Negative versus Positive Economic Theories encompass the following tenets:
Negative Economic Models are Globalism, Crony Capitalism (Fascism), Socialism, Communism, Government Mandates and Taxes, and Central Banks with their Debt Expansion, Interest Rate Hikes, and Trickle Down Economics.
Essentially this type of negative economic model equates to micromanagement of the monetary system. Too many hands in the pot extracting the wealth from the Middle Class creates stagnate growth. Socialism, Communism, and Central Bank models suffer from the same impotence as the Corporate Crony Capitalism model of economic Fascism. Together these economic policies make up the bulk of the failure attributed to Globalism.
Globalism is the corporate governance model strictly controlled by unelected bureaucrats through stringent over-regulation. These bureaucrats steal the energy of labor and return nothing to the economy. Profits are always sent upward where the money is cut off from use as economic development. That leads to the collapse of currencies.
While the monetary system’s volatility is incrementally decreased, corporations increase their demands on government to control the input and output of small businesses. This lowers competition, thus creating monopolies (e.g., Too Big To Fail, Big Pharma, and Big Tech), and then the multinationals profiteer through rigging the market value of goods and services. As their market shares inhibit growth, the only way these robber barons can see to increase shareholder profits is to price gouge consumers.
In this negative economic model, the government also over-regulates by passing laws mandating consumers to buy from certain markets be it automobile, house, or health insurance. These mandates prop up industries that would otherwise fail when the People would elect not to purchase them. The law creates a negative incentive and therefore a guaranteed profit for a poor corporate business model. This model can also be extended to include mandates like Lightrail, Green Technology, Sports Stadiums, and the privatization of public institutions like vouchers for private schools and the bad deals created by public-private partnerships. Basically these mandates are economic corporate welfare that take money out of circulation and harm the Middle Class.
The government also mandates consumers to pay property taxes and licensure fees (e.g., cars and business) to sustain an over-bloated budget brought on by tax avoiding multinational corporate monopolies. Without the megacorporations funding mutually beneficial projects like infrastructure and services (e.g., police, fire), cities and states are driven farther into debt. The fees then are increased onto the populace, thus creating another vacuum in the currency markets.
What happens? Stagnation. Contraction. Recession. Depression.
The Central Banks' model of debt growth is negative growth. Cycles of busts, bubbles, and booms create the illusion of volatility. Busts and booms extract the wealth from the economy until there is no job, wage, or economic growth of any kind. Busts and booms are the real theft from the Middle Class as real assets (i.e., land, businesses, and resources) are bought up by the wealthy when the Middle and Lower Classes go bankrupt with fiat debts.
The Central Banks also do this theft from the Middle Class through quantum easing and interest rate hikes. Quantum easing is flooding the market with debt. Debt cannot grow into positive territory therefore debt squanders growth opportunities through the inflationary cycle. The Central Banks use the inflationary cycle to stomp on economic growth through interest rate hikes. Each hike negates the gains of the economy to pay off debt by creating more debt. This monetary and economic theory is unsustainable.
The economic engine for this negative economic model becomes wars and the black market. So Globalism increases and directs profits, mandates, taxes, and budgets to the areas of defense spending, private/mercenary contractors, and trafficking across the board as a feedback loop to sustain itself. Illegal migration is pushed to relocate undesirable populations from corporate arenas. A well done Structurally-Regulated Capitalism is blamed for the slow descent from corporatism to monopolies onto socialism and straight into communism when in fact the plunge is engineered.
Since the turn of the century, the Central Banks have relied on wars as well as human, drug, and sex trafficking to balance out their books. The negative economic model of micromanaging the currency has led to a near collapse of the entire world’s economy. Hard currency lives in the form of land and other physical assets. Whereas the populace transacts in fiat currency (i.e., Federal Reserve Notes in the USA) backed by nothing but their servitude (e.g., labor).
