"The US Corporatocracy" updated 11/12/10 to include "Debt Commission Report" and other issues

[OlympicBrian]

Major revisions marked in bold.

Representation of the Often-Untaxed Elite - The US Corporatocracy
(original 10/29/2010, Dan S., Seattle; updated 11/12/2010 to include "Debt Commission Report" and other issues.)

"US corporatocracy" - the system of government that serves the interests of, and is essentially run by, corporations. The term describes neoliberalism in its US operational context, with all its components. It primarily seeks to further ties between government and business--where corporations, multi-national corporations, conglomerates, and private parties including political organizations and highly-paid corporate executives are the primary controls, and are the elite. Areas of control rely on direction and governance often tied to contrived (sometimes fearsome) mass-media visages of issues, ideas, and persons within the nation. Within the corporatocracy, objective news reporting is hard to find. The system depends on highly-paid "pundits" for dissemination of major themes--these themes are often repetitive and divisive. Moreover, pundits distract the public from the critical issues, facts, and figures they should be focusing on. Often times, these pundits--such as Glenn Beck--flat out misrepresent or lie...and millions of Americans are taken in. Thus, the activities of the corporatocracy go largely unnoticed.

There is a revolving door between the components of the corporatocracy, including those formally in government. The system retains the superficial appearance of being a democratic republic, by relying on long-standing faith in the democratic voting, legislative, judicial, and executive processes--but below the surface, it is a system of government without true representation of the people. Make no mistake, it's government serving corporations and money for the elite. Big money.

Major activities of the corporatocracy include carrying out economic planning notwithstanding the "free market" label. Because the major interests served in the system are corporate-related, the general welfare of the nation suffers--the benefits of productivity do not proliferate. Compensation stagnates, and as share of national income falls. Taxes "invert," placing a greater burden on everyone but the rich and the ultra-rich. Some ultra-rich individuals and corporations pay little or no taxes at all--yet ironically, it is this elite group who are the most highly represented in the corporatocracy.

As a result of the massive disparity in distribution of wealth within the consumer-driven economy of the corporatocracy, demand necessarily relies on easy credit, and/or economic boom/bust cycles. The US Federal Reserve is intimately involved in creating these cycles, but in doing so, has recently run up against a fundamental math barrier (near-zero interest rates); as a response to this, the Federal Reserve has resorted to dangerous, inflation- and bubble- creating measures.

The US Treasury is used as a source of income for the elite, through a series of complex transactions and events which obfuscate where the money is going--but ultimately leave the taxpayer and our children bearing the cost. The corporatocracy distorts basic sciences such as economics; it even presents production of other nations as its own. No objective, macro-economic studies of the impact of major trends such as offshoring can be found. Indeed, if any such reports were written, they would be sponsored by the elite. So the corporatocracy protects itself.

Recently, a US "Debt Commission Report" draft plan has been announced. While it does propose to cut some waste, this is "political bait" to reel in unwary Americans. It proposes cutbacks on social welfare programs, but it leans heavily upon on the backs of the middle-class, cutting back on popular tax deductions such as the mortgage interest deduction, and increasing the tax on gasoline. Instead of simply increasing the income ceiling on social security taxation to shore up the system--which is largely solvent anyway--it proposes social security cutbacks. It also proposes major cuts in government and military spending that will lead to slower growth, particularly since the US has such a high component of military spending; this will not help the economy--it will lower GDP, and lead to higher unemployment.

The corporatocracy makes its influence clear in the plan; it soaks the middle class but is a windfall for the ultra-rich. While claiming to be a plan to balance the budget, it is nothing of the sort--and the provisions of the plan provide all the clues. The plan actually reduces taxes on the rich and ultra-rich instead of obvious and painless revenue-generating measures which would help balance the budget. Specifically, the plan does not include potentially-huge revenue-generating measures, such as increasing the number of upper-end tax brackets, to fairly reflect ever-widening US income disparity (a plan which would have no negative side effects.) Astoundingly, the plan does not include a financial transactions tax. Such a tax would not only home in on the richest stock market gamblers--but it would also help to discourage stock market meltdowns. Stock market meltdowns are devastating! Why is a transactions tax missing from the plan?

