Has the unemployed reached 20%? Then what?

Posted by: adonis49 on: October 17, 2010

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Has the unemployed reached 20%?  Then what?

Government statistics on unemployment rates never acknowledge that the effective unemployed is over 20% of the total workforce.  The statistics are always recorded to be below 12%, no matter what it takes in pressures, tempering, or censorship of real number.  Why?  

In a semi steady-state developed capitalist system, a 20% joblessness rate represents 12% of the lower middle class (LMC) being out of earning power.  I explained in the previous article “Public enemy #1:  Lower middle class”, how a capitalist system views, categorizes, and identifies  LMC and how it considers it to be the most virulent and potent power to demanding reforms: especially, fairer representation in the political system in order to revisiting laws tailored-made to satisfying the interest of the richest 10% of the population, which is hoarding 50% of the total wealth of a nation.

In summary, the lower middle class LMC has tasted the fruits of consumerism economy and is not going back to the previous conditions of humiliation, indignities, and starvation by all means possible.  LMC represents 70% of the internal buying power of consumerism goods and services and is targeted by credit card companies to accumulating debt on purchases at 20% interest rate.

LMC families constitute 50% of the population and over 60% of the work force.  LMC is mostly educated at the high school level and enjoys health care benefits and wants to acquire its first home.  The rank and file of the military machine is composed of mostly LMC citizens.  

Basically, the military is a political institution meant to quickly absorb unemployed LMC in period of economic downturn and to releasing them to the workforce pool in the rare economic upturns.

This article is meant to demonstrating that almost all wars, since the advent of industrial capitalist age, which consolidated its power on the economic and social structures, had the main purpose of absorbing the unemployed LMC in order to safeguarding the internal security of the system represented by the 10% richest class.  

These wars were either expansion wars, preemptive wars, or “national wars” (for example, against Spain, Japan, Germany…) depending on the seriousness of the rate of joblessness in the LMC.  In economic downturn and high unemployed citizens, the Federal government or Centralized government has two options, both of them directly related to safeguarding the interest and privileges of the elite 10% richest class.  

Either the elite class is cornered to ceding privileges and extending fairer representation, proportional to class number; or venturing into some sort of wars (which is the norm) in order to absorb the overflow of unemployed in the military and creating an illusion of  economic growth and recovery by supplying the military campaigns. Thus, wars are quick and dirty options to rounding up the pool of unemployed LMC and finding them a relief outlet outside the confine of the country.

In the 1840’s, the city of New York experience the worst outbursts of the unemployed.  The Federal government squashed the uprising by navy canons and the landing of the marines and army.  This solution was short-lived since the unemployed had no outlet.  The Federal government opened the expansion west in order to offering free lands for the LMC.  This initial push westward failed because the American Indians demonstrated resilience and the LMC returned to the “safety” of urban centers.  

Thus, the Federal government looked toward the southern States for an outlet to the unemployed.  Again, this tactic failed for two main reasons:  First, the LMC had no idea what kind of jobs they can secure in States focused on intensive workforce done by “negro” slaves; and second, the southern States, composed of feudal large landowners, realized that the Federal government is trying to export its brand of capitalism and refused to cooperate.

Consequently, the federal government launched a civil war under the banner of “preserving the central government”.  It was not a war for freeing the slavery system in the south:  emancipation laws remained on paper and slavery resumed for over another century.  One million in war casualties and four years later, capitalism made a slow headway in the southern parts.  But it was not enough for the thousand of released soldiers to finding work outlets.   Thus, the Federal government, encumbered by great quantities of arms and ammunition and so many soldiers, reopened the push westward and southward (Texas, New Mexico, Arizona):  The American Indians were exterminated in order to securing an outlet for the unemployed “gringos”.

An interesting smart gimmick was played by the “northern capitalists”:  They extended the concept of gold currency when the south had no gold left for exchange.  The southern States countered with the “Greenback” currency (the dollar); an offer that suited capitalists swell:  Expanding by paper money that they printed.

