Bloomberg: The Poor Are Better Off Poor

September 6, 2013

The realm of precious metals is a broad and diverse one. Indeed, for those who heed the propaganda of the mainstream media; nearly anything can “cause” the prices of gold and silver to go higher or lower (usually lower).

For investors inside the sector; an important facet of precious metals is economic justice. In societies with “honest money”, not only are workers able to keep their daily wage (rather than have it relentlessly clawed away from them by banker “inflation”) but that wage tends to rise steadily with time – reflecting increasing overall prosperity.

Conversely, the One Bank’s dishonest world of fiat, paper currencies is an entirely opposite regime. Here workers see their wages directly stolen from them at an ever-increasing rate via the Banksters theft-by-currency dilution. The chart below illustrates this serial theft.

According to the Corporate Media and our lying governments; we live in a “low inflation” world (while a “food inflation crisis” ravages the planet). Believe that lie, and we get the blue line; pretending that wages have remained roughly flat over the past 40 years. Move to the Real World, however, and we see an entirely different reality (the green line).

In the Real World; ever-increasing money-printing causes ever-increasing currency dilution (i.e. inflation). And when we discount wages with realistic inflation numbers to express wages in “real dollars”; we see the average wage of the U.S. worker plummeting by more than 50% -- all the way to Great Depression levels (and still falling). The Middle Class have become the Working Poor.

But that still isn’t good enough for the One Bank and its minions in the Corporate Media. Not only do they want to see these slave-wages continue falling lower and lower; they want to hear the Slaves say they like it this way. Hence the September 4th lecture to the Little People from Bloomberg, (maliciously) released right after Labour Day.

The cynical title of this attack on all workers was Can We Pay A Minimum Wage Which Makes Everyone Rich? This sort of straw-man analysis is typical of these Corporate elitists as they “explain” why the Rich should (always) get richer and richer, and the Poor (i.e. everyone else) should (always) get poorer and poorer.

Indeed, the entire, elitist pseudo-science of economics is dedicated to perpetuating this mythology. In the world of these ivory-tower academics; Workers are not even people, they are “wage units”. Any good economist (Keynesian or Austrian) will tell you that in a perfect world we would have a “stable wage unit”.

Translation: in the “perfect world” of economists the Workers never, ever get a raise in wages above the rate of real inflation (i.e. an actual increase in their standard of living). All of the benefits of technology, and all of the fruits of the labours of the Workers themselves are reserved exclusively for the Elitists, the top-20%. This explicit model of economic slavery is what all economists call “prosperity.”

In the case of Bloomberg’s attack on minimum-wage workers; the writer openly acknowledges her motive: putting the Slaves in their place, after fast-food workers in the U.S. had the temerity to go on strike. Imagine that! Not being satisfied with their Great Depression wages. Boil down the attack, and it is a simple ultimatum from Master to Slave:

If the Slaves accept ever-declining wages, we will hire a few more of you. However, should you have the audacity to demand a “fair wage” (or even a stable wage); then we will punish you by hiring (i.e. exploiting) less of you.

Perpetual and ever more-exploitative slavery. The Bloomberg elitist justifies her attack on minimum-wage workers by citing “economic studies” which “prove” that the Slaves are (supposedly) better off by accepting lower and lower and lower wages.

Yes, having spent four years studying economics, let me explain the “drill” here. The first two years of study are spent absorbing economic theory (some of it actually useful) and learning about the construction of “economic models”. The last two years of study are spent in large part warning students how if their models are constructed negligently (or with malicious intent) that their data can be “massaged” to say anything they want it to say.

So when the world’s most-openly shameless Elitists produce their “models” which “prove” that Slaves are “better off” remaining Slaves; let’s just say that such studies have less-than-zero credibility. In contrast, we have the empirical evidence from the Real World.

When the U.S. economy, shining beacon of capitalism, was at the zenith of its economic might and health; average wages (in real dollars) were at their highest level in history, or as written in a previous commentary, “economic justice equals prosperity.”

Why is it that most Western economies are now hopelessly insolvent, and teetering on the verge of outright bankruptcy due to the worst revenue crisis in their entire history? Gee, that’s a tough one. Could it be because if you don’t pay the workers any money they can’t pay any taxes?

All of the pseudo-studies claiming that minimum-wage workers are “better off” getting lower and lower wages are nothing but more static-analysis drivel. They ignore (among other dynamics) the cumulative economic benefit(s) of all workers making a higher, average level of pay. For example, if minimum-wage workers were paid more, the U.S. government wouldn’t need to provide tens of millions of these Working Poor with food stamps – just so they can survive.

Is this what Bloomberg and the elitist-economists call “capitalism”? Pay the Slaves below starvation wages…and then throw them a few crumbs so they don’t riot in the streets. And if they complain; lecture the Slaves for being “greedy”.

Of course we can never examine this paradigm of Slavery by merely examining how those on the bottom are being treated. It’s also necessary to shine a light on the Slave Masters. At the same time that the Slaves are being told to accept less and less – and like it – those on top are literally “making out like Bandits.”

In the early days of capitalism; when Western economies saw a steady spiral in overall prosperity; the average wage-differential between senior management and the average worker ranged from a ratio of 3:1 to 10:1. Today, in the world of the mega-corporations (which have already swallowed-up more ¾ of the global economy); that ratio ranges from 100:1 to 1,000:1.

Put another way, in comparison to our previous era of Prosperity; senior management are currently overpaid by as much as 30,000%. Naturally economists have an answer for that too. They call this “the New Normal.”

It’s not that the Slave Masters who rule these corporations (and us) are “greedy” (perish the thought!). Rather, in the New Normal it just happens to work out – as one of the Universe’s “great mysteries” – that those on top get more and more and more, and everyone else gets screwed.

For argument’s sake; let’s assume that the Universe really has morphed into such a Hell-on-Earth, where those on top get more and more and more, and everyone else gets screwed. There is a mechanism for dealing with such economic perversity/injustice. It’s called taxation.

The reason we know it is no “accident” that the Slave Masters are being paid more and more and more (while everyone else gets screwed and our nations teeter on bankruptcy) is because they are being taxed at the lowest rates in history. There is nothing “accidental” about that.

It is entirely appropriate that immediately after Labour Day we re-examine the current paradigm of Economic Slavery. Readers have two “realities” to choose from. There is the Bloomberg reality. In that world, both Slave and Slave Master are merely “getting what they deserve.”

Then there is the other “reality”: the hundreds of years of economic history which we have all lived through. In that reality; when the Workers are paid a fair wage everyone is better off and our nations (as a whole) are healthy and solvent.

As we “celebrate”(?) another Labour Day, the words of the late/great Bob Marley should be ringing in our ears:        Get up, stand up. Stand up for your rights!


Jeff Nielson

Jeff Nielson is co-founder and managing partner of Bullion Bulls Canada; a website which provides precious metals commentary, economic analysis, and mining information to readers/investors. Jeff originally came to the precious metals sector as an investor around the middle of last decade, but soon decided this was where he wanted to make the focus of his career. His website is

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