July 24, 2021

Economics 101, 201, 301 and 401 (metaphorically) are all based on draining the economy dry. That result is inadvertent due to a focus on the balance sheet and bottom line. The process is called "financialization" in contrast to normal constructivity based on rationality, which is of course, the ruination of man in the economics of financialization.

Corrupters can't imagine why anyone would have any other purpose with business than making profit. What they miss is that profit doesn't exist until there are more rational elements to the process. Products have to be useable, practical, efficient and cost-effective. Leaving those requirements out destroys a business. Yet corrupters find such purposes to be so abhorrent that they assume only losers would have such purposes. So corrupters try to impose malfunctioning businesses onto society through corrupt and decadent methods.

Since the purpose of financialization of businesses is to make a profit for investors (which translates into administrators who hold stocks), the result is draining the economy dry.

The methodology of financialization is in conflict with competitiveness, efficiency, relevance, practicality, science and technology. That means those necessities are twisted around financialization resulting in the opposite occurring.

The imagination of administrators consists of pushing a button and getting on with partying. The button can't be missed; you get hired for it and fired for it. It's the exploitation tool at the top of all agendas. The way it works is slave labor, exorbitant prices, mergers and acquisitions and misogyny. It sucks the economy dry.

The number one method of draining the economy dry is "mergers and acquisitions." That means one company buying another company. In doing that, someone walks away with that much cash and the consumers re-pay for the company in the price of products. What is gained from it is building up the power of incompetent corrupters who conspire to monger power by ripping everyone off.

What the economists and the media miss is that the functionality of the economy is in everything but the financialization gimmickry and profit. Somewhere along the line, the assumption was acquired that the more money that is extracted from the economy the better it works. The success of the economy is measured in terms of the thievery, as it shows up on the bloated stock market and related gambling casinos and measurements of wealth. That's like measuring the success of banking by the wealth of the Mafia.

The resources that fall into the hands of the exploiters are removed from the functioning economy. Those resources are unavailable to the rest of society. But that shift in resources is assumed to be the great value of exploitation. It supposedly puts the money where the most brilliant and intelligent agents can use it best, as shown by such examples as Trump's success, the new methods of producing hydrogen fusion and the path to Mars.

Steve Jobs was fired at the company which he created, until the business administrators went bankrupt and let him back in. The first thing he needed to do was acquire some resources. So he created the iPod, which provided the resources needed for developing the smart phone. That process does not exist in economics 101, 201, 301 or 401 due to the unavailability of resources that results from pushing the exploitation button.

This result is why the U.S. is no longer competitive. It takes resources to be competitive, and they don't exist, because channeling resources to the top removed them from the functional economy.
 
Absence Of Competition

Absence of competition subverted products in addition to the process of mergers and acquisitions draining the economy dry. There is no competition for products in most areas, because competitors have been merged into one or a few dominating sources.

Doing that has been a high priority of corporations since the Robber Baron days. Attempts to limit the process have been totally dismantled or ignored in recent decades. I'm afraid to mention actual products; but particularly when details and quality matter, products have been subverted to decadence if not nonfunctionality.

Power mongers believe in decadence as the ticket to success. To produce decadent products, competition must be eliminated. With the dismantling of government that began with Reaganism in 1981, there are no obstacles left to that purpose.

Decadence of products is viewed as an exploit by power mongers, because it degrades consumers and increases domination over them. Domination means easier exploitation.

It's startling to see an occasional mention of bureaucrats overseeing the process to assure competition benefits the public. There hasn't been anything resembling government oversight of the process for decades, while corporations turn products into junk with no competitors in the way.

Competitors get swallowed up by dominating power sources as fast as they are created. With high tech, creating a start-up usually has the purpose of being bought up later.
 
Fraud As Nonsolutions

What is being missed everywhere is that no economic solutions can work as long as the economy has been drained of money supply. In fact, no social-structure problems can be solved with a drained economy; and the results indirectly reduce global competitiveness by degrading domestic solutions to problems.

Not the least reason for the ineptitude is fakery the economists learned to exploit following in the footsteps of physicists in creating a supposed field of endeavor out of fraud. In perpetrating such frauds, the real problems get glossed over, because success must be part of the fraud, while real problems create demands which cannot be met through fraud.

One example is the pretense that increasing interest rates reduces inflation. The concept is infantile in the implication that interest rates control endless social complexities unrelated to economics, such as supply chain disruptions, inadequate labor supply and hostilities created in global trade.

Another element of the tragic stupidity is the assumption that one person's problem is another person's solution, which shows up in putting people out of work to lower inflation. In modern complex economies, inflation is caused by problems creating disruptive influences, mostly in production but indirectly in every other element of the economy.

That means creating problems for workers, home buyers or anyone else will always increase inflation as endless examples have shown including the late 1970s and early 1980s, when jacking up interest rates pushed up inflation to 23%, before other factors put an end to the insanity.

The more recent factor that did not exist in earlier times is, draining the economy dry. Draining the economy dry was a slow process inherent in the conservative revolution that began with Reagan. Part of the conservative drive and related "deregulation" was economic exploitation and power mongering causing the money supply to shift upward.

Superficially, the money supply shifts upward due to greed by power mongers who make the economic decisions. But it is only possible due to structural frauds that began with so-called deregulation.

