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HOW MODERN MONEY WORKS — Economist Alan Nasser presents a slashing indictment of the vicious nature of finance capitalism; The Bio-Social Facts of American Capitalism: David Price excavates the racist anthropology of Earnest Hooten and his government allies; Is Zero-Tolerance Policing Worth More Chokehold Deaths? Martha Rosenberg and Robert Wilbur assay the deadly legacy of the Broken Windows theory of criminology; Gaming the White Man’s Money: Louis Proyect offers a short history of tribal casinos; Death by Incarceration: Troy Thomas reports from inside prison on the cruelty of life without parole sentences. Plus: Jeffrey St. Clair on how the murder of Michael Brown got lost in the media coverage; JoAnn Wypijewski on class warfare from Martinsburg to Ferguson; Mike Whitney on the coming stock market crash; Chris Floyd on DC’s Insane Clown Posse; Lee Ballinger on the warped nostalgia for the Alamo; and Nathaniel St. Clair on “Boyhood.”
OK, here’s the deal: economic theory need not be formulated and postulated by some MBA, or some "pencil cruncher". In David Kennedy’s fantastic look back at the Great Depression, Freedom From Fear: the American People in Depression and War, he states the bold innovative theories that FDR and his advisors submitted. FDR felt that this […]

Time for a Maximum Income Law

by Philip Farruggio

OK, here’s the deal: economic theory need not be formulated and postulated by some MBA, or some "pencil cruncher". In David Kennedy’s fantastic look back at the Great Depression, Freedom From Fear: the American People in Depression and War, he states the bold innovative theories that FDR and his advisors submitted. FDR felt that this country had enough production: what we as a nation lacked was consumption. If the American public had enough money to consume properly, business would have the necessary demand to produce more, and so on and so on. Simply put, what was needed was a fairer redistribution of money that would "lift" America up economically. Makes sense, no?

It doesn’t take a rocket scientist to realize the more that money is equally spread out, the more consumption we will have. the more savings we will have, and so on and so on. Being essentially a simple man, allow an analogy. Company A has 1000 employees. Let’s say the CEO earns his or her $10 million a year (not uncommon in these times, as the top 10 U.S. CEO’s average well over $100 million each a year). The top management tier just below earn their few million a year each. Suppose we took the FDR scenario to heart and "redistributed" some of those top heavy incomes a bit. Suppose we had the CEO cut his or her package from $10 million to $5 million, and the tier below follow suit as well. Let’s say we put about 10 million big ones into the pot, to now be spread out amongst the 1000 employees, in equal shares. We divide that 10 million smackeroos by the 1000 and we get $10,000 a year more per employee. Now, I don’t know about you, but $10,000 extra a year could buy lots and lots of appliances, clothing, cars, vacations, home improvements, even the down payment for a new house. Think of all the jobs that would be created by this added consumption. Think of all the money banks and mutual funds and money funds would receive. Think of how many families would advance from renting to now owning that home sweet home.

The irony is that no one in the mainstream media will even attempt to address such a simple and workable economic ideal. They say it’s not the American Way. Well tell me, what is the "American Way"? What, for that matter is the "Christian Way"? I recall gospels telling about the man from Nazareth taking a few fish and loaves and creating enough for all. No, methinks that our current Darwinian system has not and will not work for the millions who are one or two paychecks from the street. It’s time to "talk turkey" and institute a national maximum income as a model for the world to follow.

Philip Farruggio, son of a longshoreman, is "Blue Collar Brooklyn" born, raised and educated (Brooklyn College, Class of ’74). A former progressive talk show host, Philip runs a mfg. rep. business and writes for many publications. He lives in Port Orange, FL. You can contact him at: brooklynphilly@aol.com.