Episode 76. June 30, 2021. Replacing the Democrat’s Economic Hoax of Marxism With Jefferson’s Model of American Entrepreneurial Capitalism.

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The Citizens Liberty Party News Network.
Replacing the Democrat’s Economic Hoax of Marxism With Jefferson’s Model of American Entrepreneurial Capitalism.
Introduction.
In addition to the 1619 White supremacy hoax, the Russia hoax, the climate change hoax, the January 6, 2021 insurrection hoax etc., we argue that the Democrat Marxists are perpetuating a gigantic economic hoax about the purported moral goodness of the Marxist economic system.
The entire Democrat Marxist justification for getting rid of the capitalist system lies in the false argument that communism would be a more fair and inclusive economic system than capitalism.
The main tenet of the Marxist hoax is to replace the current American corporate crony capitalist system with the state communist crony corporatism of China, which would, supposedly, end the White supremacist reign of terror.
In other words, the Marxist hoax seeks to replace one version of elite corporate rule with another version, of a more tyrannical elite corporate rule, with the promise that the new tyranny would eradicate White supremacy.
The hoax is given substance and credibility because the Democrat Marxist argument combines the principles of Jefferson’s founding documents of 1775 and 1776, with the systemic racism of Madison’s document of 1787, which sanctioned slavery.
As long as conservative groups, like Trump’s 1776 Commission, agree with the Marxists to conflate the “American Founding” with the two distinct events in history, the Marxist hoax will continue to have intellectual credibility to undermine the economic system, and the American society.
We agree with the Marxist allegation that Madison’s Constitution perpetuated the sin of slavery. Jefferson’s two documents, 12 years earlier, did not.
The Marxist logic in combining the two events is to allege that the sin of slavery consigns Black people to perpetual lives of economic misery. In their telling of the American historical narrative, the original sin of slavery can never be overcome.
A better strategy for natural rights conservatives to protect liberty is to jettison the argument that Madison’s constitution is a founding document, and claim that the legitimate American founding documents are exclusively the natural rights principles of Jefferson’s 1776 Declaration, and his 1775 document, The Causes and Necessity of Taking Up Arms.
That natural rights philosophical allegation about the defects in Madison’s document is necessary to form the framework of a new American entrepreneurial capitalist system, which replaces the current crony capitalist version of capitalism.
Marxist Democrats modify the original Marxist analysis by replacing the Marxist economic concept of capitalist class exploitation, with the concept of White supremacy exploitation.
In the modified Marxian analysis, the entire White population is reconceived as the oppressor class, who exploit the labor of Black workers.
The only way for Marxists to rid America of institutional racism is to get rid of capitalism, coincidentally, subjugating the White population to perpetual government-sanctioned repression.
For example, by reinterpreting Marxist theory that the White population is the new capitalist class, the Marxists provide the justification for eliminating White Trump supporters as racist terrorists, in the January 6, 2021, capitol protest.
In their reinterpretation of Marxist economic theory, the Democrats never provide the details of how the Chinese communist economic system would function in America, if consumer choice in a market is replaced by a non-market system of material balances, dictated by unelected Marxist elites.
In other words, the Marxist Democrats never describe how American working class citizens earn a daily living, if a market system of prices is replaced by a central command economy of shadow prices that reflect the elite’s opinions about social justice and fairness in income distribution.
A second part of the Marxist economic hoax is that capitalism is unfair to Black people because systematic, institutional racism prohibits Black people from obtaining financial success in the current economy of America.
Black people would never achieve economic prosperity under communism, either, because all oppressed people will be paid the same income, no matter how hard they work, the color of their skin, or the market value of their labor.
We have noted elsewhere the peculiar symbiosis between the Democrat Marxist economic hoax of the goodness of communism, and the global corporations, who desire a seamless, borderless world economy. (Vass, Laurie Thomas, BLM Marxism and the Emerging Alliance With Global Corporate Crony Capitalism. CLP News Network, Episode 54, July 24, 2020).
The globalist economic model promoted by American Democrat Marxists is the state crony corporatism of China, where the Communist Party enforces the coercion of forced slave labor, while the global corporations produce goods in China’s slave labor market.
