Improving Our World
Golden Rule
Example Programs
Speculation on God
Economic Decline
Contact


Economic Decline

     The Big Picture

     Overpopulation

     Modern Organized Greed


 

 

The Big Picture


Introduction

For many readers of this website, the simple truth is that you live in a developed (industrialized) nation that has a steadily declining economy. Your government will never say this, because it rightfully fears inciting public panic.


The Bad News

Now the bad news. There simply is no easy way out. And no one knows how far the decline will go, or how painful the decline will be.

As you personally witness the decline, many are seeing reductions in rights and freedoms. Some are losing the right to privacy, the right to have public protests — as well as freedom to travel freely without government checkpoints, and freedom of the press.

Your government isn’t stupid. It knows all about the trends. And it is busy making preparations for inevitable worsening social unrest.

Why is all of this happening? It’s basically the consequence of a combination of things that include: overpopulation (elsewhere), increased globalization, excessive consumerism, corporate greed, government corruption, advances in technology, and years of public ignorance and apathy.


The Good News

Now for the good news. Your nation’s government is doing everything it can to slow the decline down to a crawl.

It’s a bit like trying to put a train wreck into slow motion, or very carefully landing a jumbo jet that’s running low on fuel. You want to slow it all down. Give your people a chance to adjust. Minimize the casualties and property damage. Buy as much time as possible, so you can put emergency provisions in place. Prepare for the worst, and hope for the best.


Economic Decline of Developed Nations

The 1950s and 1960s

In the 1950s and 1960s, a limited number of inexpensive products were made in only a few nations with very low wages. “Cheap” meant made in Taiwan, Japan, or Korea.

Back then, some of your citizens recognized the potential long-term danger inherent in this trend. However, they were demonized as advocates of protectionism and isolationism, which were branded as counterproductive, old-fashioned, irrational, selfish, evil, and ethnocentric. Some politicians and mass media pundits joined in on this.

They failed to bravely say the truth: The long-term solution to end other nations’ poverty was by population reduction through preventive birth control. It was not through sending jobs and food to them. But this idea was considered taboo and even evil.

The young and middle-aged of your nation had not experienced the economic hard times of the past. So they were optimistic that prosperity would last forever. Individuals spent excessively on many things. And their government spent excessively on the following:

- excessive military forces

- retirement of the elderly (having unplanned, increasing lifespans)

- welfare (entitlements) for the poor, disabled, and others

- corporate welfare (tax breaks) for businesses offering jobs

- education and healthcare

By about the 1960s, your nation had become very materialistic. It felt that happiness was found in having and consuming more material things. Of course, millions of the repeated messages to “buy now” in print, radio, and TV advertising contributed to this. If you don’t believe this, ask yourself why businesses spend billions on advertising their repeated messages?


The 1970s

In the 1970’s, your nation made laws allowing “free trade” with very big, overpopulated nations having billions of people willing to work for ultra-low wages. The massive wage gap remains. Today, worldwide minimum wages range from about $US 0.25 to 8.50 per hour. Millions of jobs were lost to those nations.

Who made the decision to open the floodgates to the ocean of ultra-cheap labor? Your government, with this decision being influenced by the following:

- Big corporations seeking greater wealth for their executives and stock holders — investors living in your nation such as fund managers of retirement plans, insurance companies, and banks. Of course, they also included individuals who could afford to buy stocks.

- Overall public desire for “a better life”, which meant having and consuming more things. Politicians could look like heroes for giving this to them.

- Overall public ignorance about the long-term effects.

- National security interests. Lifting big (nuclear armed) nations out of worsening poverty could prevent them from waging future wars for resources, as their acts of desperation.


The Avert Nuclear War Theory

The Vietnam War (1955 to 1975) became a proxy war between China and the US. China’s victory was a sign of its unbending determination, and perhaps its desperation to gain access to resources. Today Vietnam is the third largest oil producer of Southeast Asia; and China is its chief trading partner.

In 1979 the US and China signed a free trade agreement; other nations soon followed. In that same year, China first applied its one-child policy. It sounds like a secret deal was made to avoid another Vietnam War. Developed nations would help lift China out of poverty by giving it jobs, if China would help itself by controlling its population growth.

“The deal” would avoid future wars for resources — which would be desperate acts of almost any nation dealing with worsening poverty. This would also reduce the potential for those wars escalating into nuclear war. US Presidents Eisenhower, Kennedy, Johnson, and Nixon all looked at using nuclear weapons to end the Vietnam War. Surely China did too.


The Greed and Corruption Theory

If there wasn't any "deal" to avert nuclear war, then the following two things probably happened.

1) China had the wisdom to control its population growth to avoid worsening poverty.

2) The short-sighted greed of powerful corporations caused them to influence governments of developed nations to make decisions that would greatly harm the public interest and greatly reward their self-interest. (All corporate charters place self-interest ahead of public interest.) They influenced easily-corrupted government officials to give them access to massive amounts of ultra-cheap labor and massive new markets — in China, India, and other huge, overpopulated nations. This ensured their massive profit-making for many decades. 


The Sales Pitch

The government, powerful corporations, and, in many cases, corporate-owned mass media "sold" this plan to many developed nations by emphasizing that massive amounts of cheap products would be made available to the public, and there would be major reductions in environmental pollution (from factories to power plants). 

But they failed to say the following things any economics professor could figure out:

- The overall public benefit would be short-term (two to three decade).
 
- This would cause long-term drawbacks of massive, continuous loss of jobs and the dismantling of almost all factories.

- Within two decades, the sustainable manufacturing-based economies of many developed nations would likely be transformed into unsustainable service-based economies.

- This transformation would likely result in ever-increasing debt due to trade imbalances.

- This growing debt would eventually lead some nations into bankruptcy and possible social chaos, with almost no practical way to avoid it — or to quickly recover from it after hitting bottom. It would take decades to rebuild a manufacturing base and to recondition citizens to being content with owning far fewer things and being tolerant of increased pollution.

These powerful corporations basically sold out the citizens of the developed nations for their own excessive self-interest (greed). And many of these same corporations had, and many still have, their headquarters in the same nations they sold out.


Propaganda to Thwart Opposition


Whether free trade with huge, poor (nuclear armed) nations was to avert nuclear war or to satisfy corporate greed, the citizens of developed nations needed to be persuaded into accepting the impending, massive loss of jobs.

So anyone who opposed a harmless-sounding “free trade agreement” was branded — by  corrupt (and sometimes ignorant) politicians and mass media icons — as an advocate of protectionist and isolationist policies. And those policies were repeatedly demonized, by the same politicians and media icons, as being old-fashioned, counterproductive, selfish, misinformed, nutty, and practically evil.

Advocates of protectionism and isolationism were openly ridiculed for failing to see the enormous benefits to their country. And they were made to appear like alarmists, exaggerators, and closed-minded, fossilized buffoons of the early 1900s.
 
The public was purposefully made to confuse gradations of protectionism with total  isolationism. Isolationism is what it sounds like: being isolated. This implies non-involvement in the affairs of other nations.

Before the 1970s, the attitude of isolationism had been demonized for decades, by mass media, as the dangerous type of thinking, the major factor, that contributed to America's (and other nations') reluctance to assist in containing Nazi aggression in its early stages.

Today, America is the polar opposite. It has military bases in 93 other nations. It is often called "the world's policeman." In turn, it is sometimes viewed as meddling, intimidating, and waging wars for profit. Sometimes, it is hated because of those things. It is also paying a huge price for its global military presence, as its massive military budget is greatly contributing its economic downfall.


Results of Free Trade Agreements with Huge Poor Countries

Inexpensive foreign-made goods quickly came flooding into your nation. Many in your nation enjoyed their newfound ability to have and consume many more things. At the same time, your fellow citizens lost their jobs in one industry after another. Textiles. Apparel. Footwear. Appliances. Kitchenware. Electronics. Optical Equipment. Telecommunications equipment. Medical equipment. Tools. Furniture. Auto parts. Machinery. Steel and aluminum processing. Railcars. Ships. Aircraft. Weapons. Etc.


While these goods were flooding in, many in your nation looked the other away, because they felt powerless to do anything, or they minimized the trend’s danger because they believed it would never eventually hurt them too.

Your imports began to steadily exceed your exports. Your nation lost its manufacturing base and became a service-based economy, which is unsustainable if imports exceed exports. You can’t export healthcare, construction, education, food service, lodging, insurance, sales, dry-cleaning, lawn-care, hairstyling, pedicures, etc.


Technology Added to Job Losses

Adding to the loss of jobs to foreign nations was the increasing loss due to advances in technology. Many more computers and automated machinery began doing much more work.

The 1980s and 1990s

By the 1980s, advances in communication systems, especially the Internet, began to enable the increasing export of many service jobs, such as those in data processing (billing), customer service (call centers), computer programming, engineering, drafting, composite news writing, etc.


By this time, your nation was transformed into having a service-based economy, with a very expensive lifestyle. The only way your nation’s government could sustain this was to borrow. So it borrowed from prospering nations like China and other Asian nations. And it borrowed from its own future generations, which would inherit government debt. Individuals sustained their lifestyle by borrowing from banks. Loans were still easy to get.


Some of this borrowed money helped maintain jobs in, and related to, the construction industry. This is an industry that doesn’t export things. Demand for this industry’s products was high, because people had access to lots of borrowed money. High demand produced inflated prices. But many bought the overpriced houses. And businesses used borrowed money for expansion and new buildings. Government continued to spend borrowed money on big construction projects, social programs, and the military.


The 2000s and 2010s


After about a decade of this spending spree, reality began to set in. Individuals, businesses, and the government began having trouble making loan payments. There were increasing loan failures and complete bankruptcies — of individuals, and of small and big businesses. Soon the housing bubble burst. And the construction (service) industry collapsed.


