Government Worker Total Grows

Government Worker Total Grows
by JBS President John F. McManus

By almost two to one, government employees in the United States exceed those in the manufacturing sector. Numbers supplied by the Bureau of Labor Statistics (BLS) and reported by blogger Terence Jeffrey show that federal, state, and local governments employ 21.9 million versus 12.3 million employed in manufacturing. Is it any wonder that America is slowing down?

Manufacturing continues its downward spiral, which will be made even worse with Obama’s trade agreements (Photo by V4711 (Own work) [CC BY-SA 3.0], via Wikimedia Commons).

Wealth is productivity. A nation is wealthy whose people use the raw materials of the earth to produce goods. Government workers, frequently impeders of wealth producers, do not produce goods and do not create wealth.

BLS data shows that 1989 was the year when the number of government workers first exceeded the number making things. That year has been followed by steady growth in number working for government and a steady decline in the manufacturing field where the things Americans expect to use are made. Over the past 25 years, 4 million more have found jobs for government and 5.6 million have been forced out of manufacturing. Their manufacturing jobs went to Mexico, China, Bangladesh, and plenty of other nations whose wealth is increasing while the wealth of the United States is evaporating.

What does the Obama administration offer to address this problem? More entanglements called trade agreements that will, like NAFTA, result in more manufacturing jobs being lost here and gained elsewhere.

Jeffrey notes that, in 1941, there were 12.8 million workers in the manufacturing sector out of a population totaling 133.4 million – a ratio of 1 person in manufacturing for every 10.6 counted by the census. But in mid-2015, that ratio had shifted from 1 person making things for every 26 people in the nation. The goods Americans want and need are coming from elsewhere.

Nothing is being done to reverse the downward trend that gets worse year after year. If the U.S. doesn’t rebuild its manufacturing sector and shrink the number of government employees, the entire nation will suffer because the few who still produce goods will be taxed to keep the burgeoning rolls of government employees happy. And they will eventually cease producing.

We repeat: Wealth is productivity. Government workers, only some of whom are needed, don’t make things and many of them stand in the way of those want to be manufacturers.

Candidates for high office should take note of these simple facts before there are so many government employees, who are unlikely to vote for anyone wanting to reduce government employment numbers, that a continuance – or even a speeding up – of America’s downward spiral will be our fate.

For more on how money, banking, and the Federal Reserve affect our economy, view Dollars & $ense.

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Mr. McManus served in the U.S. Marine Corps in the late 1950s and joined the staff of The John Birch Society in August 1966. He has served various roles for the organization including Field Coordinator, Director of Public Affairs, and now President. He remains the Society’s chief media representative throughout the nation and has appeared on hundreds of radio and television programs. Mr. McManus is also Publisher of The New American magazine and author of a number of educational DVDs and books.

What to Do About Government Economic Fraud

What to Do About Government Economic Fraud
by JBS President John F. McManus

Paul Singer manages the hedge fund Elliott Management. He’s a billionaire and has helped those who invest with him to reap substantial gains. In a recent message he sent to the fund’s clients, he stated:

Nobody can predict how long government can get away with fake growth, fake money, fake jobs, fake financial stability, fake inflation numbers and fake income growth…. We do not think optimism is warranted, and we think a lot of the data is cooked or misleading.

Is Singer correct? The New York Times published a denial from Jesse Eisinger, a reporter for the independent new provider Pro Publica. Eisinger could hardly be more dismissive of the claims issued by Mr. Singer.

Who’s right and who’s wrong? We tend to side with Singer. We do so because of numerous phony claims issued by government. For instance, the unemployment rate claimed by officialdom doesn’t include people who have given up finding a job or others who were formerly employed full-time and are now able to find only part-time jobs. Counting part-time employment as real employment when the people involved want a steady job is deceitful. Real unemployment is likely twice the figure given by government.

In addition, government relies on a fraudulent definition of inflation – that it is rising prices. Even then, what’s in the “basket” of goods whose costs are totaled in the Consumer Price Index is regularly changed in order to reflect government’s reassuring claims. But inflation is an increase in the quantity of currency – the making of newly created dollars that have no backing and derive their value by lessening the value of everyone’s dollars. Ask a supermarket shopper whether it costs more dollars to shop each month and you’ll get a good lesson in what inflation truly is.

