American Capitalism is Maximizing Profits by Destroying Jobs

American Capitalism is Maximizing Profits by Destroying Jobs Robert R. Odle, Ph.D. an aspiring good citizen of the earth

…capitalism is not about creating jobs ....

Capitalism Does Two Things Well

• It creates wealth and,
• It maximizes profits.

The people in a capitalist system can either be long term or short term thinkers.  In America, they are short term thinkers, generally with a long term lookout of one quarter, the current relevant time period in American business.  Some great companies in this country have a long term look out of a year or more.  Serious five year plans are very rare.

The creation of wealth comes primarily by inventing products for consumers that did not exist before.  Some of the creations, like the cell phone, create wealth all over the world because of improved efficiencies, in this case improved flow of information.

Capitalism maximizes profits in the early hours after a creation by mobilizing resources to sell and distribute the new product.  In this growth period, the use of labor is most intense and frequently grows rapidly as a new creation takes off.  The current business cycle of most new products is relatively short, a few years at most, often a few months.

As the product matures, capitalism maximizes profits by reducing costs.  The most common reduction of costs is to reduce people.  This is done by improving efficiency by the use of machines instead of people, working less people harder, and using the computer to identify and eliminate bottlenecks and to use resources more efficiency.  Automation, although the most obvious way capitalism cuts costs by eliminating human jobs, is only the tip of the iceberg in how computers reduce costs by eliminating jobs.

Job Elimination Creates Excess Capacity

As computers and automation reduces costs by eliminating jobs, excess capacity is needed in each company and the system as a whole since all companies are utilizing similar technology to reduce workers. As the number of workers in America decrease, the number of consumers decrease.  As the number of consumers decrease, further reduction of cost via more worker layoffs is warranted to maximize profits.  Repeat that scenario for 40 years and you have America as you see it … with 62 percent of the work force utilized, 40% of the population getting a few percent of the wealth created.

Each Round of Creations produces less Employment

With each round of creations, the number of viable consumers for the new product is reduced from the previous round job eliminations from computers and automation (and outsourcing -- although that is not the current discussion).  And as computers and automation improve, each round of job destruction is worse that the last one -- hence the 40 year decline in the labor participation rate and the growth of poverty in the United States.

In summary, American Capitalism is maximizing profits by reducing costs primarily from eliminating workers via computerization and automation.

This problem will not be fixed by any automatic mechanism in capitalism.  Capitalism as perfected in America creates wealth and distributes that wealth to the super-rich and those that the super-rich need to maintain and increase their wealth.  With the invention of supercomputers and automation the group needed to increase the wealth of each corporation/super-rich decreases in numbers with each cycle.

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Sandra Bland Meets Brute Force American Justice

Sandra Bland Meets Brute Force American Justice Robert R. Odle, Ph.D. an aspiring good citizen of the earth

  not using a turn signal results in death ...

Woman from Chicago going to Texas to interview for a new job, but doesn’t user her turn signal to switch lanes.  Cop pulls her over and gets nasty with her, she gives him some lip.  She is told to get out of car, she does.  Of course, cop moves her out of the sight of the dash cam.  A citizen comes along and takes a video at the side of the road with two cops on top of her.  They take her to jail, she does not have on her the $500 to make bail.  The bail bondsman said she was afraid.  Two days later she is dead in her cell.   

Guy running the jail has a history of being racist. The guy assigned to investigate the death also has a history of racism.  They claim she asphyxiated herself by hanging herself with a plastic bag and ruled it a suicide.  Really? Maybe, maybe not?

The policeman that behaved badly has been put on desk duty.  Wow, that is quite a punishment for setting in motion someone's death.

Our sorrow, our shame

Two years ago, I would have given the policemen the benefit of the doubt.  Now, I think they are as guilty as O.J. Simpson was … however, in the Simpson case, I agreed with verdict since a racist cop in that case improperly handled the evidence.  But, I still thought he killed his wife.  Now, I feel the same way about these police.  I believe they killed this woman. However, since racist cops are in charge of the evidence I have no confidence we will ever know the truth.  They show newsman through the cell the next day as if it were a shrine and not part of a crime scene.

Our America Knows Nothing But Force

I’m guess a lot of Americans feel the same way I do, whether or not, there is ever enough evidence to convict these policemen.  Like James Gardner that got killed over selling single cigarettes by the police, Sandy loses her life over not using a turn signal. In both cases, I think the public would be better served if the police were inside Dunkin Donuts eating cream puffs instead of bothering these two people.  

