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About theartfuldilettante

The Artful Dilettante is a native of Pittsburgh, PA, and a graduate of Penn State University. He is a lover of liberty and a lifelong and passionate student of the same. He is voracious reader of books on the Enlightenment and the American colonial and revolutionary periods. He is a student of libertarian and Objectivist philosophies. He collects revolutionary war and period currency, books, and newspapers. He is married and the father of one teenage son. He is kind, witty, generous to a fault, and unjustifiably proud of himself. He is the life of the party and an unparalleled raconteur.

If You Think COVID Fascism is Bad, Just Wait for Green Fascism

COVID was a great dry run for a Green dictatorship. Under a Green dictatorship, you will first be shamed, and eventually forced, into sacrificing for your fellow man. With COVID you’re told you MUST vaccinate; if not, you’re hurting your fellow man (even though your fellow man is presumably safe, having been vaccinated himself.)

Under a Green dictatorship, you’ll be told you’re harming the planet if you drive a car, and you’re harming your fellow man, too, through fostering climate change (a part of nature for billions of years). Or you’re harming your fellow man if you use fossil fuels, or make any carbon footprint at all. At first you’ll be shamed, and eventually you may be fined or jailed. They’ll primarily make it economic. Just as you currenly lose your job and income (i.e., you starve) if you don’t get the vax, you’ll find it impossible to pay for gas at $50 or $100 a gallon, or pay heat/ac fuel bills at $1000 or $5000 a month.

Economic control will be the new gulag, though the end result will be exactly the same: loss of freedom. And most of it will be done without firing a shot. Why? Because of neurotic, unearned guilt. Your media, your professors, your Presidents and Governors (none of whom will be practicing the Green religion, by the way) will SHAME you into compliance. How well will that work? Just look at how well COVID shaming works. You have your answer. And, believe me: the tyrants have theirs. Your compliance has not gone unnoticed.

Michael J. Hurd, Daily Dose of Reason

The Government is not Your Friend; no Matter what the Government Says

Why is COVID Natural Immunity Being Ignored?

Reagan once said: “The nine most terrifying words in the English language are: I’m from the Government, and I’m here to help.” He was right, the government’s not your friend and it most certainly isn’t here to help you.

The dirty little secret about government is that its purpose is not really to make the lives of citizens better but, rather, to accumulate power at the expense of citizens. Not sure about that? Ask yourself, how many government agencies have put themselves out of a job because they succeeded? There’re a few that technology left behind, like the Steamboat Inspection Service; others that served their purpose, like the Defense Homes Corporation; while others were merged into other agencies like the General Land Office, subsumed into the Department of Interior. In our history, there have been fewer than 100 federal agencies that have actually been shuttered, and most of those existed in the early 20th century to deal with the Depression or the two world wars.

According to the Federal Register, the federal government has 457 different agencies. That’s 457 agencies covering virtually every aspect of American’s lives, most of which are staffed by unelected bureaucrats, all of whom spend your money and many of whom write regulations that carry the force of law which the government’s police power enforces. This includes everything from the State Department to the Geographic Names Board to the International Broadcasting Board to the ATF.

And that 457 is misleading. While it includes a dozen organizations tied to Defense, there are dozens more agencies that come under it that are not listed in the Federal Register such as the DoD Education Activity or the Office of Naval Research. Wikipedia lists a more realistic, but still lacking, 1,500.

The American government has become a leviathan. It’s everywhere, involved in virtually every aspect of American’s lives, and it’s perpetual, regardless of its record of dismal failure. Two examples:

1) The War on Poverty, AKA the Great Society. The brainchild of LBJ, the Great Society programs were created to address poverty in America. They included things like food stamps, Medicaid, Medicare, Head Start, and others.

In 1964, when the Great Society programs were passed, the poverty rate was 15%, dropping to 13.9% the next year. By 1969 the rate was 9.7%. Exactly 50 years later, in 2019, the rate was 8.7%. That means that as a result of fighting the War on Poverty for half a century, after spending over $30 trillion, the poverty rate dropped by a rounding error—by literally 1%!

Yet somehow the War on Poverty goes on, with more programs, more money, more regulations and, of course, more employees. Indeed, DHHS, which manages many of the programs, has a staff of 80,000 and an annual budget of over $1 trillion.

2) Public education. American public education is really just a jobs and revenue-generating program for unions. William McGurn over at the WSJ looks at the performance of schools in the largest school districts. The level of failure is extraordinary.

For example, in 2019, Atlanta public schools spent $17,112 per student and the result of all of that spending was that only 10% of students were proficient in math and 15% in reading. So, for all that expenditure, fully 90% failed basic math proficiency and 85% reading.

This dynamic has been going on for decades across the country. New York City spends $28,004 per student and 75% of them lack proficiency in math and 81% in reading, while Boston spends $25,653 and has similar marks with 88% failing math and 85% reading.

On average the US spends approximately $14,000 per student in education, (Elem – HS), more than any nation in the world other than Luxemburg. And what do we get for that extraordinary spending? Not much. According to the National Center for Education Statistics, in 2018, American students ranked 15th in the world for reading literacy, 18th in science, and 37th in math! Of all of the things that drive a society to prosperity, particularly in today’s technologically advanced world, education is easily one of the most important and, on that score, government has failed miserably, spectacularly, and perpetually.

If the actual goal was to educate students, government would give that money to parents in the form of vouchers to kickstart a private / charter school revolution. Sure, there’d be failures, but it’s hard to imagine how they could fail more spectacularly than the current systems do. But that’s not the goal….

The government spends $30 trillion over half a century and reduces poverty by 1%. The government spends more on education than virtually every nation on the planet yet 85% of the students in its biggest (and most minority-filled) school districts fail basic reading and math, the building blocks for success in our dynamic society. And we’re supposed to believe government works for us?

American governments spend more money on education and social programs than anything else, more than the GDP of most countries. Yet even as they fail, year after year, decade after decade, the funds keep growing, regardless of their catastrophically abysmal track record.

And that tells you everything you need to know about the nature of governments. Their goal isn’t to solve problems. They’re not here to make life better for citizens. Their goal is not to protect the lives and liberties of citizens. No, government is the Borg. Its raison d’etre is simple: Grow revenue and increase power for itself and unions.

Proof? Despite the fact that the United States has 3,143 counties in 50 states spread out over 3,796,742 square miles, nine of the twenty richest counties are in a circle less than 100 miles across with Washington DC at its center. And what is the industry that drives that wealth? Finance? No. Entertainment? No. Steel or autos or high tech? No. One thing: Government power.

Accumulating power is the fundamental nature of government, and our Founding Fathers understood that which is why they gave us the Bill of Rights and particularly the 9th and 10th Amendments. For the first 150 years of our nation, those guardrails stood relatively firm, but today they are simply gone.  Sadly, America has become so detached from our Constitution that 90% of what our government does is unconstitutional.

Vince Coyner, American Thinker

Read more: https://www.americanthinker.com/articles/2021/10/the_government_is_not_your_friend_no_matter_what_politicians_tell_you.html#ixzz783ezjkIY
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Who are the ACTUAL Terrorists ?

If everything connected to January 6 qualifies as “domestic terrorism”, then doesn’t domestic terrorism ALSO consist of:

Locking down citizens due to a flu outbreak for 18 months and counting;

Denying small businesses their rights while giving politically connected, huge corporations unlimited rights for political loyalty;

Forcing people to be vaccinated with an experimental, mostly untested treatment;

Suffocating and spreading germs among helpless minors by forcing them to wear masks and refusing to let their parents have any say in it;

Imposing confiscatory tax rates for the sole purpose of wealth redistribution and rewarding pressure groups;

Abusing the sacred power of the U.S. military by tolerating treasonous, illegal behavior in its top generals so long as that behavior serves the political interests of the party seeking to gain and hold onto power;

Committing election fraud in plain daylight, and then lying about it, and then attempting to codify that fraud into law, transforming a representative republic into a one-party dictatorship overnight.

If January 6 really constitutes “domestic terrorism” then why the hell do THESE behaviors not?

