-Caveat Lector-

~~for educational purposes only~~
[Title 17 U.S.C. section 107]

The US as Third-World Nation
by Bob Wallace

One of my friends, a Filipina who still lives in the
Philippines, told me there are basically two economic
classes in her country: the rich rich and the poor
poor. There isn't much of a middle-class. How did
this sad state of affairs come about? How else  the
rich rich have gained control of the State and use
it to enrich themselves and impoverish everyone else.
This is what always happens. It's human nature.

It's what happened in the former Soviet Union, and
what is happening in Mexico and the Middle East (the
members of the House of Saud  what a joke, because
there's no such thing as Arab "royalty"  are
bazillionaires, while the populace is mostly poor
and unemployed). It has always happened in the past.
The example I generally use is Galilee of Jesus' time,
in which two-thirds of the people were poor because
the Romans and the upper-class Pharisees used the
State to tax everyone into poverty.

As best as I can tell, under a free market two-thirds
of the people are middle-class. When there isn't a
free market, two-thirds of the people are dirt-poor,
and a very small minority (those who have gained
control of the State) are Scrooge McDuck-rich. That
is what the Third World is: a handful of billionaires
and everyone living in shacks.

In the Philippines, there is so much poverty that
there has sprung up child prostitution to service
wealthy pedophiles from other countries. The
prostitutes are both boys and girls. The Philippine
government looks the other way. Drug abuse is rampant,
because the users are without hope.

My friend lives in a gated community with armed
guards at the entrance. That's starting to sound
familiar even in America, isn't it?

What do these other countries have to do with America?
They show that America isn't immune to the diseases
of the Third World. Here's an example: the mean
average tax burden in the US is 40 percent of a
person's income. The economist Walter Williams said
when you factor in everything else  such as the fact
the citizens pay 100 percent of the Social Security
tax, since businesses pass their taxes onto their
customers  then the tax burden is in reality 50
percent. Someone making $40,000 a year is actually
making $20,000.

When you take into account the fact the dollar, because
of government-caused inflation, has lost 99 percent
of its value in the last 100 years, plus all of the
job-destroying regulation of the economy, plus
deficits...it's entirely possible the US could turn
into a Third-World country. It might take a century,
but it could happen.

My paternal grandfather dropped out of school in the
8th-grade. He spent his life installing wooden-strip
floors and finishing them. His wife did some sewing
part-time in their home. They raised nine kids and
lived a middle-class existence.

This is now impossible in the United States.

How did my grandfather do this? Because taxes and
regulations were a fraction of what they are now.

My father's first brand-new car was a 1967 VW Bug.
It costs $1600. He dropped out of high school and
opened up his own construction company. He made
$10,000 a year, which put him right in the middle
of the middle-class. The car costs 16 percent of
his yearly income. A cheap car today costs $10,000.
The mean average salary is $40,000. The car is now
25 percent of a person's yearly income, not 16
percent.

My parents' home  solidly middle-class  costs
$12,000 in 1968. A little over one year of my
father's salary. Today, the average home costs
$120,000. Three year's income. While today's
homes are somewhat larger than the ones in 1968,
they're not ten times larger (and if you want
to see what houses really cost, look at an
amortization table and figure the interest).

The price of a house now cost ten times more
than it did a little over 30 years ago. If mean
average income had kept pace, people would now
be making $100,000 a year.

It's not the free market that is doing these things.

It's the State. Taxes. Regulations. Inflation. Deficits.

I read an interesting newspaper article a few months
ago, in which it was found the overwhelming majority
of those arrested for failing to pay parking tickets
didn't pay because they couldn't afford to. They
were poor people. I see them all the time, driving
their hubcap-less, 30-year-old cars with cracked
windshields.

The economy's pretty good if you have a degree or two.
But if you don't, you're generally falling further
and further behind every year. Not because of the
free market, but because the State, every year,
raises taxes a little bit more, regulates a little
bit more, reduces the value of the money and savings
through inflation just a little bit more...

Now we have the Democrats (what I call the Evil
Party) trying to rescind Bush's utterly insignificant
tax cut (will the Republicans  the Stupid, Cowardly
Party  have the guts to stop them?)

It's not "the rich get richer and the poor get
poorer" under the free market. It happens when
corrupt, sleazy people  like the lawyers who
sued tobacco firms solely to transfer hundreds
of millions of dollars of smokers' money into
their own pockets  use the State to make
themselves rich and everyone else poor.

If my grandfather and my father were young and
working today, they wouldn't be middle-class.
They'd be poor. Probably permanently. Rush
Limbaugh, an ignorant blowhard who has apparently
lost his brains along with his hearing, seems to
think that nearly everyone can be wildly successful
if they just work hard enough. That completely
ignores the question: why can't you have a
middle-class existence driving a taxi anymore?
What's wrong with being a trash collector? Someone
has to do it. Is life about nothing more than
working 55 hours a week just to make ends met,
because the State seems to think people are
nothing more than sheep to be sheared? When's
the last time tax-money parasites like Tom
Daschle or Richard Gephardt took a cut in pay?

You don't have to leave the US to find the Third
World. It's already here. If you want to see it
among white people, go look at your typical trailer
court. If you want to see it among blacks
and Hispanics, go look at the inner cities. What
do most of them have in common? The State has
destroyed the high-paying jobs that were available
for them in the past, and now sucks up a lot of
what money they have. Then many of them go on
welfare, which degrades them even further.

There is an old story about boiling a frog. You
don't put the water on boil and dump the frog
in. He'll jump out. What you do is put the frog
in the water, then start to heat it up. Soon the
frog is cooked before he knows it. Unfortunately,
this is how human nature works. If things get
slowly worse every year, people began to think
it's normal.

In several decades, it's entirely possible the US
will consist of a small minority of very rich
people  say, corrupt politicians and their
equally corrupt friends  and most everyone else
will be living in cheap houses, apartments and
trailers.

The State expands, and Civilization recedes. It's
an unalterable law of nature.

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