How is it that multiple policemen are deployed for such petty crimes when there are thousands of people being murdered every year in this country, 216 in Chicago alone the first half of this year alone.  And our police are forcibly enforcing laws on turn signals and selling single cigarettes.  Really? We should remember these are black people committing these petty crimes - is that why the police are going after them?  And are all the murders ignored because they are mostly black people killing black people?

America Justice Uses Brute Force  

America approaches all of its problems with brute force. The police screaming at her that he is going to light her up (with his taser) is so typical brute force American.  It is the same spirit behind our War on Drugs (War on Black People That Due Drugs), our War on Terrorism (we as Americans are completely innocent)  our undeclared War on Immigrants(Unarmed Illegal Gunned Down Like a Rabid Dog), our War on Poor People (Police Have Nothing More to Do Than Harass Street People; Our Believe in Authority, a prejudice against the small, especially black, man)

Imagine a Kinder America

Imagine a strong but kind policeman handling Sandra.  A policeman that had been trained to recognize triggers in others and himself.  Could a kind officer said “good morning, Miss, I’m not going to give you a ticket but I just want to encourage you to use your turn signal when switching lanes.”  And if she still came back with a hostile comment, he could have responded, “I understand you are upset for being stopped, but I need to do my job and then you can be on your way”.  Perhaps, a big white policeman with training could realize that Sandra might be having some fear reactions dealing with him … perhaps for some very good historical and personal reasons (similar to any person that is put in a corner without options).  

Now, imagine once she is in jail (justifiably angry over being arrested for a turn signal and an inept policeman) , but scared and alone, if someone had shown her some kindness and compassion.  Perhaps, if America had not already judged her to be a bad person that should be punished, we would have someone (a therapist perhaps) come sit with her and ask her how she was doing.  Someone to advise her on her options, to contact her friends and family, and someone to just care about her as a fellow human being.  Isn’t that the kind of America we want to be?

Other blogs with a similar theme:

Australia, a gentler, kinder America;

A Good Country Index)

All Deaths are Not Equal - White Deaths are a big deal, not so much black lives.

How we treat the mentally ill - police are shown beating up a mentally ill person.

Homeless and Compassion - mentally ill people without help roaming our streets

Do Those in Poverty Have a Right to Water -

Behind the 8 Ball in Ferguson

All Deaths are not Equal

All Deaths are not EQual? Robert R. Odle, Ph.D. an aspiring good citizen of the earth

 4 Marines in TN, 216 Anonymous Blacks in Chicago .

Four marines, now five, were killed in Tennessee last week.  They called it terrorism and our eyes all focused on this shooting.  In Chicago, 216 people have been murdered in the first six months. That is about 35 people a month, or about 8 people a week, or about a person everyday.

By the amount of time our news media gives the dead marines, they are obviously very important people, worth a great deal.  The 216 people killed in Chicago, not so much.

All bodies are not equal. All deaths are not equal.  All people are not equal.  All people are not worth as much as other people.  How people are killed and by whom gives their death more meaning and their lives more value.   REALLY?

Blacks in Chicago Don’t Count as Much as White Marines

Should I point out the people killed in Chicago are mostly black.  I’m sure that doesn’t have anything to do with it.  They are also the forgotten poor in this country, but I am sure that has nothing to do with it.   The marines are all white, but I doubt that has any impact down in Tennessee.  I am sure we would have cared just as much if they were black Marines.  I am sure our military values all lives equally.

Being Killed Almost in the Line of Duty

Perhaps their deaths, the deaths of the marines, were more noble because they were killed, not quite in the line of duty, but kind of in the line of duty.  Well, the Chicago people were just killed in their ordinary, poor, private lives.  Their children and family will hardly miss them or grieve for them … because they are used to it, right?