The government postponed declaring its bankruptcy by printing more money, to use in making its massive loan payments — and to prevent collapse of the banking industry. It basically spread out the concentrated losses of bank loan failures. This loss would be spread out over all holders of its debt notes: its own citizens and foreigners (holding tons of paper IOUs, like dollars and treasury bills).

This massive expansion of IOU notes de-valued your currency, which devalued your savings. This contributed to big increases in the price of tangible things like gold and black gold (oil). Between 2000 and now, gold went from $270 to $1500 per ounce, and oil went from $30 to $100 per barrel. Of course, growing global demand for those things also increased their price.


As a result of the construction industry collapse, unemployment and under-employment (part-time and overqualified work) grew rapidly. This pain spread through your economy. Besides unemployment, you saw some wages stalling and others falling. Employee benefits were reduced or ended. As savings lost value, more people nearing retirement decided to stay in their jobs and recover from their losses. This added to the unemployment problem. People suddenly saw the cost of everything go up. Even domestically produced food prices went up. Why? Imported oil is used in almost every step of making, transporting, and storing most things.

Worldwide, other nations saw your nation’s decreasing ability to repay its debt, so they didn’t value your debt notes as much — euros, dollars, treasury bills, etc. So they exchanged them for other nations’ debt notes and for real things like gold. This further increased the number of your nation’s notes available on the global market, and further de-valued your currency. At the same time, your nation continued to print more debt notes so that its people could keep buying foreign exports, and so that it could keep making its increasing loan payments. 

A nation's currency devaluation harms its
ordinary citizens the most. It also enables foreigners (with more valuable currencies) to buy your nation's things at lower prices. They may buy a bit more of your exports, but not enough to restore your manufacturing base. They will buy much more of your raw materials to use in their factories.

If your nation's currency becomes extremely devalued, its desperate citizens will sell their private assets to them, such as land, buildings, and factories. If your government becomes desperate, it will sell public assets such as highways/toll-ways, power generation facilities, utility networks, airports, seaports, etc.


Economic Decline of Lesser-Developed Nations


Some of the lesser-developed nations, such as several Middle Eastern and African nations, are also in economic decline. They are mainly experiencing the results of the following:

- Overpopulation due to outdated religious ideologies that prohibit the use of birth control measures.

- Decreasing ability to export their limited natural resources (like oil), due to higher extraction costs as supplies decrease and as internal need for them increases.

- Continued lack of manufacturing jobs for a few reasons. People did not need to work for ultra-low wages in the past, while factories were being built elsewhere. Their nations lack the developed infrastructure (roads, utilities, ports) needed to attract manufacturing business. Instability and dangers due to religious ideologies discourage foreign investment. And your nation’s leaders looted and plundered some of its wealth that should have been used to build infrastructure and develop domestic industries.


The Here and Now

Now You Know

Now you know why and how your nation entered long-term economic decline. The big questions that remain are: How low will it go, and how painful will it be?

Your nation has to deal with not only managing very big — and growing — painful public and private debt. It also has to deal with the reality that there is no painless, long-term way out. Its government is doing everything it can to postpone declaring its already de facto bankruptcy. It continues to borrow. It continues to print more debt notes. It increasingly scales back government programs (austerity measures), but this adds to unemployment. And when it finally scales back its military, this will also add to unemployment of people trained to fight and kill.

One thing that the government is spending more on is surveillance and police strength — because it must. It knows that social unrest will grow, public protests will increase, and public venting (through destruction and violence) will increase. The public already has a general sense that it is now “every man for himself”. Those who are employed gladly work ever harder to keep their jobs. And the unemployed compete harder for limited job openings. Of course, some have completely given up and are merely waiting for “the other shoe to drop”.


But Nations Like America Appear to be Recovering

Some still believe nations are able to recover from economic decline. They see things like prospering stock markets and falling unemployment rates.

America’s stock markets are improving while its economy is declining. Why? Many corporations have factories and jobs in other nations. And as billions of poor people earn more, they can spend more on the things corporations produce. An ocean of ultra-cheap labor remains, while global demand for goods and services increases. So there is still plenty of profit to be made by corporations and investors in corporate stock markets. And interest rates on savings are so low that many more people have invested in stocks to stay ahead of the inflation rate.

America’s unemployment rate is falling. Why? The number of low paying jobs has increased. Today, one in four Americans works at a job paying less than $10 per hour.

American poverty remains at an all time high. Roughly 16% of its population lives in poverty; this includes almost 20% of its children. Each year 3.4 million Americans experience homelessness; 1.4 million of them are children.

America's combined public and private debt totals $48 trillion. Averaged out over its population of 314 million, each American's share of this debt is $153,000.
 


