The U.S. Economic Divide

Economics is one of those subjects that suffers from its own unique form of multiple personality disorder; there’s the academic, the financial-markets, the banking, the global, the government, the political and the social-equality econ-segmentation each with their own deliberate bias attached to a specific outcome the consequence of which is the general state of economic chaos we observe today – The U.S. Economic Divide. 

To place a limit on the breadth of this effort I will use two terms to act as a base reference point for what follows and they are: 

Native Economy: The fundamental human components which, when engaged, command an event or cycle we refer to as “economy” or gives life to what is thought of as an “economic event.” These human components are inseparable from and integral to a functional economic system and are best described as: intuitive, self-driven and/or a perfecting life-sustaining-force which compels demand in search of supply. In practice it holds the purest possible form of free-market economics. 

And,  

Physio/Socio-Economics (PSE): A term which identifies the practices and tendencies of how economic processes are altered (or enterprises conform) or orientate themselves in response to political interferences or inducements. The motive force is typically advantage-driven and trend toward defeating the beneficial effects of Torsional Economic Tensions (functions which serve to expose and eliminate deficiencies) which would otherwise serve as a perfecting and refining influence. In practice this feature (PSE) defeat all native, organic and normal economic cycles. 

These are remarkable terms in as much as they each accurately illustrate the source of the U.S. Economy’s robust and productive past, “demand in search of supply”, and the reasons, “political interferences or inducements”, for why the economic cycle has become petrified. The simple fact of the matter is that the moment one removes the native mandate of economic efficiency there is no requirement for an enterprise, individual or economic event to prove its economically sustainability and it is, for this simple reason, why businesses fail and why government should never be relied upon to make economically sound decisions. 

The role and function of government has been expanded to appear as the supreme arbiter of all things economic and it does so on behalf of many vested interests each with their owns specific desires; the weight of having one too many masters has served only to crush what I refer to as the Native Economy. The destructive effect is so severe and the level of ignorance so comprehensive a near total blackout on constructive dialogue exists throughout the political and media spectrum the effect of which is that the public has no context from which to gauge the merits of available solutions even if they were offered.  

“Capitalism is what becomes of free-market economics micro-managed by selective interests who fear free-market competition. The public has become an unwitting advocate of the baseless premise that government intervention is vital to the process; despite all indications to the contrary.” 

The Divide Widens: 

The use of the term Native Economy is quite deliberate; it is used specifically to capture the organic nature of an economic event, the cause of its occurrence and the manner in which it functions. A valuable companion to understanding the fundamentals of a viable economic event is to consider the reasons for why it fails however we have to be clear as to the context of what defines failure; there is the economic event that fails simply due to a conceptual or operational issue (a component of Torsional Economic Tensions) that resolves itself if there are merits for it doing so and then there is the failure that occurs due to interference or undue burden (symptomatic of the PSE effect); the latter distinction is particularly relevant to our national circumstances.   

To understand why the U.S. economy is in the state it is in one must understand a fundamental economic component and that is the issue of demand in search of supply. A functional economic cycle occurs and expands when there is an Individual(s) with a demand for a product or service (and most importantly the money to pay for it which they accumulate from filling a demand with a product or service they offer) which they can obtain from an Individual(s) able to meet their demand. That is all there is to it and yes, it is that simple. 

This most basic component has been completely removed from the domestic economic cycle the effect of which has been to invert, or at least attempt to, the process as if to say: we shall outsource supply and then go in search of a demand. Further, the entire economic system has so thoroughly convinced itself that this dysfunction is survivable that it now finds itself unable to understand or explain why none of its illusive practices will stimulate a response. In the most basic of anecdotal references this notion might appear in the manner:  

The economic well is dry and it has been for quite some time; it is only until recently that folks have been willing to consider that what they thought was an economy built upon well-drilling and well-drilling equipment manufacturing turns out to have been merely photocopies of wells and well drilling equipment; we are discovering that it is not possible to drink water from a photograph. 

How often have you heard an elite economist or media pundit say something to the effect of, “if the public would just open their pocketbooks and start spending” or “companies are sitting on the largest stockpile of cash in history however the economic uncertainties of the current environment have them sitting on the sidelines waiting for something to happen.” Buried just below the surface of these two statements, regardless of what form they may appear, rests the evidence of the great divide between rational thought and pure ignorance; ignorance of the following rules integral to functional Native Economy: 

  • Where there is no domestic Native Economy there is no economic cycle.
  • Where there is no domestic economic cycle, there is no wealth-creation.
  • Wealth-creation occurs only with an economic cycle that dominates in productive capacity that is both domestic and export driven.
  • Productive capacity is the only source of wealth creation.
  • A service-based economy does not create wealth, it consumes it. (This statement applies to the financial services and government sector as well.)
  • An import-dominant economy does not create wealth, it consumes it.
  • An economy that consumes in excess of the wealth it creates cannot survive.
  • Without wealth-creation there is no wealth transference.
  • A Native Economy prospers and progenerates with a broad and expanding wealth transference (productive-class, a.k.a., middle-class).
  • Broad and expanding wealth transference seeds upward economic mobility.
  • Upward economic mobility is a necessary component of Progenerative-Economics (kinetic, self-expanding).
  • Progenerative-economics seeds further wealth creation and expanding wealth-transference.
  • Broad and expanding wealth transference is an organic component of the Native Economy.
  • Where there is no domestic Native Economy there is no economic cycle. 

Yes, this Nation has violated every one of these rules and the reason for why the economic divide widens while companies sit on the largest stockpile in history is due to the following reasons:

1. Broad and expanding wealth-transference has reversed the result, predictably, is a nonexistent economic-cycle. And,

2. The Companies sitting on the largest stockpile of cash in history do so because they are emblematic of the PSE effect and have positioned themselves separate and apart from the domestic Native Economy and as such possess no mandate or obligation to its processes occurring.  

For anyone to believe that President Obama is at fault for the economy as it presently is should reconsider their position. True, ignorance is no excuse but the truth of the matter is that this progressive degradation has been long in the making. Conversely, for anyone to believe that Gov. Romney possesses the level of skill and insight required to “float” the Titanic should take a look at his own track record; after all his own personal wealth-creating cycle is a direct result of item #2 above; the PSE effect. 

Chain of events: 

Years ago I witnessed an aircraft “corkscrewing” into the ground and it was absolutely horrific. I was interviewed by a flight inspector and at the conclusion of the process I asked him for his thoughts as to what might have been the cause; I found his answer quite interesting: 

“Aircraft accidents are always the result of a number of causes all of which originate with one single error in judgment; impact with the ground is never one of them. It is only the end result.” 

There are many ways to correct the course we are currently pursuing and these various options are the subject of one of my books, Valor in Prosperity, and I do hope you will acquire a copy and make good use of it. While you’re at it, you might also read We Hold These Truths and Value Given, Value Received; they are well worth your effort. 

With each day that passes the People of this Country endure the end-result of an economic divide that has literally become a part of the very fabric of this nation’s daily custom. These processes have penetrated the social and political structure to such a degree that this nation finds itself in an extremely precarious state the likes of which it has never known and if the economic divide continues along the current path large segments of the population will surrender their freedoms, and yours, for a loaf of bread which they believe to be free. It isn’t! 

Curtis C. Greco, Founder

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