Plunder By Unequal Pay for Equally-Productive Labor
Summarizing plunder by trade through a high-paid nation trading with a low-paid nation:
* You are in America producing one widget an hour and are paid $10 an hour.
* I am in Indonesia producing one widget an hour and am paid $1 an hour.
* We are equally productive but we have a 10 times pay differential.
* We ignore monopoly patent costs, they only increase the discrepancy, and price theses widgets at the labor cost of production. (Capital is but stored labor so all justified costs are labor costs.)
* At $1 an hours pay, I must work 10 hours to buy one of your widgets. In that same 10 hours, at $10 an hour, you earn $100 and can buy 100 of my widgets.
The difference in accumulated or consumed wealth is not mathematical it is exponential (high pay divided by the low pay squared).
When you do this math remember the key is the buying power gained in the same working timespan by equally-productive, but unequally-paid, labor producing products for trades between countries.
* If the well-paid nation is paid twice that of the low-paid nation, in direct trades between them the well-paid nation accumulates or consumes 4 units of wealth and the low-paid accumulates or consumes 1 unit of wealth.
* At 4 times the pay differential for equally productive labor the high-paid nation retains or consumes 16 units of wealth and the low-paid nation retains or consumes 1 unit.
* At a 20 times pay differential the high-paid nation accumulates or consumes 400 units of wealth while the low-paid nation retains or consumes 1 unit of wealth.
This sixth grade math is fundamental to the centuries-old system of plunder-by-trade.
The first fundamental is that all wealth is processed from resources.
* There were no resources inside the Walled Cities (Free Cities) of Europe 800 years ago.
* All resources (timber, wool, ore, grains) were in the countryside.
* When the serfs came to town and saw the looms, fulling vats, leather making tools, forges, etc. (primitive industrial capital) they said, “We can do that.” And back to their villages they went to produce their own industrial tools.
What happens now to the city?
* That was their living and down the tube they go.
* Right out of the classics on the Middle Ages (Heckscher, Pirenne, Polanyi) we learn that “For 700 to 800 years the cities sent out raiding parties to destroy the primitive industrial capital of the countryside and force them to sell their resources to the city.”
* Those city states became countries;
* those countries became empires;
* and the military of the imperial centers of capital today are for the same purpose as those raiding parties 800 years ago; control resources and control the wealth-producing-process.
Where are Japan’s resources? Where are Hong Kong’s resources? Where are Taiwan’s resources? Where are South Korea’s resources? And where are Europe’s resources (they consume 14 times the natural resources as lie within their borders)?
Those resources are primarily in the impoverished world being purchased for a fraction of their true value. This simple economic history citing classics is the 2nd fundamental of plunder by trade.
No country ever developed under Adam Smith free trade.
All successfully developed countries did so under the principles of Friedrich List’s 1841 classic The National System of Political Economy.
* In the introduction of that book, List explains how Britain’s William Pitt imposed Adam Smith free trade upon the world.
* Structural adjustments imposed upon weak nations being the very opposite of the policies in which successful nations developed prove the imperial nations are carrying on William Pitt’s plan for control of world trade through Adam Smith free trade (really plunder by trade);
* “So long as the impoverished world can be made to believe this they hand their wealth to the imperial centers of their own free will and it does not require an army.”
* Of course the military is there to force all who would opt out back inside that mold.
America’s founding fathers are our primary sources for this 3rd fundamental of plunder by trade.
* They are the ones who ignored William Pitt’s efforts to impose Adam Smith free trade on America.
* It is they who protected America’s tender industries and markets and it is through those common sense policies that America became wealthy.
Because we built the foundation of our story on this hidden, unspoken, and ignored economic history we can make statements that others cannot.
* Today’s world economy is built upon plunder by trade.
* At this point our reader/listener/visitor should clearly understand the causes of wars and poverty and how to correct it is instinctively understood.