The Future

How will your nation ever get out of its massive and growing debt? Some short-term solutions include the following:

- Exchange natural resources (minerals, metals, oil, forest products, etc) and public assets (infrastructure, roads, utilities, ports) for foreign debt reduction.


- Wage war to steal resources from other nations, and exchange them for foreign debt reduction. (China and India get most of Iraq’s oil.)



Some long-term solutions include:


- Reduce government programs (social programs and military).


- Have the wealthiest pay more taxes. Tax profits from investments in multinational corporations.


- Create more jobs at home by buying more domestically-made products, which are usually much more expensive. In other words, you must consume much less to make jobs for your fellow citizens.


- Return to national policies of protectionism and isolationism. Ease the transition by having steadily increasing import tariffs until prices of domestically-produced goods become competitive. This too requires a public willingness to pay much higher prices and, in turn, consume much less.


- Move your investments to corporations with lots of jobs in your nation.



America
: An Emerging Police State


An example of an emerging police state is the U.S. For example, in 2012 its Congress and President enacted the National Defense Authorization Act (NDAA). The NDAA gives the President the power to authorize the secret arrest, detention, imprisonment, torture, and execution of any person in America (including U.S. citizens) deemed a significant threat to national security. The NDAA eliminates many provisions of the U.S. Constitution and its Bill of Rights, which protect the rights and freedoms of Americans. However, martial law has been declared in the U.S. on previous occasions.


An increasing amount of public tax money is being spent on police and military personnel and equipment inside the U.S. The troops have returned home from Iraq. As far as equipment for domestic policing goes, in 2012 America's Department of Homeland Security (DHS) ordered 1.6 billion bullets and 2,700 armored military vehicles, as well as thousands of assault rifles.


Across America, DHS has conducted training seminars with the clergy of diverse religious groups to train them in assisting maintaining order during an emergency. This training included encouraging church members to obey all government orders. Note that during Hurricane Katrina, all citizens’ were told to surrender their guns to government forces collecting them door-to-door.


Surely, the U.S. government knows that the nation’s steady economic decline is guaranteed due to its enormous $17 trillion public debt, its $31 trillion private debt, the loss of its manufacturing base, and an overall sense of entitlement to a very expensive lifestyle.



Stages of Growing Social Unrest

As poverty increases, so does social unrest. And then police forces must be increased to deal with it.


Early on, the government studies the situation and realizes that an inevitable worsening trend is in place. They are not sure how far down the economy will decline. They are not sure how the public will react to each stage of the decline.

So they prepare for the worst and hope for the best. They put laws in place that vastly increase government surveillance and law enforcement powers. They increase surveillance of communication and transportation networks. They increase the number of police personnel. They may invent new national police agencies so the true size of this increase is not recognized at more local levels. They increase purchases of weapons, bullets, vehicles, and other equipment needed by police forces.


More people vent their frustration and anger about becoming poorer through peaceful protests and social media. Some hope for improvement remains. Government leaders give repeated promises of hope and change to keep people calm, and to “give hope a chance”.


Then as conditions worsen, public frustration, anger, and despair grow.


More protests occur. They become more organized. They become bigger.

An increasing number of protests become violent. At times, outsiders incite the violence. The government uses this violence as justification to further reduce rights and freedoms, and increase spending on police forces.

Crimes to get money increase throughout society (theft, prostitution, black markets, drug dealing, etc.). The very wealthy are shielded from most of this in their well-protected residential and work areas. More of the wealthy “dress down” when they are among the public.


More people start venting their frustration in destructive ways. Some destroy things around them (arson, vandalism, etc.). Some harm their weaker family members; there is increased spousal abuse, child abuse, and elderly abuse. Some begin to destroy themselves. They numb their mental suffering (loss of self-respect, depression) and physical suffering (hunger, fatigue) through alcohol and drugs.


Efforts are made to divert public attention away from their problems. Mass media is sometimes used for this. In extreme cases, a small war or major false-flag event is orchestrated for this.


Individual acts of aggression (including violence) against falsely perceived threats increase. These “threats” are usually nearby poor people who are minorities of a different race, religion, nationality, and/or immigration status).

Membership and active participation in extremist groups (race hate groups, anti-immigrant groups, ultra-conservative political groups) increases.


The government further reduces rights and freedoms.


Organized class warfare groups form. Police surveillance of communications (telephone, Internet, etc.) increases. Arrests and interrogations increase.

Censorship increases. Warnings to the public are issued. Public examples are made out of some engaging in organized class warfare.

Growing numbers of people live in fear and chaos. This grows into social chaos, which endangers the orderly functioning of society. A total police state is now required to restore and maintain order. There are widespread arrests and detentions. Prioritized lists are used, with organizers and inciters of illegal activity at the top.

Government promises are given that the police state is only temporary. Everyone should remain calm and obey authorities without question. Religious clergy are used to promote this message.


The Ending Isn't So Bad

Currently, many DIED nations are in a very slow decline and will remain so for several more years. France is in a slow decline. Spain and Portugal are in a fast decline. And Greece is in a very fast decline.

