The Poor and Elderly – America’s Crucial Economic Base

By: Carol Keys George

America enjoys leadership roles in more of the world’s affairs than any country in history. If the United States of America is to continue to be an effective world leader, it must re-evaluate itself in a number of vital areas.  Aside from defense and world considerations, the nation’s most pressing need is to fix its own near broken economy.  The weakened economy, presided over by the nation’s first Black President, emitted distress signals that were picked up by large  multi-national corporations.

As vultures circling a rotting carcass, multi-national corporations, owned by foreign governments, sniffed out super-pacs as a means to control American politics. After the supreme court’s decision declaring that corporations and individuals could spend limitless funds to promote political candidates, the  multi-national corporations began to land on super-pac runways early in 2009.

These super-pacs are dedicated to taking over the government.  Nationally, multi-national corporations, through the super-pacs, were very successful in 2010, winning control of the House of Representatives. They were less so in 2012.  However, their gains in State houses and the House of Representatives provided impetus to these foreign, presidential, congressional and State government raiders. Super-pac money even found its way into local elections.

Beginning in 1941, America transitioned from a farm economy to an industrial economy. This brought many people from the farms to the cities.  People who normally fed themselves from farm produce and farm incomes now worked to build machinery versus produce food. Women worked in newly built factories while their husbands fought world war II. This meant that farms had to produce more food per acre in order to feed the country.  To assist farms in doing so, subsidies were given to farmers by the Federal government.

President Franklin Roosevelt recognized that a large base, which spent its income immediately after receiving it, was mandatory to a well functioning, non farm, capitalistic economy.  Although it is not formally acknowledged by highly placed monetary figures, money is progressively introduced into a pyramid type economy at various levels of the pyramid. The population at the bottom of the pyramid is referred to as its base. The base contains the largest number of people, receives the least income per person and controls the least wealth per person.

The base, also known as the poor, is made up mostly of the elderly, minimum wage workers, enlisted military members and single mothers.  America prospers because it maintains a broad, healthy, opportunistic base of  elderly and poor people who feel that they can get ahead if they try. The base fills the troughs from which the rich and even middle class feed.

During the period since 1941, the middle class has demanded more each year, mostly through its unions. The rich has feasted on the base’s meager pickings; while doing scurrilous things to get more. Percentage wise, the poor has received less per capita each year, resulting in the pyramid now appearing more like a rectangle than a triangle.

An effective capitalistic economy requires monetary circulation.  Individual members of the base input their incomes into millions of small and large businesses throughout the country, making the poor crucial to financial circulation. The single mom, who births, cares for her children, works, attends school, receives some government assistance and distributes her total bounty to small and large businesses upon receiving it, is the most important person in this process.

If entitlements were discontinued, the base would be wiped out. Few small businesses and professionals (doctors, lawyers, etc.) would exist because there would be nobody to sell to or service. The middle class and low end rich, such as radio and television talk show hosts, entertainers and sports figures would likely be eliminated. Even the military would be drastically reduced. America would be disfigured and look drastically different.

The least important people are the rich who park the nation’s money (21 plus trillion dollars) in offshore accounts, thereby denying the economy the benefits of its circulation. All money printed and distributed by the USA is owned by the American people. Taking the nation’s  money out of circulation and placing it in foreign countries is deadly to both the country’s Gross National Product (GNP) and its Domestic National Product (DNP). This money has been extracted from Americans and made part of others’ finances.

Bringing that money back into the country would do wonders for the nation’s economy. The budget could easily be balanced. Both the national debt and the national deficit could be retired immediately. Frankly, it is difficult to see how the government can balance the budget with part of its cash assets that total the amount of its deficit nesting in foreign accounts.

Demonizing the poor with labels such as shiftless, welfare cheats, lazy bums, thugs, etc. is not only wrong but could apply to everyone whose work is not in life essential occupations. Only a small percentage of people, such as farmers and energy suppliers do work that services life needs. The majority does work that is not essential to life.  The top two percent’s contention that it pays more taxes than half the population is moot when it is given more that three quarters of the nation’s wealth.

Money is distributed to various vocations on the basis of education. If the poor is denied money that it normally inputs directly into small and big businesses, those businesses will dry up and go away.  When an angry over burdened base can no longer exist under a dictatorship or top heavy rich society, it will rise up and throw them off. From Rome to Libya, this has been historically true.

Instead of cutting entitlements so the rich can get more, congress should reset distributions across the board. It should revamp the government’s distribution proportions based on various educational levels.  It should  increase payments to entitlements, the minimum wage and unemployment benefits. The pyramid of American disribution will return and the proportions of incomes of all Americanswill begin to look similar to the proportions distributed in 1941.

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