I heard a left-leaning socialist advocate a $15/hour minimum wage, nationwide.

The idea was greeted with applause.

It sounds good. It would help restore income equality.

Or, would it?

The cost of making a burger would go up.

There’d be no more beef, no more bread. No additional burgers to go around.

You’d have the same number of people competing over the same amount of material.

My guess is the rich figure out a way to ensure you keep getting the same amount of burgers, continue to live in the same house and get the same gallons of gasoline for your same old car.

But, maybe I am wrong. Assuming this is a good idea, let’s apply the formula to a world-wide model, for there are those who’d like to see implementation of such a plan.

How much does a fast food worker in India earn?

Or Somalia?

What happens when we discover that someone making minimum wage here in the US earns more than a substantial majority of the citizens of this planet? $34,000 a year places you in the top one per-cent of earners, worldwide. Median income world-wide is $1,225 a year. Per year, not per month.

So, most of you are the 1%. Are you now prepared to take less than half of what you currently earn to help someone else in a third world country achieve a better life, or do you want someone to insure that you continue to get more than your share?

We’ve reached limits on this planet. There is no additional oil to be produced. Not everyone can have a car or fly around in airplanes.

We have passed a point of diminishing returns on food production; almost all arable land is in use and in essence being mined by extractive industrial methods which fail over time.

How do you like having meats, grains, fresh fruits and vegetables from around the world in your grocery store the year round?

Just about all essentials are scarce and in diminishing supply.

I know many dispute these facts. I have no time to argue the point.

Currently, the US is the largest debtor nation in the world, due to perennial trade imbalances made possible by the dollar’s special status.

Worldwide debt has reached critical levels. Money is debt; 2/3 of the world’s money is denominated in dollars.

The Federal Reserve is insolvent. They hide this fact, but word gets out.

We scammed the rest of the world. Gave them paper for real goods. They’re tired of a system that perpetuates current inequalities.

A reset is on the way; plans are in place to kill the dollar. A new reserve currency will be established.

When your dollars are redeemed, you will lose most of the wealth you think you have.

You wanted globalization….

You may be about to get the fair treatment you think you desire.

Conversely, we decide to keep the advantages we have and go to war.

Which will prove worse.

I see no easy way out.

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Don Henry Ford Jr.

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  • P.S.

    I think we’re way beyond a device like minimum wage fixing this mess. Rent and real estate prices are way too high. A monetary system that loans money with interest (usury) and provides no additional money to pay back the interest is doomed to fail. It’s designed to create failure so real assets can periodically be repossessed. We need a debt jubilee. Incidentally, according to the Jewish tradition of Jubilee (once every fifty years), such an event is slated to begin September 14th of this year.

  • So the lower class go from $15,000 to $31,000 while the top 1% are at $1-$2 BILLION annual income. That’s Billion, with a “b” at the front; nine zeros. Now think again about the statement that a $15/hr minimum wage will “help restore income equality” and realize that such a statement is the babbling of an idiot.

    • That’s the whole point of the article. It wouldn’t help.

      It doesn’t take billions to make the one per-cent when the whole world is taken into account. $34,000 puts you in.

      It’s a minute fraction of a single per-cent that control the world’s wealth.

      And rather than bale out those in debt to the elites, we bailed the bastards out when the loans they made went bad.

      There’s $28,000 in debt for every man woman and child, 286% debt to GDP ratio.

      They got us by the balls.

  • “I see no easy way out.”
    Right on partner…, write on.

    Things are so utterly out of balance now that it will either take a long, slow, and painful path…, or a swift and destructive path to get to a balance that really has never existed world wide.