As for growth, U.S. manufacturing wealth creation is way down, and so is income growth. When the value of the dollar shrinks by an amount that even a raise in pay doesn’t cover, there’s no growth – except in the true rate of inflation.

In recent years, the Federal Reserve has waged war on the dollar with a program dubbed Quantitative Easing. That’s a clever name for a thieving process that creates dollars out of nothing and floods a favored few with them. But Q.E. is inflation pure and simple. It may have helped some “too big to fail” friends of the Fed to survive. But meanwhile, the American people continued to face higher prices, fewer jobs, and deceitful statistics.

So the conclusions reached by Paul Singer are worth consideration.

What to do about this? Start with an audit of the Fed, a demand recently made by 333 members of the U.S. House that awaits approval in the Senate. Unfortunately, the Senate will be led by Harry Reid until January when a new measure will have to be generated by the House and then sent to the Senate again. Maybe then, it will get the respect it deserves.

If the full truth about the Fed were known, public sentiment aimed at having it abolished would mushroom. Then, there would be moves to end deficit spending and cut back the size of government to what is authorized by the Constitution. Eliminating unconstitutional agencies and bureaus (education, energy, housing, medical care, foreign aid, and more) would be a boon to the nation. Also, Congress should put an end to creation of so-called “free trade” agreements that make it advantageous for businesses to flee the U.S. for cheap labor overseas. Finally, demand truth from government officials – all of them right up to and including the President.

The course our country is on amounts to suicide. Those who provide the fake data and the cooked books are steering America into a world government. Some honesty about that would help to bring about needed corrective actions and guarantee continued existence of our nation, free and independent.

Mr. McManus joined the staff of The John Birch Society in August 1966 and has served various roles for the organization including Field Coordinator, Director of Public Affairs, and now President. He remains the Society’s chief media representative throughout the nation and has appeared on hundreds of radio and television programs. Mr. McManus is also Publisher of The New American magazine and author of a number of educational DVDs and books.

A Readable Book About Economics

A Readable Book About Economics
by JBS President John F. McManus

Harry C. Veryser is an unusual individual. A businessman who owned an auto supply company for many years, he also spent many years teaching economics at the college level. Most who teach what is wrongly termed “the dismal science” at that level have no experience in the business world.

“Recommended enthusiastically by former Congressman Ron Paul, this book will help anyone to know and love, not something deserving of the term “dismal,” but of how human beings can be expected to act and how governments should leave them alone in all their moral and legal efforts.”

Now an author, Veryser had written a very readable book entitled “It Didn’t Have to Be This Way.” The book’s jacket entices readers with: “Why Boom and Bust is Unnecessary – and How the Austrian School of Economics Breaks the Cycle.” Unfortunately, many Americans think the “Austrian School” is located in a building somewhere in Austria, probably in Vienna. Not so! The Austrian School isn’t a place; it’s the viewpoint of many economists who derive their attitude from a study of history and of human nature, and from Ludwig von Mises who was born in Austria and lived most of his life in the United States. The author of numerous valuable treatises dealing with economics, Mises always claimed, and backed his claims with clarity and forcefulness, that boom and bust cycles afflicting numerous nations – certainly including ours – are both unnatural and unnecessary.

Veryser explains that mainstream economic thinkers view economics as though it were similar in many ways to physics, a discipline that can be reduced to numbers and mathematical formulas. No, he says, economics is an understanding of human action that “distrusts” the mathematical modeling that brought on the financial collapse in 2007, and many other busts throughout the years. His book presents a clear explanation of what anyone studying economics should know, even including how the Great Depression of the 1930s could have been avoided.

In addition to von Mises, clear thinkers presented by Veryser include Aristotle, Thomas Aquinas, and recent Mises disciples such as Carl Menger, Friedrich Hayek, and Henry Hazlitt. Along the way, a reader will find explanations of the nature and history of money, condemnations of the different types of inflation, and the harm done by governments when they meddle in matters of economics. One conclusion stated emphatically by Veryser insists: “There is hardly a country in history that has not experimented with debasing its currency.” In each country where the practice of debasement occurred, starting with the sixth century B.C. in a country then known as Lydia, economic ruin followed as it surely has followed here in the twentieth century.

