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The Growing Division Between the Rich and the Not So Rich

 

This is the first post to my blog about all the bad things that have happened to America. As to who is responsible for these bad things, I believe there are two main groups. First, there is The Powers That Be (TPTB) group. In some  circles this group is referred to as the ruling class. Their main business is running a country or powerful international organizations. Second, there is the Certain Rich And Powerful Entities (CRAPE) group. They are primarily concerned with their own affairs. However, they may exert their control or influence over TPTB group from time to time. Some individuals may go back and forth between these two groups.

I have decided that this first post will be based solely on my own assumptions, beliefs, and opinions. I don’t want to involve other people in this first post. Besides, it is very difficult to find out what is really going on when TPTB and CRAPE make decisions behind closed doors. This is doubly true when people from these groups also own and control the mainstream media. In other words, what passes for news on the mainstream media sometimes may be nothing more than self-serving propaganda.

I am sure that many readers of these posts will disagree with me. All of my readers are entitled to their own beliefs and opinions. Any comments, good or bad, about this post are welcome.

This first topic concerns the large and growing division between the rich and the not so rich in our country. Things weren’t always like this. There was a time when the government wasn’t as closely controlled by CRAPE, when certain large corporations weren’t so greedy, and when there weren’t so many onerous government regulations. So let’s discuss these three matters.

Control of the Government – One of the reasons that CRAPE are getting richer is because they have a certain amount of control over the government. How is the government controlled by CRAPE? Well, if politicians want to get elected at the national level, they need a lot of money to run their campaigns. And when CRAPE provide large amounts of money to politicians, they expect to receive benefits from the government many times greater than their campaign donations. So CRAPE receive many undeserved benefits.

Of course, if you believe that large donations from CRAPE entitle them to substantial rewards, maybe their benefits aren’t undeserved after all. Depends on your point of view I guess. Personally, I think that these large campaign donations are nothing but bribes. And I think these bribes should be outlawed. But don’t hold your breath.

New members may enter Congress expecting to benefit the ordinary people. But I believe most of them will eventually succumb to the allure of power. Then they realize they need to satisfy the demands of CRAPE if they want to stay in office.

So what benefits do CRAPE receive from the government? Well, the politicians pass laws that include many benefits to CRAPE. Of course these benefits aren’t going to be spelled out. A certain law isn’t going to say that ABC Corporation gets the following benefit. Instead the law is going to have some arcane language that describes how to qualify for a certain benefit. And lo and behold, only ABC Corporation or other generous donors qualify.

Certain Greedy Corporations – Up until about 1970 employees received their fair share of the rise in productivity of large corporations. Productivity refers to the relation of income to expenses. When income rises faster than expenses, this denotes an increase in productivity. So why do many employees no longer receive their fair share of this increased income? I suppose you could say the management at certain large corporations decided they were more deserving than their employees.

I believe there is a natural progression in the life of a successful corporation. Let’s say that a business is started by eager entrepreneurs will have some great idea they want to put into action. As part of this great idea they want to reward their customers, who give them money, and their employees, who deliver the products, services, or information. If the corporation become successful over a long period of time the original entrepreneurs are apt to leave and no longer be in charge. Instead the corporation may be taken over by “professional” managers. Some of these new managers may not share the idealism of the original entrepreneurs. Instead, they may be primarily concerned about their own welfare.

Some of these new managers decided to ship the production facilities overseas to low-wage countries. Some of them decided to bring in low-wage foreign workers on the absurd notion that they cannot find a sufficient number of skilled domestic workers. These actions caused many of the original workers to lose their jobs or have to take a reduction in their wages. At the same time, some of these new managers are receiving massive salaries and bonuses. As a matter of fact, large employers in the United States have the greatest disparity between the top salaries and the bottom salaries than in any other country.

Onerous Government Regulations – Another benefit received by CRAPE, in this case certain large corporations, is the multitude of onerous government regulations. Large corporations can afford to abide by these regulations. However, small business firms are prevented from forming or growing due to the damaging impact of these regulations. Small business firms are the biggest source of employment for ordinary people. So when these regulations destroy small business firms the result is increased unemployment for the common people.

Certain large corporations want to destroy small business firms because of their potential competition. Many large corporations become locked into rigid and noncompetitive business practices. In comparison many small business firms are nimble and willing to adapt to changing conditions.

The upshot is that certain large corporations often welcome these onerous government regulations because they can reduce possible competition from small business firms. It should be noted that large corporations often have a direct influence on what new government regulations are created. You see, bureaucrats often consult with large corporations when planning new regulations.

Conclusion – I’m just getting warmed up in posting why our country has fallen on hard times. I believe CRAPE may use many ways to control or influence things to benefit themselves and harm ordinary people.

So what can you do to help yourself? For this first post I am proposing that you visit my website and learn how to reduce your living expenses per below:

            Reduce Your Living Expenses

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