Income Growth For Bottom 90% In America Since 1966 Is... $59!

We’ve all seen these statistics before in one form or another, but David Cay Johnston does an excellent job going into more detail for us in an article he published late last month. As he correctly notes, when things get extreme like this you ultimately end up with extreme social unrest. Furthermore, as I have pointed out for years and years, this kind of disparity does not happen under free markets with rules and regulations applied equally to all. It happens under totalitarian societies, whether fascism, communism or crony capitalist corporatism (which is the model in the USA). It only happens when a very small oligarch class takes over the political process of a nation and then uses it to game the system.

However, I would take exception to Mr. Johnston’s conclusion that the root problem is the tax system. While I do not for one moment deny that the oligarchs game the tax system to provide loopholes for themselves, this is not why the 1% of 1% has taken all the wealth of the nation. This is much more related to the Federal Reserve and its policies of printing trillions of money out of thin air and distributing it to the oligarchs, either directly or through low interest loans. If you tax the rich more, they will still make more because they will still have the access to the cheap money [7]. The Federal Reserve is the core cancer of the entire thing and they must be stopped. Some excerpts below:

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