In the Chinese model, the CCP government taxes the profits of the global corporations and then uses the revenue to build the Chinese military power, while the corporations benefit from the coerced slave labor to produce cheap goods in China, for exchange in the global market.
The rationale of the symbiosis is that the American Marxist economic system cannot produce goods without the collaboration of global corporations, as partners.
The symbiosis between Democrat Marxists and large corporations is that the Marxist government would tax the profits of the large corporations to obtain the revenue needed to implement the fair and just income distribution, without the burden of Madison’s constitutionally-sanctioned White supremacy.
As is the case of the Chinese economic model, the American partnership is based upon an agreement that the Democrat Marxist rule the agencies of government, in a one-party tyranny, while the crony corporations produce the goods, and benefit from government crony largess.
In the American crony system, what was left, after 1992, was an American labor market where 70% of all jobs were in the service sectors, in low wage, dead-end jobs in restaurants and hair salons.
The other 30% of the labor force was employed by the global corporations in high wage jobs, with benefits and internal career paths.
This bifurcated social system is the economic promise of the Democrat Marxists.
In other words, the American Marxist economic hoax is that the Marxist economic theory uses racism as a political tool to continue a ruling class economic theory similar in many ways with the original Marxist 2-class theory of capitalist exploitation.
Marx argued that capitalism consistently benefits the ruling class, who rig the system to obtain unearned income. Marx stated that the capitalist system allowed the rich to get richer, at the expense of the working and middle classes.
However, as James Buchanan pointed out, in the Reason of Rules, the welfare decisions the ruling class make, whether under American crony corporations or Chinese elites, is to maximize their own personal welfare, not social welfare.
Rather than social welfare maximization in a consumer choice economic model, Marx advocated central government power over all economic decisions, in order to allow political elites to make the society more fair and inclusive.
The gigantic Marxist hoax is that voting for Democrats will improve the lives of Black people by eliminating White supremacy.
In reality, the Democrat Marxists seek to improve their own lives, as the example of Patrisse Cullors buying four houses with BLM donations, vividly demonstrates.
Our podcast today is the introduction to a much longer written article, that is available for free, for one week, at the clpnewsnetwork.com
The sections of the longer article are:
Section 1. The Chinese State Communist Crony Corporate Economic Model.
Section 2. The Marxist Solution of Civil War to Eradicate White Supremacy.
Section 3. Jefferson’s Promise of Liberty Through Revolution.
Conclusion: Jefferson’s Revolutionary Theory of Entrepreneurial Capitalism.
The entire archive of written CLP News Network articles is available for an annual subscription of $30. The annual subscription includes access to the pass word protected discussion forum for natural rights conservatives.
I am Laurie Thomas Vass, and this podcast is a copyrighted production of the CLP News Network.
Section 1. The Chinese State Communist Crony Corporate Economic Model.
We argue that the repressive, authoritarian, one-party tyranny in China, for the past 30 years, serves as the economic model for American Democrat Marxists.
About 65% of the Chinese labor market works in enterprises owned by the government, and the average hourly wage is about $1.00. The Chinese hourly wage excludes the 1 million Uighurs, who work for free, as slaves to the Chinese dictators.
After the Marxist purge the American political system of opposition, they will then turn their attention to implementing the Chinese version of state crony corporate economic model, modified to fit the American historical circumstance of White supremacy.
The Chinese economic model can be described with the use of conventional neo-classical analysis.
In the U. S. context, the conventional economic analysis seeks to explain total national economic activity as gross domestic product, because GDP is a surrogate indicator for social welfare improvements.
The idea is that the greater the GDP, the more consumption available for citizens.
The analysis begins by describing the components of GDP.
GDP = C + I + G, where C stands for consumption expenditures, I is for domestic capital investment, a G is for Government spending.
In describing the Chinese state communist model, the neo-classical analysis seeks to explain Government expenditures, because government expenditures are a surrogate indicator of social welfare.
The idea is that the bigger the government expenditure, the more social welfare expenditure on citizens.
G = (GDP – C) + (I – W).
The Chinese economic model increases the size of G by constraining consumption and wages in order to divert more resources to the government.
