OECD Fears Middle Class Civil Unrest Is Coming

Tyler Durden's picture

Submitted by Martin Armstrong of Armstrong Economics blog,

tax it

This idea that we live in a world where government cares about us is just the biggest propaganda ever. Everyone one will only pursue their own self-interest. The OECD has interesting come out and warned that if governments are unable to stop the transfer of wealth to a small financial elite, the displeasure of the dispossessed middle class could easily turn and go against the prevailing governmental systems. The OECD has claimed to have discovered the existence of a veritable “lumpenproletariat” in the supposedly rich Germany. Even though the systems attempt to provide citizens with bread and circuses in the traditional Roman style to keep them quiet, such  tactics they warn may have now become obsolete after the ultimate circus is over – the World Cup.

The problem with all of these studies is the look at class warfare and not at the consumption of government. They do not follow the breadcrumbs. What if you take everything from the elites? Who will start businesses to create jobs? Who will be left to take as government pensions keep ticking away. In Germany, it has now surpassed 50% of the average persons labor goes to taxes.
There are a host of books coming out all about just taxing the rich more ignoring reducing the cost of government. The German bestseller “The plunder of the world” presents just another socialist agenda arguing that the rich get richer even in times of crisis, while the consequences of a crisis are always carried by the lower-income groups and the middle class. It fails to explain that the rich get richer from investment, not wage income. This is an argument to effective tax investment substantially to even out the disparity? But who then creates the jobs that produce anything? Is it that those who invest unfairly make money when the others pay too much in taxes and do not invest? Anyone who thinks that these books are real must be insane. If you think for one second raising the taxes on the rich will mean your taxes will decline – good luck. In Germany, Tax Freedom Day has passed the 50% and even in Canada it is now June 9, 2014. In the United States it is April 21st for 2014.
In France, the magazine Challenges has determined that the richest Frenchmen saw their assets in 2013 rise by 15% since they benefit from the profits in foreign companies. There is no discussion that government consumes too much – EVER!
German Debt Int%

The consequences of unequal distribution of wealth in the world is becoming the tipping point argued and funded by governments to blame the rich – never government. Nobody seems to be doing the math that if you confiscate all that wealth you end up with communism with taxation and government just keeps growing until it consumes everything. We borrow with no intent of paying anything back and that about 70% of the national debts is all interest that built no schools, reduced nobody’s tax bills, and did nothing for the middle class. This is fairly consistent in all major countries. Governments are trying to push interest rates exceptionally lower to reduce their deficits exploiting the middle class creating a disincentive to save even for retirement when it pays next to nothing.

The OECD is now warning like Picketty that a growing gap between rich and poor will erupt into revolution – not that government is taxing too much. According to the words of the OECD Secretary General Jose Angel Gurria, the problem since the global financial and economic crisis has exacerbated massive. “In the first three years of crisis, inequality increased more than in the twelve years before, “he told the Business Week”. On average across OECD countries, the top 10% of the population now earn 9.5 times as much as the lowest 10% but fail to explain this is from investment. Inequality has grown by 35% because stock markets are rising to escape from the craziness of government. The higher they rise, the greater the disparity.

The OECD claims this is clearly felt in the USA more so than Europe omitting the fact that the disparity comes from investment not wages. They they compare that to Europe claiming there is no welfare state in Europe so somehow this is implied to be better. The OECD then highlights supposedly rich Germany as a dangerous development with a rising disparity stating this is “namely that it is a lumpenproletariat, a very poorly trained and poorly paid part of the Arbeiterschich.

The argument now is the middle class civil unrest they know is coming is simply because they have not confiscated the wealth of the investors they call the financial elites. So if you invest and make any money, you are the new financial elites – sorry it is anyone who now invests. Michael Maier’s The plunder of the world is another book released to justify plundering the financial elites without actually identifying who they are. Sorry – it is you.

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Occident Mortal's picture

Middle Class is already dead

PAPA ROACH's picture

I should open a pitchfork shop....

economics9698's picture

Can you spell banker P-O-G-R-O-M-S.

max2205's picture

No need to worry, the FSA is doing fine in the United States of Barry

ZerOhead's picture

The OECD is starting to say the same things we do here... although belatedly.

Does that make them terrorists too?

bunzbunzbunz's picture

Google listed bitcoin as a currency...get some free now while the price is still in consolidation: http://freebitco.in/?r=25727

outamyeffinway's picture

Armstrong is becoming very douchey.

wee-weed up's picture

The Government will do it's damndest to ensure the Middle Class becomes the Bottom Class before any "uprising" ever takes place. They know if you're struggling to just survive day to day, you have very little time for "uprisings."

