by Thatcher as „The Enemy Within“.
And again, what’s about America and the American Dream again? America’s elites simply lost their prudence and their spiritual connection to believe in something higher than their bank accounts. And this new liberalization brought that they completely lost the sense of responsibility for the people. This is why they lost the attachment to work for the benefit of all of the people. They are only obliged to the wealth of their money and to the wealth of their share holders. Their believe in God turned into a profane believe in their own pockets and into the believe that the free financial market will mysteriously regulate itself through the invisible hand. The invisible hand has just one purpose: to take the money from the poor and give it to the rich. What a fairytale, unrecognized in its consequences as fairytale by at least blind politicians.
They gave up all human values of civilization for one wrong economic theory, which is nothing else, than Economic Social Darwinism in which there are only two ruling laws: The survival of the fittest as well as the strong kills the weak. So this insane theory of financial liberalization which goes along with Social Darwinism is the role model for the rise of the culture of the American street gangs deeply rooted in and supported by the Social Darwinism of the high school education. Later on similar to that, as they learned it in high school, the leaders of the liberalized financial companies act based on the principle of the winner takes all there like: the most brutal takes it all and kills or at least suppresses all the weak.
So it’s highly inconsistent and ridiculous at the same time, to praise the liberalized financial institutions and its successful leaders for their irresponsible practice worldwide on the one hand and on the hand condemning the street gangs and their reckless behavior doing the same business in their fields, following and showing the same principle of Social Darwinism only a little bit more obvious. Behind both there is the same principle in charge of Economic Social Darwinism.
Facing this downturn of humanity – and for all of those who already lost the memory of what humanity is all about, it is to love your neighbor like yourself, that means to help the weak and support each other in the attitude of cooperation, what is in stark contrast to eating each other like in animal law and in wrong politics and policy of last centuries – this is when the American Dream started to turn into the never-ending American Nightmare from which so many people are not able to wake up anymore. This policy gives the hard working people no chance to get enough money for pursuing and fulfilling their dreams, or to even get out of their constant rising debts, not even having 3 jobs a day. Even though their company they work for make millions and billions of profit, the money doesn’t come back to the hard working people who helped to raise the profit in the first place. The profit belongs to the few shareholders. And so the hard working people have no access to the accumulated capital, but stay poor and accumulate the class of the „working poor“ with no perspective and chance at all.
The company’s profit, the surplus value, is only staying with the shareholders, and is their fuel for their interests and ambitions to maximize their profit. They accumulate the company’s money on global stock exchanges and invest it in fields with the highest growth rates and expected profit margins. This is okay so far they pay in their countries regularly high income taxes for their profits and as a matter of social justice it is also necessary to implement by law that the losses are also tax deductible and the tax rates need for the shareholders to be the same as they are for ordinary people.
But one thing is for sure right now, the actual irresponsible elites in charge neither return the money to the hard working people of the countries they moved to with their companies nor to the hard working people did they leave behind in their own countries. All this is only possible by those politicians who work for the business elites in making business friendly laws. Some of those politicians making this business pampering laws may think that these laws are for the benefit of the hard working people, but they are wrong. It is enabling via laws a modern form of business slavery. None of the wages of the hard working people are rising, who helped the business elites to make these profits. And if they demand higher wages or better working conditions, the machinery of business slavery based on the theory of Economic Social Darwinism is moving on to the next cheaper region or country. This process of moving to new countries to bypass humane working conditions constantly lowers the standards of all countries worldwide. This is what I call the never ending American Drama which happens to become via export of the dominance of the American economic way thinking with its Social Darwinism a World Drama. Just think of how peaceful and just the world would look like if Sweden would export its business model and way thinking of social justice as a role model to the world. The reason why this Swedish model is not adopted by so many countries in the world is crystal clear: The existing nuclear super-powers dominate the world and its markets with their ideology and mindsets and their approaches to doing business, as if their approaches would be the only ones.
In contrast to that, to make good profits and ensure sustainable growth would means, that the elites of the business and financial world would be intelligent and responsible enough to reinvest their money in the wages of their own people and in their own country, so the domestic demand and the revenue would rise, and the government would have more money to invest in the infrastructure of the country which includes the education system, health care system, pension system, transport system, energy security system etc. for the wealth of the people and for the growth and the quality of the economy. With this kind of policy the companies would act in macroeconomic self-interest and ensuring that in their countries all of their workers nationwide would benefit from it and would get a piece of the cake.