Lenin explained that the communist government regime owned and controlled all social resources.

Lenin stated,
“Communist society means that everything—the land, the factories—is owned in common. Communism means working in common.”
For the past 30 years, the Chinese government economic decisions can be explained by the export-based economic model of Harrod and Domar, where the elites used government revenues to increase capital investments in manufacturing sectors in order to promote export production.
The Harrod-Domar model predicted that the Chinese economic growth rate depended on the productivity of capital, enhanced by stealing American technology, and the increased tax revenues and resources obtained by diverting income from consumption and wages of Chinese workers.
At the early stages of Chinese economic growth, each new, additional unit of capital investment in plants and equipment generated a large improvement in productivity.
That early stage of economic growth is characterized as investment-led, exogenous growth, because the growth was based upon increasing global trade, enhanced by U. S. corporations moving production facilities to China, after 2002, in order to produce goods for the global export market.
Eventually, over 30 years, the Harrod-Domar model predicted that additional units of capital investment in manufacturing would generate lower and lower rates of economic growth.
The economic growth trap, created by the Chinese elites, is that diverting resources from domestic consumption and wages prohibited a shift from external forces of growth, through global trade, to endogenous, or internal sources of economic growth, based upon increased domestic consumption.
Consequently, the Chinese communist political system became the world’s greatest political proponent of globalism, in order to keep the Chinese economy growing through global trade.
The longer the Chinese elites remain dependent on investment-based globalism, the deeper they dig their own hole to make a shift to internal, consumption-based economic growth.
To paraphrase Jefferson, the Chinese elites have an economic wolf by the ears.
On the one ear, their current export model of economic growth does not generate the level of job growth required for the labor force, especially in the rural regions.
On the other ear, their U. S. trading corporate partners require the Chinese CCP to maintain low wages as the justification of the big global corporations to locate plants in China.
Marx argued that workers create value through their labor, but are not properly compensated by the owners of capital. The difference between the wages paid and the profits obtained is a measure of capitalist exploitation.
The Marxian analysis of capitalism in the 1850s applies to the exploitation of Chinese workers by the Chinese CCP.
The hard work of Chinese labor is exploited by the CCP ruling classes, who generate profits, not by selling their products at a higher price, but by paying workers less than the value of their labor.
In the case of the Chinese economic model, the profits are used to build up the Chinese military. The source of the profits are U. S. corporations who share the profits made from using Chinese slave labor in their Chinese production facilities, and selling the goods at global prices.
The economic dilemma for the Chinese CCP is that they know that the most prevalent cause of social revolution is lack of jobs. Both the demise of the Roman Republic and the demise of the first French Republic occurred because the sons and daughters of the middle class could not find decent jobs to maintain their middle class lifestyles.
In the absence of a transition to a consumer-driven economy, China’s economic model cannot generate a middle class endogenous consumption growth model.
The Chinese society will continue to be characterized as a two class society of communist elites, and the working poor, with a very small middle class. The incipient threat of social revolution is met by greater and greater levels of police state repression.
This society in China fits the Marxian analysis of the two-class society capitalist society he analyzed in the 1850s.
Marx predicted that the end stages of capitalism required intensification of exploitation on a global basis to find underdeveloped regions through a process of global imperialism, generally representative of the American economy in the 1880s.
Marx’s predictions about global imperialism fit the current Chinese belt-and-road policy initiatives.
Lenin anticipated the Democrat Marxist hoax of social justice. Lenin stated that the system of private property, that undergirds capitalism, must be eliminated to usher in a more humane economic system.
Lenin explained that the more humane economic system would be controlled by the government of unelected elites.
Lenin stated,
“The state [government] is in the final analysis groups of armed men, the army, the police. The government represents an organ of repression of one class over another.”
This armed, repressive, one-party state is the promise of Democrat Marxists, where Marxist elites own and control all elements of political ideology and income distribution.

Section 2. The Marxist Solution of Civil War to Eradicate White Supremacy.
We begin our argument that the Marxist economic hoax could easily lead to a civil war with the question asked by George Packer, in his recent Atlantic article, How America Fractured Into Four Parts.
