After thinking more about the multi-level marketing scheme boosted by Milton Friedman economics for the upper 20% that we’ve had in operation in the USA for fifty years, I created the following model to better show its current destabilizing dynamics and why there may be some reason for hope for the majority. [The percentages shown in my pyramid below were taken from  a CBS report dated September 2010. ]

Here is the classic model of the pyramid scheme.  This first graphic was taken from Wiki Commons, Security and Exchange commission, U.S. Federal Govt.

 

The U.S. economy is a giant pyramid scheme. A pyramid scheme is a non-sustainable business model that involves promising participants payment, services or ideals, primarily for enrolling other people into the scheme or training them to take part, rather than supplying any real investment or sale of products or services to the public.  Pyramid schemes are a form of fraud.

The leadership of both parties have been engaging in a fraud against the American people for at least the past 30 years–since the beginning of Reagan’s first term if not before. Pyramid schemes are not sustainable and over time they begin to melt. This is what is happening in the USA today.

The 20% at the Top

At the apex of the U.S. pyramid scheme we have 20% of the American voters.  This group is made up of all the people in the USA with incomes over $100,000 a year.  It also includes 3,000,000 millionaires and 412 billionaires. Although certainly not the majority, they currently control the U.S. government.  All total, this group make up about 40 million voters.  These are the ones who own Wall Street stock.  5% of this group earn more than $180,000 a year.  This includes most of our elected officials In Washington DC and just about all the mainstream media pundits who put the spin on the news for us.  These are the people for whom theMilton Friedman economic ideology is working quite well–at least for now although many are already slipping down to the next tier. Most of these people have college educations and most of them vote. Most of these people are highly motivated to protect and grow their personal wealth and these voters are divided fairly equally between Democratic and Republican.  The wealthy of this group are not skewed in one direction toward either party.  The rich have much more in common with one another than they have with the majority of Americans and they vote accordingly.

However, things are changing for many in the lower levels of this 20% and they are falling down into that larger group of Americans whose income is less than $100,000 a year but still above poverty level.  This is significant that these people are disillusioned with the system because they have the potential to stir up a lot of trouble for the rest of those who reside in the rarified air of the apex.  They are mad as hell and they just might do something about it.

The 65.7% in the Middle

These people are scared and also, for the most part, mad as hell at the plutocratic leadership in Washington DC.  For the most part, this group is still a sleeping giant although greater numbers are awaking to the fraud of the leadership of both parties and the rich. They have good reason to be scared because they are the ones who are being robbed and a greater percentage of them is falling into the tier beneath them–those living at below poverty level.

The 14.3% at the Bottom

These are the forgotten ones.  These are the ones that politicians don’t bother with unless it is to disenfranchise them even more by defunding government organizations that support the poor.  By the way, almost half (6.3%) of the group at poverty level are living at the destitute level one half of poverty level.

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What has and is happening in Washington and on Wall Street with the robbery of Social Security and Medicare

Like any pyramid scheme, the U.S. economy does not, for the most part, produce products or services. What they have been doing for the past 20 years is selling off assets and closing businesses in the USA to pad the bottom line of dividends for wealthy investors [those from the upper 20%]. This does not enrich those in the middle and lower tiers. Instead it translates into vacant buildings, reduced tax revenues, and job loss.

Now, however, the owners have reached the next part of their great heist.  They are going after entitlement programs that are owned by the people. The rich pigs in Washington and Wall Street want this money so they can pour it into Wall Street Corporations and thus increase the payout to wealthy shareholders.  The Obama administration will use this money to fund war contractors such as Lockheed Martin and the American people will end up with nothing. These actions of the rich owners in Washington and Wall Street  can be compared to a variation of the multilevel marketeers who sell training materials to those in the tiers beneath them to pump up income for those in the apex.

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THE SOLUTION

Don’t vote for candidates from either party in 2012. Vote Independent or Green Party.  Start now to find candidates to run in 2012.  We are the majority.  Let’s start acting like it.

Liz Berry

Liz Berry

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