Economic Report of the President 2009

  • See also, the “Trade deficit and class struggle” based on the 2008 Economic Report of the President

    On July 24, the minimum wage rose to $7.25 an hour in the United $tates.(1) That’s $14,500 a year for a full-time employed persyn, many of whom are teens with employed parents. According to the Boston Globe, “only about 19 percent of the world’s population lives in countries with per capita incomes” above $7,000 a year.(2) That means someone making $14,500 a year is way rich on a global scale.

    One calculation puts the global midway point at $1700 a year in 2000.(3) Other estimates are lower.(4) Meanwhile, in 2006, Amerikans gained over $2500 per persyn from the trade deficit. The rest of the world delivered over $2500 per Amerikan on average in 2006 without any goods or services in exchange. In other words, just by living off its dollar bubble parasitism or trade deficit parasitism, the United $tates lives in the top half of the world.

    New figures for 2007 show that dividends paid out were $785.8 billion. Meanwhile, the trade deficit was $731 billion and net capital inflow was $768 billion. The Economic Report of the President explains that foreigners financed the trade deficit. The discrepancy in the two numbers is on account of measurement errors.


    “As a matter of accounting, the current account deficit is mirrored by net inflows of capital into the United States, which have provided the financing that has allowed us to purchase more in imports than we sell in exports. From Table 4-1, we can see that net capital inflows into the United States were equal to 4.7 percent of GDP in the first half of 2008, a figure that approximately matches the current account deficit, with a discrepancy caused by measurement errors, omissions, and the exclusion of certain types of capital flows for which only partial data are available.”(5)

    All (except maybe less than $18 billion but not more than $55 billion) of 2007 dividends are accounted for by the something-for-nothing of trade deficit. If there were no trade deficit there might not be any dividends. Dividends far from coming from exploitation of Amerikans come from exploitation of foreigners. That is not even to mention the profits of multinational corporations based in the united $tates exploiting labor abroad. We have not discussed Marx’s theory of surplus-value, unequal exchange etc., just pure pyramid scheming.

    Not all income from owning assets is dividend income. The annual Economic Report of the President also mentions over a trillion a year in interest income, but the figures do not account for how much interest income would remain after inflation.

    Not all relevant deficits are trade deficits, the private sector. It turns out that foreigners own over half of privately held U.S. Treasury securities as of 2008 when as recently as 1994 that figure was closer to 21%.(6)

    Both the government and private sectors are in deficit. When we break down who is doing international trade, the private sector corporations hand out dividends approximately equal to the trade deficit — dividends which are redistributed capital from sucker foreign investors. The banks can pay out huge interest payments which may be mostly inflation, but for the banks themselves dividends are relevant to their own survival.

    David Brooks has pointed out that 41% of all corporate profits are in the financial sector.(7) An intelligent persyn knows that such a market signal in the world’s largest economy is a world disaster. Businesspeople should not be devoting 41% of their energies toward profits in the financial sector, and damn-it-any-intelligent-persyn-should-be-socialist as soon as such a general fact appears. Yet, the same people who cannot figure out the huge injustices underlying how they lead the world in per capita imprisonment are not going to be able to accept the ugly overall picture of their kkkountry’s economy.

    The occasional facts that slip out in a Krugman or Brooks column are of no use just inside U.$. borders. Even Krugman admits that Obama is rewarding the bankers, even more than the House wants.(7) Of course Obama is, because Obama is the record-holder for raising campaign money from bankers.

    MIM is uncertain why Madoff is in prison when the whole corporate economy would have no dividends and the stock market would be worthless without the international pyramid scheme set up by Uncle $cam. The day the national bourgeoisie of the oppressed nations decides, the scales tip and the U.$. economy is worthless.

    The Democrats tell us that by the bottom half of Amerikkkans’ oinking at the top 1%, the Democrats are not to blame for Madoffism. Yet, it is Third World brains that will have to digest the truth of Amerikkkan colonialism, parasitism and racism. 41% of the profits go to paper-shuffling, but that useless activity creates a powerful political lobby that can only be overcome outside the United $tates.

    In the guise of attacking the Amerikkkan rich, the Democrats push for higher consumption and deficit spending out of the pockets of foreigners. The de facto parasitism that Democrats push is far greater in total than anything Republicans could manage to hand to the top 1% of Amerikkkans. Republicans are content to be the representatives of the top 1% that incites the envy of Democrats and the general left-wing of parasitism supporting national socialism. The two parties work together to suck the Third World dry.

    Notes:
    1. http://www.dol.gov/esa/whd/flsa/
    2. http://www.boston.com/news/world/articles/2007/10/07/average_earnings_worldwide/
    3. http://siteresources.worldbank.org/ICPINT/Resources/hdR2005_Dikhanov_Yuri_8.pdf
    This calculation weights according to 1999 purchasing parity, quite an abstraction.
    4. http://www.globalrichlist.com for instance
    5. p. 129, http://www.gpoaccess.gov/eop/2009/2009_erp.pdf
    6. p. 388, http://www.gpoaccess.gov/eop/2009/2009_erp.pdf
    7. Paul Krugman, “High finance — securities and commodity trading, as opposed to run-of-the-mill banking — has become a vastly more important part of our economy, increasing its share of G.D.P. by a factor of six.” http://www.nytimes.com/2009/08/03/opinion/03krugman.html
    David Brooks, “Greed and Stupidity,” http://www.nytimes.com/2009/04/03/opinion/03brooks.html

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  • 3 Responses to “Economic Report of the President 2009”

    1. Golden rule internationalism and suicide bombing « Mimdefense's Weblog Says:

      […] pre-Marxist basis, I have not seen the left-wing of parasitism acknowledge the meaning of the U.$. trade deficits or government deficits run decades at a time. This resistance to Marxist science on labor […]

    2. Chinese currency tensions caused by inaccurate view of U.$. class structure « Mimdefense's Weblog Says:

      […] is only one country in the world large enough to distort the global economy and also exploiting the world so uniquely that the media could make the repeated mistake of blaming […]

    3. Iran and sociological time: college education and wimmin « Mimdefense's Weblog Says:

      […] gender. Bragging about how females have it so great in the United $tates is really bragging about the looting of the rest of the world via Ponzi schemes and super-exploitation. It has nothing to do with having a superior gender […]

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