Borrowing a quote from Hayek, “It Didn’t Have to Be This Way” asserts, “It seems to me that if we could prevent governments from meddling with money, we would do more good than any government has ever done in this regard.” What Harry Veryser has produced is essentially a history book, not the usual book about economics where pages are full of charts, graphs and muddled thinking. Recommended enthusiastically by former Congressman Ron Paul, this book will help anyone to know and love, not something deserving of the term “dismal,” but of how human beings can be expected to act and how governments should leave them alone in all their moral and legal efforts.

Download Understanding Economic Principles, a free 5-page PDF explaining money and its role in the free market.

Mr. McManus joined the staff of The John Birch Society in August 1966 and has served various roles for the organization including Field Coordinator, Director of Public Affairs, and now President. He remains the Society’s chief media representative throughout the nation and has appeared on hundreds of radio and television programs. Mr. McManus is also Publisher of The New American magazine and author of a number of educational DVDs and books.

Cashless Society Results in Less Liberty

Cashless Society Results in Less Liberty
By JBS President John F. McManus

A truly important aspect of the use of money has been lost or forgotten in the age of credit cards, checking accounts, and other methods of conducting commerce. It is that when one uses unmarked cash for buying and selling, the transaction cannot be traced. The buyer and seller remain anonymous. They are free from peering eyes and snooping agencies, especially those possessed by snooping governments.

The reality is that anonymity in the use of money is an important part of freedom. If you can’t buy or sell what you want without having to reveal who you are or why you are buying or selling, you have been forced to lose your anonymity. Others who might not have your best interests in mind know what you are doing.

Today’s worldwide trend is toward creation of a “cashless society” where all transactions would be accomplished electronically. This would create a record of all monetary transactions that ought to be no one else’s business. Governments and others with access to such records would then know a great deal about everyone’s business, a rather scary consequence being promoted in the name of efficiency. Use of checking accounts, credit and debit cards, etc., should be everyone’s choice, but not the only choice.

As might be expected, the United Nations is one of the chief promoters of doing away with cash. Two of its agencies, the World Food Program and the United Nations Development Program have expressed support for the idea. What this amounts to, of course, is an obvious step toward eventual knowledge of everyone’s previously anonymous conduct of personal affairs. In addition, world planners are backing a program that would have micro-chips placed in everyone’s body to serve as an ID, but also to function as a credit/debit card.

While being promoted in the names of efficiency and safety, the trend toward a cashless society brings to mind George Orwell’s tyrannical Big Brother. He would surely champion the idea.

Are you getting the idea yet that the UN is anti-American? Get US Out!

Destroying Wealth and Curtailing Freedom: Time to Reclaim America

Destroying Wealth and Curtailing Freedom: Time to Reclaim America
by JBS President John F. McManus

How often have you heard someone claim, “America is a wealthy nation”? Such a declaration is usually followed by demands that our nation solve the entire world’s problems, bail out a host of other nations whose leaders are known miscreants, and even police the world while the hidden beneficiary of lost American blood and treasure turns out to be the United Nations.

The insistence that America is wealthy omits both a definition of “wealth” and any correct awareness of how the American people succeeded where so many others haven’t. So let’s correct these deficiencies by first insisting that America became wealthy, not because of what government did but because of what government was prevented from doing by the limitations on it imposed in the U.S. Constitution. Also, add the system that has states in peaceful competition to be the best state, the one where people would want to raise a family, create a business, and produce wealth. There you have the two extremely beneficial foundations propelling America to become the envy of mankind.

Next, let’s offer wealth’s definition. It doesn’t consist of a pile of documents (stocks, bonds, titles of ownership, etc.). Wealth results from productivity, the taking of the raw materials of the earth and fashioning them into goods. This means creation of wealth relies on manufacturing, farming, and mining. Whatever impedes these tasks impedes the nation’s wealth.

Both of these foundations of America’s unparalleled success are under severe attack. The national government, supposedly restrained by the Constitution to “few and defined” powers according to James Madison, now constrains wealth production with an array of costly, unnecessary and unconstitutional regulations, edicts, and dictates. Then, of course, there are taxes to pay for the growing bureaucracy and the foreign adventures. All of this has led to what is called “outsourcing” that sees closed factories and loss of jobs. How many jobs have disappeared? Since the passage of NAFTA in 1994, estimates vary from one million (cited by the Public Citizen organization) to five million (attributed to the Congressional Research Service). And increasingly, the general public has been steered toward a belief that the remaining producers of wealth are thieves, enslavers of workers, and mere money-grubbing cretins.

