The High Cost of Working For Money II

Newly added addendum....July 9, 2009

If the math is correct then everyone doing what they do for money is insane.

The worst of it is that none of the above is carried out in your own name. Many have heard the argument that it does not matter about the name but let us ponder that now. If a name is of little or no importance then why the legal requirement to show government identification bearing a name for certain applications? Why would a name from your mouth not suffice? Why the need for the government to have a hand (nexus) in every transaction through identification it issues?Banks are required by law that accounts are established in a name derived of a name appearing on government identification. All names recognized in law as concerns people born in Canada are derived of a birth certificate and the name on a birth certificate derived of the name appearing on what is known as a Statement of Birth in Ontario Canada. So there is the nexus that no matter what, tightens up the source of funds, and claim to property purchased with said funds, and creates a debtor.

In this day and age it is not impossible but highly inconvenient not to have a bank account. Money being the major requirement to pay obligations with and banks existing primarily to service the flow of money for making payments from A to B and B to C and C to D and D back to A over to E and E to F and F to G and round and round and round that one dollar bill can circulate purchasing goods worth millions if it circulates enough. The significance of banks in this part is that in law whoever pays the money; absent evidence to the contrary, has claim on that what is purchased with that money and a debtor is created. Whoever pays or provides the money for the price should have the best evidence to prove claim to whatever was purchased with the money and or a debt. In other words, if you used my money to buy a car and it is documented that the money for the price began its journey from my bank account, absent evidence to the contrary, you owe me at least that amount of money if I make claim that you do.So why then can you or I NOT have a bank account established in a name we give from our mouth? What the big deal is? To protect against fraud they say and I have no doubt, but whose interest are those that say that protecting is the question?So the significance of a bank account then for purposes of this part is that no matter what name a property is purchased or registered in, whoever can prove he was the source of funds that paid the price, that party has, knowingly or unknowingly, an interest in that property and is creditor with a debtor.

So if every bank account is established in a name that is not in fact your name, who has claim to the property purchased with money originating from that account? If any of this is correct what is written here, do your own due diligence if curious, the cause and effect of all this is the life is being sucked out of the people and is a cause of stress (poor health) and a plethora of other consequences that are not healthy and in fact in the view of the author, a cause of early death. Notice how as the burdens upon the people have increased and hope decreased, health issues have increased, adding further burden upon us all.Our (the insane) competing for legislated lack of funds for we makers of the goods to buy back the fruits of our production, dollar for dollar, is cause for huge imbalances and placing burdens on people. Many feel and simply accept as part of life having slowly succumbed to the depths of hell, others have given up hope for a better life, feeling shame that they did not succeed like it appears many others have. The math tells the story and so it is not for lack of hope or effort that many people do not feel they have succeeded. It is manufactured lack of funds resulting from the choice of people to do what they do for after tax dollars.

Now many will cry conspiracy at this point but the author does not see it that way. The author knows of and is seeking another way because what the author sees is that if we people did not charge for our labour we people would not be charged for the goods and services we produce for each other and our family of friends. In other words, hell exists because we created it of a desire for money and we maintain it by not seeing any other way than life with money. Money cannot and has never created anything, people do through our doing, labouring. Money does not sustain life. So the point of this is not to bash or blame any specific party or group, but that it is we the people that are the solution and not any government. Government is a reflection of who the people are. So long as people will only work for money, the government is there to help assure performance of obligations under contract, which for you and I is the payment of money.

Love all!

The high cost of working for the money

(Keep in mind that the numbers are used to show the math. They do not reflect current figures.)

Gross pay equates into the cost of goods and services for sale and delivery, and is what the employer must recover in order to remain in business. The goods and services must sell for at least the cost of producing them. The analogy that follows does not take into consideration profits which would make the inequity far larger. The laborer is paid at the wholesale level, and the goods and services produced, made available by the laborer, for the laborer, are priced for sale and delivery at the retail level.

There is not enough money in circulation to allow the producers of the goods and services (people) to buy them back, and is a reason for debt, bankruptcy and foreclosures. This is why you have to fight tooth and nail to get ahead, but in doing so, someone else loses.

It is taken into consideration here that all labor is pooled; meaning, you do what you do, I do what I do, and at the end of the day, we all do what we do for each other. In other words, I may help build homes and you may help build cars, but it is our collective labor effort that generates the goods and services (hereafter “assets”) that people desire.

“Governments and corporations exist to serve people although that seems to have been forgotten”.

Let’s say that the total amount paid last year by employers to all the workers in Canada, who produce the assets (do the work), was 100 billion dollars, measured as gross pay. The assets produced as a result must sell for at least 100 billion dollars because the employers have incurred an expense of that amount. In other words, if the employer incurred an expense of $ 1000.00 for labor contribution, it must pass that cost off into the assets which the same workers (labor pool) may purchase.

So here we are now, with 100 billion dollars worth of assets for sale. Now let’s see if the workers (labor pool) who did the actual work have the means to buy back the fruits of their own production/assets.

We have covered gross pay but what about net pay? Net pay is what the pay check indicates and what you may call take home pay. Take home pay is the after tax portion of the gross pay and is less than the gross pay that represents the minimum pre tax selling price, of the assets that people produce.

We used an income tax rate of 25% in these calculations.

Cost of the assets for sale as we covered above is 100 billion dollars, but the workers (labor pool) took home only 75 billion, due to the 25% income tax rate. Now you see we are all short the means to buy back the fruits of our own production. Remember, profit is not considered here so the actual inequity is far larger.

In Ontario we have a sales tax and goods and services tax that together equal 14%. So we add that 14% to the 100 billion making it so the worker (labor pool) needs 114 billion dollars to buy back the fruits of our collective production, assets, and yet only take home 75 billion. In other words, the labor pool is 39 billion short of having the ability to buy back the fruits of our production.

Ah, there is a solution to the shortfall: The bank will be happy to lend the 39 billion we are short, plus interest. The bank will lend the principal amount of 39 billion, and wants its interest of say 5% annually, which in this case would be 1.95 billion dollars.

So now the labor pool is 40.95 billion short of the means to buy back the fruits of our production. Remember there is no profit-taking considered here, and so the actual inequity is far larger.

Further, when the bank created and lent the principal amount in circulation to cover the initial shortfall of 39 billion, it did not create and lend the interest of 1.95 billion, which means the interest does not exist in circulation. It does, however, have to be paid. Now you know the reasons for debt, bankruptcy, foreclosures, seizure of property, and why you struggle to but may never get ahead. Now you know a reason why people are stressed, with health issues on the rise. We are trying to perform the impossible and only we can change ‘what currently is’, to a new way. If we do nothing, what legacy do we leave our children and future generations? We people are the producers of all goods and services, cars, homes, roads, buildings, appliances, etc., yet the corporations that exist in name only, and are incapable of producing anything but debt are reaping the benefits and rewards of our labor force.

Yes, some people do get ahead, but at the inevitable cost to others. Working harder is not the solution, for the harder you work, the higher the taxes, and that only contributes to the shortfalls and inequities. Higher wages equate into higher costs for goods and services, effectively stealing from one of your pockets to feed the other.

Now, once given those circumstances, the labor pool (people) that produced the assets, is liable to repay 40.95 billion to the bank, but there is only 39 billion in circulation. If we do not pay (and we cannot collectively), then the bank will have the assets/collateral seized, and the bank did not do any of the work.

The fact is, if we were of one body, responsible to pay the bank interest of only 1.95 billion, we could not, and the bank would foreclose on us all. Obviously the labor pool is not one such body, but you see now why there are inequities. One body or not, every paid worker is subject to the inequities of gross and net pay.

As it is today, what you know as money is borrowed into circulation (promise to pay you), except for the interest aspect. Interest on debt is not in circulation but must be paid back. How can we pay back the principal and interest, when only the principal is created and put back into circulation?

The numbers may change, but the math doesn’t lie. If this situation seems incurable, it only means that it is “curable from within."

Addendum : The High Cost Of Working For Money II