Failure Analysis of 20th Century Economics

NATURAL LAW THESIS
(Natural Law From The Iron Hand Of God)
Copyright 1983-2000 by Bernard Palicki, All Rights Reserved
"Brother, can you spare a dime?"
("under the heel of an invisible tyranny of financial oppression")

Because of the Great Depression of the 1930's, the United States lost its way in the darkness of a socialist welfare state mentality. Because of the Great Depression of the 1930's, the United States was transformed - over the last sixty three years - from 1932 to 1994 - into a socialist welfare state.

Government regulation, taxes, inflation and higher and changing cost of borrowed money keeps increasing the cost of living and the cost of doing business, forcing downsizing, business failures and unemployment.

Layers of taxation and tax codes over the last sixty three years, a deliberate inflation of the U.S. dollar for the last thirty years, and a high and changing cost of borrowed money for the last twenty years, have been the leading causes of destruction of all major industries in the country and transfer of work out of the country, and is at the root of causes of drug use, crime and violence at unprecedented levels in this nation.

Federal Government agencies compute Gross Domestic Product (GDP) using dollars to make the measurement. Total product, by definition, includes all hard and consumable products made and sold to satisfy demand requirements for shelter, clothing, food, transportation and communications by the working population. Totally independent of how Federal Government makes the measurement, total or gross domestic product is simply, and nothing more than, total product output as a function or result of the total number of hours worked by the working population.

By definition, and totally independent of numbers used by responsible Federal Government agencies to compute employment or unemployment numbers, the working population, from generation to generation, includes every one who is capable of working. The number of those not capable of working, or the amount of waste and inefficiency by the working population, does not and will not change from generation to generation; therefore, by definition, and as a practical matter, it serves no useful purpose to get involved in complex statistical numbers studies and exercises to determine and track those numbers ('not capable of working' or 'waste and inefficiency'). At least not for the purposes of these essays.

A simple relationship, M/P [Total National Money Supply(divided by)Total National Population], exists in the comparison of total national money supply to total national population headcount. This relationship or comparison provides a 'per capita distribution of national money supply' number that is more than adequate to make an objective evaluation or 'measurement' of increase or decrease in material standard of living, or to draw a poverty line or number.

Deliberate inflation of the U.S. Money Supply is the greatest enemy of our national domestic peace, security and prosperity.

This thesis asserts that increase of total national money supply, at a rate that exceeds the growth rate of total national population headcount, is a deliberate cause of the inflation of money to feed the market for money, totally independent of markets for goods and products. A deliberate inflation policy is a deliberate and invisible tyranny of financial oppression.

During a period from 1960 to June of 1995, according to the Census Bureau of the U.S. Department of Commerce, total national population grew only 1.4 times, from 181 million to 261 million. During this same 35 year period, total national money supply grew 14.5 times, from $307 billion in 1960, to $4,461.1 billion as of June 26, 1995, and growing by billions each week.

Using the simple M/P [Total National Money Supply] (over or divided by) [Total National Population] relationship, per capita distribution of U.S. Money Supply in 1960 was 'M' at $307.7 billion, over 'P' at 181 million , or $1,696.00 per year.

As of June 26, 1995, per capita distribution of U.S. Money Supply was 'M' at $4,461.1 billion, over 'P' at 261 million , or $17,092.00 per year. This is a ten times growth of per capita distribution of U.S. money supply over that 35 year period. This translates to a requirement for a ten times increase in personal and family incomes just to stay even - to have the same material standard of living in 1995 as personal and family incomes provided in 1960.

Using annual per capita distribution of U.S. Money Supply as a fundamental dollar number reference, and 1,920 hours as the standard number of working hours in one work year (allowing for holidays and vacations), $1,696.00 per capita per year in 1960 divided by 1,920 hours per year calculates a per capita standard equivalent of $.88 per hour work wage in 1960.

A $17,092.00 per capita per year in 1995, divided by 1,920 hours per year in 1995, calculates a per capita standard equivalent of $8.90 per hour work wage in 1995.

It follows that a per capita distribution at $1,696.00 per year in 1960, or a per capita wage of $.88 per hour, provided some standard of living by the working population that satisfied all of the material demand requirements for shelter, clothing, food, transportation and communications for the total national population.

Thirty five years later, a per capita wage of $8.90 per hour is required to satisfy those same material demand requirements for the total national population.

Given people are the same, and nature of man never changes, from generation to generation, and all variables considered, the only thing that has changed in the last thirty five years is the requirement for increased income to maintain the same material standard of living, solely because of a deliberate and incessant increase of total national money supply in excess of the natural growth rate of the population to feed the market for money.

Saying the same thing another way: Based on a wage at $3.65 per hour, a before-taxes income at $7,020.00 per year in 1960 provided a certain material standard of living to satisfy the demand requirements for a family of five.

Thirty five years later, a wage at $36.50 per hour, or a before-taxes income at $70,200.00 per year, is required in 1995 to provide the same or equivalent material standard of living to satisfy the same material demand requirements for that same family of five - for no reason other than a fourteen-times increase in total national money supply during that period of time.

Domestically, individuals and families are struggling to make both ends meet. Two incomes in the place of one have been required to maintain the family for the last twenty years. Requirement for two incomes to support the family has been, and continues to be, the leading cause of the gender war and domestic violence.

The working man/woman is disturbed if not frightened, living under a constant threat of layoff, unemployment, under-employment and dislocation. The working man has been frustrated, and castrated, because he can't find meaningful work that provides income sufficient to provide for his family.

The abortion issue is a social monstrosity. Demand for choice derives from causes of financial oppression and poverty from inflation, taxation and the high and changing cost of borrowed money. This tyranny of financial oppression forces the stay-at-home wife to consider abortion as an alternative to the burden of another mouth to feed. Financial oppression forces the working woman to consider abortion as an alternative to unemployment and loss of income because of another human life to care for.

Police in local municipalities are being assigned to schools to stem increased violence in the schools. The Huntsville-Madison County office of the State Department of Human Resources, administering government programs for foster care, domestic violence, child abuse and food stamps, has been contracting armed security service for case-worker-office protection for the last several years.

Our national domestic problems are the very simple and straight-forward problems of living, from day-to-day. They are the personal problems that we face in our daily lives: to get an education, develop a skill or trade, then using that equipment to find and engage in meaningful work that provides income sufficient to meet the daily and lifetime needs for food, shelter and clothing with safety and security.

Our United States Constitution of government was supposed to help us do that - provide us a system of government whereby the citizens of this nation could work and prosper from work, to live out our lives in peace with safety and security.

Destruction of the family and family values followed destruction of major businesses and industries in the United States. That destruction didn't evolve naturally - that destruction has definable causes from violation of natural law that is the ultimate governor of good and bad fortune in the market place.

The U.S. Constitution worked for awhile, until it was superceded by an invisible Constitution of Government in the form of the Federal Reserve Act of 1913. That's when the wheels came off the wagon, and the United States started its decline to the low status and condition of a socialist welfare state that its citizens now find it and themselves. That decline was given a push because of, and in the aftermath of, the stock market crash on Black Friday, October 29, 1929.

It's the Great Depression all over again, because of the socialist welfare state economic policies by Federal Government under control by a Democratic majority for the last sixty three years.

If there is a difference between the Great Depression of the '30s and the Great Depression of the '90's it is this: In the 1930's, great industrial and manufacturing capability lay dormant for lack of capital.

In the 1990's, great human capabilites lay dormant for lack of industrial and manufacturing capability - under the heel of an invisible tyranny of financial oppression.


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