The Rise of America's Liberalist Class

Karl Marx wrote Das Kapital to describe how a new class of powerful, wealthy people had emerged in England during the industrial revolution. They did not need to inherit large tracts of land, or have the power to force serfs to pay annual tithes in order to get wealthy. Those sources of wealth were already taken. They gained their power through the growth of the industrial economy.

Historically, governments had been rooted in and economically dependent upon geographical territory for their existence and power. The landed gentry, those who were already seizing the wealth of the working class, didn’t bother to get involved in the industrial revolution since they already controlled things. They figured they would just go along with the industrial revolution and tax the industrialists. And just as nobles had exploited serfs, Marx pointed out that capitalists had, similarly, exploited their workers.

In the past half century, the liberalist has replaced the capitalist as the person who economically exploits the middle class. The term “liberalist” should now be used to denote anyone who profits from public pensions or the regulatory power of government.

America has a liberalist class because its economy has been prosperous enough to finance it. Poor nations do not have economies with GDPs measured by trillions of dollars. The U.S. economy has, up to now, been large enough to subsidize the liberalist class who, unlike capitalists, do not create firms in the private sector or create jobs. The only jobs they create are jobs for more liberalists, force-financed through taxation.

One would expect that liberalism would want to grow the tax base in order to support its own growth. This is because liberalism does not create wealth, it exploits the private sector in order to obtain wealth. They can also increase their wealth through governmental manipulation of two things: public financial policy and the banking system. This exploitation has escalated so rapidly in the last ten years that the taxpayers can no longer afford to support the liberalist class.  

An important factor in the distribution of economic and political power was the introduction of state-sanctioned banks. The first bank was the Bank of England. Banks enabled industrialists to borrow money to invest in the expansion of their firms. Productivity involves two components, labor and capital. Marx focused on the labor aspect of it and blamed capitalists for exploiting labor.

The wealth seized by liberalists through borrowing and taxation now exceeds $32 trillion dollars; an amount obtained when one honestly adds the $4.6 trillion of Treasury debt, the $8.3 trillion of public pension and municipal bond debt, and $19 trillion of national debt.

By comparison, private firms must produce marketable products or they will be forced into downsizing, liquidation and bankruptcy.

So liberalism is the latest socio-political-economic model for transferring wealth from one class of people to another, using the two biggest sources of the power to move income; banks and governmental power. While government controls banking, it does not have absolute control over the allocation of political power. In order to gain power liberalists had to convince voters, through the use of liberal ideology, to transfer power to them. Then once liberalists amassed more power through public sector unions.

The overall strategy of liberalism is to gain political power and then use that power to create government policies that further extend their power and influence into the future. Liberalists have used the power of Federal entitlement programs to build their public sector unions and make minority groups beholden to them through the distribution of wealth obtained from others.

This is the story line behind the successful rise of liberalism; how and why it was done, and why workers are now suffering through the exploitation of their incomes through local property taxes, high income taxes, and high college tuition. All of these taxes are nothing but wealth transfer to liberalists.

This is proven by the fact that there are now ten cities in Illinois where all the property taxes taken from workers go only to liberalist pensions. And in Illinois 53% of the tuition paid by workers to public universities goes to liberalists. They have successfully, if stealthily, seized the wealth of the workers just as capitalists are portrayed as exploiting the labor of workers. In both cases exploitation is involved. In capitalism, what drives people to work is the motivating factor of the desire families have to provide themselves with a living. In liberalism the motivating factor is to take the incomes of workers employed by capitalists.

America’s economy is rapidly changing from a capitalist economy to a liberalist economy. Government financing of liberalists now consumes over 40% of the nation’s GDP and there are no economic or political factors influential enough to limit future growth.

Anti-monopoly laws established in the late 1800s limited the growth of corporations, but no laws exist to limit the growth of government. Thirty-one states have provisions in their state constitutions stating that government pension benefits cannot be diminished or impaired. The liberalist rules America, not the capitalist.

A liberalist, like a capitalist, is an individual person. The capitalist must utilize the laws of supply and demand, economy of scale, price theory; and respond to market demands to be successful. These economic laws have an objective existence of their own. In contrast, the rules of liberalism have been developed from the basic framework of Marxism, empowered by progressive rhetoric to seize power and wealth. Liberal concepts are open-ended so the wealth they can amass is unbounded.

Workers have more to fear from liberalists than capitalists, since liberalists have the power to change the rules of their game while capitalists cannot. This makes liberalists immune to the economy. Their pensions are immune to change. Liberalists can seize workers’ homes if they don’t pay for their retirement plans. Taxes don’t go down.

Capitalism has financial limits, liberalism does not. In fact, liberalism broke the rules of home mortgage lending and used financial engineering to expand their wealth at the expense of the working class. The capitalist has been replaced by the liberalist as the politically elite class with overwhelming power and wealth.

Liberalism and capitalism seem to be at odds with each other. But because liberalism has no natural economic constraints, and uses the power of government to enable itself to violate the financial rules governing the private sector, liberalism has won out; the American worker has lost.

Events have come full circle. Liberals use the power of government to seize control of your real estate by forcing you to rent it from them through real estate taxes. They force college students to pay their pensions through tuition at public universities. So while in the middle ages government seized control of real estate to get rich, now we are back, only this time, liberalists seized control of the real estate in the largest cities and states and are the exploiters.

The removal of the liberalist control of government is essential to restoring economic opportunity to America’s working class.

Were Karl Marx alive today he would write Das Liberal