illustration: connected buckets


When America began to connect to third world nations for the purpose of trade, our $18/hour society was no match for China’s $.25/hour society, and our money began to drain outwards toward China.




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Who spiked the simple man’s koolaid

Today, while listening to Charlie Daniel’s Simple Man, I noticed something. That song identifies a classic pattern: good honest workers usually revolt against

  • A) crooked politicians,
  • B) over-reaching capitalists, and
  • C) society-destroying criminals

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But today it seems that they are only revolting against Obama and Democrat-politicians … so why is the pattern different?

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Here’s my theory: With the implementation of trickle-down policies in the 80’s, and then NAFTA in the early 90’s, the American economic environment began to heavily favor the tycoon-capitalists over the common working men (tycoon-capitalists are not the same as mom-and-pop-capitalists) .

Historically, in these types of environments two phases follow:

  • 1 – society splits into an aristocratic class and a peasant class,
  • 2 – then the peasant class (usually a combination of the Working Class, who power the revolt, and the Intellectual Class, who steer the revolt) collectively rises against the aristocratic class (usually a combination of the Politicians and the Wealthy).

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And because this pattern is so identifiable, any political historian back in 1990 could have predicted what would happen if America started to shift towards an aristocrat-peasant society: that within 2-3 decades the common man was going to revolt … So those 1990-era tycoon-capitalists began to embark on a plan to prevent the inevitable revolt …

… they developed a propaganda machine to manipulate the fate.

(At this point it is important to recognize that partnerships between the Working and Intellectual classes make for strange bedfellows … the tycoon-capitalists will identify and exploit this!)

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They decide that they need to get control of the Working Class before the forecast revolt will begin one day, and, most importantly, before the Working Class partners with its old ally-in-revolt, the Intellectual Class. And so were born FOX News and Rush Limbaugh.

Yes, those are Mayberry-Americans gettin dancing when they should be paying attention.

Rush Limbaugh and FOX News, the voices of the tycoon-capitalists’ propaganda machine, would be used to:

  • 1 – gain the trust of the Working Class,
  • 2 – direct them against the Intellectual Class.

And so once the revolt would finally happen (as history predicts), the Working Class would NOT go after the power class, but rather would go after their historical ally, the intellectuals. And this is the polarization that we have today.

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Some will argue that the tycoon-capitalists would not do this because in deflating the lower and middle classes, they would be shooting themselves in the foot by effectively impoverishing their consumer base. But that is only in a closed society where they necessarily need the American consumer. But America is in a global marketplace, and America’s 200 million potential consumers is small in comparison to the worlds roughly 3 billion in developed and developing countries.



Is Big-Box Retail bad for the economy and free-market capitalism?


Over the past 25 years America has seen a transformation of our retail infrastructure go from mom-and-pop stores to big box stores.

Speaking for myself, I love the convenience of big box. And certainly the retail evolution that has led us to the big box model is understandable.

But that may not be the point, but instead, possibly, that the big box retail infrastructure represents:

  • a condensation of wealth that is prohibitive of a healthy economy where wealth is distributed to millions of moms and pops,
  • a destruction of a competitive labor pool, where good workers can bargain with their employers for better wages, or else go work for their employer’s competitor,
  • a destruction of a competitive goods and services environment where vendors and manufacturers are plentiful, each competing to access retailers supply chains.

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To illustrate these problems, imagine a small town with hardware stores. Back in the old days, there were probably 10 hardware stores, each with a different owner.

EXAMPLE 1 – imagine one of these hardware stores, such as Mayberry Hardware. The owner wants to sell wrenches. If there are thousands of different hardware stores around the country, then each owner will probably have slightly different wishes for what kind of wrenches they want to sell, and thus there will inevitably be dozens and dozens of wrench manufacturers around the country developing slight variations of the common wrench.

But if there is only one hardware company in the country (with thousands of stores), and that one hardware company chooses AmeriWrenches as its brand to sell at all of its stores, then the dozens and dozens of other wrench manufacturers will be unable to survive, and will go out of business. And all of its employees will have no choice but to go work at AmeriWrenches.


EXAMPLE 2 – imagine a worker, Little Joe, working at Bubba’s Hardware Store. Imagine that Little Joe is an amazing worker: he knows all the tools, all the construction projects around town, all the customers, all the vendors in the industry, all the tool manufacturers in the industry. But Bubba hasn’t given him a raise in 2 years. Little Joe requests a raise. Bubba refuses. But if there are lots of other hardware stores, Little Joe can go to one of them, such as Steve’s Hardware, and say, “Listen, Mr. Steve, I am great; if it weren’t for me, Bubba would go out of business; but he doesn’t pay me enough … hire me and I can bring my expertise to benefit your store.” In this scenario, we see that employees are in a natural, free market environment, using the principles of ‘competition’ to improve their own value.

However, if there is only one hardware store company in town that owns 10 individual stores around town, then Little Joe is not able to bargain on his own for better wages.

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It should be noted that these same problems occur when one national bank swallows up thousands of local banks, or when one large insurance company swallows up thousands of local insurance companies.




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