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How much wealth do you own? Add it up.
Add up your stocks and bonds. Count your land. Include your car(s), house(s), clothing, appliances. You own all that stuff.
How much do you own, in total? Hold that figure in your mind.
The future of the world presumably is the “Internet of Things” (IoT), where everything is interconnected. Soon you may own a self-driving car, that not only take you places, but tell your garage when you will arrive, so the garage will open for you.
It may tell your house lights to turn on, and your heat or air conditioning to come to the temperature you want.
Your refrigerator may already have told your supermarket warehouse to deliver what you need (via a drone which enters your house through a drone portal, of course). Or your 3-D printer may print your meal.
Your oven may begin to cook; your sleeping clothes and bed may become toasty warm or pleasant cool, depending on the outdoor temperature.
While you were away, your windows and carpet cleaned, your wall painting device did its thing (or the walls simply changed to the latest color), and of course your lawn was mowed, watered, fertilized and de-bugged from below by your underground machines.
Your clothes may tell your closet when your shirts need to be washed, so the closet will wash them and hang them (or destroy them and 3-D print new ones).
Everything will be connected: Your TV, your phone, your bank account, your house, car, closet, bathroom, kitchen, garden, sidewalk — everything blended into one smooth servant.
Your ownership of all that centrally connected stuff will be part of your wealth.
But what if it no longer was supported?
Nest, the smart-home company owned by Google’s holding company, Alphabet, sparked outrage this week after it announced that it was discontinuing support for a line of $300 smart-home devices that can control household features like lights and security alarms, meaning they wouldn’t work anymore.
In 2014 — just nine months after Nest was bought by Google — Nest acquired Revolv, a smart-home-device maker that built a line of hubs that could control house lights, security features, and so on. But the deal was primarily an acquihire, which means the company was bought for its talent.
Nest immediately stopped selling Revolv products, and Revolv developers were instead put to work on “Work with Nest.”
About a month ago, Revolv announced that it was shutting down its service and that Revolv products would no longer work by May.
Think of this in the future. Your self-driving car sits idle. Your automatic home no longer will heat or cool. Your automatic clothing, TV, phone, toaster, stove, refrigerator, furnace, air conditioner — all those things that yesterday may have been worth so much — all now worthless.
Revolv owner Arlo Gilbert wrote a post that kicked off the current furor. “Is the era of IoT bringing an end to the concept of ownership? Are we just buying intentionally temporary hardware?”
When everything is connected, what will you actually own? A car that won’t drive. A computer that won’t compute. A phone that won’t let you play the latest video game (horrors!)
None of this is entirely new. We already rely on the electric company, the gas company, the water company, the sewers, the streets, the food and drug stores. And though many of our more important services either are government owned or government supervised, still bad things happen.
If there is a major storm, the electricity may go out. While it’s out, all your appliances are useless. If it stays out long enough, your house may become unlivable.
Multiply by gas, water and sewage service ending and your expensive house, that center of your wealth, now is worthless.
Then multiply that by everything you own, from your interconnected shoes to your interconnected hat, all being at the mercy of some companies controlling the cloud, and what exactly is left of your wealth?
How much do you now own, in total? What was that figure you computed at the beginning of this post?
Here is my prediction: As more and more of our stuff is connected, and relies on the whims of people like Google, there will be a call for more and more government regulation, then control, then ownership.
It will become the time where private ownership disappears, and government ownership becomes the norm. The Age of Socialism.
And who will control the government? Silly question. It will be the rich.
The Internet of Things will be the pathway to the ultimate control of the populace by the rich.
From dependency, grows slavery.
Rodger Malcolm Mitchell
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually Click here
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)
10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
The Ten Steps will grow the economy, and narrow the income/wealth/power Gap between the rich and you.
10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt
THE RECESSION CLOCK
Recessions begin an average of 2 years after the blue line first dips below zero. A common phenomenon is for the line briefly to dip below zero, then rise above zero, before falling dramatically below zero. There was a brief dip below zero in 2015, followed by another dip – the familiar pre-recession pattern.
Recessions are cured by a rising red line.
Vertical gray bars mark recessions.
As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.
•Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
•Any monetarily NON-sovereign government — be it city, county, state or nation — that runs an ongoing trade deficit, eventually will run out of money.
•The more federal budgets are cut and taxes increased, the weaker an economy becomes..
•No nation can tax itself into prosperity, nor grow without money growth.
•Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
•A growing economy requires a growing supply of money (GDP = Federal Spending + Non-federal Spending + Net Exports)
•Deficit spending grows the supply of money
•The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
•The limit to non-federal deficit spending is the ability to borrow.
•Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.
•The single most important problem in economics is the Gap between rich and the rest..
•Austerity is the government’s method for widening the Gap between rich and poor.
•Until the 99% understand the need for federal deficits, the upper 1% will rule.
•Everything in economics devolves to motive, and the motive is the Gap between the rich and the rest..