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The Zombie Nation: A Discourse on Reality

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Published on: January 8, 2013

reachingmoneyCreating and sustaining a nation of zombies is expensive.

Large sections of the US population have been turned into zombies. Retirees.  Medicare dependents. Food stamp recipients. Disabled people. They are not  necessarily bad people. They are not necessarily dishonest or lazy. But rather  than add to wealth, they consume it. And when you have too many of them, your  society consumes more wealth than it produces and you are on the road to The  Downside.

But the feds are not only creating individual zombies, they are also creating  corporate zombies. An obvious example: “green” energy. Without  subsidies, loan guarantees, tax benefits and direct giveaways, the industry as  we know it would not exist. Nor would the ethanol industry in the Midwest. Nor  the security industry in the Northern Virginia suburbs of Washington, DC.

The financial industry too, as we know it, would not exist either. Much of it  would have been swept away in the financial storm of 2008-09. That story is  well-known, but not well understood. Most people believe the authorities acted  heroically, saving the nation from a depression. But what the authorities really  did was to take the public’s money and give it to cronies on Wall Street in  order to prevent them from suffering the losses they deserved. The government  transferred nearly $2 trillion in various forms from the public purse to the  pockets of the financial industry. With that kind of backing, most of the old  investment firms survived. The new ones that might have replaced them never saw  the light of day.

Industries need to be sustained by the government when they cannot sustain  themselves. This is practically the definition of “malinvestment” — putting  capital and energy into investments that don’t pay off. When an industry is only  profitable with government backing it means that the industry uses resources —  labor, energy, raw materials — and turns them into finished products that are  worth less than the inputs required to make them. The more of these zombie  industries the government supports, the poorer the society becomes.

“Rentier” is a French word that has leaked into English. It doesn’t mean  zombie literally, but it describes people who have found a way to exploit the  system for their own benefit — people who have legal entitlements to income  streams. In other words, “rentier” describes a class of folks who contribute  absolutely nothing to national prosperity — zombies.

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