A lot of laws were written around a century ago, when economic exploitation went rampant and created visibility for the causes. Throwing those laws out was the first concern of Reaganites, as they claimed their purpose was to "get rid of eighty years of liberalism gone awry." Eighty years earlier is when those critical laws were created. It certainly wasn't an attempt to stifle the influence of Teddy Roosevelt upon the Reaganites.

What the Reagan conservatives were trying to get back to was "getting the government off their backs." That meant throwing out laws protecting against exploitation damaging the economy. Conservatives didn't want to be restricted by laws that prevented them from exploiting the economy to every extent possible. Of course, only persons with power were controlling the factors which influence the exploitation of the economy; so the result was to draw resources toward themselves. That meant, out of the hands of everyone else.

Without resources circulating through the lower classes, the impossibility of making ends meet kept increasing with no solutions being possible. The cost of housing, health care and education kept getting farther and farther out of reach of the lower classes until no solutions can solve those problems in the foreseeable future.

And yet, economists don't have a clue. They assume increasing the interest rates lowers inflation, even though endless examples show the opposite due to economic disruptions; and they assume there are structural solutions to problems, while the money supply is stripped out of the economy.

Part of the thought-process error is the assumption that more money for the power mongers will give them the ability to solve social problems, as if they needed more money and had constructive motives and capabilities. It's the conservative theme of trickle-down solutions.

The whole purpose of deregulation was the opposite—to give incompetent power mongers the ability to rip everyone off with no sense of social responsibilities. They are now (October 16, 2022) increasing their stock buy-backs to avoid a one percent tax coming due. Stock buy-backs were once illegal due to corrosive influence upon management standards and self-dealing but became part of the deregulation process.
 

Perspective On Incompetence

These results show how incompetence reshapes the social order. It's important to look at the result in such terms, because incompetent corrupters are imposing fascism onto society as the only acceptable standard, while they destroy everyone and everything in their path to get there.

It's no different than the Nazis destroying everyone around them and eventually themselves to purify the nonexistent Arian race. Purifying is how corrupters impose their incompetence onto society.

The details tell the story. First, corrupters are driven to absorb resources by whim with no scruples standing in the way. Why? Because of no thought as to the consequences. Doesn't everyone do that? Isn't a low class loser trying to do that but failing?

The concept of more constructive purposes in life is unimaginable to corrupters. Trying to do something for the good of all and expecting to gain from the betterment of others is not in the reality of corrupters.

That's because corrupters start their path to corruption totally absorbed in themselves and their problem of no method of getting where they want through constructive means including rationality. They miss the normal assumption that everyone depends upon the good of all—so much so that they despise the term "good of all" as a communist plot by gullible fools.

In addition to ripping everyone off to every extent possible, corrupters need to surround themselves with like-minded persons for two major reasons: One, they need the psychological security of assuming winners are doing the same thing, so it must be the right thing to do; and two, they need the power of numbers for prevailing, along with the related concept of looking for someone who knows what they are doing within a large group.

Creating those large groups is expensive, inefficient and wasteful producing waste, fraud and abuse in place of constructivity. A highly visible example is the ballooning size of university administrations. Only a few years ago, the shocking result was that there was almost as many administrators as professors at some universities. Now days, it's more administrators than professors at a lot of universities. What are all those administrators doing? There is nothing for them to do but monger power and assuage each other's insecurities.

A deeper dive into the aberrant thought process is needed to understand and deal with the social ruin resulting from that mentality. It starts with a disconnect from objective reality and resulting ignorance which causes corrupters to turn away from objective reality and focus upon their subjective concerns, which orients their existence around motives for self-enhancement. No one would benefit from the subjective motives of self-enhancement no matter how virtuous the result. There is no good-of-all in such selfishness.

But of course, virtuousness does not get corrupters where they want to be in imposing their motives onto everyone else. Only criminality does that. The criminality standard turns social activities into destruction machines. But the temporary exploitations of pre-existing social structures causes the brainless idiots to assume their thievery is the answer to everything.
 
Fake Technology

Fake technology costs a lot of money, wastes resources, clutters the environment and has no redeeming value. Fake energy and transportation are extreme examples. Consumers pay through the nose and get worse results than normal technology produces.

Electricity costs three or four times as much when fake renewables are around 5%, as in California—ten times as much when 15% fake renewables, as in Germany and England. That's money removed from the economy while increasing problems instead of solving problems.

The worst of it is that when such examples get so extreme and imposed so dogmatically, the same thing is happening at all levels where there is less visibility. In other words, anyone who would rip people off so fraudulently in the open are going to do the same thing all the time.

The most basic, underlying problem with fake technology is that incompetent power mongers took over the social structures and used them as power structures. Power mongers repurpose social structures for their personal gain at everyone else's expense.

What gets missed in that process is that power is the obsession of incompetent destroyers as their method of coping with their personal problems. Yet power is worshipped as the purpose in life by incompetents.

Reagan said, if you have to explain, you are already a loser. That means his purpose was to fight a war against rationality, which requires explaining claims, while mongering power, which is viewed as winning in the rationalizations of corrupters.

Reaganites reconstructed the purpose of existence in that manner, which they called "a new normal." To make winners out of incompetent corrupters, they reduced government to nonfunctionality through so-called deregulation, which cleared the path for power mongers to take over the social structures and convert them into power structures.

Getting less results at more expense is a method of draining the economy dry. It not only wastes money and resources on unusable junk, it increases the power of exploiters who produce less results at greater costs. That's a process of taking money out of the hands of the public and general economy and putting it in the hands of destroyers who use it for no justifiable purposes.