Sure, in the long-term, it really is game over for many DIED nations. The curtain is  closing. Elvis is leaving the building. But the ending isn’t so bad. It just means an end to some of the world as you know it. It means that many of you will become poorer. Which means many will not be able to consume as much — of everything: energy, food, water, shelter, clothing, services, gadgets, and entertainment.

Through your reduced consumption, you will reduce your part in polluting the earth through the extraction, processing, transporting, storing, retailing, and disposing of all the things you consume.

You can comfort yourself by thinking about this as being part of egalitarianism at a global scale. Consider your reduced standard of living the price to pay for a somewhat more fair redistribution of the world’s resources. Many more people will still remain much poorer than you. Industrializing nations like China, India, Pakistan and other smaller ones, together have one-half of the world’s population. China and India together have one-third. Most of the people in these nations are very poor. But they’ve been lifted out of poverty. The average annual income in China is now about $6,300, and in India it's $5,400. 

Of course there’s an exception. The top 1%, the upper-class and extremely wealthy in all nations, will continue to profit from their investments. They will maintain their standard of living. A police state will protect them. That will be a bitter pill to swallow for many. So try to not dwell on it. It’s always been that way. There simply are more of them than in the days of kings and queens.

Your nation may emerge from all this as much less materialistic, much more responsible consumers, and more humble with a greatly reduced sense of entitlement. It may also have greater empathy for the poor of other nations.

 

After our nations can no longer afford massive militaries, China will likely emerge as the world’s military superpower. It’s already the world’s economic superpower. If China follows in America’s footsteps, and expands its military presence globally, there may be problems. They may pretend to have a democracy, but they are a police state. Just as they pretend to be communists, but they are really capitalists — with wealth disparity that goes with it. China has over 100,000 millionaires and a growing number of billionaires.

Over time, your nation will rebuild its economy — just as England, Germany, and Argentina did after their economies went through significant declines.

 

During the transition, as we lose some of our possessions and comforts, let’s not also lose our dignity and self-respect — or our respect for the dignity of others. Let’s not get drawn into race wars and class wars. Let’s not blindly lash out at our fellow citizens for things we’ve done to ourselves — and ignorantly allowed a few others do to us.

What else can you do during the transition? Take some time to enjoy the simple things of life. Try to maintain your happiness, and be thankful for the basic necessities of life.

A Ridiculous Glimmer of Hope

 

There is a rather ridiculous glimmer of hope. Genius inventors could develop advanced technologies that save the day for everyone. They could invent a machine that produces clean, abundant energy from almost nothing. And they could invent a machine that produces any physical thing (food, clothing, gadgets, etc.) by rearranging atoms — a super-advanced 3D photocopier like the “replicator” on Star Trek.

If we were had these inventions, everyone could afford to reproduce without end. So everyone would need to agree to limit their population growth, and slowly depopulate the earth to a level that’s more in balance with Earth’s ecosystem.

As stated earlier, that’s a rather ridiculous glimmer of hope. But, at the very least, inventors may create new technologies that result in new jobs.


Overpopulation


Overpopulation is when a population exceeds the carrying capacity of its environment. In most countries, the poor produce more children than any other group. Many of them have more children than they're able to care for.

We live in a world with a global labor pool and a global marketplace. 

So, overpopulation in one part of the world now impacts much of the rest of the world.

 

World Population Growth

At the current rate of world population growth, there’ll be 9 billion in 2050.

Year

World Population

1820

1,000,000,000

1930

2,000,000,000

1960

3,000,000,000

1975

4,000,000,000

1988

5,000,000,000

2000

6,000,000,000

2011

7,000,000,000



To give you a better understanding, in 2007 the world grew by more than 200,000 per day; and in 2009, it grew by more than 272,000.

The world’s useable farm land divided by its population averages to about one acre (0.4 hectare) per person.

More than one billion people struggle to live on less than one dollar per day.

More than three billion struggle to live on about two dollars per day.
 
More than 840 million go hungry every day.

Worldwide, minimum wages range from about $0.24 to $8.50 per hour.


 

Who Encourages Overpopulation?

Corrupt leaders of governments and businesses encourage fast growing populations to get more people to rule over, to buy the things they sell, and to work for lower wages.

Corrupt leaders of religions encourage fast growing populations to get more followers who, in turn, give those leaders more money and power.


Effects Around the World

As overpopulation occurs in some nations, the following things happen in many nations around the world:

Wages remain low or fall.

The prices of goods and services increase.

More people have to work harder simply to afford the necessities of life.

More people have to borrow money. As demand for loans grows, lenders can increase interest rates.

Earth's limited resources are consumed faster. So it gets more difficult and expensive to extract what remains.

Poverty grows. In almost all countries, poverty is growing the fastest for the young, minorities, less educated, and people with fixed incomes — like many elderly.