The Role of Compassion

Compassion takes the ability to put ourselves in the shoes of those that we are having compassion for, or NOT.  The trouble is as WASPS we have very little affinity and understanding of the black man living in Chicago that is getting shot. An article, “The Black and White in Chicago Schools”, let’s us take a little peak into their schools.  We like to think they have a choice not to get involved in gangs and drugs.  But, I am not so sure that is the case.  Many can not find employment.  Well, you argue they should have finished school.  But, have you ever gone to a school where guns and knives were normal.  I didn’t, but here in Elkton, MD (safer perhaps than Chicago) my daughter witnessed a fellow student being stabbed in the chest plus dozens of fights.  In my school, back in El Paso, fist fights were usually reserved for after school, not during school.  But, imagine a place where guns and knives in school is not rare and it's normal to encounter them on the way to and from school. Imagine a world in which is it is normal to be in fear all the time.  If we could do that, perhaps it would be easier for us to imagine that we might not do any better than the blacks in Chicago if we were born into the same neighborhoods.

America is no longer a land of opportunity for all

For the bottom 40% of Americans, America is no longer a land of opportunity.  Odds are many will not make it out of high school, they will not be employed and they will spend some of their life in prison. Their fate will be to be one more tick of the death counter in Chicago … an anonymous death.  At least, we know the name of the marines and a little of their story.   

Muslims are the SAVED.

Baptists are the Saved, or Not. Robert R. Odle, Ph.D. an aspiring good citizen of the earth

… Religions love each other ....

Imagine Muslims singing the praises of Baptists.

Imagine the Baptist preacher getting up in his pulpit on a Sunday morning and proclaiming that Muslims are the saved. Of course, it is totally ridiculous, only the Hindus are really the saved. Or, was it the Catholics or Jews.  It is one level of tolerance to not say bad things about another religion or people, it is quite another to sing the praises of another religion or people.  The main reason people don’t sing the praises of other religions is because they think they are the “chosen”, “the saved”, etc.

Of course, it is the classic case of US and them.  For example, we are the US and the Iranians are the Them's.  We are the peace loving nation, they are the evil country who wants a bomb so they can start a war.  Ask any Baptist, he knows it as a matter of faith as if god decreed it. Ask any Muslim, especially any radical one, and he will tell you that the drone dropping Americans are murderers who can not be trusted.

All sides are biased and ignorant

We have not walked a mile in the shoes of anyone in the Middle east. We have not lived through decades of wars started by outsiders. They have not grown up in our confederate flag waving south.  They have not been baptized and we don't have prayer rugs.

But what we do have in common is a belief that we are right and superior. And besides, our God kicks butt.

Privatize our Military

Privatize our Military Robert R. Odle, Ph.D. an aspiring good citizen of the earth

… Marines for Hire ....

As Eisenhower predicted, our Military Industrial Complex makes a huge sucking sound on our national resources each year.  If you add in the wars to our annual “normal spending” on military policing of the world (military defense is a misnomer), it is absolutely mind boggling ---  on the order of a trillion dollars a year.   What do we get out of it.  Well, certainly more than a military defense … the only one that could invade the U.S. is the U.S.

To soothe our fear, we get the illusion that we control the world.

Our military is in 150 countries around the world.  We have the belief, despite the facts, that we can control the world by force.  Twenty years of war in the middle east should convince us that it is an illusion.  The power of a radical islamic religion is not something that can be stopped with bullets, in fact, it feeds on the death of it’s members and grows stronger with each person we kill.  And, no, with billions of Muslims in the world, it is literally not possible to kill them all, nor is it possible to identify which Muslim is going to go radical in advance.

Sell the Illusion to Those that Believe Force is the Answer

It is a shame how much money we have spent on the illusion that we can control the world with military.  It is even a bigger shame that many have not yet learned that pouring money down this rat hole that we call military defense is destroying the country by not addressing all the social ills that are destroying us from the inside out.

The ultimate irony is that many believe that if they had our power at their fingertips, they could solve all the ills of their society and their enemies.

Sell our Military Might to the Highest Qualified Bidder

There are a lot of people in the world with money that believe their answer is better, that they have the most holiest way, the divine truth, the right way, etc. Take the middle east right now, at least six countries are engaged in wars both external and internal.  In most countries we have ordained who we think are the most holy … actually the Oligarchy has decided which side is supporting their interests.  So, why don’t we have Congress decide who are the Qualified Countries in the world to hire our military (of course in consultation with the Oligarchs). Let them bid to use our military force (using google forms) for their cause after they deposit the appropriate billions in our coffers (and millions in the appropriate PAC’s).  