Michael J. Hurd, Daily Dose of Reason

China Has Lost Its Fortune Cookie

Ross Welcome to Renegade Inc. With China’s increasing wealth, Western investors want some of the action. One of those investors is a bullish gentleman called George Soros. However, the Chinese are acutely aware that with Western investment comes inequality. So as Beijing begins to rethink how to do proper economic growth, we ask, will China learn from Western mistakes?

Ross Michael Hudson, always great to have you back on Renegade Inc.

Michael Hudson It’s good to be back here. Thanks for having me.

Ross Michael, we join you at a time where a lot of people think the unipolar world could have maintained its supremacy. Turns out it hasn’t. Multipolar world is here to stay. You of late have been quite vocal about George Soros, no less. Mr. Soros has been casting aspersions about various things, but one of them is talking about the Chinese economy and why Black Rock, amongst others, should be allowed to invest there, because ultimately it’s going to undo American interests. Can you unpack that for us because it seems very complicated?

Michael Hudson Well, George Soros’ dream is that China would do what Yeltsin did to Russia – that it would privatise the economy, really carve it up and let US investors buy control of the most profitable heights. In that way, the foreign investors would be able to sort of get the profits of Chinese industry, Chinese labour, and it would become the darling stock market of the world, just like Russia’s stock market was the leading booming stock market of 1994-96. China would be run to benefit US investment bankers. Soros is furious that China is not following the neoliberal policy that the United States is following. It’s following a socialist policy wanting to keep its economic surplus at home to benefit its own citizens, not American financial investors. For Soros, this is a clash of civilisations. His proposed strategy is to stifle the Chinese economy by putting sanctions against it, to stop investing in it so as to force it to do to itself what Yeltsin did to Russia.

Ross Let’s hear it in his words. He says: ‘The BlackRock initiative imperils the national security interests of the US and other democracies because the money invested in China will help prop up President Xi’s regime, which is repressive at home and aggressive abroad. Congress should pass legislation empowering the Securities and Exchange Commission to limit the flow of funds to China. The effort ought to enjoy bipartisan support’. He’s not mincing his words, is he?

Michael Hudson He thinks that China actually needs American dollars to build its factories and invest. He thinks that somehow China’s balance of payments is going to fall apart without the US market, without US investors telling President Xi what to do. The Chinese government won’t have a clue as to what to invest in and how to let the ‘free market’, meaning George Soros and BlackRock and other companies, operate. So he’s living in a dream world where other people need us. It’s like a guy who doesn’t realise his girlfriend doesn’t need him anymore.

Ross There seems to me to be a distinction here that the Chinese are acutely aware of, and it’s between the classical economists and the neoclassical economists. The classical economists have understood the idea of unearned wealth, unearned income. The neoclassical economists actively chase unearned wealth, unearned income, because that is central to their playbook. Can you just expand on those two ideas? And is it the case that that’s why you talk about a clash of civilisations?

Michael Hudson Well, you put your finger on it, Ross. People think that China’s advantage is its abundant, low priced labour force, or the government building infrastructure. But what’s guiding this is an understanding of the kind of economics that goes back even beyond Marx, to Adam Smith, and John Stuart Mill and the other classical economists. They realise that there’s a difference between earning income and creating wealth by employing labour to produce goods, to sell at a profit and then reinvest these profits and more capital formation, in contrast to simply buying a rent-yielding property, buying land and letting it rise in price without the landlord doing anything, buying a monopoly and just raising the price – charging monopoly prices like the US pharmaceutical companies are doing. China understands the difference between earned income and unearned income, between productive investment and unproductive investment.

In the United States, if they do recognise this difference, they realise that via unearned income you can make wealth by parasitically much quicker than you can actually create real wealth. It’s cheaper to be a parasite than a host. And so most of the financial strategy of Wall Street involves how to get something for nothing. How can we get a free lunch? Well, to do that as a major policy, we have to begin by telling people what Milton Friedman said: There is no such thing as a free lunch. But the whole of Wall Street is looking for a free lunch. They’re looking to grab Chinese assets on the cheap, like Soros has grabbed post-Soviet assets. They’re looking for monopoly rights. They’re looking for lending money and letting China do the work, to pay the interest to the Americans that are going to be providing it with money that the Federal Reserve ends up creating on its computers, or that George Soros already has saved largely by how he got the free lunch from the Bank of England betting against that and driving Sterling down.

Ross Some people call it the free world. Others call it a democracy. Others, for America, call it an advanced oligarchy. Do you think that the Chinese have looked at America and the wider West, understood that privatising all that rent has ultimately led to societal decline?

Michael Hudson They’re beginning to look at it that way. Most Chinese Marxists focused on Volume 1 of Capital, which is about employers hiring workers and putting them to work and making a profit off the mark-up. Only in the last couple of years have Volumes 2 and Volume 3 of Capital moved into central discussion in China. And it’s Volumes 2 and 3 that talk about economic rent. And so China has come to realise tha the United States is not an industrial economy. We’re not going to understand what’s happening in the United States, in England or Europe by looking only at what Marx wrote in Volume 1 of Capital, because they’re not making money industrially anymore. They’re making money by being a rentier economy, by landlordism, by monopolies and by bank credit, which Marx discussed in Volume 2 and 3.

So they’re now broadening the discussion. For the first time, you’re having, especially in the last month, China asking, “Do we want to let Chinese investors make money, financially, by buying housing, becoming absentee landlords and hoping that there is going to be a housing price inflation like you have in the United States? Or, do we want to keep housing low priced and not to bid it up by credit creation and finance?” They’re now realising that to keep China’s cost of living low, you have to keep the price of housing low. That means that you don’t want housing to become a commodity, an investment vehicle for absentee owners and landlords to make money. You want housing to be for Chinese people to live in. That means low-priced housing, not debt-leveraged housing as they’re seeing in the United States.

Ross I know somebody who works on the life boat on the Thames and they get a view each night that no one else would ever get. And they go up and down the Thames and they see all these high rises, which are oversupply of property, real estate. And there isn’t one light on in any of them. The reason, foreign investors, predominately the Chinese, have come bought them, clingfilmed the whole place, locked the door and then they chip off back to China – sit and wait, basically allow that land value to go up and cash out 10 years later. You can see what that does to local communities, schools, shops, infrastructure, services and all the rest of it – this absenteeism. Do you think that those foreign investors, the leadership in Beijing, has seen this model around the world and thought, yep, fine, we can do it over there, and yet we need to repatriate some money because of some of the liquidity issues that we’ve got over here. But we’re not having that as a central business model or a central economic model to our economies? Do you think that that light has gone on?

Michael Hudson Well, they’ve been discussing this regarding Hong Kong for the last 10 years. Hong Kong is the typical example of multi, multi-billionaires in real estate. They think that a socialist economy is not one that gets rich by creating absentee landlords. There’s been a large outflow of Chinese investment to the West. You have it in New York City on the west side, all very dark apartments with no lights on at night because they’re absentee-owned. Thorstein Veblen in 1923 wrote a book, Absentee Ownership, saying that housing should really be for living, not a speculative vehicle. But in America, real estate is all about civic development. It’s about how to increase real estate prices and create a bubble for speculators to find someone to flip the property to. I’m not sure it’s going to happen much longer and in London now that Brexit has occurred. But I think that what China is trying to do is asking how to create a domestic economy where Chinese people make money productively. They can not only afford a house of their own, but if they invest, they can invest in making China richer, not in buying income-yielding, rent-yielding, assets in America, England or Europe.

Ross Do you think that the pictures that we’ve recently seen on social media of the huge tower blocks that haven’t been finished, residential, that haven’t been finished for eight years and now they’ve just put semtex under them and raised the whole thing to the ground? Do you think that’s a real world example of the scar tissue, if you like, that private debt creates and in another sense, a Minsky moment? Blowing all these things up means that you get rid of all of that oversupply, which means that that inventory isn’t in the market and isn’t their to be flipped and speculated on.

Michael Hudson These are buildings where they wanted to pre-plan for what they thought was going to be a rural exodus, but the rural exodus didn’t occur into these cities. Right now, China is focusing, I think for the first time in quite a few years, much more on rural development. China is primarily a still a rural economy, a village economy. Most people don’t realise that. When you think of China, you think of Shanghai and Shenzhen and Beijing and even Wuhan. But the fact is that much of China’s rural and there can’t really be a rural exodus to the cities because you have a kind of passport plan in China. In order to live in Beijing, you have to have a permit to live in Beijing so the city won’t become even more overcrowded than it is now. They’re having to re-focus development much more on the rural areas that have not kept pace with the heavy industrial factory areas that have occurred. So they wanted to do a lot of building, not only to employ labour and to do construction, but to think just in case they needed this housing for the rural exodus, they needed it in place. Now they realise, OK, we’re not following that particular central planning idea. Central planning really is very hard. It’s very hard to build whole small cities in advance with nobody there. It’s much easier to wait until they’re actually economic forces leading you to develop. So in that sense, China’s becoming more market oriented in its planning. But at the same time, it shapes the market, increasingly, to create domestic prosperity and earning opportunities, not unearned rent-extracting opportunities, but productive earning opportunities. This is an ongoing process of re-evaluating, restructuring, fixing up and improving the economy.

Ross Michael Hudson, welcome back. Great to have you for the second half.

Michael Hudson Thanks.

Ross Michael, we said right at the top of this programme that there is, let’s say, a tug of war between the unipolar and the multipolar. China have looked at the West and they must conclude now, the Russians also, must conclude, that the Western economic model is fatally flawed. In many ways, what you’ve got in America is an advanced oligarchy. Across Europe, you’ve got a zombie banking system. And basically the model for the last certainly 30, 40 years has been to extract as much rent as possible and pass it off as an economic miracle. To avoid all that, this fork in the road has crystallised. What do you think will be the decisions coming out of Beijing when they look at the economy in a more holistic way and they realise that they want to better the lot of the average Chinese citizen?

Michael Hudson Well, as I pointed out, their concept of the economy realises the distinction between earned income and unearned income, between rent and profits. It wants to make profits, not economic rents. And it also sees that the United States is trying to prevent it from going along this socialist road, and that’s really the new Cold War. You mentioned unipolar versus multipolar. It’s actually not so much that China, Russia and the Shanghai Cooperation Organisation, along with Kazakhstan and Iran and now the other groups are pulling away. It’s the United States that’s trying to force them to follow the US neoliberal model by imposing sanctions and special penalties and military threats, not to mention ISIS terrorism. The United States is driving Europe, Asia and now Africa as well, into a unified, consolidated unit outside of itself. It’s very self-destructive. It thinks like George Soros, that if we stop investing in Asia and other countries, that will force them to knuckle under to the US. But what it’s doing is it’s driving them altogether into the Belt and Road Initiative.

What China’s doing is creating a precondition for a profitable industrial economy over a large area to benefit from. It’s participants are going to need transportation. You’re going to need ports. You’re going to need roads. You’re going to need pipelines and is focusing on the interconnections, on the infrastructure.

America doesn’t build infrastructure these days unless it’s monopolised. This is the political fight going on in the United States now. President Biden has a infrastructure plan that he’s scaled down from six and a half trillion to three and a half trillion. And essentially the bulk of the Democratic and Republican Party said if we can’t privatise infrastructure and make it a rent-extracting monopoly, we’re not going to do it, and we’re going to block the government from doing it. So in the United States, they’re going to have high priced infrastructure, high-priced health care and high-priced education while China is going to have low-priced transportation, low-cost infrastructure, free education, public health care. And you’re going to have a very high-cost United States unable to compete with the rest of the world. All it can do is make military threats or financial threats. If it tries to impose sanctions as it’s imposed on Russia, China and other countries, these are going to serve as protective tariffs for foreign countries.

When President Trump put sanctions on agricultural exports to Russia, it was a windfall for Russia. They developed their own agriculture and Russia is now the largest grain exporter in the world. Senator McCain characterised Russia as a gas station of atom bombs, but it’s a gas station with the largest farm sector in the world, and is developing an industrial integration with China and the rest of Asia. It’s a Eurasian world island as Mackinder called it a century ago, and it is becoming the economic focus of the world, leaving the United States as the high cost economy with no visible means of support, because we’re not doing our own industry anymore. We’re not competing with China. We’re letting China do all of the industry, and all of a sudden we’re dependent on it. This does not bode good for prosperity in the United States or Europe and other areas that are satellites of the US economy.

Ross What is the probability of the West going, hang on, we have taken a detour here, we need to do something differently?

Michael Hudson I’d say maybe between one and two percent. In order to understand that you’re taking a wrong detour, you have to understand what the right path is, and why China’s doing it right. They can’t acknowledge that, because that’s called socialism. And when everyone points out that instead of having health care absorbing 18 percent of the American GDP, you could provide public health care and lower the cost of living in the United States. That’s a precondition for making labour more competitive. Well, the employers are going to argue that if you make health care public, then you’re going to lose the ability to lock-in labour to its employers. Right now in the United States, especially during the pandemic, if you work for an employer for a living, you’re afraid of being fired because you lose your health insurance and that is a threat of bankruptcy. If you complain about your job, you might be fired. That’s a danger. So having private health care paid for by the employers locks labour into dependency. They’re afraid to ask for higher wages. They’re afraid to ask for pensions. Privatized employer-based health care has become part of the class war here, and it is succeeding in impoverishing labour. Same thing with privatized education costs financed on credit at fairly high interest rates, without any bankruptcy recourse to wipe them out..

President Biden promised that he was going to wipe out student debt. If you have students paying 40 to 50 thousand dollars a year to have a college education and a college diploma is a precondition for getting a job like a union card used to be, then you’re going to have that added to the cost of living. When you have all of these privatised – education, health care, not to mention housing and other factors – when you have all these rent-extracting exploitative sectors you cannot be a competitive economy. You can only get money by conquering and exploiting other countries, by owning their own rent-extracting sectors and monopoly-profit sectors.

But there’s no one to conquer anymore. America couldn’t even conquer Afghanistan. Every economy for the last 5,000 years has two parts. There’s the real economy of producing and consuming and paying taxes and government services. And then there’s the debt and financial overhead. All economies operate on credit. The problem is that credit cost money, and creditor claims accumulate at compound interest. if you look at the compound interest for anybody’s savings – take the wealth of the One Percent and all the trillions of dollars they have – if you leave your money to accumulate compound interest, it grows exponentially. But economies don’t grow exponentially. They grow in an S-curve, and sometimes there’s an interruption. Sometimes there’s a disease like Covid. Sometimes there’s bad weather and a environmental disaster or there’s a war. And once there’s an interruption, what do you do with the fact that the finance sector grows faster?

Well, this goes way back to Babylonia. It occurred in Greece and Rome. Ultimately the tendency is for the financial sector to take over and to use the financial returns to take over real estate. And so there’s a symbiosis between real estate and finance. That’s occurred in every economy for the last 2,000 years since Greece and Rome. It certainly characterises where most money and most wealth is made today. In the universities, you take a course and they say, well, you accumulate wealth by saving up the wages and saving up the profits you made. But that’s not how the wealthy classes got money. That’s not how the One Percent have made money. They have made money either by taking property from the public domain by privatisation, or it’s made today by the central banks, lowering interest rates, flooding the market with credit, enough credit to push up real estate prices 20 percent in the United States in the last year. Housing prices have gone way up to unaffordable levels, pushing up education prices – and education is priced at whatever a bank or the government will lend you to pay with a student loan. It’s all financialization. It turns out that what people thought was industrial capitalism has turned out to be finance capitalism instead. So what China is doing is saying that it’s not going to let our industrial capitalism evolve into finance capitalism. It’s going to evolve into socialism, because they’re a socialist government.

Ross Just say the Chinese, the penny’s dropped and they’ve understood how badly wrong the West got it. What does the Chinese economy, and as importantly, society look like 10, 20 years from today?

Michael Hudson It’ll be a more balanced, less polarised economy. It will still let people make fortunes, but not gigantic fortunes large enough for an independent oligarchy to develop, to become a rival to government and try to replace government. In the West, you’ve had a financial oligarchy evolve and take over planning from elected government. So we don’t have democracy now. It means a free market where you leave everything to Wall Street as your central planner. So China is going to leave its planning spontaneously to individuals to innovate, to develop, where America is becoming, and England, are centrally planned economies planned by Wall Street, not to create prosperity, but to create rent-extracting opportunities for Wall Street stocks and bonds and absentee real estate. So you’re going to have a rentier economy – let’s call it neofeudalism – while the rest of the world goes forward into what industrial capitalism was meant to be a century ago before it was sidetracked in the West. Much of Eurasia and the Shanghai Cooperation Organisation will evolve into socialism, as most expected would happen in the West a century ago.

Ross You talk about Super Decadence. Is the irony lost on you that one of your politicians recently attended a 35,000 dollar gala event dressed in an expensive dress with the words ‘tax the rich’ embroidered all over the back of it?

Michael Hudson That perception of inequality has become so popular that you can almost make fun of it. There’s something called neurolinguistic programming, that says that if you have a problem, a headache or something, if you can imagine your headache or your problem being very far away and then expanding and expanding and finally, poof, it all dissolves and goes away. They think that they can say “Tax the rich” and just make it into a phrase that’s so popular, it doesn’t really mean tax the rich any more. It means that you accept inequality, but realize that it’s just become part of the system – and wouldn’t it be nice if there were a parallel universe in which we could indeed tax the rich. But of course, that’s just a nice fantasy.

Ross Michael, always entertaining. Always a pleasure. Thank you so much for your time.

Michael Hudson It’s wonderful to be here, Ross. Thanks for having me on your show.

POSTSCRIPT:

Right after this interview, China did on its own just what George Soros was asking U.S. money managers to do: Stop lending money to China. So China itself made an about-face and turned down the BlackRock’s plans to buy a large Chinese real estate company, and it did not pay foreign holders of its Evergrande bonds on September 23.

Diplomatically, China had expected Wall Street firms to lobby to stop America’s anti-China policy. And indeed, many Wall Street executives did point out to the U.S. government that China offered many opportunities for America to make money, and urged not to treat it as an enemy. But the military-industrial complex (MIC) has its own agenda, along with the neocon and neoliberal advocates of unique U.S. unilateralism. I think that ever since China’s officials met in Alaska with Mr. Blinken earlier this year, they see the handwriting on the wall, as have Russia and other SCO members. The’ve accepted that the world economy is fracturing between the U.S.-centered “free world” (central planning by Wall Street and unilateral diplomacy from Washington) and the multilateralizing rest of the world.

Michael Hudson

America Is Becoming a Nation of Conformists

The awful thing about the society we’re becoming is all the conformity. Conformity is the opposite extreme of individualism and independence, two defining traits of historical America. Conformity is for the benefit of the state — i.e., for the cultural as well as for the governmental “powers-that-be.” It’s easier for THEM that we all think and act alike. COVID vaccination experimental treatments are a classic example. They want to be able to say, “Look at us, we got 100 percent (or 85 percent) of the population vaccinated. Everyone is safe, thanks to us.” It’s all about THEM. IT’s not about you, I or “everyone.” It’s only about THEM.

Individual minds, individual choices or unique circumstances are not only irrelevant; those factors are the enemy. Americans don’t get this. Unless you’re an American and you came here from a statist society, you don’t get it. Not unless you take the time to think about it, and understand, which most either will not or cannot do. Through conformity and blind obedience — right now, on one major issue, the vaccine — we’re being led down the path to do it again, again and again. I still believe the biggest example that will come is imposition of the Green Religion on society. If they can get us to take these vaccines, they can get us (85-100 percent of us) to do ANYTHING. Mandated veganism (or other mandated diet), going without heat/ac/electricity, going without gas or fuel … I can’t predict what form it will take, but the relevant psychology and ideology will be exactly the same. Socialism (being passed in Congress as we speak) will generate the necessary shortages to rationalize the controls. It’s happening right out in the open. Right in plain daylight. I’m not sure even George Orwell anticipated anything this grotesque.

Michael J. Hurd, Daily Dose of Reason

Can You Really be Friends with those who Support what’s Going on in America ?

Being a therapist for 35 years, I understand denial. I understand the need for the human mind to integrate radically new and difficult information. It hasn’t dawned on most people yet that our government–consisting primarily of DemComs and RINOs–is accountable to NOBODY. That includes the media, who will not question or challenge anything they do. Perhaps when all the people who oppose what’s happening realize it’s not going to stop, and that it’s only going to get worse, we’ll finally start to see some resistance worthy of the name.

Some advice for self-reflection, not just for right now but in the difficult weeks and months that are coming: Consider editing advocates of Communism, fascism, intolerant leftism, “wokeism” — all of the insanity taking over our culture and our daily lives — from your life. I am not talking about business associates or customers. I am talking about personal life. Why should you spend any time with people who want your liberty, your reason, your independence and your prosperity destroyed? Isn’t something deeply and irreparably wrong with such people? If so, what does it itdo to your morale, your self-respect, and your very soul to spend time with them?

These are, after all, people who want you censored, segregated, shunned and perhaps (before much longer) even worse. We are not talking about people who can be reasoned with. Remember: If they still support Biden, his regime, and just everything else that’s going on, then they are supporting the people and movements literally committed to your destruction, and the annihilation of all that you value. Is their company really preferable to the company of a good pet, a fine book or movie, a lovely view of natural beauty, and perhaps decent, rational, freedom-loving and truly life-loving people you have yet to meet?

Michael J. Hurd, Daily Dose of Reason

The United States and the West are in the Grips of Delusional Madness

and unprecedented overreaction to a virus with a 99.5% survival rate was launched in March of 2020, thus unleashing what can best be described as a once-in-a-century fiasco. Nineteen months later it is impossible to look at the United States and the world and not conclude that this country and much of the West is in the grip, not of a virus, but of delusional madness and malevolence.

The governing elites have been so successful in propagandizing and fear-mongering the populace in many western nations, including the United States, that the virus has made far too many people blind to the madness as they wallow in anxiety, depression, and hopelessness — deliberately and with forethought brought about by these malevolent cabals.

The noted British historian Kenneth Clark in his book and television series Civilisation said that empires fall not just to barbarians and other external enemies, but more so on account of exhaustion and loss of confidence within.  He warned of the evolutionary process of destruction of self-confidence leading to exhaustion and culminating in the feeling of hopelessness which can overtake people even with a high degree of material prosperity. As any civilized nation, in order to survive, requires confidence in the society in which one lives as well as belief in its philosophy and in its laws and confidence in one’s own mental powers.

In the United States, the left-wing dominated ruling class, determined to transform the nation into a one-party oligarchy, has long focused on demoralizing and fomenting hopelessness among the American people so they would be amenable to this transformation. In a society already beset with self-doubt and disquiet about the future, they gaslighted the populace through the gross and near-criminal exaggeration of the threat of Covid-19, combined with manipulated data, unprecedented societal and economic lockdowns, social distancing, mandatory masking and now de facto vaccination passports. Thus, exacerbating the feeling of hopelessness among the citizenry.

At the height of the pandemic hysteria in the fall of 2020, 36% of Americans reported symptoms of anxiety disorder (in 2019, 6.5% of Americans reported anxiety disorder). In this same period, 42% of Americans reported anxiety or depressive disorder (in 2019, 10.8% of Americans reported these disorders). The age group 18-39 (30% of the overall U.S. population) had the highest reported levels of anxiety or depressive disorder– 52%.

The manipulation of the public by the ruling class and its media arm has succeeded as nearly half of the overall American population and a majority of the Millennials (America’s most populous generation) are suffering from anxiety or depressive disorders, which inevitably leads to hopelessness.

Having wildly succeeded in fomenting despair, the ruling establishment cannot stop or curtail their tactics as they cannot risk the American people awakening from or becoming aware of their malevolence and delusional madness. Thus, the never-ending Covid-19 falsehoods and fearmongering in order to maintain and exacerbate anxiety and depression.

Having demoralized and created hopelessness among the bulk of the population, the next step for the ruling elites was to remove Donald Trump, install their hand-picked puppet and control Congress. Using the cover of the pandemic, they unabashedly, and in many cases unconstitutionally, altered the election laws in swing states to accommodate massive voter fraud and buried any negative stories about Joe Biden and his family while censoring the alternative media.  Thus, unleashing their delusional madness for all the world to see.

The United States is the latest country in a long history dating back to 330 B.C. to leave bloody footprints on the way out of Afghanistan. The incomprehensible tactics in this exit, as executed by Biden and the ruling establishment, has destabilized the world and made it significantly more dangerous than before. Their imbecility in believing the Taliban will be responsible stewards of Afghanistan will precipitate another horror show playing out not only in Afghanistan but throughout the West and in the United States.

The fatuous and Marxist-inspired ruling class believes that unlimited spending on social programs and unbridled money creation will sustain and expand an economy. Consequently, millions of able-bodied Americans are choosing to remain unemployed thanks to ever more generous welfare and unemployment, thus, permanently shuttering businesses throughout the country and severely undermining the economy.  As an inevitable byproduct, inflation is also running rampant.  Yet, these myopic loons are determined to spend $5 Trillion in new welfare and “Green New Deal” programs.  Monies the nation does not have, and which will accelerate yet more inflation and ultimate stagflation leading to a potential global recession/depression.

On the now non-existent southern border, having created one humanitarian disaster in Afghanistan, their madcap policies have deliberately created another and quite different humanitarian disaster, one made of unchecked illegal immigration. Allowing terrorist, murderers and sex-traffickers unfettered passage into the country and millions access to welfare, education, health care and low-income jobs.  Thus, displacing Americans, further exacerbating economic decline, creating potential health crises and accelerating societal upheaval.

The ruling elites, in their irrationality, have decreed eight-year-olds can choose their gender, take on a new name and use which ever toilets they want — and mom and dad don’t get to hear a word about it.  Nor do mom and dad have a say in whether their children must wear potentially harmful masks or be vaccinated with an experimental vaccine or be taught in school that those with white skin are genetically predestined to be oppressors and those with dark skin are hopelessly doomed to be oppressed, or that the planet will self-immolate within 10 years because of the lifestyles of their moms and dads.

The madness is in other countries in the West. In the Australian state of Victoria, they are firing rubber bullets into crowds of protestors as well as physically attacking and jailing them without trial.  Australia and New Zealand have almost totally shuttered their countries and in at least one place built a “quarantine camps.”  Many nations have initiated vaccine passport schemes to keep the unvaccinated — the unclean — out of the mainstream of society, precipitating the closure of vital medical facilities and security services due to lack of staffing.

It is not the Chinese Coronavirus that will be the undoing of this or any western country. They (we) will be undone — and are being undone now — by the madness and malevolence of their ruling classes.

Many Americans and citizens in other Western nations know what is happening is wrong and will lead to chaos and a dark place. Yet far too many are fearful of being shouted down, ostracized and censored for saying so. But that cannot be an excuse to remain quiet — on the contrary, that must be the inspiration to speak out in every forum available from one’s family, to one’s neighborhood, to one’s town, to one’s state.

This can be fixed, and a nation restored, if enough join together stand up and emulate Howard Beale in the classic movie Network and shout from the rooftops: “I’m mad as hell, and I’m not going to take this anymore.”

Steve McCann, American Thinker

Seven Ways Men Go Without Working

Almost one-third of all working-age men in America aren’t doing diddly-squat. They don’t have a job, and they aren’t looking for one either. One-third of all working-age men. That’s almost 30 million people!

How do they live? What are they doing for money? To me, this is one of the great mysteries of our time.

I’m certainly not the first person to make note of this shocking statistic. You’ve heard people bemoaning this “labor participation rate,” which is simply the number of working-age men (usually counted as ages 16 to 64) who are working or are seeking work, as a percentage of the overall labor force.

It’s true that the pandemic, which of course produced a number of factors that made working more difficult never mind dangerous, pushed the labor participation rate to a record low. But the fact that millions of American males have not been working precedes COVID-19 by decades. In fact, the participation rate for men peaked at 87.4% in October 1949 and has been dropping steadily ever since. It now stands at 67.7%.

As a business journalist for a good portion of those 70-plus years, I’ve looked at thousands of charts and graphs in my life, and I have to say this one is as jaw dropping as it is vexing:

Chart of the U.S. labor participation rate for men over time, courtesy of the St. Louis Federal Reserve
Chart of the U.S. labor force participation rate for men over time, courtesy of the St. Louis Federal Reserve

Economists, sociologists, politicians, and cable news pundits each have their pet factors to explain the groundswell of non-work. But after digging down here, I’ve concluded there are many different forces at play. That’s what I want to explore today, which is: how men can live in America without working.

I’m not talking about why men have lost their jobs — factories closing, layoffs, automation, outsourcing jobs overseas, even perhaps women entering the workforce, (in fact, the participation rate by women over the same time period is way up). What I want to get at is how they’re living without holding a “real” job, and by that I mean doing work where one reports income to the IRS, pays taxes and Social Security, etc.

It’s important to note that every man in this group has his own story. They range from mentally ill homeless men who desperately need our help, to the I’m-doing-just-fine-thank-you-very-much, retired early, and former Silicon Valley coder. And there are infinite scenarios in between those two extremes, including, for instance, the many men who have chosen to be stay-at-home dads while their spouses work.

It’s also the case that some men in this group may be unemployed and not seeking work because they’ve given up looking just for now — perhaps waiting for COVID to abate — and will start the search again soon. Here too, society needs to help.

Still, none of this explains decade after decade of falling male employment.

To that end, here to my mind are seven ways men are living without working in America:

-Unemployment insurance

Let’s start with this one because it’s a hot button issue. Conservatives and some liberals too have made the claim that state unemployment aid, coupled with $600 a week from the CARES Act, which was rolled out in March 2020, have reduced men’s need to work. (There are actually a variety of social programs at play, spelled out nicely here by think tank The Century Foundation, which estimates that overall these programs have pumped $800 billion in the economy.) We’ll be getting a good read on whether all this relief did suppress employment now that CARES aid ended for some 7.5 million Americans earlier this month. But as Yahoo Finance’s Denitsa Tsekova reported here and here, states that ended federal aid programs early didn’t see big increases in employment. That may mean these payments really weren’t enough to live off, or not enough to live off by themselves, which speaks to men looking to a combination of sources, like under the table income or family support and possibly some savings (see below).

-Early retirement, pensions, disability and lawsuits

Admittedly, this is a bit of a hodgepodge. And as is the case with many of these categories, hard data is tough to come by, but it is the case that millions of men under 64 are at least partly living off of pensions and 401(k)s. This would include everything from C-suite executives to union members. And don’t forget municipal workers, who make up almost 14% of the U.S. workforce. According to the U.S. Census Bureau, there are some 6,000 public sector retirement systems in the U.S. Collectively these plans have $4.5 trillion in assets, with 14.7 million working members and 11.2 million retirees. The plans distribute $323 billion in benefits annually, and again, some to men who are younger than 64. In fact in almost two-thirds of these plans, if you started working at 25, you max out at 57, a real inducement to stop working — at least at that job of course.

Volunteers load cars with turkeys and other food assistance for laid off Walt Disney World cast members and others at a food distribution event on December 12, 2020 in Orlando, Florida. Tom and Sarah Bricker, a couple who runs the Disney Tourist Blog, raised over $64,000 in on-line donations for the Second Harvest Food Bank of Central Florida, which partnered with Good Samaritan Outreach to help the unemployed theme park workers. (Photo by Paul Hennessy/NurPhoto via Getty Images)
Volunteers load cars with turkeys and other food assistance for laid off Walt Disney World cast members and others at a food distribution event on December 12, 2020 in Orlando, Florida. (Photo by Paul Hennessy/NurPhoto via Getty Images)

There’s also disability insurance from the Social Security Administration that is being paid to some 9 million Americans who may receive payments many years before retirement age. That’s why I am including disability here, but not plain vanilla Social Security, which you can’t receive until age 62. The maximum disability benefit amount you can receive each month is currently $3,148. (However, the average beneficiary receives about $1,277 per month, according to the law group Social Security Disability Advocates.) Overall, it looks like the SSA pays out some $130 billion in disability annually. That’s not nothing. Then there’s money paid out in medical malpractice each year, smaller true, but still estimated to be in excess of $3 billion. And don’t forget payments from legal settlements and class action lawsuits.

You argue all day about the right or wrong when it comes to these payouts, but the fact is many of them didn’t exist, or not at this magnitude, decades ago.

-Savings, trading stocks, and bitcoin

Consider now men are living off savings, or from money made in the market or maybe even selling NFTs. How many is it exactly? Who knows, but quite a few for sure. First off, Americans on average do have some money in the bank. Savings as a percentage of disposable income, according to the Federal Reserve of Kansas City, hit a record high of 33% in the spring of 2020 and is still at 14%, or nearly twice as high as it was prior to the pandemic.

And according to a recent survey by Northwestern Mutual, average personal savings are up over 10% compared to last year, from $65,900 last year to $73,100. Average retirement savings increased 13%, from $87,500 last year to $98,800 today. So there’s that.

Next let’s look at investing — first stocks. It is not irrelevant to this narrative that the S&P 500 has climbed from 2,480 on March 12, 2020 — the day after the World Health Organization declared COVID a pandemic— to 4,441 today, or almost 80%. That’s a huge gain. Much of the action of course has been retail investors and the meme stock boom, as millions of American males stuck at home with nothing to do all day for the past 18 months passed the time trading stocks. Credit Suisse estimates that since the beginning of 2020, “retail trading as a share of overall market activity has nearly doubled from between 15% and 18% to over 30%,” as CNBC reported. How many men were doing this and supporting themselves? Unclear, but upstart trading platform Robinhood (HOOD) — the broker dealer of choice for many of these new investors — reported that it had 22.5 million funded user accounts last month, up from 7.2 million in March of 2020. Let’s just say 15 million new accounts is quite a number. 

Now crypto. You can laugh all you want, but the simple fact is that the price of bitcoin is up from $4,861 on March 12, 2020 to $47,763 today, or basically up 10X, (and remember it even hit $64,888.99 this spring). Back to Robinhood, which according to The New York Times, also reported last month that “revenue from cryptocurrency trading fees totaled $233 million, a nearly 50-fold jump from $5 million a year earlier.” (And those are just fees off the trades, mind you.) Bottom line: Folks have made money here. (Of course these guys should be paying taxes on all those stock and crypto gains.)

Robinhood Markets, Inc. CEO and co-founder Vlad Tenev and co-founder Baiju Bhatt pose with Robinhood signage on Wall Street after the company's IPO in New York City, U.S., July 29, 2021.  REUTERS/Andrew Kelly
Robinhood Markets, Inc. CEO and co-founder Vlad Tenev and co-founder Baiju Bhatt pose with Robinhood signage on Wall Street after the company’s IPO in New York City, U.S., July 29, 2021. REUTERS/Andrew Kelly

-Working for cash, aka the under-the-table economy

This one is very tough to measure, too. A study by the Federal Reserve of St. Louis estimates that the average size of the “informal economy” in developed countries is 13% of GDP. Honestly, that could be off by many percentage points, but just to give you a ballpark, GDP in the U.S. this year is about $22 trillion. So 13% of that is $2.86 trillion. As it turns out, $2 trillion-plus, is a number that has been thrown around quite a bit (here and here for instance) when it comes to estimating the size of the cash economy in the U.S. Even if half that money is paid out to women, that still leaves, say, $1 trillion dollars being made by men in this country off the books. That’s a big chunk of change. Are more people than ever working for cash these days? Again, another question that’s impossible to answer. I would bet it’s not fewer. For example, my electrician Luis just told me he can’t get anyone to work for him anymore — they all want to get paid in cash.

-Living off family members

Just to take one facet, the Pew Research Center reported last year that the pandemic “has pushed millions of Americans, especially young adults, to move in with family members. The share of 18- to 29-year-olds living with their parents has become a majority since U.S. coronavirus cases began spreading [in early 2020], surpassing the previous peak during the Great Depression era. In July, 52% of young adults resided with one or both of their parents, up from 47% in February.” How many of these individuals are males living rent free (and sharing food too), which maybe means they don’t have to work? Who knows, but some. Ditto for males who have moved in with in-laws or siblings. And again, many men are choosing to stay home and take care of kids while their spouses work.

-Illegal work

Front and center here is selling illegal drugs. Sadly, business looks to be booming, that is if overdoses are any sort of measure. According to the Washington Post, overdose deaths hit 93,000 last year, up a stunning 30% from 2019. Most of the overdoses were attributed to opioids; heroin, synthetic opioids like OxyContin and in particular Fentanyl. (This despite drug dealers facing supply chain issues during COVID.) How many Americans are in this business and who are they? A number is almost impossible to come by here, but as for who they are, a government report on drug trafficking arrests from five years ago notes that ​​”the majority of drug trafficking offenders were male (84.9%), the average age of these offenders at sentencing was 36 years, 70% were United States citizens (although this rate varied substantially depending on the type of drug involved), and that almost half (49.4%) of drug traffickers had little or no prior criminal history.” How big a business is selling drugs in America? Could be as much as $100 billion. I think it’s fair to say that a market that size requires many thousands of employees.

What about other types of crime and criminals, everything from robbers and thieves to prostitutes and pimps? To that point there are some 2 million people incarcerated in the U.S. right now. (We have the highest absolute number and the highest per capita on the planet, and hold some 25% of the world’s total prisoners, according to the ACLU.) Being in prison is another way of living in America without working, I guess. But not counting those locked up, how many bad guys are out there on the street? Conservatively, it has to be thousands and thousands, and speaking to this story, they’re all doing their thing and not participating in the labor force.

ORLEANS, MASSACHUSETTS - JULY 10: A man holds onto a clamming rake while clamming at low tide July 10, 2021 in Town Cove, Orleans, Massachusetts. He filled a bushel basket of cherry stone clams. (Photo by Robert Nickelsberg/Getty Images)
ORLEANS, MASSACHUSETTS – JULY 10: A man holds onto a clamming rake while clamming at low tide July 10, 2021 in Town Cove, Orleans, Massachusetts. He filled a bushel basket of cherry stone clams. (Photo by Robert Nickelsberg/Getty Images)

-Living off the land

This would include gardening, fishing, hunting, clamming, berrying, and just general foraging. The numbers here seem to be climbing. Here for instance from The Guardian:

“Fishing and hunting license sales increased 10% in California during the pandemic, reversing years of decline. Clamming has grown in popularity for several reasons: people are looking for safe activities to do outdoors, but also some are clamming for subsistence and trying to get money from selling the shellfish (which is illegal without a commercial license).”

Ditto for Washington state, according to The Spokesman-Review:

“From the start of the 2020 licensing year in May through Dec. 31, WDFW [Washington Department of Fish and Wildlife] sold nearly 45,000 more fishing licenses and 12,000 more hunting licenses than 2019. The number of new license holders — defined as someone who hadn’t purchased one for the previous five years — went up 16% for fishing licenses and almost 40% for hunters.”

As for growing vegetables in home gardens, yes, it is up, way up too. Even before the pandemic, there were estimates that a third of American families grew vegetables. Now this, NPR reported last year:

“‘We’re being flooded with vegetable orders,’ says George Ball, executive chairman of the Burpee Seed Company, based in Warminster, Penn.

Ball says he has noticed spikes in seed sales during bad times: the stock market crash of 1987, the dot com bubble burst of 2000, and he remembers the two oil crises of the 1970s from his childhood. But he says he has not seen a spike this large and widespread.

So there you have it. It’s a whole range of ways and means, behaviors and experiences. I’m sure I missed some, too. Again, some non-working men are in dire straits and need our help. Others are living non-working lives without burdening society or others, such as a fireman on early retirement (though some argue municipal employee pensions are too high), or an investor who made a ton of money in the market and called it quits, or maybe a wilderness guy living off the land in Alaska.

And some non-working men are not playing fair. Like getting paid under the table, fudging insurance claims or social programs. Some freeload off relatives. And some engage in overtly illegal behavior like boosting branded goods from chain stores to sell online or dealing heroin.

I would imagine that more than a few of these men create a portfolio of sources, though I’m not sure they really think of it that way. Take for example a hypothetical guy in a rural area who lives with his grandmother rent free, (he does help her with the garden some). This guy also does some cash carpentry work, hunts for game, gets some food off his ex-wife’s WIC and helps his brother sell some weed. Can you get by this way? Some men probably are. Is this the new American way? For some men it probably is.

That example perhaps, and to be sure of all of the above, I think go a long way toward explaining that chart from the beginning of the story, the one that shows the labor participation rate falling off a cliff over the past seven decades. And speaking of charts, another striking one came to mind when I was writing this, which I put here below. It shows U.S. GDP over the same time period as the labor participation rate.

Chart of the U.S. Gross Domestic Product over time, courtesy of the St. Louis Federal Reserve
Chart of the U.S. Gross Domestic Product over time, courtesy of the St. Louis Federal Reserve

Of course, the line on this GDP chart is inversely correlated with the line on the labor participation graph. And I think there is a relationship between the two. Which is to say, the wealthier our nation has become over the decades, the less men are working. Fact is there is just a ton of money sloshing around in our country. And men seem to be able to get their hands on it, whether obtained legally, borrowed, leeched off of or stolen.

It seems like working legally to provide for yourself in America is really just one option these days.

This article was featured in a Saturday edition of the Morning Brief on September 18, 2021. Get the Morning Brief sent directly to your inbox every Monday to Friday.

Almost one-third of all working-age men in America aren’t doing diddly-squat. They don’t have a job, and they aren’t looking for one either. One-third of all working-age men. That’s almost 30 million people!

How do they live? What are they doing for money? To me, this is one of the great mysteries of our time.

I’m certainly not the first person to make note of this shocking statistic. You’ve heard people bemoaning this “labor participation rate,” which is simply the number of working-age men (usually counted as ages 16 to 64) who are working or are seeking work, as a percentage of the overall labor force.

It’s true that the pandemic, which of course produced a number of factors that made working more difficult never mind dangerous, pushed the labor participation rate to a record low. But the fact that millions of American males have not been working precedes COVID-19 by decades. In fact, the participation rate for men peaked at 87.4% in October 1949 and has been dropping steadily ever since. It now stands at 67.7%.

As a business journalist for a good portion of those 70-plus years, I’ve looked at thousands of charts and graphs in my life, and I have to say this one is as jaw dropping as it is vexing:

Chart of the U.S. labor participation rate for men over time, courtesy of the St. Louis Federal Reserve
Chart of the U.S. labor force participation rate for men over time, courtesy of the St. Louis Federal Reserve

Economists, sociologists, politicians, and cable news pundits each have their pet factors to explain the groundswell of non-work. But after digging down here, I’ve concluded there are many different forces at play. That’s what I want to explore today, which is: how men can live in America without working.

I’m not talking about why men have lost their jobs — factories closing, layoffs, automation, outsourcing jobs overseas, even perhaps women entering the workforce, (in fact, the participation rate by women over the same time period is way up). What I want to get at is how they’re living without holding a “real” job, and by that I mean doing work where one reports income to the IRS, pays taxes and Social Security, etc.

It’s important to note that every man in this group has his own story. They range from mentally ill homeless men who desperately need our help, to the I’m-doing-just-fine-thank-you-very-much, retired early, and former Silicon Valley coder. And there are infinite scenarios in between those two extremes, including, for instance, the many men who have chosen to be stay-at-home dads while their spouses work.

It’s also the case that some men in this group may be unemployed and not seeking work because they’ve given up looking just for now — perhaps waiting for COVID to abate — and will start the search again soon. Here too, society needs to help.

Still, none of this explains decade after decade of falling male employment.

To that end, here to my mind are seven ways men are living without working in America:

-Unemployment insurance

Let’s start with this one because it’s a hot button issue. Conservatives and some liberals too have made the claim that state unemployment aid, coupled with $600 a week from the CARES Act, which was rolled out in March 2020, have reduced men’s need to work. (There are actually a variety of social programs at play, spelled out nicely here by think tank The Century Foundation, which estimates that overall these programs have pumped $800 billion in the economy.) We’ll be getting a good read on whether all this relief did suppress employment now that CARES aid ended for some 7.5 million Americans earlier this month. But as Yahoo Finance’s Denitsa Tsekova reported here and here, states that ended federal aid programs early didn’t see big increases in employment. That may mean these payments really weren’t enough to live off, or not enough to live off by themselves, which speaks to men looking to a combination of sources, like under the table income or family support and possibly some savings (see below).

-Early retirement, pensions, disability and lawsuits

Admittedly, this is a bit of a hodgepodge. And as is the case with many of these categories, hard data is tough to come by, but it is the case that millions of men under 64 are at least partly living off of pensions and 401(k)s. This would include everything from C-suite executives to union members. And don’t forget municipal workers, who make up almost 14% of the U.S. workforce. According to the U.S. Census Bureau, there are some 6,000 public sector retirement systems in the U.S. Collectively these plans have $4.5 trillion in assets, with 14.7 million working members and 11.2 million retirees. The plans distribute $323 billion in benefits annually, and again, some to men who are younger than 64. In fact in almost two-thirds of these plans, if you started working at 25, you max out at 57, a real inducement to stop working — at least at that job of course.

Volunteers load cars with turkeys and other food assistance for laid off Walt Disney World cast members and others at a food distribution event on December 12, 2020 in Orlando, Florida. Tom and Sarah Bricker, a couple who runs the Disney Tourist Blog, raised over $64,000 in on-line donations for the Second Harvest Food Bank of Central Florida, which partnered with Good Samaritan Outreach to help the unemployed theme park workers. (Photo by Paul Hennessy/NurPhoto via Getty Images)
Volunteers load cars with turkeys and other food assistance for laid off Walt Disney World cast members and others at a food distribution event on December 12, 2020 in Orlando, Florida. (Photo by Paul Hennessy/NurPhoto via Getty Images)

There’s also disability insurance from the Social Security Administration that is being paid to some 9 million Americans who may receive payments many years before retirement age. That’s why I am including disability here, but not plain vanilla Social Security, which you can’t receive until age 62. The maximum disability benefit amount you can receive each month is currently $3,148. (However, the average beneficiary receives about $1,277 per month, according to the law group Social Security Disability Advocates.) Overall, it looks like the SSA pays out some $130 billion in disability annually. That’s not nothing. Then there’s money paid out in medical malpractice each year, smaller true, but still estimated to be in excess of $3 billion. And don’t forget payments from legal settlements and class action lawsuits.

You argue all day about the right or wrong when it comes to these payouts, but the fact is many of them didn’t exist, or not at this magnitude, decades ago.

-Savings, trading stocks, and bitcoin

Consider now men are living off savings, or from money made in the market or maybe even selling NFTs. How many is it exactly? Who knows, but quite a few for sure. First off, Americans on average do have some money in the bank. Savings as a percentage of disposable income, according to the Federal Reserve of Kansas City, hit a record high of 33% in the spring of 2020 and is still at 14%, or nearly twice as high as it was prior to the pandemic.

And according to a recent survey by Northwestern Mutual, average personal savings are up over 10% compared to last year, from $65,900 last year to $73,100. Average retirement savings increased 13%, from $87,500 last year to $98,800 today. So there’s that.

Next let’s look at investing — first stocks. It is not irrelevant to this narrative that the S&P 500 has climbed from 2,480 on March 12, 2020 — the day after the World Health Organization declared COVID a pandemic— to 4,441 today, or almost 80%. That’s a huge gain. Much of the action of course has been retail investors and the meme stock boom, as millions of American males stuck at home with nothing to do all day for the past 18 months passed the time trading stocks. Credit Suisse estimates that since the beginning of 2020, “retail trading as a share of overall market activity has nearly doubled from between 15% and 18% to over 30%,” as CNBC reported. How many men were doing this and supporting themselves? Unclear, but upstart trading platform Robinhood (HOOD) — the broker dealer of choice for many of these new investors — reported that it had 22.5 million funded user accounts last month, up from 7.2 million in March of 2020. Let’s just say 15 million new accounts is quite a number. 

Now crypto. You can laugh all you want, but the simple fact is that the price of bitcoin is up from $4,861 on March 12, 2020 to $47,763 today, or basically up 10X, (and remember it even hit $64,888.99 this spring). Back to Robinhood, which according to The New York Times, also reported last month that “revenue from cryptocurrency trading fees totaled $233 million, a nearly 50-fold jump from $5 million a year earlier.” (And those are just fees off the trades, mind you.) Bottom line: Folks have made money here. (Of course these guys should be paying taxes on all those stock and crypto gains.)

Robinhood Markets, Inc. CEO and co-founder Vlad Tenev and co-founder Baiju Bhatt pose with Robinhood signage on Wall Street after the company's IPO in New York City, U.S., July 29, 2021.  REUTERS/Andrew Kelly
Robinhood Markets, Inc. CEO and co-founder Vlad Tenev and co-founder Baiju Bhatt pose with Robinhood signage on Wall Street after the company’s IPO in New York City, U.S., July 29, 2021. REUTERS/Andrew Kelly

-Working for cash, aka the under-the-table economy

This one is very tough to measure, too. A study by the Federal Reserve of St. Louis estimates that the average size of the “informal economy” in developed countries is 13% of GDP. Honestly, that could be off by many percentage points, but just to give you a ballpark, GDP in the U.S. this year is about $22 trillion. So 13% of that is $2.86 trillion. As it turns out, $2 trillion-plus, is a number that has been thrown around quite a bit (here and here for instance) when it comes to estimating the size of the cash economy in the U.S. Even if half that money is paid out to women, that still leaves, say, $1 trillion dollars being made by men in this country off the books. That’s a big chunk of change. Are more people than ever working for cash these days? Again, another question that’s impossible to answer. I would bet it’s not fewer. For example, my electrician Luis just told me he can’t get anyone to work for him anymore — they all want to get paid in cash.

-Living off family members

Just to take one facet, the Pew Research Center reported last year that the pandemic “has pushed millions of Americans, especially young adults, to move in with family members. The share of 18- to 29-year-olds living with their parents has become a majority since U.S. coronavirus cases began spreading [in early 2020], surpassing the previous peak during the Great Depression era. In July, 52% of young adults resided with one or both of their parents, up from 47% in February.” How many of these individuals are males living rent free (and sharing food too), which maybe means they don’t have to work? Who knows, but some. Ditto for males who have moved in with in-laws or siblings. And again, many men are choosing to stay home and take care of kids while their spouses work.

-Illegal work

Front and center here is selling illegal drugs. Sadly, business looks to be booming, that is if overdoses are any sort of measure. According to the Washington Post, overdose deaths hit 93,000 last year, up a stunning 30% from 2019. Most of the overdoses were attributed to opioids; heroin, synthetic opioids like OxyContin and in particular Fentanyl. (This despite drug dealers facing supply chain issues during COVID.) How many Americans are in this business and who are they? A number is almost impossible to come by here, but as for who they are, a government report on drug trafficking arrests from five years ago notes that ​​”the majority of drug trafficking offenders were male (84.9%), the average age of these offenders at sentencing was 36 years, 70% were United States citizens (although this rate varied substantially depending on the type of drug involved), and that almost half (49.4%) of drug traffickers had little or no prior criminal history.” How big a business is selling drugs in America? Could be as much as $100 billion. I think it’s fair to say that a market that size requires many thousands of employees.

What about other types of crime and criminals, everything from robbers and thieves to prostitutes and pimps? To that point there are some 2 million people incarcerated in the U.S. right now. (We have the highest absolute number and the highest per capita on the planet, and hold some 25% of the world’s total prisoners, according to the ACLU.) Being in prison is another way of living in America without working, I guess. But not counting those locked up, how many bad guys are out there on the street? Conservatively, it has to be thousands and thousands, and speaking to this story, they’re all doing their thing and not participating in the labor force.

ORLEANS, MASSACHUSETTS - JULY 10: A man holds onto a clamming rake while clamming at low tide July 10, 2021 in Town Cove, Orleans, Massachusetts. He filled a bushel basket of cherry stone clams. (Photo by Robert Nickelsberg/Getty Images)
ORLEANS, MASSACHUSETTS – JULY 10: A man holds onto a clamming rake while clamming at low tide July 10, 2021 in Town Cove, Orleans, Massachusetts. He filled a bushel basket of cherry stone clams. (Photo by Robert Nickelsberg/Getty Images)

-Living off the land

This would include gardening, fishing, hunting, clamming, berrying, and just general foraging. The numbers here seem to be climbing. Here for instance from The Guardian:

“Fishing and hunting license sales increased 10% in California during the pandemic, reversing years of decline. Clamming has grown in popularity for several reasons: people are looking for safe activities to do outdoors, but also some are clamming for subsistence and trying to get money from selling the shellfish (which is illegal without a commercial license).”

Ditto for Washington state, according to The Spokesman-Review:

“From the start of the 2020 licensing year in May through Dec. 31, WDFW [Washington Department of Fish and Wildlife] sold nearly 45,000 more fishing licenses and 12,000 more hunting licenses than 2019. The number of new license holders — defined as someone who hadn’t purchased one for the previous five years — went up 16% for fishing licenses and almost 40% for hunters.”

As for growing vegetables in home gardens, yes, it is up, way up too. Even before the pandemic, there were estimates that a third of American families grew vegetables. Now this, NPR reported last year:

“‘We’re being flooded with vegetable orders,’ says George Ball, executive chairman of the Burpee Seed Company, based in Warminster, Penn.

Ball says he has noticed spikes in seed sales during bad times: the stock market crash of 1987, the dot com bubble burst of 2000, and he remembers the two oil crises of the 1970s from his childhood. But he says he has not seen a spike this large and widespread.

So there you have it. It’s a whole range of ways and means, behaviors and experiences. I’m sure I missed some, too. Again, some non-working men are in dire straits and need our help. Others are living non-working lives without burdening society or others, such as a fireman on early retirement (though some argue municipal employee pensions are too high), or an investor who made a ton of money in the market and called it quits, or maybe a wilderness guy living off the land in Alaska.

And some non-working men are not playing fair. Like getting paid under the table, fudging insurance claims or social programs. Some freeload off relatives. And some engage in overtly illegal behavior like boosting branded goods from chain stores to sell online or dealing heroin.

I would imagine that more than a few of these men create a portfolio of sources, though I’m not sure they really think of it that way. Take for example a hypothetical guy in a rural area who lives with his grandmother rent free, (he does help her with the garden some). This guy also does some cash carpentry work, hunts for game, gets some food off his ex-wife’s WIC and helps his brother sell some weed. Can you get by this way? Some men probably are. Is this the new American way? For some men it probably is.

That example perhaps, and to be sure of all of the above, I think go a long way toward explaining that chart from the beginning of the story, the one that shows the labor participation rate falling off a cliff over the past seven decades. And speaking of charts, another striking one came to mind when I was writing this, which I put here below. It shows U.S. GDP over the same time period as the labor participation rate.

Chart of the U.S. Gross Domestic Product over time, courtesy of the St. Louis Federal Reserve
Chart of the U.S. Gross Domestic Product over time, courtesy of the St. Louis Federal Reserve

Of course, the line on this GDP chart is inversely correlated with the line on the labor participation graph. And I think there is a relationship between the two. Which is to say, the wealthier our nation has become over the decades, the less men are working. Fact is there is just a ton of money sloshing around in our country. And men seem to be able to get their hands on it, whether obtained legally, borrowed, leeched off of or stolen.

It seems like working legally to provide for yourself in America is really just one option these days.