The For the People and For the Accumulation of Wealth Dichotomy

Summary: The initial divergence and the reconvergence of household wealth at the beginning of the 1920s, followed by a long period of divergence, before the current re-convergence of household wealth, displays the liberal “For the People” government model impact on household wealth. If household wealth was increasing, the top .1% of household wealth was decreasing slightly or remaining relatively flat. The unique period in the late 70s and early 80s (before junk bonds and hedge fund banking deregulation) shows both lines increasing before the bottom fell out among 90% of the households and exploded upward by the top .1% of the households.  

The introduction of the “For the People” mandate of the federal government (Promote the General Welfare constitutional clauses), put in by liberals to improve human conditions and facilitate the Constitution’s adoption in 1789, technically ended the conservative Plutocracy government model for the “Accumulation of Wealth by the Wealthy,” The  History left behind through 1900, when 57% of the households lived in poverty, left a clear economic recording that suggests the accumulation of wealth by the wealthy model still prevailed at the start of the 19th Century.

Poverty and economic conflict between the rich and poor first reflected in “The Wealth of Nations” capitalist theories in 1776 were clearly seen in the political system discussions as well. Five hundred and seventy-seven (577) members of “Cult of Ignorance” (rich Plutocrats) embedded within the sixteen hundred and forty-eight qualified (1648) Plutocrat voters,  expressed their desire to maintain the Aristocracy-Plutocracy model of the Nation-State Government. They simply rejected the new United States Constitutional law of the land. 

Their desire to support the conservative Aristocracy-Plutocracy individual Nation-State based model was reflected in the Anti-Administration Party in the 1792 elections, before it reconstituted itself, as the anti-Federalist Democrat-Republican Party of Slavery and Big Business, in 1794. The “liberal” for the people government principles and the added amendments to the Constitution by 1791 (the Bill of Rights amendments),  the additional end of slavery amendments by 1870 were all in conflict with the conservative Cult of Ignorance Plutocrat principles, for the accumulation of wealth by the wealthy. 

The Sherman anti-Trust Act, in 1780, was one of the first legal post-slavery legislative efforts against the Plutocrats, although it ended up being mostly applied by the Plutocrats, to break up unions, in order to preserve the accumulation of wealth by the wealthy model.

In any case, the “For the People” versus “For the Accumulation of Wealth” conflict survived the national land grab, the native American Genocide, the Southern Plutocrat secession, the freeing of slaves, the reconstruction/segregation era and the new Robber Baron and Industrialist era, that proceeded the 20th century. 

The assassination of William McKinley in 1901, unleashed a new level of “For the People” Progressive liberal forces, under the initial leadership of a unique new President, Theodore Roosevelt. His trust-busting, conservation, and political actions, as the youngest president in history, landed him on Mount Rushmore. His perception of the President’s office was made clear early on, as the “steward of the people” and that he would take “whatever action necessary for the public good unless expressly forbidden by law or the Constitution.”  

The B. of A. Merrill Lynch Strategy Chart, opening this blog was published in 2015. It captures the economic footprints of the Roosevelt generated transformation of the country, from 1917 to 2015. The fall (decrease) and rise (increase) in the Chart’s lines, between the people’s (90% of the households) wealth line and the ultra-rich Plutocrats (.1% of the households) wealth line measurements captures the liberal progressive impact versus the conservative Cult’s economic trajectory, over almost a century. 

As an example, the 1917 to 1921 decline in the blue line (top .1% share of household wealth owned by the Cult) and the increase in the brown line (bottom 90% of the household wealth) reflects the direct results of Roosevelt and the GI Generation (born in the 1880’s and 1890’s). The GI Generation not only embraced Roosevelt’s for the people model they also fought in the First World War against the Aristocracy/Plutocracy Cults in Europe. 

The elected Representatives the voter selected also passed the first conservation of land laws, the new laws outlawing child labor, the new laws protecting labor with a ten-hour workday, the new laws protecting food and drug purity for consumers and even new laws supporting racial integration. The GI generation was also known as the trustbusters, for their Congressional and Supreme Court led actions against the beef, drug, food and oil industry. 

Before the War began, the GI generation had already adopted the Federal Reserve Banking System (1913). They also passed four constitutional amendments by the end of 1920. These efforts produced the Federal Income Tax (1916), the Federal Trade Commission, the Death Tax on the rich, the popular vote for the election of Senators and they granted women the right to vote in Federal elections. 

The GI Generation also passed the War Risk Insurance Act that set up the first government life insurance program for the people. This effort would ultimately be extended into Social Security for helping the living elderly survive and exit poverty, in 1939. They also established the first grant-in-aid provisions for education and the first State Department of Welfare. 

In 1921, voters began a reversal in the progressive directions via the votes supporting the conservative “Return to Normalcy” administration sponsored by the Cult of Ignorance Plutocrats. The voter reversal produced the deregulation of Wall Street, the looting of the farm industry and the cutting of federal spending in the roaring twenties.  The Great Depression that began in 1928 was the economic result of the dramatic change in direction of the .1% household income line on the chart.  

Voters again reversed their direction of with the election of a new  Roosevelt, bringing in the  New Deal legal era and the post-World War Two legislation that included the GI Bill funding housing and education, the highway program, the strengthening of unions, the improvements in public education, civil rights, equal rights, and the Great Society legislation to end poverty and extend educational opportunities by the 1960’s. 

The crazy liberals in the middle of the century also funded the creation of the transistor, digital computers, the personal computer and they even funded research and trips to moon,  while passing the 18-21 Voting Rights Act and the Women’s Equal Rights law, in 1972 (the amendment to the constitution granting equal rights to women has still not been adopted by enough of the nation-state governments). 

While the post-WW 2 liberal activity was being driven by the remnants of the GI generation and the new Greatest Generation, the Baby Boomers became the largest voting bloc in the Voter Eligible Population (VEP). Under the Boomer generation, the “blue” .1% aristocracy financial line began a significant change direction. 

The .1% household income started to increase, as a result of Nixon-Ford led legislative actions, in the 1970s. For a brief ten year period, the lines increased together before the conservative legislation in the 1980s began to take its toll. 

The transmogrification of the economy and the household income lines began with the Tax Cut for the Rich (1981) and the subsequent deregulation of Wall Street (junk bonds ‘84) and Banking (hedge funds ‘87). The early positives results of the Reagan Era legislative and conservative transition are shown on the chart.  

The seven replacement tax increases on the people under Reagan and the exploding federal budget deficit began taking its toll on the economy and household income of the people. Between 1986 and 2017, the share of household wealth held by 90 percent of the households declined by 36%, while the share of household wealth held by the top .1% has tripled. 

This conservative transformation in wealth accumulation is hard to explain, without considering the impact of the successful Psychological Warfare attack on America’s liberal and progressive values. The psychological attack began in the 1950s, as a False Flag attack on our democracy. 

A False Flag attack is a covert operation, designed and developed to deceive so that it appears as though it has been carried out by entities, groups or nations, other than those who planned and executed it. The false flag term itself originated in naval history when a ship would change its national flag, to fool other vessels that they sought to attack or escape from. In political terms, it utilizes unimaginable amounts of money and resources and many of its supporters do not even know they are participating in the event. 

The conservative Cult of Ignorance anti-Federalist Plutocrats planted the False Flag, to undermine the Democrat Political Party and the de-facto two Party Political process. The attack was formally launched by conservatives in the Republican Party. It began with a notion and process referred to as McCarthyism was recognized early on, by Harry Truman.

The psychological attack plan was simple. Liberals are socialists. Socialists are communists. Democrats are Liberals and secretly communists. Any federal benefit for the people is socialism. The Cult extended its reach with the claim of “creeping socialism” and the creation of the idea that only the local states can control local justice and their schools, as the decision on segregation was coming up for adjudication, by the Supreme Court, in 1954. 

Ultimately, the False Flag attack was extended to adopt the conservative notion that the federal government does not have the right to adopt Medicare health coverage for the aged, nor make a state feed its poor (Medicaid) or let its people vote in elections. 

The False Flag proponents also planted the idea that any federal Programs facilitating the “accumulation of wealth by the wealthy” is true anti-Socialist capitalism. They even revived and integrated the old Hoover trickle-down ideas, that tax cuts for the rich would increase the standard of living of everyone.  The False Flag attack was seen early on and generally dismissed, by the Greatest Generation that had grown up during the Great Depression and World War Two. President Truman spotlighted the False Flag fraud as early as 1952.

What liberals and the duopoly Political  Party system did not understand was the integration of the Cult Ideology attack with the Cults’ use of the Pavlovian Classical Conditioning techniques, to augment the normal associative learning, of the Baby Boomer generation (those born after 1946). Conditioning is a learning procedure in which a biologically potent stimulus and response (in Pavlov’s study, food) is controlled with a neutral stimulus (a bell in Pavlov’s study). Over time and with enough repetitive practice, the neutral stimulus (bell) could generate the stimulus actions.

The potential anti-Federalist “political stimulus” became the federal government itself. “Lower taxes and smaller federal government with limited power, limited authority and limited regulatory power will improve the standard of living for everyone, became the neutral stimulus phrase, for voting in national elections. “Lower taxes, smaller government, limited regulations will also create more incentives for people to work, save, invest and grow the economy” was coupled with the derision “of the tax and spend federal wastefulness and the welfare queens picking up their – free money – for living high on the hog.”

The anti-socialism brainwashing storyline kept expanding. “Money is best spent by those that earn it and by their ownership and management of the assets of production. Justice is maintaining the economic, color, gender and social order inequality while weakening unions to help maintain the feudal class structure. Socialism, communism and federal taxes steal private assets and the liberals, promoting the general welfare with financial bridges between the people and the economy, are simply closet socialists and communists.” 

Although the conservative Cult of Ignorance proponents was still being ridiculed by both political parties in the 1950s, as reflected in the Eisenhower quote, the Cult was institutionalizing itself. The Cult gained leverage from the John Birch Society, Hinsdale College, the door-to-door evangelical proselytizing ministries, the new evangelical ministries, and the new TV Evangelists, promoting the white only Judea-Christian values, moral absolutism, free markets, and free trade, to the juveniles, in the baby boomer generation.

Farm price subsidiaries, social security, make-work projects, the TVA electricity, job security, running water to every home, earning a living wage and facilitating homeownership became socialism to many by the ’60s, while sex, drugs and rock and roll were being embraced by others.  Clearly, the liberals are hippies and socialists, socialists are secret communists and Democrats are liberals, played well in the growing anti-communist Cold War with Russia era. 

The storyline also integrated easily with the advocacy of American exceptionalism, and the defense of Western white culture from the perceived threats posed by desegregation, equal rights, voting rights, health care for the elderly and poor (Medicare/Medicaid) and the clear socialist pledge to a Great Society in 1964, to eliminate poverty, improve housing and expand educational opportunities for everyone. 

The Cult of Ignorance, the Political Parties, the white supremacy segregationists, the national fascist Aryan principles and NAM were all in full bloom, as a now freshly minted brain-washed boomer population came of voter age. Together these forces transmogrified (to change or alter greatly and often with grotesque or humorous effects) the United States political system, as evidenced by the election of the Nixon/Agnew ticket, in 1968. While both go thrown out of their office and disgraced in public, the transmogrification continued. 

Republicans and Democrats were leaving their party. Some changed parties, while others became independents. By 1980, Ronald Reagan, and the clear Cult notion that “…in this instance, (the) government is not the solution to the problem. Government is the problem (Reagan inauguration speech 1981) came into political power. 

The new Voodoo Economics and the Cult’s Supply Chain program were being implemented within a year. The tax cut for the rich in 1981, the deregulation of Wall Street (junk bond 1984) and banking (hedge funds 1987) generated seven (7) new federal tax increases on the working class, two recessions and doubling of the national debt, by the end of Reagan’s eight years in office. 

The Housing industry and Savings and Loan industry collapsed in 1989, just before the famous “read my lips no tax increase” that generated another tax increase on the working class that also generated another recession.  

Ross Perot ran as an independent, against the Republican Party in 1988 and 1992, trying to fix the transmogrification problem and stop the Cult’s expansion. Although he did not win, his efforts inadvertently got a liberal Clinton elected, in 1992. 

Clinton’s 1993 tax increase slowed the Cult’s pace although the misguided, misinformed and effectively brainwashed baby boomers passed on their “learned” misconceptions to the new Generation X voters (those born after 1960). Together these two misguided blocks effectively produced the Cult of Ignorance controlled Congress by 1994. The Census Bureau data below reflects the Real (inflation-Adjusted) Average Household Income by quintile and the top 5% demonstrates the same results as the household income lines earlier in the blog.

By 2001, The Cult of Ignorance led Republican Party Congress passed another tax cut for the rich and more deregulation of Wall Street, on the way to creating the Great Recession, in 2007.  By 2017, the brown line reflecting the wealth of 90% of the household was back to where it was it was, in 1917. The tripling of the household wealth of the Cult of Ignorance and collapse of the 90% suggests that the top .1% of the households are now collecting about the same wealth as the 90%, for the first time in 100 years.  Income Inequality between the rich quartiles and the general household population continues to increase, as the middle-class household numbers decline and the lower-class quartiles experience stagnant wages and a reduction in buying power per dollar, due to inflation.

The National debt created in the last 50 years also reflects the transmogrification results of the Baby Boomer and Generation X voters and federal tax cuts for the rich and the spending-funding priorities of the Congress and the President. While mathematically hidden in a maze of calculations and conjectures, the massive National Debt since 1980 is approximately equal to the taxes foregone in the tax cuts (1981, 2001) for the rich, while the debt itself is collateralized by future taxes to be collected via the taxes on the people. 

It is surely not a pretty picture, but the lines in the sand are now memorialized in ways that are clear. The B. of A. household footprints in the sand of times, the new Income Inequality and horrendous US National Debt legacy all suggest that the nation needs another transmogrification to avoid a Plutocrat based Fascism model or a simple Dictatorship model.

Although millennial voters do not seem to have embraced the Cult of Ignorance False Flag propaganda, as evidenced by the House cleaning in 2018, they may not yet understand the scope of the problem they face or the strength of their enemies in the Cult of Ignorance. 

Hopefully, this blog will help inform them and maybe even enlighten the brainwashed Boomers and Gen X voters and give them all a better understanding of what they must do to help the millennial voters reverse the effects of the chart lines that the Boomers and Gen X voters helped put into the charts, used in this document.