What would Saudi pay for us to wipe out the Houthi Rebels.  Or how much oil could we get from Iraq to put troops on the ground to stop ISIS?  How much would Turkey pay us to attack Syria’s  President Bashar al-Assad, and perhaps, they would throw in a few extra billions to knock off some Kurds in the process.  Or how much would Libyan government pay to knock out the Libyan rebels fighting for Operation Dawn, a coalition of Islamist and Misrata forces.   And how much would Europe pay for us to put ground troops into Ukraine.  I think we are talking trillions.   How much would Japan pay us put war ships next to those islands that China is building … more trillions I think.   Perhaps we could work both sides and China could pay us to set up a line of ships guarding the islands they think are most dear.  And, how much would South Korea pay us to knock off that nut in North Korea, Kim Jong-il?

We could all be rich … Our Hawks would crap old bricks

We could literally all become stinking rich overnight.  There are trillions to be made by selling our military to the highest bidders.  We already sell our military to line the pockets of the Oligarchs around the world, but I am talking a whole new level of engagement and profiteering unlike anything the world has ever seen.  Those joining the military will get top dollar, our military will have all sorts of funds to build even greater and more powerful weapons.   Meanwhile, development of weapons by other powers will wither on the vine when they can just hire the best … why try to develop it.  And, beyond all that, the American people will not only not have to fund the military, they will reap huge profits to rebuild our infrastructure, educate our children on the American way, and export our ideas to the rest of the world.  We can even have reality war movies by equipping our drones with high quality cameras to film the destruction our military can bring down on the heads of the enemies of our benefactors.  

We can also use our drones on civilian crimes.  For instance, how much would Mexico pay for us to wreak havoc on El Chapo and his drug lords?  

Our Moral “High-Ground” Would Remain Constant

It is very clear that we deploy American troops when our interests in the Middle East are in jeopardy.  (Personally, I don’t have any interests in the Middle East.)  In other words, when some oil companies like Exxon have some assets in danger, we deploy our troops.  I don’t think any of us are under any illusion that we fight for any noble cause greater than money or kicking somebody’s butt that dared kick us in the chins.   So, how is hiring out our military for cash any different from a moral perspective than what we do now?   The only difference is who picks up the tab for the military exploits, the American public or the public in the rest of the world.  Its time to get practical and to make a profit from all our investments in a military industrial complex that is second to none.

The Dismal American Oligarchy

The Dismal American Oligarchy Robert R. Odle, Ph.D. an aspiring good citizen of the earth

… How Do You Live with the Oligarchy ....

There is a new study at Princeton which asked the question: is America an Oligarchy yet? My summary of the article is that the rich elite get their way with policy more often than the American majority get their way.  In short, the rich elite are able to get the rules of the game changed in a way that is good for them and their pocketbooks.  We may not be there yet, but our democracy is becoming an Oligarchy right in front of ours.  Along with our debt, our children will have one more thing to thank us for.

Who Make Up This Oligarchy

500 or so billionaires can be seen on Forbes List of Billionaires. The people that make up this oligarchy are rich, typically billionaires, and often hold values similar to ours. However they have their special interest which usually includes making more money. Although there are billionaires in both the Republican and Democratic parties that act as part of this Oligarchy, they seem to have chosen Republican Party to get most of their laws passed, or not passed, as the case may require.

The Warren Buffett Tax

A good example of the rich getting their way was seen in the 2012 elections.  The public found out that Mitt Romney’s earnings are taxed around 15%, much lower than the middle income tax rate.  This is justified (by the rich) to encourage investments that taxes should be lower on capital gains than on salaries .  Well, most Americans, and even some rich (Warren Buffett) disagree.  Of course,  we know how that came out.  The public was ignored and the rich still are taxed lower on capital gains earnings than we are on our salaries. What the majority wants is not consistent with the oligarchy, so it's not usually going to happen.

Congress Passes Laws Primarily for the Oligarchy

The group from Princeton looked at a lot of issues, and well, when the congress is able to compromise and get something done (a cold day in hell), they are usually passing laws that the rich want.  The common man gets his way if he agrees with the rich elite. (ha). So, when you see a law passed, asked yourself, does this law favor the Oligarchy or most Americans.

The Oligarchy is International with Similar Needs

Of course, the rich elite are international and although they may be in competition with each other, they all favor the same type of legislation the world over: low taxes, military protection, the ability to move their money where it can make the most money,  low cost labor, relaxed regulations (financial and environmental), and means of influencing governments to pass laws in their favor (PAC’s, lobbying, bribes, etc.).  In the US they control who can win an election by swamping the tv with ads (PAC’s) and in some cases controlling the media (Fox).  

