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How the American economy actually works

For those that don't know, this is essentially how it works: Money is created out of thin air by the Federal Reserve (private central bank). That money is then loaned out to both private companies and the US government (treasury) for next to nothing. The largest corporations (large-scale banks & financial institutions) re-loan that money out to other companies, and to smaller banks, to collect an interest premium. The US government uses that money for funding whatever tf they're currently doing (normally war). Then, that money makes it's way to you in the form of “payment” for your time, energy, expertise, etc. in the form of either wages (for most people) or revenue (for small business owners/freelancers). Now someone has to pay for that money. It's not free, it's being LOANED to these entities who are then giving it to you as remuneration. Well the powers that be sure af…


For those that don't know, this is essentially how it works:

  • Money is created out of thin air by the Federal Reserve (private central bank).
  • That money is then loaned out to both private companies and the US government (treasury) for next to nothing.
  • The largest corporations (large-scale banks & financial institutions) re-loan that money out to other companies, and to smaller banks, to collect an interest premium.
  • The US government uses that money for funding whatever tf they're currently doing (normally war).
  • Then, that money makes it's way to you in the form of “payment” for your time, energy, expertise, etc. in the form of either wages (for most people) or revenue (for small business owners/freelancers).
  • Now someone has to pay for that money. It's not free, it's being LOANED to these entities who are then giving it to you as remuneration.
  • Well the powers that be sure af don't want to pay for it, so what they do instead is using a combination of inflation, taxation, market oligopoly, and bailouts, they make YOU pay for it instead.
  • Inflation is the federal reserve printing money out of thin air that didn't exist which makes the money you currently have, and earn, worth less and less by the day.
  • Taxation rolls through and says “for every dollar that you earn, we get a cut,” this happens ON TOP of inflation.
  • Then, market oligopoly comes in an says “we will trade you less product/service for more money, and we will raise your cost of living to protect profits during inflation.” You have no say in this, you can't go anywhere else, there is no market that they don't own.
  • Finally, when they've printed too much money and are risking hyperinflation, they intentionally raise interest rates to create a market crash. Small companies are destroyed by it, but large companies are bailed out by the government by borrowing more money from the Federal Reserve, and essentially loaning it to companies that (if they went under) would cripple the US economy entirely.
  • This results in a boom and bust cycle in which corporations can rake in record profits while your labor, time, and money are all worth less by the day, and the SECOND that they would be worth more (during a recession or depression), they raise interest rates which causes markets to fold, companies lay you off, rents get raised, prices get raised, and you literally have nowhere else to go.

So you play, you pay, you make them rich, and then you die.

This is how the American economy works. They trade you worthless dollars for your hours while they are able to purchase and hold assets on a large scale.

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