This book is not about the money power in politics and how it influences governments. The wealthy individuals and businesses involved in politics through lobbying and political donations set and skew the rules to their perceived self-interests. My concern is that their macroeconomic influence is at best misguided but mostly wrong, especially in the long run. This book is about correcting the macroeconomic philosophy of the 1%, so that they will use their influence correctly to create a win-win economy. In our society’, “money talks”, so they are the stewards of protecting our smaller businesses, customers and clients. It is in their best interests!
The extensive power of wealth gained by lobbying, campaign contributions, and jurisdictional girth wall probably not be countered until some form of public financing of elections can be implemented. The “Clean Money” movement has created the appropriate structures for having both transparency of private and public financing of elections.
Have you ever wondered why you continually see changes in democratically elected governments from right to left and from left to right, and then switching back again? You see this on a global scope, not just in the USA. Were those leaders so incompetent that the electorate had to change back and forth? In the UK, they elected a conservative party and then skipped over the liberal party to another liberal party to form a government. In Egypt, they kicked out a right leaning dictator, voted in a left leaning Muslim and were so unhappy with the economy and his governance they forced him out, too. We also see the switches from right to left continually throughout South America. What is going on here?’
The general population always wants to see a thriving economy and a quality standard of living, or at least an improving one with opportunities for advancement. Why are those leaders not delivering? Why can’t they govern?
The reason is, the leaders are not in control of the major influence on the economy regarding the amount of money in circulation or the money supply. Money in circulation is the lifeblood of any economy. If money in circulation is reduced too much and/or overly concentrated in the hands of a few, there will be a recession/depression. A quality economy needs to have money flowing and diversified in many different hands.
Therefore, monetary reform should be on top of the agenda for debate. However, it is not even on the agenda or even discussed in the campaigns. Why isn’t monetary reform the major economic issue? The first reason is the hidden nature of what money is and how it is created. The second reason is the ignorance and failure of our leaders to read and become educated about the origins of money. The third reason is the amount of money the banking sector contributes to campaigns and to lobbying. The fourth reason is the major influence in the macroeconomic academia of neoclassical philosophy.
A majority of economic professor’s formulas and models have money as a minor or neutral factor, but in reality, it is the major factor! The fifth reason is the fear of change, any change, always hinders any debate and implementation. Therefore, any reform proposals have to have a win-win scenario or the powerful banking industry will stop it in its tracks. Most of the current proposals are too far left to get the time of day by the right. We start with this topic in Section I.
I label businessmen—whose mindset is on microeconomics not macroeconomics—as the “business right”. They call themselves fiscal conservatives, which is a micro term not a macro term. The “business right” still evaluates the entire economy the same way they consider an individual business or industry. It is almost the complete opposite. The goal of an individual business or industry is to maximize profits either over the short run or the long run.
Therefore, one of business management’s major objectives is to reduce cost, of which labor is one of them. These managers consider the vast global labor pool as another market or commodity. The labor pool cannot be completely subject to supply and demand, because a quality economy (macroeconomics) needs to have a substantial amount of well-paid customers and clients. An example of this implementation will be explained in Section II with Henry Ford’s pioneer solution.