Ten Reasons Why America Will Not Recover From this Depression

By Russell D. Longcore

I’m tired of hearing the bleating coming from Washington and its willing accomplice, the Media, about jobs. Seems all we ever hear about is creating jobs. But sadly, we hear about it, from public school to public policy, like it’s government’s responsibility to create jobs in the private sector, as if a job was the product, not just a component of a product. Moronic politicians, and the other morons who seek office, argue about how they will create jobs when THEY get into office. Curiously, they seldom say HOW they’re going to do it.

But government does not create jobs in the private sector. So who does create jobs?

Individuals perceive a need for a product of service. That individual forms a business entity…a sole proprietorship, a partnership, or a corporation…to fill that need. The individual risks his own capital with the expectation of a profit on the sale of the product or service. The individual adds in his own labor to bring the product or service to market. If the individual and his business entity can fill that need alone, fine. If not, the business entity adds additional labor by contracting with other people in some manner to perform the labor component of that product or service.

A job is that labor component of a product or service. On paper it differs little from the material component required to create that product or service. It has a unit cost, just like materials do. And the unit cost of labor for a product or service cannot exceed a certain cost, or it causes the product or service to be uncompetitive in the marketplace.

If a person agrees to perform the labor component of a product or service for a certain period of time and for a certain amount of money, that can be called “wages.” And if that person can adjust his expenditures to live on the wages they earn from that single employer, that person could call his income a “living wage.” However, if that person requires additional income, he can (a) contract with different employer to perform labor at a higher rate, (b) add more units of labor to his schedule to earn more, or (c) increase his labor rate through education or experience.

So jobs are created in the normal supply and demand of the marketplace. And when government enacts regulations and taxation, it distorts the marketplace and affects supply and demand. And if the regulations and taxation are onerous, they can actually drive people out of business, making it unprofitable to continue or try to meet demand.

Businesses exists for many reasons. Making a profit is one of them. Seldom will you find a business that states their reason for existence is to provide jobs for people. If the business does not make a profit there will be no more jobs. Even not-for-profit corporations have to earn enough money to pay for materials and labor so the corporation can continue.

But in 2011 America, the free enterprise system has been turned into a fascistic state-run economic system. If you disagree, do this little exercise: think about everything you do every day…everything your life touches…everything that touches you. Then find me one second of your 24-hour day that is not regulated by government. You cannot even breathe without a Federal regulation on clean air in place.

And in this advanced state of fascism, the free market is not free, but entirely distorted by government. The real estate bubble, the 1980s Savings & Loan bubble, the Social Security Ponzi scheme, the dot-com bubble, the mortgage bubble, the inflation bubble are all distortions caused by government. And there is no realistic expectation nor honest chance that the level of fascism in America will be diminished. Certainly the three branches of the Federal Government will not shrink themselves, and the states have all abdicated their responsibility to control DC.

I contend that the American economy will NEVER recover, since the Federal Government will NEVER diminish itself willingly. All of the wild market distortions created by government will eventually be wrung out of the American economy, like dirty water out of a rag. But that process will be an involuntary process, done by Natural Law when the American economy collapses and the US Dollar is forsaken by the world as reserve currency.

So here are just ten reasons why America will NEVER recover as a 50-state nation:

1. Congress will not cut real spending and live within its means. When Washington spends $2 trillion in a budget year, it first must extract that money from workers and businesses. That means that $2 trillion was sucked out of the private sector and cannot be used in private economic activity. And when government borrows, it makes a claim on the future earnings of citizens, even people yet unborn.
2. Washington will monetize its debt with inflated paper dollars, causing hyperinflation.
3. Inflation destroys purchasing power and makes it impossible to know the future value of money. There is a good reason that the Coinage Act of 1792 specified (in Section 19) that the penalty for fraud or embezzlement by officers or employees of the mint for debasing or making the currency to be of less weight or value, “every such officer or person who shall commit any or either of the said offenses, shall be deemed guilty of felony, and shall suffer death.” (Notice that the Act does not say “prosecuted for a felony,” but “deemed” and executed. No trial here.) To issue a paper currency not redeemable in specie is a fraud. Issuing paper dollars with no underlying value steals the very value of the nation’s money. For this action alone, each Governor, officer and employee of the Federal Reserve Bank, Treasury officer and employee, each officer and employee of the US Mint, and each member of Congress should be deemed guilty and put to death. Otherwise, there is no justice in America.
4. The minimum wage law destroys jobs at the first rung of the job ladder. There are millions of jobs that go unfilled because the minimum wage is higher than the true cost of the work performed. And for those who are willing to trade their time and effort for an agreed amount of money, they are prevented by law from entering into a voluntary contract with an employer.
5. Regulations of every sort make lots of manufacturing too expensive to do in America. This is proven over and over by simply looking at the numbers of companies that have moved their manufacturing or other services offshore. The companies are meeting the demand for goods and services that exists here in America by avoiding certain US government regulations. And who can blame them?
6. Health care changes in Obama’s new law are still not clear, causing employers to lay off workers and resist new hiring.
7. Dozens of tax loopholes reward some companies for moving offshore. These companies are only following the law as written by Congress. And make no mistake…corporations exist primarily to provide a profit for the shareholders…not to provide jobs for workers. If going offshore for operations maintains or increases corporate profits, the officers of the corporation have a moral and a fiduciary duty to do so.
8. No one ever knows what new regulations and laws lurk inside omnibus spending bills, which causes even more uncertainty.
9. Taxation laws change regularly, businesses have a tough time making long-tem plans, causing more uncertainty.
10. The laws of supply and demand have been altered by Washington as it attempts to control an uncontrollable force of nature…economic activity.

Americans would like the economy to return to those thrilling days of the early 2000s, when unemployment was at about 4% and the economy was in overdrive. But that will not happen again in America. That boom cycle was a bubble created by government, and government has run out of tools to use to create the next bubble. The bust cycle we’re living through now will be the deepest ever experienced in America, effectively destroying the USA. Adam Smith’s “invisible hand” will move back into the capitalist system holding a sword, and will cut off the grasping hands of Washington at long last. Sadly, wringing inflation and socialism out of America will be catastrophic, with massive loss of life and a return to 18th-century lifestyles.

The state or states that secede from the Union and embrace capitalism once again will shorten the suffering and become the economic beacon of the planet. In the land of the blind, the one-eyed man is King. Said another way…if the rest of the world suffers under socialism, it should not be too difficult to offer a workable alternative. You don’t have to be a genius, just genuine.

Secession is the only hope for mankind. Who will be first?

DumpDC. Six Letters That Can Change History.

© Copyright 2011, Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.

13 Responses to Ten Reasons Why America Will Not Recover From this Depression

  1. Chris says:

    “…each member of Congress should be deemed guilty and put to death.”

    Including Ron Paul, the lone voice for sound money on the Hill? Blanket condemnations can be risky.

  2. […] Russell Longcore: Ten Reasons Why America Will Not Recover from This Depression […]

  3. Chuck says:

    We destroyed our own economy ourselves. Almost everyone I know chose and still chooses to buy the cheapest product regardless of where it was made. That fact in itself screwed our economy to no end. Don’t blame it on Walmart. Blame it on the cheapskate American people. Of course no one wants to admit that they had a hand in destorying the economy. Why, that would be unamerican! It’s got to be the govenment or someone else. It couldn’t be me! Yes it’s you people. Thanks for not buying American products just because they’re a few dollars more then cheap chinese crap. You just flushed us down the toilet.