* Once those monopolies-protected by financial warfare, economic warfare, covert warfare and overt open war-are abandoned individuality, competition, and personal rights are not only protected they are strengthened and economic efficiency increases equal to the invention of money, the printing press, and electricity.
* The average standard of living per hour of labor in the wealthy imperial centers would more than double even as the GNP would drop by more than half as employed hours dropped an equal amount. That is the enormous waste within monopolized economies, monopolies we are told do not exist.
* That over 50% drop in GDP measures the previously wasted labor and capital as the money flowed through those monopolies into the coffers of those who do not produce.
By proving the waste of wars, the waste of monopolies, and the waste of capital destroying capital (the greatest waste of all), we demonstrate there is plenty on this earth for all.
All the imperial nations have to do is “be who they say they are and do what they say they do” and this world will quickly go peaceful, poverty will be eliminated in 10 years, and the world would be developed to a sustainable level for a quality life for all within 50 years.
The above is the heart of the story.
* But Perception Management (Propaganda) Encasing Society within a Belief System and Corporate Funded Think Tanks Building upon the Beliefs Created by the CIA, explaining how a free nation with free speech and a free press is propagandized (protecting this system of plunder-by-trade), is also an unknown story to most
* The The simplicity of eliminating poverty and war will stun you summarizes the elimination of all monopolies.
As an example of how simple these explanations are we will summarize how America destroyed the agriculture of over 30 nations leading to the possible starvation of hundreds of millions as the price of corporate controlled food supplies double or triple as we speak:
* Where would America be if a powerful nation subsidized their farmers (as the U.S. does theirs) and undersold their wheat, corn, soybean, cotton, dairy, and beef farmers?
* The farmers would go broke, the machinery companies would go broke, entire communities would collapse, and this would collapse many or even all other industries.
* This destruction of the economic multiplier as locally spent money circulates within an economy roughly 8 times is what happens when powerful countries undersell other farmers or give their grain to those countries.
* The economic multiplier essentially is a nation’s economy and the same holds true for other consumer products.
* The multiplier factor, the health of any economy, goes into reverse whenever a country’s farmers or industries are undersold by another nation’s highly subsidized producers.
If nations share the efficiencies of technology and return to local provisioning of food, fiber, and shelter; poverty can be eliminated in 10 years and the world can be developed to a sustainable level for a quality life for all in 50 years.
It is not a matter of not knowing what to do. We know exactly what to do.
The problem is the world’s arteries of trade are tied to that centuries-old system of Plunder by Trade, and property rights law as applied to nature’s resources and technologies, denying others their rightful share of what nature offers to all for free and even good people cannot see a way out.
But those who we have been plundering for centuries can. They now understand the plunder system and are organizing to gain their freedom. People are good, If together we show the way out, even many of those powerbrokers will follow. We have our fingers crossed that President Barack Obama will start that process.
The development of Asia was an accident of history. Industry and access to markets was provided to Japan, Taiwan, and South Korea to provide fast expanding socialism.
Later, with Nixon in political trouble and the successes of the Soviet Union still feared, China was brought into that industrial trade alliance. It was not intended that China would rapidly develop.
But greedy capitalism took one look at that 30 cent an hour labor against their $20-to-$30 and hour labor and moved to China enmass.
Today all Asia is rapidly industrializing and the estimation that most of the world will be industrialized by 2050 has been advanced to 2035, only 26 years away. Turkey is by then expected to equal Britain and other countries gains are expected to be comparable.
This is the same trade structure, the loss of control of the world trade structure and the wealth producing process, that led to World Wars I and II.
Again our fingers are crossed that President Barak Oboma will see us through this without war. As we demonstrate, it is possible to stop this economic crash in its tracks and quickly restructure to full and equal rights for all.
We are asking for your support on getting this to the world.
The last page of this group, demonstrates how the Developing World Can Leapfrog the Developed World
Those crucial 170 words describing an honest, efficient, capitalist economy. Does anyone have the ear of President Barack Obama’s Economic Recovery Team?
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