Packer asks: “Is reconciliation possible?”
Packer provides a historical sociological analysis of the current 4 social/political classes, and finally reaches the conclusion that returning to the status quo of 2008 is not possible because the four world views are irreconcilably incompatible.
Packer’s conclusion of reconciliation is supported by Angelo Codevilla, who writes,
“The United States of America is coming apart. The only question is whether it finishes doing so to avoid violence, or as a result thereof…Any restoration implies some sort of mutual alienation, separation, or secession, whether as a substitute for civil war or as a result of it. What kind of conflict might it take to rescue ourselves from what we regard as contemporary America’s corruptions?”
The answer to the corruption of the failed American state for Democrat Marxists is to transform the nation into a totalitarian police state in order to eradicate the sin of White supremacist slavery.
The Democrat Marxist vision implies a race war between Blacks and Whites, with the BLM faction winning the civil war, and subjugating the White race to perpetual rule by the unelected Marxist elites.
In that civil war scenario, the Marxists win the race war and continue to rule the vestiges of the former United States as an unexceptionable nation in a global, one-world economy.
The logic of the Marxist civil war scenario is based upon a chain of logic that begins with an absolute starting assumption that America was founded upon the racism of slavery, which cannot be remedied through citizen democracy and consent of the governed.
For Marxists, America is not an ongoing project of self-government, to be improved. In Marxist propaganda, the country has no positive value, and can never be made better.
The civil war scenario is described by the acclaimed Black Marxist, Ibram X. Kendi, in his recent book, How to Be an Anti-Racist.
Kendi defends the teaching of Marxist critical race theory as a legitimate investigation of the American institutional systemic racism of all cultural and institutional agencies of the society.
Kendi argues that the entire Western civilization is racist, and denies the scientific empiricism of the enlightenment because scientific empiricism is racist and based upon White imperialism.
In Kendi’s version of logic, empiricism must be replaced by the social construction of reality, where Marxists fantasize about the moral goodness of communism.
He admits that he understands why White citizens may be nervous about the Democrat Marxist end goals of teaching critical race theory.
Kendi notes,
“So if you’re [W]hite and you’re being told by elected officials or even the media that critical race theories are out to go after [W]hite people, then I could understand how people would be concerned about that,”
Kendi argues that the Marxist civil war scenario is morally justified because “Trumpism” constitutes an immediate urgent threat to social justice that must be purged from society.
In his recent Salon article, Chauncey DeVega describes the existential threat posed by Trumpism.

He writes,
“Trumpism was not an acute disease that would magically disappear once Donald Trump was no longer president. Instead, Trumpism is a potentially lethal, chronic and long-lasting disease of the nation’s mind, body and spirit… I would describe Trump’s most extreme devotees as members of a charismatic cult. Such cults unconditionally worship a charismatic leader who is often delusional with a grandiose, psychotic belief in his perfection, like Trump.”
The extreme devotees of Trump are deemed White terrorists by the Marxists, and their elimination is justified through civil war.
Alan Woods, a communist writer, notes in his article, In Defense of Marxism, The Role of the State and Social Democracy, that the civil war scenario is the only path for ultimate Marxist victory to end White supremacy.
He writes,
“The truth is that the only way to solve the present crisis is through a radical transformation of society…Any other solution will turn out to be disastrous. It would be naïve to imagine that the ruling class [White supremacists] would simply remain with its arms folded in the event of a working class government that was really determined to change society.”
The force of the economic hoax argument is hidden in the meaning of Woods’ use of the term “working class government.” Working class government means a communist dictatorship, just like the Chinese economic model of crony corporate state capitalism.
The pathway to implement the communist dictatorship is through a civil race war that subjugates White citizens in perpetual misery to the Marxist Democrats.
Section 3. Jefferson’s Promise of Liberty Through Revolution.
We argue that the civil war scenario is not the only outcome of the incompatible values between Marxists and natural rights conservatives. A more likely scenario is the example in American history of the revolutionary war, where patriots broke free of the tyranny of the British king.
In the revolutionary war scenario, the two sides break free of each other, with the winners creating a new form of government.