There are many parallels to other countries of the Western world but the USA is the spearhead of this development of irresponsible financial liberalization of the last decades, in which to raise the share holder value is the only goal and the suffering of the people and the destruction of the nature are negligible to these elites. To make this process of the super sale of values intransparent the macroeconomic statisticians just take the profit figures and divide it through the inhabitants of the country. With this simple but vicious trick they pretend that all inhabitants of whatever country have a lot of money even if so many, and more and more, are living below the poverty line.
Because if you take one million income per year of an individual and 9 individuals with 10.000 Dollars/Euros income per year each and sum it together, then you just have to divide it by this 10 people, so abracadabra every one of this 10 people has 109.000 Dollars/Euros income per year. This is how our macroeconomic statisticians are calculating, and tell the politicians to act according to that information. Due to this formula the USA with it 52.800 Dollars GDP per capita (PPP) is seemingly a very rich country, even though just some percent reach this level of wealth within the USA. By the way the formula is so simply simple that the whole economic performance of a nation per years expressed in money is divided by all of the inhabitants of these countries, what means that also every baby in the cradle makes 52.800 Dollars (2013, according to the CIA World Factbook and actual estimated 319 million Americans) per year. This is in contrast to China with its estimated population of 1.356 billion and its 9.800 Dollars GDP per capita (PPP).
With this simply formula you can easily pretend that all the hard working people benefit from the profits of the companies within on country. At the same time this method hides that in reality just the very few accumulate the money.
The Western world and their responsible politicians need to understand these systemic processes to turn around this development of lowering the working standards of every country year by year. And it is not enough to tax the millionaires and billionaires as Thomas Piketty is promoting it in his book „The Capital in the 21st Century“. It is short-sighted to think it would be enough to tax the rich, because if they just bail out themselves with a specific amount of money via a tax, that doesn’t mean that they change their irresponsible behavior at all and so their intention to lower the standards year by year in every country to maximize their profits and give nothing in return but poverty stays alive.
For many countries in continental Europe, the systemic understanding of the political caste is highly doubtable as well. The majority of their politicians don’t understand how this economic theory of Social Darwinism combined with economic liberalization operates and so they just keep the old system working, neglecting that the old pension system cannot cope with the high amount of retirees and the few young people in working process.
So the doubtable „experts“ consulting and influencing the politicians, pled for letting the old people stay in the working process for many years more even if they want to retire, so that the system doesn’t have to pay pensions for the possible retirees. With this policy the politicians and their experts simply close the system, in not letting the old employees out of the working process, and because therefore no open positions to fill not letting the young people in the working process. In addition to this, there is an ongoing cost reduction because of the instance that for the business owners and shareholders the employees are the most expensive cost factor. So the politicians in line with the economic leaders protect the system from its financial breakdown in not caring for the masses of young unemployed, not understand that they sacrifice the young and ruin whole generations of young people by securing the broke pension systems. Young employees would cost the companies only half of the money of the old employees, if they just would let the young ones in the system. The only strategy of the politicians is to constantly find new education programs of lifelong learning, to over-educate the youngster who waiting for jobs over many years, keeping them busy through that, and telling them the lie, they would need this over-education later in their lives for getting a job. In the contrary they are just giving the youngsters a pseudo-perspective to possibly get into the working process after having gained over many years after their education all sorts of extra qualifications, and most of the times they have got some ridiculous qualification programs of how to write a comprehensive application. This is highly cynical. It’s more that way, that the more qualified the young people are the less they are requested from market. It’s especially the case if it is their first job, because they are a potential danger to their often less qualified future employers and especially to the staff and personnel departments of the companies. It’s an education trap in which even politicians of good will are driving the youth.
With this strategy the politicians hope to deescalate the legion of angry young unemployed, giving them a pseudo-perspective and to ensure the social peace within the developed nations. This social peace is therefore decreasing year by year.
And so in order to keep up a dying pension system for some more years, guaranteeing the old that they will get the money from generations who themselves never retrieve any money out of this broke system. And out of this fatal policy to back a failed system, the legions of unemployed young people are growing year by year. They have to stay frustrated on the streets, waiting for a train which most likely never comes or being forced to leave their countries as highly educated young working migrants from Southern Europe to Central and Northern Europe, just to find out that they are in the country of arrival in the similar job situation as in their home countries, just parked in a better financial social support system than they were used back home. These legions of unemployed young people with no perspective at all, are the best recipe for social unrest and destabilization of social structures in the developed countries, because these masses of disenfranchised youngsters build up a growing revolutionary potential which runs against the closed shop and bastion of the old fat cats in political systems and union positions.
Published by Dr. Dr. Immanuel Fruhmann
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