How Tyranno-Capitalism Distributes Money

In Federalist 30, Alexander Hamilton discussed the general power of taxation, and he correctly described the proper and indispensable role of money in the operations of the state and in the lives of the people. He did not realize that he was prescribing a process of money management that the ancient Athenians had followed. They used an unexpected, rich silver strike to invest in a large shipbuilding project that was for the benefit of all Athenians, they gave money to the poor to compensate them for income lost when they went to the Assembly, and they paid citizens who were chosen by lot for long-term administrative duties. Hamilton hated the Athenians, but he unconsciously endorsed their ideas. He said (emphasis added):

Money is, with propriety, considered as the vital principle of the body politic; as that which sustains its life and motion, and enables it to perform its most essential functions. A complete power, therefore, to procure a regular and adequate supply of it, as far as the resources of the community will permit, may be regarded as an indispensable ingredient in every constitution. From a deficiency in this particular, one of two evils must ensue; either the people must be subjected to continual plunder, as a substitute for a more eligible mode of supplying the public wants, or the government must sink into a fatal atrophy, and, in a short course of time, perish.

As it turns out, things are even worse than Hamilton feared—our Madisonian republic has failed to provide “a regular and adequate supply” of money, the people have been “subjected to continual plunder,” the “public wants” have not been satisfied, and our government has fallen into “a fatal atrophy” which prevents us from maintaining and improving our infrastructure, and which blocks the prudent, aggressive, large-scale, time-sensitive actions needed to deal with the adverse effects of global warming. Last, but not least, the tyranni who control our government and our economy have created an artificial shortage of money in order to increase their personal power at the expense of the people.

This evil, irrational, phony shortage of money has been manipulated in ways that burden and confuse ordinary citizens while giving the elites immunity from their machinations—and it supports tyranno-capitalism’s overwhelmingly lopsided distribution of money in favor of the elites while forcing many millions of us into perpetual debt. This cruel, destructive, arbitrary, cockeyed distribution of money can be seen in the following table:

Table 6[i]

Average Household Income Under

Tyranno-Capitalism

Row (1)

Percent

of

Population

(2)

Households

(000)

(3)

People

(000)

 

(4)

Average

Income

($$$)

1 4.8 5,913 15,078 260,000
2 1.9  2,288 5,834 188,957
3 3.4 4,175 10,646 163,130
4 4.7 5,806 14,805 139,084
5 7.7 9,460 24,123 113,772
6 11.9 14,687 37,452 88,800
7 17.6 21,659 55,230 64,264
8 24.0 29,434 75,057 39,503
9 24.0 29,531 75,304 16,261
  All Households: 122,953 313,530 72,641
  Total Household Income in Trillions: 8.9T

As you can see in row 9, more than 29 million households containing nearly a quarter of our population, have an average annual income of $16,261. Rows 8 and 9, the two groups with the lowest incomes, contain more than 58 million households, encompass nearly half of our population, and have a combined average income of $27,863. The average number of people living in each of those 58 million households is 2.55 which means that the average per capita income of more than 150 million Americans is $10,926. Just place yourself in the position of earning less than $11,000 per year. There is little hope that you will ever have the chance to go to college or to enjoy the many wonderful things that our technologies provide—there is little hope that your lot in life will ever improve—the lack of money will be the dominating factor of your life.

These tragic numbers do not lie—they are clear, unmistakable, defining, undeniable characteristics of tyranno-capitalism, a failed economic system that works against the common good. Tyranno-capitalism’s approach to money management is to keep the people from ever having “a regular and adequate supply.” It uses five basic techniques to keep the people in a permanent state of financial privation.

  • First, it pays very low wages in order to maximize the profits of the tyranno-capitalists.
  • Second, it loans money to the people at a high price so they can temporarily make ends meet.
  • Third, if the people fail to repay their loans on time the tyranno-capitalists can seize their assets and often force them out of their homes or off their farms.
  • Fourth, it does not pay the full cost of doing business but leaves it to the people to pay through higher taxes, an unsafe workplace, a hostile and unhealthy environment, and fewer government services while the tyranno-capitalists get whatever they want from the government and pay relatively low taxes, if they pay any at all.
  • Fifth, when economic downturns occur, such as the Great Depression or the Great Recession, the tyranni who control our government do all they can to deny or minimize financial assistance to the people. They restrict the length of unemployment insurance, they forbid giving money directly to the people, and they cut back on food stamps and other such assistance. They punish the people for the failure of tyranno-capitalism.

