How to Address the Great Western Revenue Crisis

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK (BullionBullsCanada) -- In a previous article,  I pointed out how we were in the midst of the worst revenue crisis in the history of our economies.  Here, I will focus on how we can begin the healing process from this massive hollowing-out of our economies, and why the appropriate solutions are nothing more than a function of simple arithmetic and the most basic principles of economics.

In 2005 and 2006 we were subjected to the worst of B.S. Bernanke's lies: that the U.S. housing bubble and the endless $trillions of Wall Street Ponzi-schemes which had been based upon that bubble represented a "Goldilocks economy" -- where U.S. house prices and U.S. markets were just going to keep going up and up forever. Months later the whole, fraudulent house-of-cards came tumbling down.

For the edification of Mr. Bernanke and all those who still mistakenly follow his preaching, I will describe what a real "Goldilocks economy" would look like, and how it would function. To begin with we need to quickly rebut another of the popular myths of the media propaganda-machine: that advocating economic policies to promote a healthy middle-class is "socialism."

Roughly 2,000 years ago (and more than 1,500 years before the birth of socialism), Greek philosopher Plutarch informed us of something which was already "old news" at the time of the Roman Empire:

An imbalance between rich and poor is the oldest and most fatal ailment of all Republics.

Was Plutarch some sort of closet, leftist ideologue who had somehow managed to travel back in time to the ancient past? Hardly. Like many of the classical Greek philosophers he was simply proficient with two age-old tools: logic and arithmetic. Indeed, most of the reputable elements of modern economic theory are nothing more than a fusion of simple arithmetic and common sense.

Any/every healthy economy should have a wealth-distribution curve that looks almost exactly spherical in shape: widest around the middle, and narrowing at the most-rapid rate as we approach either extreme. In other words, a healthy economy is one where the vast majority of citizens are solidly established at a middle-class level of existence. As stated previously, favoring a strong, healthy middle-class has absolutely zero to do with ideology and everything to do with arithmetic. To demonstrate this we need to again resort to the starting point of all analysis: definition of terms.

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