Any honest surveyor of these developments has to conclude that NAFTA (the pact involving Canada, Mexico and the U.S.) has been a disaster for our country. So what have our leaders proposed? Even larger and surely more harmful trade agreements, one with the 28 formerly independent nations now entangled in the European Union (the Trans-Atlantic Trade and Investment Partnership or TTIP) and the other with a dozen Pacific nations (the Trans-Pacific Partnership or TPP). If Congress approves these pacts, expect even more outsourcing, job losses, and declining wealth production. Click here to communicate this to Congress.

Is this sheer stupidity? It is madness? Or is it sinister planning? Since our leaders are neither stupid nor deranged, the undeniable results should be credited with wanting to see America’s decline. Why? To build a world government more commonly known as the New World Order.

No world government can exist if once-free nations aren’t similarly brought to heel and once-free people become forced downward economically. Nothing else makes sense.

America still has its Constitution. And Americans, despite government interference in so many ways, are still producing some wealth. But the goose that laid the golden egg has been scheduled for the guillotine. Will still free Americans resist and reclaim their hard-won legacy? That’s the big question.

The John Birch Society provides such an outlet for concerned Americans to organize, educate, and reclaim its founding principles. Join today to get started!

Fed Creates Money; Food Prices Rise

Fed Creates Money; Food Prices Rise
by JBS President John F. McManus

The government claims prices are up only 6.4 percent since 2011. But a shopper trying to feed a family sees chicken up 18.4 percent, ground beef up 16.8 percent, bacon up 22.8 percent, and the price of fuel steadily rising. “The things that are going up in prices are the things I absolutely need to buy,” laments homemaker Jen Singer in a report published by CBS News.

What causes these increases? Sadly and mistakenly, Ms. Singer refers to her problem only as a rise in prices of the goods she needs. She seems unaware that the real problem is the eroding value of her dollars. With precious few exceptions, the staples she buys for herself and two teenage sons haven’t risen in price; the changes she bemoans are due to theft of the value of her dollars. The thieving culprit is a partnership between the Federal Reserve and the U.S. government that manages a slick form of thievery.

In July 2011, the Government Accounting Office (GOA) issued a report doggedly pried out of hiding by Bloomberg News. It showed that the Federal Reserve had created at least $16.1 trillion to shore up the mega-banks after the 2008 banking crisis. Recipients of the bailouts, in round figures, included Citigroup $2.5 trillion, Morgan Stanley $2.04 billion, Merrill Lynch $1.9 billion, and Bank of America $1.3 billion. Slightly lesser amounts in the hundreds of billions were supplied to Barclays, Bear Stearns, and Goldman Sachs. Foreign banks, benefitting from the Fed’s money creation, were Arab Banking Corp., Bank of China, France’s Societe Generale, Japan’s Norinchukin Bank, Germany’s Deutsche Bank AG, Dublin’s Depfa Bank Plc, and Dexia SA in Brussels.

All of this was money that didn’t exist previously. It acquired value by stealing a portion of all existing dollars. The process has long been correctly described by Soviet dictator Lenin, British socialist John Maynard, and others. Both Keynes and Lenin could be classified as champions of honest money.

While this thievery was occurring, an awakening House of Representatives approved H.R. 1207 by a vote of 223-202 in December 2009. It called for an audit of the Federal Reserve, something that has never been done in the Fed’s 100 years of existence. The House bill, however, was gutted by the Senate in a 62-37 vote led by Vermont’s Senator Bernie Sanders, the proud and admitted socialist who regularly votes with the Democrats. His major helpers in continuing the gigantic cover-up were Senators Harry Reid (D-Nev.) and Charles Schumer (D-N.Y.).

Not only food but just about everything else, certainly including the fuel needed to heat homes and run businesses, costs more of everyone’s less-valuable dollars.

Government personnel, Federal Reserve officials, and their allies in the main stream media steadfastly refuse to tell the American people two very simple truths: 1) rising prices are the effect of inflation, and 2) what is being inflated is the amount of dollars created by overworked printing presses and computer entries. If Americans understood these truths, the process would stop.

Either it stops or America will grind to a halt. It won’t take an invading foreign army to destroy this “land of the free and the home of the brave.” All that’s needed is a few more years of the kind of economic treachery we have just described. After that, America will beg for mercy from others because it will have ceded what remains of its independence and freedom.

Learn more at our “Restore Constitutional Money” page, as well as watching Dollars & $ense, featuring the author of this post: