Best of the Week
Most Popular
1.Trump Delirium Triggers Stock Market Brexit Upwards Crash Towards Dow 20,000! - Nadeem_Walayat
2.The Future Price Of Gold Will Drop Below $1000 In 2017 -InvestingHaven
3.May Never Get Another Opportunity to Buy Gold at this Level Again - Chris_Vermeulen
4.Delirium - The Real Reason Why Donald Trump Won the US Presidential Election - Nadeem_Walayat
5.Why Nate Silver / Fivethirtyeight is one of the Most Reliable Election Forecasting Indicator? - Nadeem_Walayat
6.Gold Price Forecast: Nasty Naughty November Gold Price Trend - I_M_Vronsky
7.Gold Mining Stocks Screaming Buy! Q3’16 Fundamentals - Zeal_LLC
8.Delirium of Trump Mania Win's Mr BrExit US Presidential Election 2016 - Nadeem_Walayat
9.The War On Cash Goes Nuclear In India, Australia and Across The World - Jeff_Berwick
10.Hidden Signs for Gold and Silver - P_Radomski_CFA
Last 7 days
Trump Sets The Stage For A Huge Gold Rally In 2017 - 6th Dec 16
BrExit Tsunami Claims Emperor Renzi's Scalp, Counting Down to End of the EU, Next? - 6th Dec 16
Failed EU - Means an Expanded Dictatorship - 6th Dec 16
Crude Oil Prices: "Random"? Hardly - 5th Dec 16
The Coming Stock Market Crash and WWIII - 5th Dec 16
This Past Week in Gold Market - 5th Dec 16
Stock Market Short-Term Correction Underway - 5th Dec 16
If Trump Doesn’t Do This, We Will Have the Great Depression 2.0 - 5th Dec 16
India’s Demonetization Could Be the First Cash Domino to Fall - 5th Dec 16
Our Future Economy, Jobs, Banking, And Governance - 5th Dec 16
Gold and Silver Bullion Buying Opportunity for 2017? - 4th Dec 16
First UK BrExit then Trump, Next BrExit Tsunami Wave to Hit Italy HARD Sunday! - 3rd Dec 16
The 10YR Yield and SPX Stocks Bull Markets - 3rd Dec 16
Gold And Silver – Do Not Expect Much Difference With Trump Compared To Obama - 3rd Dec 16
Gold, Currencies and Markets Critical 61.8% Retracements - 2nd Dec 16
Gold Junior Stocks Q3’16 Fundamentals - 2nd Dec 16
Adventures in Castro’s Cuba - 2nd Dec 16
We Are Putting Off the Inevitable - 2nd Dec 16
Macroeconomic Cycles & Demographics - A Fuse, An Explosive and The Igniting Catalyst - 2nd Dec 16
How Moving Averages Can Identify a Trade - 1st Dec 16
Silver Prices and Interest Rates - 1st Dec 16
America, is it Finally time for us to say Goodbye? - 1st Dec 16
Blockchain Technology – What Is It and How Will It Change Your Life? - 1st Dec 16
Burn the Flags, Can Trump Salvage The Sinking US Economic Ship? - 1st Dec 16
Will US Housing Real Estate Market Tank in 2017? - 1st Dec 16
Referendum Puts Italy's Government to the Test - 30th Nov 16
Why We Haven’t Seen Gold Price Rally after Trump Victory - 30th Nov 16
Breakdown and Slide in Crude Oil Price - 30th Nov 16
A 'Wicked Rally' in Gold Price Predicted - 30th Nov 16
Silver Market Sentiment Looks Golden - 30th Nov 16
Indian Demonetization Denotes Severe Stress in the Global Gold Market - 30th Nov 16
Owning Gold and Silver in Troubling Times - 29th Nov 16
Trump's Presidency - Stock Market Crash or Start of New Mega-Trends - 29th Nov 16
Prime Minister Modi's War Against Corruption, Black Money and Fake Currency Notes in India - 29th Nov 16
Can President Trump Really Drain the Swamp? - 29th Nov 16
President Trump’s Economic Plan Isn’t Going to Work - 29th Nov 16
The US Bond Bear Market Has Begun! - 29th Nov 16
Simple Yet Powerful Technical Trading Tools - 28th Nov 16
Public Infrastructure – Welcome to the World of Waste, Fraud, and Abuse - 28th Nov 16
Fifty Years Later, Moore's Computing Law Holds - 28th Nov 16
An Elusive Stock Market Top - 28th Nov 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

$10000 Gold

The American Dream is Dying But it Can be Revived

Economics / US Economy Jan 14, 2016 - 07:01 PM GMT

By: Gordon_T_Long

Economics

Charles Hugh Smith and Gordon T Long follow-up to their discussion last month of the puzzle of the falling US Civilian Labor Participation Rate. In this session they tackle the issues associated with "Universal Basic Income" which the public narrative has begun to 'offer up' as a solution.


Public Narrative

"A Solution to Automation -- Universal Basic Income for all"

The conventional wisdom is that a guaranteed free-money check from the central state is the solution. This is nothing more that "A Redistribution Scheme: A new form of Subsistence Serfdom"

• It doesn't address how this enormously costly program will be paid.

• It is Understood that the "Wealthy" will pay for it!

• Runs aground on the reality that upper-middle class and top 5% already pay 93% of all federal income taxes; they actually can't afford more taxes.

• The top .01% who can afford to pay will continue to buy political protection of their income, and that's not going to change:

http://mobile.nytimes.com/2015/12/30/business/economy/for-the-wealthiest-private-tax-system-saves-them-billions.html

Declining Labor Participation Rate - The Status Quo has no solution!

Declining work force will be unable to pay for the "pay as you go" social programs such as Social Security, Medicare and Medicaid.

Declining labor force will also be unable to support more borrowing -- and the system requires more borrowing just to keep afloat.

Decline of labor is the inevitable result of automation, which has only started eroding white-collar and managerial jobs.

The Reality: New technology creates far fewer jobs than it replaces/destroys

http://www.fastcoexist.com/3054604/todays-tech-giants-are-creating-loads-of-wealth-but-pitifully-few-jobs

The Reality: Today's Tech Giants Are Creating Loads Of Wealth But Pitifully Few Jobs

Why Basic Income is not realistic or positive: http://www.oftwominds.com/blogdec15/basic-income12-15.html

-- Financially unsustainable,

-- A disaster for those getting the welfare check. They are essentially serfs, with no incentives or pathways to build capital.

For the Wealthiest - A Private Tax System That Saves Them Billions

-- ultimately, proponents of basic guaranteed income are relying on borrowing additional trillions of dollars to pay for the scheme. Not only is this financially unsustainable, it is immoral to load debt on future generations to pay for today's spending.

Why Firms Are Fleeing

-- as for expecting corporations to tax trillions more in higher taxes -- they're fleeing US taxes, and they are also buying political favors to avoid higher taxes. http://www.newyorker.com/magazine/2016/01/11/why-firms-are-fleeing

Creating Jobs for All

Understanding The Differences

1- The failed model of WELFARE-FOR-ALL - Communal Poverty

• The central-state welfare model

• Top-down, encouraging dependency and helplessness -- and resentment

2- The Social-Economic model of SHARED BENEFITS flowing from working productively together

• The community economy

• Bottom-up, encouraging accumulation of capital, skills, etc.

• Creating the goods and services that are scarce and needed within local communities requires new ways of thinking and organizing work

Subsistance Serfdom

• Giving people money without getting any productive work is destructive to participants,

• Those who have to pay for the free-riders (the community) loses the labor of its residents.

• Our goal should be to provide meaningful work to people in their own communities, not give them subsistence welfare,

• Guaranteed income for all is just a new form of subsistence serfdom.

• Those looking to central state "solutions" such as basic guaranteed income are out of touch with the reality that real solutions come from below, in the entrepreneurial Main Street economy, not from above (central banks, politicians enacting new social programs, etc.)

... and much, much more in this 31 minute frank and open discussion..

Gordon T. Long
Publisher - LONGWave

Signup for notification of the next MACRO INSIGHTS

Request your FREE TWO MONTH TRIAL subscription of the Market Analytics and Technical Analysis (MATA) Report. No Obligations. No Credit Card.

Gordon T Long is not a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. Of course, he recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and barring that you are encouraged to confirm the facts on your own before making important investment commitments. © Copyright 2013 Gordon T Long. The information herein was obtained from sources which Mr. Long believes reliable, but he does not guarantee its accuracy. None of the information, advertisements, website links, or any opinions expressed constitutes a solicitation of the purchase or sale of any securities or commodities. Please note that Mr. Long may already have invested or may from time to time invest in securities that are recommended or otherwise covered on this website. Mr. Long does not intend to disclose the extent of any current holdings or future transactions with respect to any particular security. You should consider this possibility before investing in any security based upon statements and information contained in any report, post, comment or suggestions you receive from him.

Copyright © 2010-2016 Gordon T. Long

Gordon T Long Archive

© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife