Smithian Economics = Global Feudalism

By Number Six

Wednesday, August 03, 2005 at 02:02 AM

Lee's latest diary entry raises a point I've been keeping an eye for many moons now: That certain economic theories don't hold water.

I said, as far back as the Raygun Era, the theory of "trickle down", aka Smithian Economic Theory is much like the work of Von Daniken or Velikovski: Looks great on paper, but when assembled and taxied out, that's when you tend to notice the wings are on backwards.

WTO. NAFTA. CAFTA. Tax cuts for the uberwealthy, Corporate Welfare. Deteriorating middle class. Poor becoming even more poor. These are all symptoms of why the neo-con masturbation fantasy of "trickle down" just doesn't work. Monopolism, and what I myself termed "Economic Feudalism" are the real offspring from such insane practices.

One factor I always use to royally fuck with those who buy into the Smithian model is this one burning question:

"And did you know that this kills off your customer base?"

Apparently, the Smithian graduates didn't study the Ferengi Rules Of Acquisition, among those rules? "Unless you have customers, you don't sell shit!"

Think about that for a moment: What goddamned good does it do to shut down factories, close plants and fire workers just to make a product or service cheaper....when those facing unemployment or underemployment...can't afford the damned thing to begin with???

Henry Ford said it well: "You must pay your workers enough to afford the very thing they make." No shit, Sherlock. Doing that keeps cash in circulation, keeps more than a few firms operating, and drives the economy forward with real horsepower.

Thus, ultimately, close down enough plants, can enough workers, and then what? No tax base anymore, secondary businesses close, and over time, what we are starting to see here? The end of the middle class, a widening group of poor, and in the end? Well, read your history books, as anytime the Have-Nots outnumber the Haves...oooooooooooooshit!!

But, it doesn't seem to work that way: Between the money people of Wall Street, the Buschco crowd, and the rest, they seem to think this "go overseas, young man" stuff will work...but for how long?

A day may well come...when your local Wal-Mart opens for business. Yet, no customers. No income. No spending power. Game over. Economic stalemate. We can't all take in each other's laundry, mmmmm?

All the more reason to rid ourselves of neo-cons, Republicruds and anyone else who believes this little turdlet of economic theory. Sorry, unles the marketplace has both sellers and paying customers, nobody wins.