The gap between the very rich and others becomes more visible. Since the early 1900s, the gap between the world’s poorest 20% and the richest 20% grew by three times. Today, the world’s poorest 20% use less than 2% of the world’s goods. And the world’s richest 20% use more than 80%. The worldwide gap grew more in the past 3 years than in the previous 12 years.

There's more fighting over resources at local to national levels. Divisions grow along backgrounds of race, nationality, religion, and culture.

Some governments incite wars to eliminate some of their poor and distract others from daily problems.

More people get ill due to unsanitary living conditions and unaffordable healthcare. Disease spreads. New diseases develop.

More people abuse alcohol and drugs to numb their despair and frustration. Other increasingly use stimulating substances so they can work more.

More people show disrespect and contempt toward law enforcement officers.

More people steal. More money is spent to protect property and personal safety, which results in less being spent on things that could benefit society.

Public protests grow and become more violent. Ultimately organized class warfare grows.

In places with severe overpopulation, land, water and air become badly polluted. Resources run out. Malnutrition and starvation increase.

As social unrest and crime rates increase, nations, out of necessity, increasingly become police states.

 

Effects in Developed (Industrialized) Nations

As overpopulation occurs in some parts of the world, the following things happen in many developed (industrialized) nations:

Jobs are lost to nations with much lower wages.

Unemployment and underemployment increase.

Wages fall for the remaining jobs. Work hours are reduced. Job benefits are reduced or eliminated.

More people and businesses go bankrupt. More people lose their homes to bank foreclosures.


Many of the rich remain financially secure because their investments are in multinational corporations that profit from low wages and from growing global demand for goods and services.


Income and property taxes are raised to pay for:

 

- Decreased revenue from lost income taxes and business taxes.


- Increasing numbers of poor people receiving government assistance.


- Growing demand for public services needed by increasing numbers of immigrants entering from much poorer nations.


- Increased business tax breaks (tax incentives) used to attract job-producing businesses.


- Increased government operating costs.


- Increased police and military forces needed to deal with worsening social problems.

 

Poverty grows and social unrest increases.


Modern Organized Greed (MOG)


“The end of democracy and the defeat of the American Revolution will occur when government falls into the hands of lending institutions and moneyed incorporations.”

- U.S. President Thomas Jefferson

"I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. As a result of the war, corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until all wealth is aggregated in a few hands and the Republic is destroyed.”

- U.S. President Abraham Lincoln

"In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist. We must never let the weight of this combination endanger our liberties or democratic processes."

- U.S. President Dwight D. Eisenhower



Self-Interest versus Greed

People need a healthy level of self-interest to survive. Having too much of it is greed.

For thousands of years there have been greedy people. But over the past two centuries, technology has enabled greed to become extremely organized at a global level. This modern organized greed has evolved into big corporations that are extremely wealthy and powerful.

Globalization has profited many corporations. It’s nothing new. It’s as old as Marco Polo and Christopher Columbus. It’s simply been speeded up by advances in technology that have improved transportation and communication — as well as information processing. The globalization of trade includes worldwide networks linking production and marketplaces. Globalization also includes the Internet.

Overpopulation has profited corporations. It has resulted in lower wages in many developed nations and increased worldwide demand for goods and services.

Advances in technology, globalization and overpopulation have all helped corporations become much bigger.

How big are they? By 1999, 51 of the world’s 100 largest economies were those of corporations. So some corporations are now more powerful than many nations. Does this surprise you? Who owns the biggest buildings? Long ago it was big religious organizations. Then it was big governments. And now it’s big corporations.


Not All are Bad

Many corporations, and their employees, are not intentionally greedy. They are only trying to achieve the goals of their corporate charters. All corporations have corporate charters with self-interest as a first priority — to make a profit (sometimes an increasing one) for their shareholders. Their second or ambiguously ranked priority is to protect the public interest — to at least not harm society.

Not all corporations harm societies. Some try to balance serving their self-interest with protecting the public interest. Multi-national corporations deal with conflicting interests of different nations' publics, as well as conflicting allegiances.

People around the world have shares of corporations. The investments of many retirement funds, insurance companies, and banks are in stock shares of corporations.

Some corporations practice social responsibility. They recognize the long-term benefit to themselves and others. Corporate social responsibility (CSR) is also called corporate conscience, corporate citizenship, social performance, and sustainable responsible business. It is self-regulation. A business monitors and ensures its compliance with the spirit of local to national laws, society’s ethical standards, and international norms. Sometimes businesses go further and do things for social good, such as donating to charities or sponsoring public safety advertising campaigns (drink alcohol responsibly).

Some investors are now taking matters into their own hands. They are conscientiously limiting their investments to socially responsible corporations. For example, some investors don’t buy stocks in corporations that produce weapons, tobacco, alcohol, genetically modified foods, toxic fertilizers and pesticides, etc.

The Term “MOG”

To describe the group of corporations with greedy leaders who abuse their corporation’s wealth and power, the term Modern Organized Greed (MOG) will be used here. Some of them use their corporation’s wealth and power to influence government decisions in ways that harm societies. Some do this through bribes and intimidation. Others do this by corrupting the processes that democracies use to elect their representatives, by giving extremely large campaign contributions to their favored candidates, and by buying up mass media that they use to bias public opinion, for and against, candidates for public office.



The Beginning of Corporations

Long ago, businesses were owned by individuals and small groups. Corporations were made to enable many people to own pieces, shares, of a business. To do this, legal documents call corporate charters were invented to enable businesses to incorporate. The word “incorporate” means to make something into a something like the body of a person without a conscience, a corpse.

The first charters were made in America, in the early 1800s. Their original goal, besides allowing many people to own shares of a business, was to protect the public interest. Public interest came first. Corporate profit came second.

By the mid-1800s, corporations had gained enough wealth and power to influence government decision-making, in nations around the world. They used this power to legally change charters so that making a profit became the first goal, and protecting the public interest came second.

Corporate charters give businesses the legal rights of a person — called the status of personhood. These include rights to do the following:

- Sue and be sued.


- Own things in their name.


- Hire and fire people.


- Make contracts with people and other businesses.


- Make laws that govern the actions inside them.



Charters also give businesses special legal protections — called limited liability. These protections go beyond those of a person, and include the following:


- Protection from debt. If a corporation owes much money, or goes bankrupt, investors don’t have to pay the debts.


- Protection from criminal penalties. If a corporation commits a crime, investors don’t have to pay fines or go to jail.


- Protection from lawsuit. If a corporation harms people, investors can’t be sued or arrested.



Charters also give businesses the power to live forever, by not setting any termination date.


Unfortunately, charters can’t give businesses a sense of shame, a sense of right and wrong. This is why some appear to do harm without care.

Fortunately, corporations have to deal with societies (of nations) shaming them. But unfortunately, the really big ones, multinational corporations, avoid this by locating their facilities in other nations, with different social norms. For example, some corporations have inhumane and unsafe working conditions. Social norms result in legal definitions of what is inhumane and unsafe. Likewise, corporations may produce dangerous levels of pollution. Societies form legal definitions of what is a dangerous level. Nations with governments that oppress public dissension and limit freedom of speech leave their citizens wide open to corporate abuse.


This all sounds like every corporation can become some type of indestructible, resource-consuming, profit-hungry, dangerous, heartless creature — a zombie, a Frankenstein. Remember, not all corporations abuse their power. But some have, and we’re starting to see the results. Perhaps the "Zombie Apocalypse" began back in Lincoln’s day, and for two centuries, we’ve been blind to it because the in-corpse-orated creatures didn’t appear ugly or dangerous. They still have beautiful office buildings, wonderful advertising slogans, pretty logos, and well-dressed, polite leaders.


 

Were We Warned?

The quotes at the top of this section say we were warned.

U.S. President Jefferson warned us long before charters were changed to place profit first. He must have projected their trend into the far future. Later, Lincoln warned us in harsher terms. He must have seen the dangerous trend taking shape. Eisenhower was the last courageous president to warn us. He gave an  ominous, almost paranoid-sounding warning.

Eisenhower clearly described the dangerous rise of corporate influence over government — at all levels. His warning focused on the most deadly aspect of it: the military-industrial (corporate) complex. He didn’t focus on the food-industry complex.

What future dangers did he see? Perhaps, the build up of a needlessly massive, expensive military and endless justifications for it (such as the endless need for America to be the world policeman). The creation of tensions between other nations and profit from selling weapons to them. The buying up and misuse of most mass media to instill exaggerated fears in society — so that vast profits could be made from preparing for war, waging war, and rebuilding after war. If you project those profitable militaristic trends forward, you end up with many more wars — possibly resulting in WWIII.

Maybe Eisenhower wasn’t so paranoid after all. Good thing he gave his warning in his presidential farewell speech. He certainly didn’t want to get assassinated. As a retired president, he represented little threat to the status quo. Years later, along came peace-mongering President Kennedy. He should have appreciated Eisenhower’s wisdom, and given his speeches on worldwide disarmament after leaving office.

How expensive has the military become? .Each year, the world’s combined annual military budget is $1.3 trillion. This doesn’t include off-the-record funds. Many nations prepare for wars against the same nations they do billions of dollars of trade with. Does that make any sense?

How much do the biggest spenders spend each year? US: $420 billion. China: $90b. Russia: $70b. England: $50b. France: $50b. Germany: $40b. Japan: $40b.


Weapons Exports

The biggest weapons exporters are, from biggest to smallest: The U.S., Russia, Germany, France, the Netherlands (home of the Peace Prize), the U.K., Italy, Spain, China, Sweden, Israel, Canada, Poland, Switzerland, the Ukraine, South Africa, South Korea, Austria, the Czech Republic, and Belgium.