RafterManFMJ's picture

The death of the Middle class solves all problems; no Middle class, no problem.

-Losif Stalin

Shocker's picture

Well the good paying/benefit jobs are going away or being replaced with low wages/no benefit Jobs.

Also everything you need to survive is going up, Food, Taxes, Housing, Electric Bills....

Its tough times

Full Layoff / Closing List: http://www.dailyjobcuts.com

corporatewhore's picture

If you can even find jobs which will give you 40 hours.  Most won't.

Herd Redirection Committee's picture

And Armstrong ignores the connection between government and legalized cartels/monopolies, cronies....  The elite became elite by gaming the shit out of the system, co-opting the gov't where necessary.

Italy in WWII was fascism run by Mussolini.

US present day is neo-feudalism/fascism, run by THE CORPORATIONS.  The gov't is a tool for elites...

ATM's picture

I disagree. The first place to look is always ate where the power is consolidated - Government. 

It is government that uses the corporations to do it's bidding. They create rules that make mega corps the rule and then Government controls the few corps because it is a symbiotic relationship. What is good for government is good for those corporations.

But the power always lies in the ability to make laws, not in the corps. They are the pawns of the real power. And real power lies in government. Always has and always will.

centerline's picture

Now that is retarded.

Reality is that you need to just follow the money.

Manthong's picture


COULD easily turn”  ??

Pitchforks                     check

Burning torches            check

Tar                              check

Feathers                      check

Nooses                        check

Guillotines                   check


Pinto Currency's picture



When central banks print money those that benefit are those close to the spigot - the financial sector.

And after the bubble pops when governments and cb's bail-out the financial sector and leave everyone else with a load of debt, when then it is the financial sector that wins again.

Sorry middle class, but that is the luck of the draw.  And the draw only has one outcome, ever.

Elvis the Pelvis's picture

I believe in revolution.  But usually I'm too busy playing with my nipples.  Bitches.

wisefool's picture

probably driving that mobile SAM battery around. War is the health of the state you know ...

FEDbuster's picture

Paraphrasing Napoleon "the hand that gives is above the hand that takes" Banksters Rule.   Anyone whom doesn't see that is a fool.  Politics is just entertainment with two teams to cheer for.

Middle class America has deluded itself for fifty years using cheap imports of energy and material goods and debt to maintain the illusion of a lifestyle that should no longer exist.

World War 3 and/or pandemic seems inevitable now.  "My future's so bright I have to wear shades."

CH1's picture

Now that is retarded.

No, it is not retarded: Government legitimizes the entire operation.

I would call guv and central banks partners, and I call both of them evil.

centerline's picture

The question though is "who is using who" ultimately.  Not along the way, but in the end.  To answer that question, ask yourself who the scapegoats are going to be when the SHTF?  Whose hands will be on the printing press lever?  Or the declaration of war?  etc.

Yeah - I am being sort of dickhead to play it so binary.  You guys aren't wrong at all.  I am just splitting hairs here over context.

Financial crisis = sovereign crisis = political crisis = public crisis.  Realistically, the public at large is going to be ULTIMATE scapegoats... and sadly enough, it will be justified when viewed through from the angle from which it will be sold.  We know better here.  But the masses don't.


Anusocracy's picture

You are wrong, ATM is correct. And the real question is what entity possesses the ability to do what is being done.

Government can do everything that it's doing now without any influence from the banks, but without the government, the banks can't do hardly anything they are doing now.

If there wasn't a government, would there have been a trillion dollar bailout?

Would you have given them your money and your children's money?

pods's picture

I watched it until he went down the "masive taxation on corporations and redistribution" road.


nmewn's picture

I can't believe we're still arguing about the symbiosis of government & corporations at the expense of the middle class after all these years.

The clearest example is on the southern border. All one needs to look for is who is advocating for cheaper labor and human rights under their respective masks.

Why, they both are, how interesting ;-)

Raging Debate's picture

NMewn - 'Public/private partnerships' enough said.

nmewn's picture


And look who is backing Justin Amash's primary opponent, the Chamber of Commerce:

"Justin Amash authored the bill that ends the Ex-Im corporate welfare bank,” said campaign spokesman Ben Vanderveen. “Reauthorizing Ex-Im is the Chamber's top lobbying goal. We disagree on the wisdom of spending taxpayer dollars on corporate welfare, and apparently that was too fundamental of a disagreement for the Chamber to stomach."


buyingsterling's picture

The Fed laundered all of the bad MBS debt for the banks - but most of those funds were used to buy treasuries (probably forced to). So President Pimp can continue his spending spree. It's all sybmbiotic, but ultimately, President Pimp will scream 'Jew bankers must die' if it's a matter of his survival. Government holds all the cards, the banks are useful servants, and they know it. 

TMLutas's picture

The question is not who is using who. The question is if you can only fix one of the two, which leads to a better outcome. The answer to that is pretty obviously fixing government because you can always start a corporation to compete with the existing crop which legally reigns in the abuses and can be quite lucrative. Starting a new government is generally called treason and most of the time ends up with people in jail and dead. 

It's better to fix the government. 

Dewey Cheatum Howe's picture

Neither they work hand in hand.

You needed a belief system to unite everyone then a government structure to once they are worshipping idioltry to utilize the farm animals.

They work hand in hand. Money is idioltry and religion. the current financia/church government system is just feudalism 2.0.

The old setup was you worked the land (teach a man to fish) for food (fish) while starving them of knowledge aka the church aka Catholic Sharia Law controls the spiritual beliefs.

Bubonic plague broke that system so they switched the idioltry to money since microbes won't destroy belief in money.

So feudalism 2.0 they let the people feed themselves spiritually but work for money (teach a man to fish) for money (fish) instead of working the fields for food.

See the game yet.

The Vatican just became a giant banking empire. One bank to rule them all.

The United States was the one breakaway that actual rebelled and won against feudalism system. You could actually own your own land outright and feed yourself without idioltry. The empire of course doesn't like competition ans slowly but surely has gotten it's tentacles back into the US and reestablished the feudal system. Can you own your own land outright, no you always rent if they can take it if you don't pay property taxes for starters. We are back to feudalism and they control the fish through the idoiltry here.

Middle class is the worst off in the whole setup and most vunerable if it collapses so yeah they are the most likely to revolt first because they have the most to lose unlike the rich who actually can own land outright taxes or not when you are worshipper in the church of finance especially if your are high priest like a head of a bank. The free shit army is not the real problem since you pull away the free shit they will pick apart whereever they are concentrated locust storm ripping the place bare of food then dying off afterwards as long they are contained in an area like an urban center. They don't have any resources or brains to fight the system anyways once it turns on them. The middle class on the other hand does and if the distractions ever fail.... All hell will break lose.


RichardParker's picture

As I understand it, you don't "own land outright" without alloidal title:


Even then, no guarantees...



Miggy's picture

Pretty well said Centerline.

g speed's picture

oops ---it's snot either--- it's corruption--plain and simple--those in positions of power be it the gov't bureaucracy or the corp boardroom or the halls of congress or the squad car--using power to the disadvantage of others is patently unfair.  The scales will balance in the end--and the futher they're "out" the more they correct-- To be in high places of power in this world requires murder-- understanding the level of correction in store for the powerful is not hard.

PrintemDano's picture

My money seems to flow to the various evil corksucking governments in these United States...they suck the teet pretty hard...if these Corporations don't do what the Government wishes they just come up with an excuse to shut them down, explaining why the large Corporations always back the government...you won't see GE backing Hobby Lobby that's for damn sure.....government has the guns....they trump the Corporations.  Government for the win. Now Don Pardo tell Print em Dano what he has won!

Jumbotron's picture

I disagree. The first place to look is always ate where the power is consolidated - Government.

Bullshit ATM....complete and UTTER bullshit.  Government only skims off the top of where the REAL power lies.  Global Banks and Global Corporations.

Where government REALLY begins to affect the masses is the State and Local governments.

And look what they are preparing for....







One of the best sites on the net to keep up with the Para-Military Police Force is here.....


jwoop66's picture

In every one of your links I see GOVT stooges enforcing the will of the GOVT.  


GOVT is the problem. 


If we had LIMITED GOVT, corporations would be forced to compete.


GOVT IS the problem.

Jumbotron's picture

If we had LIMITED GOVT, corporations would be forced to compete.

Bullshit.  Government gets their money from a private bank known as the Fed.  When the Fed prints money it goes to the banks.  The banks make loans to businesses who in turn pay people to work for them.  That money is taxed by the government to pay for thing like the military, infrastructure and graft.....( i.e. their paychecks, welfare and income redistribution, etc.) 

But never forget.  First comes the private Central Bank......then the Corporation.  Everything else is a skim.  Kill the Central Bank, the system as it has been designed falls apart.  So does the Governments income stream....so does their power.

It is IMPOSSIBLE to have limited government when you have a private Central Bank with UNLIMITED power to print money and Global Coroporations with UNLIMITED power to control the flow of natural resources and manpower from whereever they like.....whereever they can get the cheapest wage slave labor.

PrintemDano's picture

What you say is true.  That being said, the government can shut down the Fed, or Citibank tomorrow if they so choose.  It is a symbiotic relationship between evil government and evil large corporations, but how many actual storm troopers and battalions of soldiers, 7th fleets, ICBM's does Citibank actually have?  The Fed?   None.  Guns and government for the win.

Jumbotron's picture

The Corporations have ALL the power, for they can go anywhere they like.....which they are now.....where they can buy protection...even military protection.  So the U.S. shuts down the Fed.  Fine.  No problem....we just move our headquarters to somewhere more Central Bank friendly.  So...to use your example.....Citibank relocates to Germany, England, Russian even.  There you go.  Storm Troopers, battalions of soldiers, 7th fleets, ICBM's.

But you present a false choice.  The world over relies on Central Banking.  No one...not even the U.S. will unilateraly destroy their Central Bank.  And even if they did....money is fungable.  It can be printed from ANYWHERE and moved and exchanged ANYWHERE.

And they do this simply to fuel the Corporations.....not the Governments.

End of story.

bitterwolf's picture

In a VACUUM, I would agree with your POWER advantage supposition. However your logic is deeply flawed by the re-introduction of the simple PAWN on the chessboard-the MAN, with a will to fight and a rifle(xthousands)-that simple. The TRUE BELIEVER has never been swayed by money or its many rewards. Au Contraire, the "warfighter" is motivated by IDEA)(s) ,PRINCIPALS, and the warfighter fighting beside him. History (including very current) is littered with examples of this conundrum(How is the monied power elite laid low by the common armed man). If the very old European/American power elite(not the wealthy 1% everyone bandies about)  miscalculate in introducing  radical change in global finance and governance through "order out of chaos", than the pandoras box of savagery will be unleashed globally with  the racial/national idenities conflicting with one another in the backdrop of historical wealth imbalances affecting all but the very upper stratas of all nations. Due  dilligence and comprehension are a prerequisite. 



ajax's picture



The corporations are writing the laws...

Sandmann's picture

That is funny. Europe won't get one ! There is no such thing as "Europe". You could argue Hungary has already had one.

The fact is that the mass of people go along with power and will live under Communism for 70 years or under Franco or Salazar or Greek Colonels or Turkish Military. The ones that don't get bruised or killed like Father Popov in Poland - or like "V" in V for Vendetta.

The radicalisation of "Evey" takes time - she has first to be rescued from destruction......

The Bourgeoisie is split - some are coopted and work for The State - others are outside the loop. But who can deny today that life is much better for those working for The State and much worse for the bourgeoisie working in the Private Sector ?

It requires rebellion from inside the State Apparatus - inside the NSA, inside the Military  - people forget Hitler had to bribe his generals with big cheques and farms to keep them loyal - he still faced 20 July 1944.

Jumbotron's picture

Yeah...heard of Obamacare.  Obama did not write that law.  Congress did not write that law .....(remember Pelosi saying they have to pass the law to find out what's in it )

Insurance companies wrote the law.  Why ?  Who the fuck in Con-gress knows ANYTHING about corporate and insurance law ?



Anusocracy's picture

There would be no Obamacare if government didn't exist. Medicine would exist, banks would exist, but Obanacare and the Bankocracy/Coporatocracy wouldn't.

You have to be a government paid troll or a government true believer.

jwoop66's picture

I believe jumbo is one of the hopefully diminishing few that still believes that if govt were in control of everything, things would be better.  You know: communism, socialism etc. 


Some folks just never learn...

PrintemDano's picture

The government and the TBTF Corporations/Banks are in cahoots.  Agreed?  If so, it really doesn't matter who writes the laws now does it.  The heads of Corporations seem to have more intelligence than idiots like BathHouse Barry, Plugs Biden etc so you sure don't want THEM writing the law.  The person writing the law is moot.  Government has the guns and the pen.  Government will trump Corporations should it ever come to that.  It won't.