21st Century Business Model


It is strikingly phenomenal that ... not only is nothing being done about this ... no one is even talking about it ... the biggest fraud in the history of civilization. A few hundred influential people, just speaking of it in rational terms, may be sufficient to cut it down to manageable proportions. - EBTX



T   
he precise pedigree of this horror show is unknown to me. I suspect that it had its origins in the organized crime "business" model. There are some similarities. Perhaps it goes back much farther. One thing is certain, it has come to fruition in the 20th century and will dominate the next. This is the grease on the slide into a new dark age.

Anatomy 1.0

This model is based on a triad ... an incredibly stable configuration ... like the slave trade or more recently organized crime.

In OrgCrime the three partners are the criminals themselves, the government and the ubiquitous lawyer faction who act as brokers between government and criminal.

There is a symbiotic relationship.

The criminal element (organized crime) can neither function nor prosper without something being made illegal upon which they might commerce. What the "McGuffy" is ... is irrelevant. But a good choice is always something that the general populace can get "stirred up" about, i.e. drugs, prostitution, etc.

Left alone, whatever "football" is used would seek its own societal level ... often less than or perhaps only slightly more used than in the presence of proscription.

The best example is drug use. Without being illegal, the cost of drugs would plummet drastically under normal market rules. It is the opposition to drug use which is the sole creator of its incredible market value. What costs $100 opposed might cost $1 unopposed.

A drug wholesaler needs the threat of arrest to maintain an inflated price. He just doesn't want to be the particular trafficker caught. He wants others to be caught. If no one at all is apprehended ... prices must necessarily drop. Only a "real" threat can maintain that incredible mark up.

Drug enforcement agencies need the drug trafficker to maintain their justification for continued existence. If all traffickers were caught, their agency might be disbanded. Hence, they catch sufficient numbers to justify their existence but not enough to terminate the need for drug enforcement officers.

There are exterminators who bring food or poison depending on whether the infestation is too small or too large.

Actually, the relationship is almost that of twins inseparably conjoined at the hips. "D.E.A. type" officers are often paid more by drug traffickers than by their own agencies. This is a natural development in such tight "marriages".
The purpose of lawyers in the organized crime triad is not as significant as the criminal - police symbiosis. They are, in this case, a kind of parasite on the true symbiotic relationship of the other two. Organized crime is but the precursor of true, threeway symbiosis as embodied in the ...

Lawyer - Insurance - Politician Tripod

This is the fully stable tripod with legs of equal length each dependent on the other two to maintain that stability.

"And they dance in threes ...
in perfect pirouetting circle jerk."
- EBTX

The inner workings ... the way this thing is intertwined with the underlying defacto philosophy of the United States (whining, wimpering swinishness), is as true a marvel of evil construction as one could ever see.

In all candor, I admire the construction because of its perfection. However, I would not hesitate to destroy this particular "Kwai bridge". It is eating us all alive.

We begin with a simple question which doesn't seem to bother many people.


Where has the
productivity increase
of the last 50 years gone?

Why do we still work 40 hours per week? Have we gained nothing from half a century of scientific and engineering progress? Why is my wife now working when in the late fifties the wife could stay home to take care of the kids? Why are we still struggling to make ends meet ... after fifty years ... there is no progress? Is this one of those 5 year plans the Soviets used to offer their citizens? It does seem like the 5 year plan scam ... doesn't it?

There is only one place that all the progress has gone. Fewer people are doing actual necessary work. The majority of Americans perform no useful service in the maintenance and advancement of civilization. They have jobs ... but their jobs produce nothing. Their jobs involve

The Production and Distribution of Income

nothing more ................

Suppose you had a job which consisted of pushing on a telephone pole to hold it up? The pole is firmly embedded in the ground like any normal telephone pole but you get paid to "help hold it up". Maybe you take your job seriously and push real hard and castigate your coworkers for not doing as much as you. But whether you're working hard or screwing off ... you're not doing anything constructive ... are you?

Would anybody notice this type of worker? He gets paid ... spends his money like anyone else ... sends his kids to school. In truth, those who do necessary work are carrying those who don't. There is an awful lot of carrying going on around here to "sop up" the entire productivity increase of the past fifty years in the greatest boom time in the history of man ... wouldn't you say?

My personal estimate is that even factoring in normal high degrees of wasted effort which goes into all human endeavors, we shouldn't be working more than ~ 20 hours per week (average) to maintain the present civilization. And if everyone were honest and tried to do his best (the unobtainable Shangri-la), we should work no more than five.

Who is sucking blood? Why and How is it done?

Anatomy 1.1

This is the how of it.
  1. The insurance company writes the policy.
  2. The lawyers jack up the quantity of money involved in law suits so that it becomes wildly lucrative.
  3. The government passes laws which mandate your involvement in the scam ... and at the same time ... protect the field from free market forces which might upset the whole gambit.
Let's examine each step in detail using the auto insurance scam as a good example.

A. The insurance company wants to write policies for larger sums of money. Thus, if my take is 10%, I'm better off selling a $100,000 policy than a $1000 policy ... right?

They may also wish to write more policies but more policies generally means more employees (conspirators) ... which tends to lower the individuals take. However, the bigger the scam ... the bigger the payroll. Increasing the numbers of people involved is inevitable in any workable scam.

It used to be in Michigan some decades ago (60's), you could pay $45 dollars into an "uninsured motorists fund" and drive legally. At the end of the year there was a surplus after limited claims were paid. Everyone was happy ... except lawyers (no lawsuits), insurance salesmen (no sales), politicians (no problems to wallow in). They got rid of it the second or third year.

What's needed is to get lawmakers to force people to come to the insurance office ... "because we need them ... and ... uh ... duh ... I don't know what to do with my extra cash anyway ... so I should give it over to ... insurance ... yes, that's it ... give ... my ... money ... to ... insurance ... company".

In exchange for their assistance, incalculable $$$ have been kickbacked to politicians (local, state & federal) by insurance companies under the table ... and over the table ... campaign contributions ... gifts ... trips ... you know the drill. This is ongoing. There is no end in sight.

Q. What does an insurance salesman sell anyway?
Ans. Snake oil.

Q. What is the difference between a Ponzi scheme and insurance?
Ans. In a pyramid (Ponzi) scheme - officially illegal - nothing of value to civilization is produced unless you count the short term "high" of expecting to get a great deal for nothing at some future date. In the insurance scheme - legal - nothing of value is produced ... just like the Ponzi, but ... you get a long term "glow" from not having to worry about a big loss in the future.

Remember this for future reference ... long term = legal ... short term = illegal.

B. Ahhhhhhhhhh ... lawyers ... my favorite people.
It is not without reason that Shakespeare wrote the line, "... first kill all the lawyers".

"What work doth nature whore ... doleful rotters, they."
- My prose (almost as bad as their ethics)
These people do absolutely nothing for civilization. The entire judicial system is a porous joke.
For the clueless:
You can point to any instance where justice was truly served and say "Here is the good in it." But that instance, or any number of instances, doesn't matter unless that number surpasses 50%. Thus, if the judgements of law are less than 50% accurate, you might as well (in the big picture) replace them with a simple coin toss and save the money and agravation of legal entanglements. Do you honestly think you are getting even 80% accuracy?
The present, most important, defacto rule of law is :
"Those who have suffered are entitled to profit by it."
This means, if anything bad happens to you, you don't just sit there and suffer in silence, i.e. accept it like a man. You sue the offending party and receive in return a quantity of money greater than your entire life was ever worth.

This is done under the guise of :
1) Pain & suffering - (Why pain & suffering is considered worth more ... pound for pound ... than productive achievement is of interest to this essay.)
2) "We gotta' teach 'em a lesson" - (Also of philosophical interest)

With this defacto permission to pillage granted, the legal profession has succeeded in jacking up the car rakeoff rates for the insurance companies far in excess of anything any actual "car jacker" ever dreamed of.

These days just to get a "legal permit to drive" (liability insurance) requires an outlay of as much as 20-30% of one's net income for the year (male, early twenties, one minor wreck, couple speeding tickets, with wife & two kids and typical low paying labor job). They can't pay it. So they fake it ... one way or another.

And the police ... more or less ... look the other way ... cause they don't have enough jail cells to hold 'em anyway ... well, you can't get blood out of a turnip ... 'and they might start shootin' back too ... so ... forget about it ... unless you have to stop 'em ... for quota ... or ... hmmmm ... speeding?

So what could be done here? ... I mean in the car insurance case?

Well, this is stupidly simple. Why not have "no fault" insurance? I mean "real" no fault insurance. In the real type you just acknowledge the fact that no matter how bad someone drives (or drinks & drives) ... he's not aiming for you. (If he was aiming for you that would be a criminal matter.) So, you just get insurance for yourself and your car and the people riding in your car and screw the other guy ... let him get his own insurance.

But, you say ... he's at fault so he's gotta' pay. Sure. He's a multi-millionaire and has plenty of cash on hand to pay you off generously (in your dreams). Come on ... who really pays for these settlements? ... Right ... an insurance company. If you really hit someone with no insurance you get ... nada. He hasn't got any money ... See?

The insurance company wants to have you "forced" to buy insurance for the other guy in order to milk the percentages. Remember, they get a percentage after settlements are paid. If that percentage is not high enough ... they just raise the rates. And the lawyers would be just about out of business too ... unless ... the government mandates that you buy insurance to pay for the other guy.

And these ripoffs seep into every walk of life. Every endeavor, every star and stripe. All oxes gored. There are more hands in your pockets than you can count on your fingers and their's as well. The cottage industry has become a plantation.

C. And the government - your government - holds the key to maintaining this economic insanity. They insulate the process from the interference of the free market.

Take dental care for instance.

There are commercials informing us that the reason people fear going to the dentist is "the pain" and that they have a special painless needle. Pain is not the problem ... it's the bill. The cost of American dentistry has skyrocketed almost 1000% in the past 15 years while the cost of living hasn't hardly doubled. Today's dentists charge between $300 and $500 dollars per hour. Work it out next time you go. Their actual work time and what is paid by ... your insurance company. Your little portion is meant simply to "milk" a little more for the same work.

Think about this for a moment. How can you have insurance for a "chronic condition". It makes no sense. The only purpose of insurance at all is to protect the individual from total catatrophe. If you are certain to get your statistical share ... why cut in a middle man. Why not just pay out of your own pocket. The cost must be less without the added burden of paying the insurance salesman and his entourage.

So why does "dental insurance" exist?

To facillitate another magnificent ripoff.

If an insurance company "pays" most of the bill ... that's OK ... isn't it? No, because they have to get the money somewhere ... plus more yet for their rake off. They get it from the premiums paid by dentists (malpractice insurance), your company's dental "plan". In other words it comes out of your pocket indirectly.
Remember this forever.
"The people who pay for everything whatsoever are those who do mental and/or physical work conducive to the maintenance and furtherance of civilization. All others pay nothing." - EBTX

What work is "conducive to ... etc."?
Ans: The actual production and distribution of goods and services as required by free market consensus (no ... not what the "fringe" consensus wants). And how much money you make may only be a partly accurate indicator of the value of the goods and services produced by you.

The role of government in this example is to keep out "the rogue dentist" ... (the Mexican wetback dentist who comes to the US hoping to better his lot only to find that he can't legally hang up his shingle and do dentistry at one tenth the going rate - in order to get his business going - because this would serve to drive down free market prices).

Government is going to protect you from dangerously incompetent doctors-dentists by creating high standards which all must meet. Unfortunately, there is a scale involved ... on the one hand high standards mean high cost while on the other hand low standards mean lower costs. You are not allowed to pick from amongst this spectrum ... you're not educated enough to make this judgement ... thus insuring that while your mouth may be under government protection - your wallet is not.





So what have we got so far?

Your money surrounded by a three part fence with no possible exit. The trap is closing and you're about to be "sucked dry".
You CAN get blood out of a tur nip key.

Gobble, gobble, gobble








Every gambit has its gimmick

In calculus, a whole branch of mathematics rests on the simple principal that as /\x approaches zero in the form
2kx + k/\x

you're left with 2kx.

Similarly, the simple plan for the L-I-P Tripod is the fundamental principle of increasing the size of "individual fraud units" , i.e. the individual insurance case denouement.

Just making more cases will not make you rich because more cases means more work ... you've gotta' increase the size of that 'ol settlement. It doesn't matter what your "cut" of the adventure is as long as it's a percentage.

Now, the settlements are as big as the Titanic. After all, who can put a price on human suffering (ans. lawyers). So it must be that the loss of a loved one in an accident is worth ... ? what? ... ten times the amount of money he would have made in a lifetime of work? ... twenty times? ... sky's the limit.

There is a fourth conspirator

It is you.

Have you ever seen the dollar signs flash in the eyes of people who have lost relatives in crashes, etc. when they say "They must be punished. This must never happen again." I have often wished to ask "What does making you rich have to do with punishment? ... why not give all that settlement money to charity in the name of the victim?"

The answer is that most people are so shallow ... they get over the death of a loved one as fast as a robin or a cheetah. The next day their grief is replaced by just plain avarice.

"Such is the manner of course natures ...
that they have no transitions."

- Victor Hugo (Les Miserables)
The type of scam that I am writing about flourishes in a weak, wimpering society. such as late 20th century America. The majority of Americans are looking for someone or something to take care of them. I interpret this as meaning that Americans are no longer maturing past adolescence emotionally. Their personal constitutions, their individual philosophies, their characters are underdeveloped due to lack of misfortune. Not so much adversity anymore.

Well, we certainly don't need to get the adversity back ... but something is needed to cause American spines to stiffen up a bit more.

There is another cause of American weakness of character.

It is the philosophy of Jesus, i.e. Christianity. Although it possesses some good and decent points, it is fundamentally a "female' philosophy. Forgiveness, love, understanding, and most of all submission. This is the single most effeminate philosophy ever devised on this planet. Hence, its success.

Unfortunately, it is an "unbalanced" philosophy. it lacks the male input.

Don't believe me? Take a look at every artistic representation of Jesus. What do you see? A "real man"? I see an effeminate (all but homosexual) representation. That ever so soft beard ... nothing gruff there. No sweat ... ever. No work ... just that limp-wristed, Mary-Magdalen-wash-my-feet, Jesus. And that "whip me, whip me ... it hurts so good."

Jesus never fights back like a man. He justs bends over takes it ... like a woman.

Religious purists will say he "took it" because that was his mission. However, I'm not refering to his mission ... I'm refering to YOUR PERCEPTION OF IT. We don't know what Jesus looked like, his manners, or even for certain that he existed as a flesh and blood historical character. And it doesn't matter anyway. We live by a feminine philosophy which came from ?? ... you see it doesn't matter where it came from ... It's what it is that matters because that is the mold into which our society is poured.

As an unbalanced philosophy, it is doomed to eventual failure. It could not be otherwise. An extreme feminine philosophy is no more stable than an extreme masculine philosophy.

A female philosophy will take longer to become the dominant one and will remain so longer. It fails by way of submission to some male dominant philosophy which will come along to crush it when it weakens sufficiently.
An extreme masculine philosophy will rise by force of arms very fast and will fall faster as well. It is too violent.
Agression and submission are the opposite ends of a spectrum of possibilities. What we need to do is straddle the middle and balance there dynamically like those circus performers who balance on a board on top of a cylinder. Extremely difficult ... but it can and must be mastered. One simply need devise effective feedback mechanisms by which an "unbalance" is spontaneoously corrected (which is exactly what I've done in my new constitution). Not a wildly swinging pendulum but a damped oscillation ... just like the circus.

What stands in the way now is the respect people have for religious historical figures.

The kind of civilization in which I wish to live is peopled by thinking individuals who each possess a unique intellect developed independently. The key here is "thinking". Most people do not place any importance on the development of an intellect (they don't need one if you "submit to" authority ... and just love everybody). Nevertheless, we cannot survive on Earth unless some significant portion of the population develops one.

Not having an intellect is what allows you to fall prey to these ridiculous scams.

So, our "triangle" is now seen to be floating in a sea of imbecility. You not only don't perceive it, you buoy it up by not thinking independently - at depth.

Properly, every human being should develop some interest in life which is non-emotional (mathematics, woodcarving, art, mechanical aptitudes, etc). A cold, calculating machine-like analysing capability to offset and compliment one's emotional "feelings".

Back to the salt mine



The Economic River These green pot guys are proliferating wildly. Soon there will be no one to "input" the goods into the river to fetch back the money. Like when you finally "get it" and give up on this sort of nonsense.

New green pot guys

These are the entire class of "workers" who study the buying habits of everyone in order to redirect the flow of money ... their way (or their employers). If you think about this type of pseudo-employment for a moment you see that it is entirely counterproductive becuase ... no amount of study will significantly increase the amount of money spent by consumers.

They have an income which is basically fixed in any given year. They can only spend what they have and most of it is spent on essentials (rent, transportation, etc). If you assiduously study my buying habits it could conceivably cause me to buy from you. However, this just means that I won't buy from the next guy ... who didn't study my buying habits.

Therefore, it is incumbent on every retailer to employ these drones and since they all have them now ... they're just competing against one another.

Before ... the drone world might be compared to a tug of war with other retailers to get your business. Now ... we have what amounts to an arms race wherein the number of drones on each side of the rope is increased in lockstep with the other side.

All that is accomplished is to increase the tension on the rope.

And you know what happens when that rope gets too taught don't you? Right ... it breaks and everyone holding on gets their fingers amputated when the tension is catastrophically released and the rope goes "zinging" through your greedy hands.

Today, 20% of the population does the work for 80% who get paid to do what I have named "false labor".


*


In Conclusion,

One of the main causes for this problem is that there simply isn't enough work to do. I mean real, necessary work. And ... this is important ... people are willing to work say 40 hours per week. So, if it were arranged that you worked 40 hours per week for two months ... then ... take the rest of the year off ... well, you see ... most people will go out and look for more work to do ... to make a better life for themselves and their families.

The biggest hindrance is not enough constructive work to do.

Yes, there are plenty of "clean up" jobs but no one derives any sense of accomplishment or worth from such jobs. They want "real work" in order to find fulfillment ... there just isn't any available on that scale ... so people are making up work which seems to be worthwhile ... but it's not. It's false labor.

This is not a minor problem. It will not go away by itself. It will, in time, break down civilization.

What can be done?

For starters, we must acknowledge that the problem exists ... study it's true extent ... then begin to argue about solutions.

The bottom line is that people in the future (95% of them in Western countries ... just ~two centuries away ... barring the colapse of civilization due to overpopulation problems which is also avoidable) will have virtually no necessary work to do.

We are beginning to get the effects now.

In the future you will just draw, paint, sculpt, design personal things and machines, maybe build your own house from scratch ... whatever ... just to pass the time enjoying life as our ancestors only dreamed. No one will say "What do you do for a living?" ... rather they may ask, "What's your hobby?".





In the end,
man has no opposition in the universe
... only himself    
- EBTX


Ebtx Home Page