    • dumpdc says:

      Dear Chuck- Thanks for writing. Really. You have given our readers a perfect example of the breathtaking bullshit taught in the government schools and parroted in the Mainstream Media. DC, the media and government education have been wildly successful in getting you to blame the wrong people for the mess America is in. In a free market (we don’t have one), a consumer has the CHOICE to buy the good, better or best of any product or service. GOVERNMENT overspending, regulation, fiat money and taxation have distorted and destroyed the American economy. You are demanding that Americans buy only American goods just because they’re American. That is jingoism, not capitalism. And, by the way, lots of Chinese goods are high quality. The computer or other electronics you used to write your screed likely have Chinese components or were assembled in China. Sure some stuff is junk…some American stuff is junk. But if any person wants to buy goods of inferior quality, it’s their CHOICE. It is WASHINGTON that has flushed America down the toilet. Try thinking for yourself on occasion…it won’t hurt your brain. Russ

      • alfredo123 says:

        Dear dumpcd,

        I totally agree with you on this one. However, I feel that it is greed that has really stuffed things up. Lending money to people so that they could buy houses that they could not afford is part of the problem. Houses that lost most of their values in recent months. That is one of the real problems. Other problem is excessive greed. Multinational corporation piling up billions while countries are bankrupt. America is still a very rich country but where is all the money and capital? In the hands of a few billionaires. Should billionaires part with some of their money to save America? After all for someone with 6 or 7 billions, not to mention those with 100 or 200 billions, what is the problem in parting with 30% of their fortune to save their country? You probably disagree with me on many points that I have made here but that is OK.

      • dumpdc says:

        Alfredo- your comments are rife with cliches and BS statistics. You advocate stealing from billionaires to “save America.” But it doesn’t save America…it saves Washington from the consequences of its own actions. Greed is not a problem. Washington taxation, regulation and loopholes that benefit a select few are the problems. Washington created the mess America’s in right now, and by extension, the mess of the world. If DC had protected the dollar from inflation by staying on the gold standard, none of the problems now facing us would exist. Russ

  4. Lindy says:

    I could not imagine how these could have happened to the United States. People refuse to believe that such will happen to a powerful country, but it is happening , we do not know exactly what the outcome will be later on. I ask my friends and relatives living in the USA how things are when I get the chance, and sad to say the reply is not good at all.
    All I can say is, if things get worse , we all should be prepared. Not only the United States, but all countries. Perhaps it could create a domino effect.
    Let us just hope and pray .

  5. Robert Mergy Sr says:

    Russ you are 100 percent correct! The distruction of America began with the ACT of 1871 (Which incorpoeated America) and continued with stripping the original Artical 13 (” The Artical of Nobility”) from our Constitution which prohibited Lawyers from holding any office within our government. The founding fathers did this because they knew that trained lawyers would distroy our country, they sure hit the nail on the head. The penalty for being a lawyer registered with the “BAR” was that you would loose your citizenship.

    In 1913 a few members of congress and the senate stayed over during Christmass holiday and passed the act that athorized the FED to take over our moniray system and coining our money, they also created our income tax system, al of these laws are unconstitutional and the only way that they could become constitutional is to pass them as amendments to our constitution which required 3/4 of the the states to approve. This never happened.

    Then came the 30s and the “Real Deal” which confiscated the peoples gold and placed it in fort knox only to be sold at a later date. Today we find that they have sold Washington D.C. to the “IMF” who uses the U.S. Treasury as their Drawing account.

    So what Russ has said about all of the Congress and Senate, the Supreme Court, the total of the U.S. officers running our government should be deemed guilty of treason and should be put to death. The Constitution only reconises Common Law, and the people have the last word as sovereign citizens and if we should come together we could hold a “Run Away Joury”, indict all of these treasonous people in America, arrest them, try them ina common law court, and excecute them. This would send a message to the whole world as well as all Americans that we may be down, but we are not out. We have a military who has swarn to defend our Constitution who could be obligated to stand with us to see that the Constitution was reinstated. It would take some time to go through and our laws and discard all unconstitutional laws.

    Our Constitution can not defend it’s self, it requires that the people defend it. United we stand, divided we fall!
    Robert

    • dumpdc says:

      Robert-

      Perhaps you have not read Lysander Spooner’s withering critique of the Constitution, “No Treason.” Please read it and check back with me. Thanks, Russ

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