Who do they sell weapons to? Governments of all sorts of rich and poor nations.  This includes nations ruled by dictators and oligarchies. Later, some of them secretly transfer these weapons to other, possibly more dangerous entities.

Is this legal? Of course it is. Most citizens of countries that profit from this don’t really care about what happens in some far away place ruled by dictators. If they don’t care, why should the corporations or government of their nation care? Only recently in 2013, did the UN start to address this, by making a rather non-enforceable international agreement on the sale and transfer of some small weapons.


Profit from Poverty and Corrupt Governments

MOG can locate production facilities in many countries. Obviously, they want to locate them in places that give them the most profit, such as places with cheap labor, relaxed pollution laws, low corporate taxes, and cooperative governments. These would be places with overpopulation, poverty, and easily corrupted governments.

This has had bad consequences for ordinary people in nations with high standards of living, and associated high costs of living. They’ve lost almost every job that can be shipped out. Of course, people in the profitable locations are exposed to unhealthy/unsafe work conditions and polluted environments.


Profit from Eliminating Competition

MOG promotes monopolies, which are growing around the world. Small businesses and family farms are driven out of business. As competition is reduced, prices of goods and services can be more easily increased.

To ensure profit from existing investments, at times MOG discourages or oppresses the development of alternative resources. It uses its influence over mass media and governments to do this. Sometimes it just buys up competing alternatives, from start-up companies to patent rights, and lets these alternatives become forgotten.


Profit from Cruelty to Animals

MOG treats animals with cruelty. This is just a part of the corporate controlled food industry. Animals are often overcrowded in very confined areas, living in their own filth, with poor ventilation, and being fed things they would never naturally eat. It should be no surprise that these places not only help spread disease, but are the breeding grounds for new diseases.

For example, the fish you buy from China likely comes from "fish farms". Some of these are pools of dirty water, overcrowded with fish that are fed things like the excrement from chickens on grated floors that falls through, to serve as food for pigs living on grated floors. The pig excrement falls through to the fish ponds below. Chicken poo becomes pig food, which becomes pig poo, which becomes fish food, which becomes human food. Now that’s extremely profitable and extremely efficient! It’s no wonder that tilapia fish from China is as cheap as sh#t. We’ve learned that when bacteria and viruses pass directly through the digestive tracts of various species of animals, serious trouble happens. Ever wonder how did bird flu started? Ask the migratory birds that ate some of the fish in those dirty poo-filled ponds.

How did mad cow disease start in Europe? MOG fed ground up (possibly diseased) carcasses of animals to cows. Cows are vegetarians. They were never meant to eat other animals, especially ground up dead ones. It was very profitable and very efficient, but not as profitable and efficient as feeding poo to animals.

People who ate beef from cows with mad cow disease contracted it. What does it do to you? It turns your brain into a sponge filled with lots of holes. Moooove over kindness to animals. Heartless MOG doesn’t give a rat’s a$$, unless of course, MOG can make a profit from grinding up the rat sphincter and feeding it to some other creature.

In other places around the world, chickens are crowded into warehouses where they spend their lives walking on their own excrement, breathing it in, and tearing at each other. Often, their beaks are burnt to dull them and reduce the bloodshed. Of course, lots of antibiotics are used to keep animals alive in these types of conditions, and you guessed it, their germs become resistant to antibiotics. So people end up losing some modern defenses against diseases.


Profit from Mistreating People

MOG makes unsafe working conditions, and in some places, it treats people worse than animals. Why spend money on safety and comfort, when a corporation can increase profit by doing otherwise? Why not simply meet only the bare minimum legal requirements for health and safety of employees, in whichever country they have facilities?

Of course, why even bother with employee comfort and happiness? Where’s the profit in that? How many Wal-Marts give their clerks’ chairs? Standing in one spot continuously for many hours simply sounds unhealthy. MOG doesn't care. By May of 2013, Wal-Mart had surpassed Exxon in wealth.


Benefits of Owning Mass Media

MOG has bought up much of mass media in some nations. This has reduced people’s power to have their voices heard. Public protests are purposely ignored. It has produced biased news that has degraded certain candidates for office, distracted societies from real problems, and hidden corporate wrong-doing. Further, mass media has been used to incite unfounded fears in societies, which has led some into war for profit.

Is MOG control of mass media true? Let’s look at America. 90% of all U.S. mass media is owned by five major corporations — owned directly and indirectly through subsidiary corporations.


Acknowledging Reality

MOG doesn’t care about the citizens of any one nation. It cares about making greater profit. People in the once prosperous nations are now slowly waking up to this fact, as their economies decline.

You don’t need to embrace any of this. You should consider gaining greater awareness and understanding of it, so you don’t remain in a state of confusion and ignorance and make poor decisions based on false assumptions.




Copyrights
Permission is granted to copy and distribute any of this website's text, provided that the source (improvingourworld.com) is cited.