classical economics
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Elitist Paradigm
Middle Class Guide to Mainstream Ideology
By Wayne Jett © July 24, 2009

    The circle of elitists with capital of a scale which provides real power (call them the “Inner Elite”) is small, but influence flowing from their great capital pools dominates the elitist agenda. The Inner Elite expand their numbers marginally with small-time aristocrats, intellectuals who aspire to functionary roles in elitist networks, and upper middle class who embrace elitist ideas.
    Most importantly, the Inner Elite expand their numbers through graft partially disguised as political contributions. Politicians thus engaged accomplish two overriding aims: (1) attract votes necessary to gain and remain in power; and (2) adopt policies which serve essential IE objectives. Obviously, these two aims conflict in fundamental substance, because IE interests are squarely at odds with those of the voters attracted. Nonetheless, deft handling of the two fundamental aims achieves symbiosis and success.
Inner Elite’s Basic Aims
    Consider first the Inner Elite’s essential objectives. First and foremost is maximizing accretions to their capital positions – immediately, mid-term and long term. This requires supportive government economic policies. Permissiveness towards financial fraud opens a major avenue for IE capital gains. Manipulation of interest rates and currency value opens another. Protection of U. S. markets from foreign competition and monopoly-friendly oversight of mergers and acquisitions provide additional opportunities.
    The second essential Inner Elite objective is to hammer its historic adversary, the middle class, at every opportunity. Only the middle class presents formidable competition which threatens IE primacy in political power and in commerce. This mortal contest inspires IE designs to weaken, cripple, even destroy the middle class.
Inner Elite’s Tax Policy Designs
    The tax on earned income – enacted in 1913, the same year as the Federal Reserve System was created – leads the Inner Elite pantheon of instruments for assaulting the middle class. The IE do not “earn” income; they do not “work;” they live on capital and accretions to it. The federal income tax is levied against earned income, which means it is levied primarily against the middle class. Working to earn income is the means used by middle class to create capital and to raise living standards. Payroll taxes likewise levy against middle class earnings for productive work.
    By such elitist designs, the vast majority of tax revenues of the U. S. government come from middle class taxpayers. High income individuals pay disproportionately greater amounts of federal taxes. But these high income taxpayers are upper middle class – i.e., they work for a living and are most productive. The Inner Elite are relatively untouched.
    The Inner Elite favor high marginal income tax rates and high payroll tax rates because these taxes hit the upper middle class hardest, undercutting its ability to compete with the elite. The same taxes prevent mid- and lower middle class workers from accumulating private capital, thus assuring they remain nearer poverty.
    The second reason the Inner Elite support these high taxes is that revenues taken from middle class can be turned to purposes of attracting votes for IE politicians. Crop subsidies for major agri-business, subsidies for “alternative” fuel production, earned income tax credit, welfare benefits, health care for the indigent and federal support for schools illustrate the point. Votes for IE politicians are bought with middle class capital. What could be sweeter (in the IE worldview)?
    In a nutshell, this explains why the federal tax system is so difficult to dislodge through legislative reform. It serves IE’s vital interests by seriously damaging the middle class while enabling IE to buy votes with middle class capital. The Fair Tax Act (HR 25) would require the Inner Elite to pay tax on consumption alongside the middle class, but meets opposition in Congress for that reason.
Other Inner Elite Designs
    The tax system is only one of the Inner Elite’s weapons against the middle class. The Federal Reserve is the tool of the Inner Elite, and is especially useful since acquiring powers in 1971 to “manage” the dollar by manipulating interest rates and liquidity. Inside information on Fed intentions provides great advantages to Inner Elite in deploying capital when uninformed middle class are on the other end of transactions.
    The Securities & Exchange Commission and Commodities Futures Trading Commission are additional Inner Elite assets, captured and used to shield IE from prosecution for financial fraud or other crimes against the middle class. No more vivid illustration of this reality is necessary for close observers than mention of 2008, when an all-powerful Treasury secretary executed Wall Street’s game plan with Fed chairman and SEC chairman (on occasion) in tow. Not since the Great Depression was so much stolen from the middle class in so brief a time.
Inner Elite’s New Proposals
    The status quo is not necessarily the high-water mark of elitist power. Proposed legislation (called “cap-and-trade” or carbon tax) to take control of energy and its use in the private economy threatens to strangle middle class prospects more effectively than federal taxes already do. Access to economical energy is essential to middle class prosperity. With federal control of energy’s availability and cost, as HR 2454 enacted by the House provides, the middle class can be choked to death.
    Legislation proposed to govern health care pending in Congress is the evil twin of cap-and-trade. Both are Inner Elite brain-children. However, health care laws would serve another IE primary objective: population control. Elitist fear of and hatred for teeming masses of humanity pre-date Thomas Malthus’ Essay on Population (1798). Despite thorough de-bunking of Malthusian doctrine, elitists remain true believers that enlightened social planning must reduce and reverse population gains.
    Abortion rights, also called “a woman’s right to choose,” is an IE effort in that direction. Nationalized health care would afford many additional opportunities for similar inroads during the life paths of “lower” classes. One should not minimize this concern. Radical proposals for population reduction were alive and well in the U. S. during the early 20th Century. The intervening 100 years saw sharp rises of population in third world countries only slightly offset by declines in several developed nations.
Inner Elite’s Hallmark: Momentum
    For the uninitiated in Inner Elite watching and identification, here is a certain way to identify IE-sponsored legislation. When a bill moves inexorably towards passage without regard to widespread and vocal popular opposition, it is IE legislation. The “bailout” bill of October, 2008, was such an IE-sponsored act, obviously coveted to give $700 billion in taxpayer revenues to IE-favored banks. The “stimulus” bill enacted February 13, 2009, was another, authorizing $787 billion in middle class funds to buy more votes for IE-sponsored politicians.
    Political correctness is adherence to the Inner Elite model of thought. This approach to public dialogue and debate is enforced by major media owned or dominated by the Inner Elite.
    Most environmental concerns, including endangered species, are thinly disguised designs to shut off middle class access to natural resources such as oil, natural gas and water. Use of grains for fuel reduces food supplies further, starving people already on the margin of survival.
    Reasonable people may disagree on the merits of such issues, especially when major media, almost without exception, support Inner Elite positions. With such a pervasive elitist network, the middle class is divided and, all too often, conquered.
    Those who value human freedom, progress and a rising middle class in the U. S. and across the world prefer to think of America as upholding these ideals. Reality in 2009 is much closer to the elitist paradigm. ~