As the world spirals downward with their economies and monetary systems, the Central Banks need to keep control of the restless masses through social constrictions like socialism and communism. With the destruction of manufacturing and industry in competitive markets in order to support anemic economies like Communist China, the First World populace is led into four areas of prearranged economic availability: military, service jobs, government/education, and drugs/crime. There is little else for the people to do to survive or cope with the economic terrorism that has befallen them.
The push from politicians then becomes adopting the failed ideals of Socialism so that Globalism sees no real challenge. The People are promised free education, healthcare, and other services that never come to fruition. Social discord is maintained at the street level. The pecking order of the strong over the weak undermines civility as the masses turn into asses. Street gangs, thugs run communities. Controlled opposition groups like ANTIFA become the regulators of the elite economic class and squelch resistance. Unruly mobs demand adherence to whatever social idiocy of the day (i.e., Political Correctness, Social Justice triggers, Social Scores, and rioting). Dissidents (e.g., Independent Media, Conservatives, Libertarians, and Patriots) are corralled into electronic gulags where freedoms, rights, and responsibilities are weighted by the mob mentality to silence them.
Further down the line Communism then reigns as everything else has collapsed around the People. Communism like Socialism in Venezuela does not grow, this market construct ends with economic implosion because there is no infusion of capital through investment, innovation, and the diversity of ideas. As with micromanaged individuals, economies flounder under the immense contraction of this over-reaching regulatory and social imperialism.
That means the bulk of the monetary system gets siphoned off to the top earners leaving the bottom 99.99% without a currency market. Without positive money, the economy keeps being disassembled piece by piece. Wages stagnate. Opportunities decline. Jobs disappear.
All by design.
This negative model can never produce wealth for the majority of individuals in an economy. The Soviet Union, Venezuela, and Cuba are prime examples of this apparent and repeated Communistic/Socialistic economic failure. The top 1% of the 1% control the social, economic, and health of 99.99% of everyone underneath them who barely subsist on garbage.
In the end, the country under communism or socialism has control of the population but the failed economic policies plunder more than the collective wealth; it decimates creativity, energy, and motivation of the populace. People are used and abused. There is little to no engagement by the individual in the policies of their government.
That is historical fact.
And why Globalism was a failure before the idea even got off the ground.
Positive Economic Model is Structurally-Regulated Capitalism
This model is individual driven. The individual creates small business that produces local economies, which is the backbone of positive economic growth and consumer confidence. The only regulation from the government is a structural regulation to keep a level playing field for all to grow without micromanagement or the mountain building of monopolistic power.
When the markets are open, most of the money flow converges into the middle 50% of the economy. That is the Middle Class. The currency is then volatile. Money exchanges multiple hands, several times a day. After everyone in the market has touched the money in one form or another, the profits flow upward from individuals, small businesses, to corporations and then onto government, but the bulk of the money stays in the Middle Class.
Individuals like proteins are the building blocks of economic security and prosperity. Individuals invest in other individuals who then create small businesses with that capital. Profits lead to corporations. Small businesses should comprise 80+ percent of the corporate creation of employment and market volatility. That keeps the markets from seizing up. Individuals are free to choose products and occupations. Corporations must incentivize individuals with high wages and good benefit packages. Profits increase at every level. Economies are stable with long durations of sound economic growth without busts, bubbles, and booms.
In an individualistic society, no one lives on a corporate plantation (i.e., corporate towns, campuses, and HOAs) where most of the money goes directly into the hands of these monopolies. People are free. People are productive. People are treated as consumers and not life long renters.
Until the monetary system has a common sense structurally regulated framework in place where multinationals are paying in taxes as much as individuals and small businesses are, monopolies are broken apart, the currency is backed by actual resources (e.g., gold, silver, and the like) and the economy allows for the free flow of money to circulate in the Middle Class, Globalism like Communism and Socialism will continue to destroy communities, cities, states, and nations around the world.
The solution to global recessions and depression is wealth creation at the individual, local level, and not dreaming of the nightmare scenario of the predictable retraction of collectivism.
