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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Seer's picture

Ah, but there's a catch: Who will pay for them?

Seer's picture

I think that you missed that it's NOT part of the approved government System.

I have to start thinking which tine'd impliment I should concentrate on...  My potato fork (digging variety) really looks good, but that hay fork just looks more intimidating.  And, I've been meaning to pick up a broadfork.

For those who need guidance (no hay fork because this is gardening stuff- hay fork is like the compost fork but a bit bigger):


August's picture

I'd think the spading fork, tines nice sharpened of course, would be great for the quick, close-in work. 

Keep the hay fork around for more ceremonial occasions.

rsnoble's picture

If they aren't imported and plastic don't bother.

Postal's picture

Speaking of imported plastic... I was digging around in the garage a while back. Found a plastic game that was so old it was "Made in USA"

mt paul's picture

email me


 just opened a pitchfork

production facility ....


will send you a prospectus 


Would you mind if I opened up a pitchfork sharpening stand next to your shop? Market research indicates that the volumes of traffic should be pretty brisk in the first few months of peek meat of the 1%ers and then

diminishing returns from there on out. I'm only inclined to lease the space as market research advises to get in-and-out quickly for best possible returns for my initial investment.

Let's do lunch.....call my secretary to set it up next week.

KnuckleDragger-X's picture

A rope shop would be better with the finest in hemp ad sisal rope along with free instructions on how to tie a proper hangmans knot.

BLOTTO's picture

I'll see you all you guys soon while running in the forest.


Meet by the red oak...we'll have some good eats, drinks and get baked in the chaos.


Its unfortunate that we will have to 'take out' 'people' who's minds are poisoned, but we must defend ourselves.

Headbanger's picture

I'm already there.

Bring moar beer.

doctor10's picture

Almost-but not quite.  Government needs to be sure energy companiea asure cheap energy to the middle-class.  Wait until gasoline in USA hits 10.00/gallon-about 2018-and "fly-over country" figures out Fed.Gov has conspired with "Big Energy" to be selling the "surplus"  American oil and gas that is "unaffordable" to the middle-class here-to the overseas 1% in Asia/India. There won't be enough Homeland Secuirty to wall off DC/NY

Seer's picture

I wonder how many "free market" types are going to complain when others offer up more money?

One of the Forbes' clan mentioned the strategy back in the 70s about the US sitting on its oil supplies and using up everyone else's first.  Interesting comment from one of the US's big capitalists.

The issue will be more about electricity than gasoline.  I mean, when everyone's unemployed (not "commuting") then demand for gasoline won't necessarily be all that high: diesel will be more important, and I suspect that rural folks have a bit more interest in it (as I do) for farm-related activities.

malek's picture

You mean middle-class had no choice than buy SUVs and similar gas guzzlers, for the last 10+ years?

HardAssets's picture

There's what people call 'rich' . . . . and the Really Rich


The Really Rich own the politicians, own the government & the media. Their owned politicians write the laws which allow the Really Rich to do what they want . . . This includes not paying taxes by using various legal fictions.

Raymond K Hessel's picture

I keep telling people about how everyone gets the classes all wrong but no one listens.

Rich Class - Their capital earns enough to support these people without working.  They don't work for money. They work for the career satisfaction, power, etc.  Legally, instead of owning their assets, these are hidden and not owned by the Rich Class in trusts to avoid confiscation and taxation.

Working Class - They work for money.  They might own their house outright but it generates no income for them.  They own no revenue producing assets.  If they stop working they will run out of savings and become poor. The assets they do own are available for confiscation from due process of law, usually as a result of taxation. 

Poor Class - Their poverty entitles them to benefits under social justices programs like Social Security, Medicare, minimum wages, reverse income tax, welfare checks, food stamps, etc.  Like members of the Rich Class they receive enough cash to support themselves.  They don't work for money because many don't work at all. They own very little in assets.  

There is no such thing as a Middle Class with respect to money.  You can make anywhere from $40 grand to $400 grand, it doesn't matter.  Middle Class is like saying Goth.  It's a cultural distinction, not economic.  Most of here are culturally Middle Class but economically Working Class.  Middle Class definitions that imply economics are held by the politicians who want to divide and conquer you.  

Politicians successfully convinced us all that the Middle Class was an econcomic class and the we all used to be in the Middle Class.  We'd still be in the middle class if it weren't for the other party.  

The Middle Class was a trap to fool you into thinking you weren't working class.  

W A K E   T H E   F U C K   U P.


P R O J E C T   M A Y H E M.

Monty Burns's picture

Could someone teach Martin to write in English?  Thank you.

dark_matter's picture

I read a computer industry mag 20 years ago where an op-ed said "computers will be maintained by the middle class so that the upper class can control the lower class" and it was absolutely prescient. The uppers will keep enough middles around to control the lowers. Most of the middles in computers are now being imported from or outsourced to Asia where middle expectations are lower and chances of revolt are smaller.


Dugald's picture


Ask not for whom the bell tolls.....

junction's picture

Talking about taxes, the current Drudge Report banner deals with the death of a Staten Island man at the hands of the NYPD police in Staten Island, accused of selling untaxed cigarettes. The New York Daily News article linked to the Drudge banner starts off with: 

Two cops pulled off streets, Staten Island DA looking into death of dad of six after NYPD cop put him in chokehold during sidewalk takedown


This incident is a carryover from the Mayor Bloomberg reign, when he railed against cigarettes as being dangerous to your health and then hiked the city sales tax on cigarettes by $4 a pack, tax money that went into the city's general fund to pay for funding stuff like the Highline Park ($100 million initial city funding) to boost the value of Bloomberg's Chelsea real estate holdings.      



RichardParker's picture


Apparently "currently law enforcement offices are exempt" i.e. not required to register "assault weapons" they already own under the recently passed SAFE Act in New York State.




Atomizer's picture

OECO fears Americans will hunt them down over the non traction of US Dollars Despotism efforts.. Aka more debt. Another issue, Jew MSM is suppressing the debt ceiling debate. Oh noes, we will have to send the guy from South Carolina to cut your grass. 

Either they back off or something else may happen. Get your shit together. 

onewayticket2's picture

"upheaval?  we're on it, boss....already purchased 1.6 Billion rounds of ammo."

Osmium's picture

I wonder how many rounds are in the hands of U.S. citizens?  The estimated number of civilian firearms ia anywhere between 270 - 310 Million,


Shaping up to be a hell of a battle.

daveO's picture

My question is, how well are their armories defended? There was, recently, a story of a teenager breaking into a National Guard Armory and shooting someone with a stolen weapon. So, if The SHTF, will near sighted, minimum wage TSA employees defend Obama's stash?

maskone909's picture

i dont think the tsa will stick around.  nor do i think the dhs, national guard, local police, and pretty much any gov entity.  it will be a free for all cluster phuck

UselessEater's picture

They'll stick around, they'll love their badges power and supplement their meagre pay check by pilfering and hitting you for bribe money.... see any 3rd world nation for an example of poorly paid and resourced cops.

DoChenRollingBearing's picture

Yep, as long as the chaos is not so widespread as to endanger their own families, expect the cops (et al) to be sniffing around for "protection money".

Calmyourself's picture

There are better places to discuss strategy and it seems that only meatspace is secure these days.  These types of articles on Zhedge seem designed to gather in the marginal players  by the Stasi, just saying...

oudinot's picture

What planet do you live on?  Many cops ask for 'protection money' all the time.

pods's picture

That's right motherfuckers!

Oh wait, lemme set the DVR.


Postal's picture

DVR? I didn't think you were gonna watch the Chelsea Clinton circus special...


observiate's picture

i'm all for that.  seems to me "middle-class" civil unrest may have bit more of an educated and free market modicum too it than, say, "lower-class" unrest. you know, the kind of lower class unrest the elites like to stoke so that they can just take more power away from the un-suspecting lower-class folks. well at least, i hope that's a reasonable expectation for "middle-class" unrest....

orangegeek's picture

OECD, ahem, the UN, pumping out more crap.


The only place in the world where the masses are a threat is the US - they own guns.


The rest of the world just "takes it" like good boys and girls believing that the gewbamint is there to help them.  LMFAO!!!!


The socialists have impaled everywhere but the US - Barry is still trying, but it's not working out so well for him.

Jstanley011's picture

I'm thinking we may see the mother of all backlashes against our Kenyan president's bald-faced socialism. If so, the bloodletting ought to begin in November, with a slaughter among the Dimo-craps at the polls. A party which has forgotten that Amerikans have always preferred Socialism Lite (tm), at which it is the Republi-turds who nowadays excell.

Postal's picture

One does not let blood by voting. Which, I suspect, is the cause for some concern amongst those who might be compelled to release their red elixir.

Jstanley011's picture

I hear you. I don't play "pick lesser of two evils" myself. The right to vote is also the right not to vote. The franchise is too valuable to me to waste it in a shell game. Doing so only legitimizes the people who have rigged it.

lynnybee's picture

I really do remember a time when a person worked to earn money to support themselves.    if I wanted money for a toy or a bike or a book I had to work to earn it.   I babysat for a silver quarter or picked blueberries in the summer for a silver dime.  And I saved the money first .... asking for credit was shameful, if one asked for credit it meant that a person didn't have the money.

maskone909's picture

you actually took the time to work for... a book?


that implies you can read.  that implies a thirst for knowledge facilitated by something other than a .gov vehicle. 

yes, there used to be more of us. 

quasimodo's picture

Apreciate the posts lynnybee, good to see you! 

Our teenage son is getting some leasons right now about the fact we can't afford an extra place to stay at the lake, or a big go fast boat, this toy or that toy. I think it's starting to sink in that one has to have money in place before even looking at crap like that. He sees some of his friends that go to the lakes every weekend during the summer and wonders why we don't "just go buy a place there" 

I will be honest, there are days I feel like saying F-K it, and just buying those toys and letting the bank worry about the rest, but that is not the way we were raised. While all the other cattle producers and farmers went broke in the 80's, pops took his lumps and muddled through-he doesn't buy into the whole letting others eat his loses thing. Now years later I see some of those same families, some having gone broke twice or more since then, living the high life and I have to wonder where the F-K is the justice while pops and mom barely scrape buy raising a small herd. The only thing that keeps me from doing what many of them have done is the fact pops still has a great reputation, and without fail any other name I hear mentioned it's always "the ones that went broke back in_____"

Still.......one does wonder if it's even worth it.

lunaticfringe's picture

Best comment on the thread. Honesty is always big with me.

This is a skewed and jaded world that has been rewarding shitbags who spend and gutting those who save and live within their means.

That's because we have a counterfeited and worthless fiat currency that for some reason, producers are still accepting. You can wipe your ass with it. They counterfeited 4 trillion since '08.

I said the very same things you said back when every dipshit in America was boying toys with make believe equity.

The problem in 'merica is that everyone is blessed and has plenty. rather than be grateful for that- our fucked up society is forever wanting bigger houses, faster cars, expensive jewelry and real estate. Wanting is a sickness. Be grateful for what you have been given and know that one day- these fucksticks will pay.

boattrash's picture

quasimodo, I know what you mean. Please tell pops and mom thanks for all they do/have done, including passing those values on to you/and or siblings.

While they might not need help in a bad scenerio, they've likely built a big layer of "protection/community" by their choices and actions. I know some "salt-of-the earth" people like them, and I can assure you, it would not behoove anybody to mess with them. PS Thanks for passing those lessons on to your son as well.

Golden Showers's picture

Well, this may be tangential, but since I called the Queen the Queef, and she does get substantial tax revenue from the Amerika and everywhere else (dumb bitch), and since she is not actually a true heir to the throne, (never a woman true and fair as Donne would say)... I wanted to share with you the photo of an ugly hag with no recourse but to show us who she is through body language and color of law.

Please enjoy: http://www.redicecreations.com/article.php?id=31026

May we all enjoy the Qweef's ad hominum falacy and celebrate her dimentia while her inbred, retarded lineage waits in line to say "fuck you" to us hard working American bad asses.

God save the Queef. Amen.

Yes_Questions's picture



Red Ice Radio too.  

Urban Redneck's picture

You all have an actual fucking CHOPPING BLOCK right down the street from her house, which is reverently displayed at the Tower. USE THE DAMN THING as was intended.

Yen Cross's picture

  The divide and conquer "class warfare" and "race baiting" idioms are failing.  People are fed up with everything! 

   Now the"pick and wedge" tactics are are being used. ( ie; The Blame Game)

  We're only 6 years into this nightmare/quagmire and it's still the other guys fault. When are leaders going to start acting like leaders, and showing some accountabilty and responsibility for their actions?

  We live in the land of forgiveness and 2nd chances people! Everyone gets a trophy for participation.

    You'll be rewarded for having an attention span longer than the common " fruit fly".   I have to puke~

Seer's picture

"When are leaders going to start acting like leaders, and showing some accountabilty and responsibility for their actions?"

When people stop FOLLOWING them?  And at that point they'll ("leaders") will be out of "jobs" no?

EVERYONE is involved here.  It seems odd to, on one hand, say that blaming others is a problem and, on the other hand, THEN go about pointing to/at others!

Yen Cross's picture

     I agree. Let's wash our dirty hands and "Man -Up".  No person chooses his or her time to shine in the face of adversity.

  More often then not, individuals find their "true"self worth in times of crisis..