The Marxists have succeeded in overthrowing Madison’s representative republic, and natural rights conservatives must now break free from the Marxist tyranny.
We allege that one primary reason that the Marxists staged a bloodless coup on November 3, 2020, is that the date represented a “now-or-never,” moment in history for the Democrat Marxist agenda.
In the prior 4 years, the power and force of the Marxist communist hoax had aligned all components of the social cultural and institutional agencies, under the ideology that communism was a more just system than capitalism.
The Marxist political agenda had been disrupted by Trump’s victory, in 2016, and the Democrat Marxists feared that he was posed for another victory in 2020.
Consequently, the Democrats stole the election, under the justification that their vision of a just and inclusive society was more important than allegiance to the rule of law, under Madison’s constitution.
As we have noted elsewhere, the Marxist coup deprived American citizens of their natural rights, which we describe as morally evil. (Vass, Laurie Thomas, Vanquishing the Democrat Marxist Evil: The Case Against Trump in 2024, Episode 75, The Citizens Liberty News Network, June 8, 2021).
After their successful coup, the Marxists are now in control of the federal government, with support and collusion with RINOs and the corporate elite ruling class.
The Marxists intend to use the tenets of critical race theory to purge Trump voters from the political system, in order to establish one party rule.
We argue that the Marxists will not willingly, or voluntarily, give up their illegitimate power, without a civil war, initiated under the hoax of eradicating White supremacy.
We argue that the American experience in 1775 offers a less violent path for natural rights conservatives. The patriots staged a revolution to make a clean break with the Monarchy, and we argue that a clean, revolutionary break with the Democrat Marxists is required today to restore liberty.
Trump voters are not organized to defend themselves from the Marxist attack because they have no revolutionary ideology. As we have argued elsewhere, Trump’s MAGA policies are policy options, not an ideology of liberty.
One of the reasons that we wrote our recent book, The Natural Rights Conservatism of Rush Limbaugh, is to provide the first step towards providing the ideology of liberty to defeat the ideology of Marxism. (Vass, Laurie Thomas, Natural Rights Conservatism of Rush Limbaugh: The National Sovereignty/Populist Foundation of a New Entrepreneurial Capitalist Economy. Gabby Press, 2021).
In our book, we take 31 years of Rush’s opinions, and organize them into an ideology of natural rights.
As we describe in our promotional literature for the book, it is impossible to build a revolutionary movement of liberty without a revolutionary philosophy of natural rights.
Our book provides the rationale for the principles of liberty that we fight for, today, and the principles of liberty that our ancestors have died for. (Vass, Laurie Thomas, It’s Time to Panic, Citizens Liberty Party News Network, June, 2021.)
One of the reasons we advocate a clean historical break between Jefferson’s documents, in 1775, and 1776, with Madison’s document, of 1787, is that Jefferson’s documents can be rehabilitated to serve as the basis of a new natural rights constitutional order of entrepreneurial capitalism.
Madison’s document cannot be rehabilitated. Madison’s representative republic ended on November 3, 2020, because his republic relied on the voluntary allegiance to the rule of law, in a society of shared cultural values.
The objective historical evidence is that Madison’s constitution ended in a centralized elite tyranny because his system of checks and balances contained defects.
We discern the natural rights constitutional order through the historical lineage of Locke-Jefferson-Lincoln.
Rather than fighting a civil war with the Marxist Democrats, we advocate a clean revolutionary break with the Marxists, to restore Jefferson’s promise of liberty, through revolution.
Conclusion: Jefferson’s Revolutionary Theory of Entrepreneurial Capitalism.
The neoclassical economic theory is based upon the concept that maximum social welfare will not be improved for one individual without reducing the welfare of another.
In the individualist innovation economy, social welfare is judged by aggregating all individual welfare functions into a national social welfare function.
Individuals are free to maximize their own welfare, and have property rights to enjoy the profits that they create through their own individual initiative.
In communist theory, a welfare change cannot be made for any individual unless it improves the welfare of all individuals.
This Marxist principle of welfare is the minimum level of welfare, equalized for all individuals.
In capitalist economic theory, the unit of investigation is individual welfare decisions, which are based upon the unchanging human behavior of survival and welfare improvement.
In communist economic theory, the unit of investigation is the future-state welfare of society, as determined by communist elites.
We argue that Chinese communism, European socialism, and American crony capitalism, are all variants of crony capitalism that attempt to use government to distribute financial benefits to politically connected agents.
The key common characteristic of the three crony collectivist economies is profit exploitation by the elites over the production value produced by the non-elites.
Cronyism exploitation replaces the Marxist concept of capitalist exploitation of the workers with crony exploitation of non-elites.
The set of crony elites, who benefit from cronyism, attempt to maximize the hoax of a group collectivist concept, which is commonly described as a social welfare function.
In their case, their selfish social welfare function acts as a substitute for individualist national welfare function.[aka deep state].
In the 3 collectivist economies, the entire society is seen as a synthetic entity, whose national welfare is measured by aggregate social indicators like GDP, fairness and income equality.
The Locke-Jefferson-Lincoln philosophical lineage of liberty creates the conditions of free market capitalism because it is based upon the idea that individuals are their own best judge of improving their welfare.
The same principle of liberty in economics forms the basis of Jefferson’s principles of self-government.
Jefferson offered a revolutionary theory of government, which created the revolutionary conditions of entrepreneurial capitalism, which Jefferson, in that colonial time period, called the community of small independent farmers.
Today, Jefferson’s faith in the farmer economy would be called entrepreneurial capitalism, where citizens have an equal opportunity to achieve happiness and prosperity through individual initiative.
In entrepreneurial capitalism, increased capital investments are made through decisions by individual entrepreneurs seeking prosperity.
The neoclassical analysis of increasing GDP is modified to describe that private domestic investments in technological innovation leads to maximum economic growth and maximum job growth because the capital investment creates new future exchange markets.
The modification of the economic analysis seeks to explain the components of private domestic capital investment in a sovereign national geography, defined by national boundaries.
I = [GDP – G] + [C – S]
Where I is private capital investment,
C is consumption, and S is savings of households and businesses, who reinvest profits.
We argue that there is only one economic system that attempts to maximize individual welfare, which we call the American Entrepreneurial Capitalist Economy.
We argue that the social welfare outcomes of entrepreneurial capitalism are more “fair” that the outcomes of the Marxist economic hoax.
In the collectivist societies, the concept of fairness is judged by political elites who determine fair outcomes, after income has been earned.
In the individualist societies, fairness constitutes the ability of the individual to appropriate the income that they produce.
We conclude that the progress towards a fair American entrepreneurial economy can be visualized as a knowledge creation enterprise, modeled upon the logic of a regional metro block chain, whose end goal is the commercialization of radical new technology, and the creation of new future markets.
The mission, or goal, of the government economic policy is to increase private domestic capital investment, which then:
• Creates new interindustry supply chains in each metro regional economy,
• Diffuses innovation and knowledge among supply chain member firms,
• Creates new future markets that distributes income and creates jobs with internal career paths,
• Creates the dynamic of capital reinvestment of profits from one time period into the future time periods,
We conclude with the observation that one reason migrants came to America is to have a chance for freedom and upward occupational mobility. That reason of freedom is documented in Jefferson’s 1775 document on the Necessity of Taking Up Arms.
That reason for coming to America has been eliminated by the Democrat Marxist hoax to make everyone the same, with the same level of income. The reason the migrants flood across the southern border is to obtain minimum social welfare.
Like the Chinese communist elites, who have an economic wolf by the ears, American natural rights conservatives have an ideological wolf by the ears.
One the one ear, they cannot go forward into the future with the Marxist White supremacy hoax, which ends with subjugation and domination of the White race.
On the other ear, they cannot go back in history, to the status quo ante, because Madison’s document is defective against limiting the power of the corporate ruling class.
The path forward to liberty lies in replacing the Democrat’s economic hoax of Marxism with Jefferson’s revolutionary model of liberty, in the economic framework of American Entrepreneurial Capitalism.
I am Laurie Thomas Vass, and this article is a copyrighted production of the Citizens Liberty Party News Network.