In the Old World of western Europe, England and France reached high levels of industrial capitalism:  The unemployed were sent to colonize Africa and Asia.  After Germany finished its unification at the expense of the Austria Empire,  Germany became another super industrial capitalist State.  

France and England denied Germany any colonial expansion.  Germany waged war against France in order to rob Belgium and the Netherlands of their colonies in central Africa (Congo) and Indonesia.  Nine million in war casualties and four years later, and another 20 million dead from the deadly “Spanish” flu, three empires disintegrated (Russia, Austria, and the Ottoman Turkey) and three new empires were created (USA, Italy, and Japan) for another round in WWII.

Interestingly, the Bolshevik revolution led by Lenin didn’t rely of the “proletariat” as it claimed, but on the unemployed LMC who were disintegrating fast after the crushing military defeats against Germany.  I can go on with the 115 modern wars after the establishment of the United nations in 1946.  I leave it to you to do the research based on this vast highway that I opened on the main cause of wars in capitalist systems.

Note: Let me explain how I comprehend the class structure in capitalist systems in order to drive my point through.  The lowest class  of the downtrodden, the illiterate immigrants, and the daily workers at kept at the 20% level of the population and used for the daily maintenance and upkeep of the system at the minimum wage: The lowest class is considered as the “Black slaves” (regardless of color)  by the elite oligarchic class of the disgustingly richest 1% hoarding 30% of the total wealth of the nation.   The middle class (divided among the lower, middle, and upper) middle classes represent 70%  of the population;  the lower middle class (LMC)  constitutes 70% of the middle class sections.  The richest class of 10% hoards 50% of the wealth of the nation and view the LMC as the “White slaves”.  When a government claims that unemployment has reached say 10% it means that the lowest middle class is suffering most of the unemployment rate of 6%; given that the daily workers are not factored in the statistics.

It is to the advantage of most of the citizens in capitalist society that effective unemployment increases to beyond 20%  in order for serious reforms to be considered and enacted in forms of laws and financial institutions control, restrictions, and constraints.  The trick is for the people not to be driven into an external war in order to releasing the pressures off the oligarchic class.

Note 1:  When a government starts drastic cut in the budget (except the military: It goes without saying) it affects primarily the lower middle class, since the 20% of downtrodden are already suffering at the bare minimum, are needed for the daily maintenance of the society, and cannot contribute to taxes.  Actually, the class of the downtrodden feels helpless and waits for the middle class to begins marching revolts and to join it and scare the richest class and their political, security forces, legal, and law institutions for a short while.  When unemployment jumps to 20%  it affects 12% of the lower middle class then, serious problems await the power-to-be in capitalist systems:  This number of 10% of unemployed lower middle class is a critical turning point for serious upheaval and revolts.

Note 2:  Are you interested how capitalism identifies you?  For example, in which economic class you are categorized for being watched closely? For example, the potential level of danger for destabilizing an exploiting system during economic downturn and how you are getting organized to adjust it to a fairer political representative system?  First, check the statistics of the medium yearly income of all the population in the nation.  The medium statistics means that half the population is below the medium and the other half earn above the medium.  The medium yearly income is smack  within the lower middle class category.   The range of the LMC is from 20% below medium and 20% above the medium.

Note 3 :  The primary purpose of most of the new Federal security agencies (over 295 created since 2002) is not for tracking terrorist activities as publicly announced but to keeping track of internal activities of the lower middle class citizens; they are in fact backing up the FBI for keeping files on the virulent elements and organizational ability.   The Federal agencies want to research the trends and mood of this dangerous class during economic downturn and political upheaval.

Note 4:  Capitalist system maintains agricultural subsidies to large farmers for a basic purpose:  satisfied “peasants” constitute internal “outposts” that hold on to the doctrine of “Law and Order” imposed by the capitalists to securing the system from any deviations.

Tags: "Greenback" currency, adonis49, class structure in capitalist system, expansion wars, fairer representation, Lower middle class, or "national wars", preemptive wars, Public enemy #1, rate of joblessness, unemployed "gringo", unemployed reach 20%?, writing