We will replace this abominable system. It is not worthy of the American people. The formula for success is simple and certain—we will adapt the superior idea of Athenian democracy that money should be used for the benefit of all the people, and we will adapt Hamilton’s prescription that the government should provide a “regular and adequate supply” of money to the people and their institutions. By wisely investing in the people we will dramatically change, for the better, the grotesque income distribution you see in Table 6. This dramatic change, along with a few others, will create a new system of economics that will work for the common good. As you no doubt expect by now, we will replace tyranno-capitalism with democrato-capitalism.

[i] Data extracted from: U.S. Census Bureau, Current Population Survey, 2014 Annual Population and Economic Supplement—Table HINC-02, Age of Householder-Households by Total Money Income 2013.

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3 Responses to How Tyranno-Capitalism Distributes Money

  1. Crank3y Frank3y says:

    Looking at factions is a useful framework for understanding the power dynamics now and at the start of the Republic. I find your blog good reading, Jerry. Defining absolute factions of ‘tyranni’ and ‘democratii’ may be a little too reductive, but I’m not arguing your positions and look forward to reading more.

    Regarding the federalist period, I recommend examining the critical period of Massachusetts history immediately before the US Constitution and the federalist papers. There are new interpretations derived from deeper investigations of primary materials on the “plunder” of the yeomanry within the Commonwealth. Specifically speaks to the role of speculation and aggrandizement by the seaboard elite in notes and letters of credit. We’re talking private armies and such.

    See “A Yankee Rebellion? The Regulators, New England, and the New Nation” by Robert A. Gross 2009; and “Shays’s Rebellion The American Revolution’s Final Battle” by Leonard L. Richards 2002.

    (This is a copy of something I posted in response on Naked Capitalism. I thought you would find it useful to your history work. Feel free to contact me for other links)

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  2. Disaffected says:

    Respectfully, “Tyranno-Capitalism” is a basic and inevitable feature of how “Basic-Capitalism” works, not a late stage outgrowth as you seem to assert here. “Tyranno Capitalism” is how ALL capitalists distribute money once they get enough power to do so.

    The legitimate alternative to this abominable system might be termed any number of things, but what it won’t be is anything with the term “capitalism” in it. And “American people” are the least of it. The rest of the world has far more to be concerned than the “American Sheeple” EVER did.

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  3. Rocky Coulter says:

    Tyranno-Capitalism is the cancer that has subjugated the American people since the beginnings of our trickle-down republican based government’s beginnings. True Athenian Democracy is what we must replace it with in order to advance all the people, and build a sustainable plan for our future.
    My question is, short of literally rolling out the guillotines, and separating “heads from torsos” night and day, of ALL these Tyranno-Capitalists, their families, minions, private armies, and facilitators, until EVERY LAST ONE OF THEM, has ceased breathing……. HOW will we ever extract these blood sucking “ticks” from our skin???

    Because, as a group of people whom have never worked a day of real “labor” in their entire lives, and whom perceive themselves as an elite group of “Divinely ordained, blood-lineage, Ruling Class individuals”, they are going to be “highly motivated” to not allow the establishment of anything remotely near a true Athenian Democracy!!! Having to actually WORK for a living???….. They’d much rather hand you their first born child!!!

    I think I could be so bold as to predict the odds of them allowing this peaceful transition to an Athenian Democracy to take place via our so-called One Man One Vote DEMOCRACY, is ZERO!!!

    We’ll be canoeing down rivers of blood before anything remotely resembling Athenian Democracy ever happens in AMERICA. And just as they deny the irrefutable Scientific evidence of the coming climate catastrophe, so too will they bury their heads, and deny the inevitability of rivers of their own blood. I’m betting on SCIENCE, and some unpleasant canoe days ahead for us all.

    I want to believe in the beauty of Dreams……. but I’m a REALIST!

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