  •    I my opinion, the current Left side of the political state has two problems, which are related. First, they no longer understand and participate in the life and travails of the bottom levels of society.
       They no longer get their heads cracked on the picket lines as they did decades ago; they do not share the insecurity of the impoverished,; they’ve been co-opted by the lure of middle-class security and luxury (trivial compared to the top 0.1% but significantly better than the bottom 20-30%). This lack of connectedness makes them ineffectual and alienates them from those who might be their natural allies in a battle against Wealth and Power.
       Second, they are naive when considering their enemies. They see the plutocrats as greedy for wealth and power but attribute it to their being misguided and potentially correctable, capable of being taught better when forced to face the damage they cause to the world and its people – in the worst scenario, vulnerable to being removed from power by the concerted effort of the general population. I’ve heard comments to the effect that “The 0.1% are stupid if they think they can get away with this forever”.
       The fact is that the plutocrats at not stupid and certainly own the services of an extremely skilled ‘mandarin’ class. They all know the ecological practices they profit from will come back to bite us in the ass; the financial bubbles will collapse (as they take out their profits), the American Way of Life is no longer sustainable even for most Americans, much less the rest of the world.
       They are not stupid. They are evil, by any definition of the word. They don’t particularly hate the rest of humanity but they are sociopaths who don’t give a damn if the world and everything in it vanish – as long as they are not affected. They will willingly kill millions of people to keep themselves wealthy. They will starve billions to keep themselves well-fed. They will enslave millions to hang on to their power.
       Most Leftists – well-meaning, humane liberal types – find it difficult to accept that basic truth about the 0.1%. In thar regard, we are willfully blind. But the Plutocrat have their eyes wide open. They see the threat of rebellion – that’s why the NSA is spying on everyone, analyzing the data to see who poses the likeliest risk to Power, creates lists of potential activists, why the police departments have been militarized; why laws are being enacted to limit protest and resistance. They see the danger to their control and are taking steps to counter mass movements against them.
       In theory, a purging of the wealthy could be done without involving government. The only legal concern in that regard would be that the Rights of Property vs the Rights of Man has always been what separated the sheep from the goats. Unfortunately, since the 0.1% now own the government, they essentially are the government and an attack on the wealthy is an attack on government, if not de jure  certainly de facto . Torches and Pitchforks against the Koch Brothers and their ilk would be treason.
       The biggest problem facing the Left, Occupy, Progressives, etc. is to formulate a ‘war strategy’ that can bring down Excessive Wealth without attacking Government; a way to break the Money-Power link. Campaign Finance Reform and closing the ‘revolving door’ between government service and the corporate service might do it.
       If all else fails, it is worth remembering that this country was founded by traitors.

    • And much of that debt is a bubble. If banks had to Mark-to-Market their mortgage loans, they’d be bankrupt. If a house is mortgaged at $500k, but only worth $250k, the last thing the bank wants is to admit their loan portfolio is inflated. it’s the only thing keeping a lot of homes from foreclosure.

  • Here are seven paragraphs of a conversation between Thomas Edison and Henry Ford, concerning debt based money. So simple to understand, yet so few choose to see:

    Thomas Edison (1847-1931) held over 1,000 US patents for his inventions and is considered among the most brilliant minds in American history. Edison understood the engineering of our monetary system and actively spoke for monetary reform. These seven paragraphs are from an interview with the New York Times in 1921 [29] from a publicity tour Edison took with his friend and fellow inventor Henry Ford to discuss monetary reform:

    “That is to say, under the old way any time we wish to add to the national wealth we are compelled to add to the national debt. Now, that is what Henry Ford wants to prevent. He thinks it is stupid, and so do I, that for the loan of $30,000,000 of their own money the people of the United States should be compelled to pay $66,000,000 — that is what it amounts to, with interest. People who will not turn a shovelful of dirt nor contribute a pound of material will collect more money from the United States than will the people who supply the material and do the work. That is the terrible thing about interest. In all our great bond issues the interest is always greater than the principal. All of the great public works cost more than twice the actual cost, on that account. Under the present system of doing business we simply add 120 to 150 per cent, to the stated cost.

    But here is the point: If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good. The difference between the bond and the bill is that the bond lets the money brokers collect twice the amount of the bond and an additional 20 per cent, whereas the currency pays nobody but those who directly contribute to Muscle Shoals in some useful way.

    … if the Government issues currency, it provides itself with enough money to increase the national wealth at Muscles Shoals without disturbing the business of the rest of the country. And in doing this it increases its income without adding a penny to its debt.

    It is absurd to say that our country can issue $30,000,000 in bonds and not $30,000,000 in currency. Both are promises to pay; but one promise fattens the usurer, and the other helps the people. If the currency issued by the Government were no good, then the bonds issued would be no good either. It is a terrible situation when the Government, to increase the national wealth, must go into debt and submit to ruinous interest charges at the hands of men who control the fictitious values of gold.

    Look at it another way. If the Government issues bonds, the brokers will sell them. The bonds will be negotiable; they will be considered as gilt edged paper. Why? Because the government is behind them, but who is behind the Government? The people. Therefore it is the people who constitute the basis of Government credit. Why then cannot the people have the benefit of their own gilt-edged credit by receiving non-interest bearing currency on Muscle Shoals, instead of the bankers receiving the benefit of the people’s credit in interest-bearing bonds?

    Certainly there is a complete set of misleading slogans kept on hand for just such outbreaks of common sense among the people. The people are so ignorant of what they think are the intricacies of the money system that they are easily impressed by big words. There would be new shrieks of ‘fiat money,’ and ‘paper money’ and ‘green-backism,’ and all the rest of it – the same old cries with which the people have been shouted down from the beginning.

    But maybe we have passed beyond the time when the thoughtful 2 per cent – you know, I gather from my questionnaire that only 2 per cent of the people think,” and Mr. Edison smiled broadly. “Maybe they can’t shout down American thinkers any longer. The only dynamite that works in this country is the dynamite of a sound idea. I think we are getting a sound idea on the money question. The people have an instinct which tells them that something is wrong, and that the wrong somehow centers in money. They have an instinct, also, which tells them when a proposal is made in their interests or against them.”

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