Incredibly, besides a general corporate tax cut, the plan also includes a provision to "stop taxing overseas profits of US multi-nationals," thereby encouraging corporations to focus efforts and capital offshore vs. doing so in the US. Yes, you read that right--zero taxes for overseas corporate profits. This can only hurt US jobs; it also amounts to forgoing a huge untapped tax revenue source, while giving the ultra-rich yet another windfall. This represents a re-distribution of wealth from Americans to corporate multi-nationals. Clearly, there is an underlying bias in the plan--towards further enriching the ultra-rich. Remarkably, this bias at the expense of achieving a balanced budget--the plan is therefore not at all what it claims to be.

The corporatocracy ensnares the US judicial branch within its overall goals. In fact, the judicial system enhances the finances of the system and protects the corporatocracy as if it had the same--if not more--rights than the individual, via the Citizens United decision. It does so against the will of 80 percent of the people. "Unlimited, anonymous funds" allowable through corporate donations to political organizations result in a huge "multiplier effect" on political speech, given the nature of high-tech, mass-media, and broadcasting--a fact not accounted for in the Citizens United decision. The corporatocracy relies on US and foreign financial influences, channeled anonymously through political organizations.

Communist China provides the underpinnings of cheap production, labor, and credit for the corporatocracy; the US nurtures China via offshoring and investment, without the slightest consideration of the long-term consequences. China is about to surpass the US in industrial production, and they are projected to surpass the US in the area of innovation by 2012. They are moving ahead quickly in the area of advanced manufactured products, relative to the US. China has the worlds largest and most advanced high-speed rail system. They are making far larger strategic investments in Africa than the US. China recently announced the worlds fastest supercomputer. Ironically, while China is relied on so heavily by US multi-national corporations, the US is on the brink of a trade war with them--one part of the system is fighting another (this can't be good.) China is also demonstrating pronounced inflation as a side-effect of the mechanisms of the corporatocracy.

At the nucleus of the corporatocracy is a non-elected body, the US Chamber of Commerce. This powerful group, known mainly for its political attack ads, is extremely well-financed through mostly anonymous, sometimes foreign entities. It acts as a major focal point for corporations, with a distinct emphasis on the biggest. The Chamber is growing, becoming increasingly dominant in the corporate, media, political, election, legislative, and judicial spheres. It prefers foreign interests over US citizens, carrying an agenda aimed at offshoring US jobs--and tax breaks to corporations which do so. The Chamber also recently kicked off a campaign to change a law which prevents foreign corrupt practices.

Not surprisingly, in the corporatocracy, unemployment is high even during boom periods where corporate profits are rich and the stock market is high, because of a reliance on offshoring and offshore investment. The corporations always seek out what's known in economic terms as "absolute advantage," which in lay terms means "utter selfishness and disregard for the rest of the US." The US tax base is eroded as a consequence (those that profit the most aren't taxed), and the federal debt climbs quickly. Congress acts in lockstep with the Chamber...the President has limited powers...and the judicial branch has been swayed to serve the Chamber (the Chamber brags about its judicial victories.) So the Chamber has a lock-down on the three branches of government. In summary--the big money, influence, and decisions flow through the Chamber and its biggest corporate constituents, while the three branches of US government are merely tools.

Through the Chambers comprehensive approach, the corporatocracy achieves an unprecedented fusion of formerly separate powers not only nationally, but on a world-wide basis--against the fundamental principles of separation of powers upon which America was founded. As scary as this reality is, the Chamber goes much further--not only does the Chamber create attack ads up until elections, but it also spends huge (and now anonymous and unlimited) money after elections. This money goes toward spoon-feeding the text of self-benefiting US laws, via the Chambers lobbying activities. And here, not only is it the biggest influence in the world by far, but foreigners can contribute and influence laws without disclosure. Congress--while elected--is handed many of the critical details of US laws by the non-elected Chamber. Make no mistake, it's government serving corporations and money for the elite. Big money.

(Shows how much the US Chamber of Commerce spends to write your laws.)
http://www.opensecrets.org/lobby/top.php?indexType=s

"The selfish spirit of commerce knows no country, and feels no passion or principle but that of gain."

- Thomas Jefferson to Larkin Smith, 1809.