There is a constitutional amendment passed by a few states to make PAC’s illegal and stripe the Oligarchy of their biggest weapon.  This movement is lead by Vermont, Barry Sanders homestate.  But few Americans realize this may be our last stand as a functional democracy.

How Successful Has the Oligarchy Been?

So we already know the rich hold all the aces (and money).  The graph below is just another way of showing how wealth is divided up in America.   

The Oligarchy and The Minimum Wage

Notice the red dot on the wealth distribution graph above.  That is the share of money that the poor people get in this country.  Most of the people that get the minimum wage are part of this group.  So, when we argue about the effect of changing the minimum wage on America, we are arguing about the impact of increasing the size of that red dot probably less than 10%.  So, understand that we are talking about a very small decision that an immeasurably small impact on the US.  Small changes in the rest of the system will overwhelm its effect.  It is like the American Oligarchy throwing a small scrap of meat on the floor for the 40% to fight over.  But, don’t worry, they don’t want to throw any more scraps to the minions, so it will never pass Congress.  (And no, they will not allow Bernie Sanders to win either.)  

Short Term Effect versus Long Term Effect

Short term, an increase in the minimum wage increases the amount of money going into that little red dot.  And since the Oligarchy is always striving to maximize the amount of money going into their pockets, the small increase in the size of the red dot would be small but counter-productive.  To restore order to the universe, they will via capitalistic efficiency simply continue automating and computerizing their business, pushing up the revenue per worker and hence needing less workers each year.  Having to pay workers more gives them a little more incentive toward more automation.  In any case, in the long term, the minimum wage  worker is becoming a dinosaur.

But, on an even longer term basis, automation is decreasing the number of consumers and the profits business can earn.  What is good for each individual company, to increase revenues and profits per worker, is collectively bad for both corporations, the Oligarchy and the American people.  The communist party in contrast realizes that expanding the middle class is necessary for them to stay in power.  

The Challenge is Overwhelming

The Oligarchy is in charge.  Capitalism automatically increases wealth, but politicians make the rules by which this wealth is divided up.  And the Oligarchy through the PAC’s decide which politicians get elected, re-elected, and which ones get a lucrative job when they leave congress.  So, Congress is strongly motivated pass laws that insure their future and help the Oligarchy expand their wealth as the number in poverty swell to record levels.

Too bad the bottom 40% does not have anything that the Oligarchy needs or wants.  So, what would persuade them to give more scraps to the minions around their table?  I’m not sure there is any financial reason for them help the poor of this country.  

The Oligarchy Needs the U.S. Military as Policemen

The International Oligarchy needs the U.S. military to protect their foreign possessions and businesses.  Yes, we are talking about a world-wide Oligarchy that besides needing their businesses protected all over the world, also make a lot of money in the arms business. The U.S. Military alone is one of the biggest businesses in the world.  ISIS didn’t make their equipment, they have US Military equipment purchased by the US taxpayer with profits going to the Oligarchy.  Someone in the World Oligarchy is making out like bandits on the ISIS either supplying them weapons or supplying the other side weapons.  There is no war that goes uncelebrated by the Oligarchy.

What does the Oligarchy need?  Answer: more automation and computerization to reduce the cost of running their empires. More engineers and scientists to increase the profitability of their enterprises.

So they need well trained minions to fill sophisticated technical niches in their businesses.  There will be millions of jobs in this area, unfortunately, with American school systems in shambles, especially in the poverty filled neighborhoods, there is little chance many Americans will benefit from this demand. And our youth are not helping themselves with their entitlement attitude especially young men.  Instead of making a good business working for the  companies run by the Oligarchy, more Americans will slide into poverty … and no one in power will care.

Transfer of Wealth from America to the Oligarchy

The shortage in educated Americans will not be fixed by improving education in America, that takes too long for the Oligarchy.   Instead, on the short haul,  they will fill the shortage in educated Americans by bringing educated people from around the world to America.  On long haul it will make more sense to locate the companies as much as possible in the home countries of the new workers.  The cycle of wealth transfer from America to the Oligarchy will be complete as automation is developed and maintained overseas and brought to this country.  

how does it feel being a minions in the Oligarchy?

Get used to it … the Oligarchy is now in charge.