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TODAY'S THOUGHTS
Continuing on "The War for Wealth";
Page 37 Megalomania Takes Hold In Great Britain (The author compares the beginnings ofthe industrial revolution to today's globalization)
"...In the 1800's, overproduction in the economy, with its disastrous
consequences--declining wages and unemployment--led to growing tensions
in the societies in question. (European nations)...At the time, the powerful
believed that seizing land as expeditiously as possible was the best way to
secure and expand the influence and prosperity of their own nation...From its
inception, world trade was anything but the peaceful system of exchanging
goods and services it is widely portrayed as today.
Pg. 67 Kennedy and Keynes: The Dream Team of the 1960's
Due to the economy's stagnation in the early 60's President Kennedy "summoned a group of promising academics to the White House shortly after taking office. " Maynard Keynes, a prominent economist was among the group and espoused a theory that "Kennedy and Johnson were fascinated by. The new theories included "tax breaks for everyone, including corporations and individuals in the highest income brackets. " After Kennedy's death President Johnson established his "Great Society." The federal government's spending on social issues almost doubled during his term in office....
Despite tax reductions, public revenue increased....Only the theoreticians continue to argue over whether such a step tends to strengthen the demand side of the equation, because it relieves the tax burden on citizens, or is more beneficial to the forces of supply, because businesses benefit to the same extent."
Page 75..."globalization strikes back. The United States has driven the global exchange of goods more than any other nation, but the result has been an erosion of its domestic industries. A number of manufacturing sectors, especially the furniture industry, entertainment electronics, many auto suppliers and, more recently, computer production have left the country. Most recently, free trade has benefited the countries that are on the offensive, enabling them to slice off a significant chunk of the U.S. global market share."
Page 79...the financial statement of its,(U.S.) external assets and liabilities--reached an all-time-low. Investors overseas currently own net assets in the U.S. worth 20 percent of American GDP. They own 9 percent of all stocks, 17 percent of corporate bonds, and 24 percent of government bonds."
Institute for Public Accuracy
Center for Cooperative Research
Project on Government Oversight
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