Fw: An Economic Message from Irwin Schiff
- Sheldon (Shelly) Waxman, J.D. http://www.thelawyer.info
IC Specialist http://www.independentcontractor.info
NewPulp Literary Productions-- http://www.newpulp.net----- Original Message -----From: angelastark@...Sent: Friday, August 01, 2008 4:53 AMSubject: An Economic Message from Irwin Schiff
PULLING THE WOOL OVER THE EYES OF THE AMERICAN PUBLIC
THE FRAUDULENT GDP
An Economic Message from Irwin Schiff
July 24, 2008
I dont exactly know when government statisticians started to use GDP (Gross Domestic Product) figures instead of traditional GNP (Gross National Product) figures. However, it is clear that a new index was contrived in order to hide from the American public how American wealth is vanishing, along with Americas industrial base. For reasons explained below, if the government had continued using GNP calculations, it would have had to report a falling GNP. So to avoid having to do that, it concocted a new index- the GDP.
Unlike GDP figures, the GNP included the value of all goods and services produced by American owned businesses, whether located here or abroad; while excluding from the index the productivity of foreign owned companies, even though they were located in the U.S. The reason for this is simple. The profit from American owned companies, whether located here or abroad, flows back to their American owners, enriching both them and the Nation. Similarly, the profits generated by foreign owned, domestic companies flow out of America to enrich their foreign owners and the countries in which they live. True, America does benefit from the wages that foreign owned businesses pay to their American workers, and those wages are reflected in, and may increase Americas National income figures, but their productivity belongs to foreigners, not to Americans. Therefore it is absurd and deceiving to credit the American economy with the value of all the products produced here (as the GDP does) regardless of whether or not the company producing them is American or foreign. And not making this distinction hides the accelerating gobbling up of American companies by foreign interests, which is undoubtedly why the government switched from GNP to GDP.
Hand written letter from Irwin that accompanied this article.
I wrote this little article to explain something that most Americans are not aware ofthe switch from using the GNP (which we used when I was in college) to the GDP. Many people are of course aware of the latest that that Belgium Company bought Bud. But half our steel companies (whats left of them) are now foreign owned. And even Russia is now buying up American Companies. With the fall of the dollar and the stock market, foreigners who are now loaded with dollars can buy up American companies which are now bargains to them.
But by using the GDP this transfer of wealth from Americans to foreigners does not show upas it would if we used GNP figures. As American businesses are taken over by foreigners, their productivity would be debited from the GNP. Remember GNP stands for Gross National Product. The product of a factory here but owned by foreigners can not be regarded as part of our National product since Americans dont own the products. They are really the National product of another country.
For this and many other reasons the GNP is a much better indication of the nations economic health. However, I believe the government switched from using the GNP to the GDP to hide the deteriorating nature of the American economy.
If all our factories became foreign owned it wouldnt make a bit of difference in the GDPwhile the GNP would be approaching ZERO
Remember the salaries that Americans received while working in foreign owned industries would get included in our national income figures and those salaries would stay here, BUT the PROFIT generated from the factories FLOW OUT to enrich foreigners and foreign countries. When factories are owned by Americans, Americans benefit by both the salaries paid and the profits generated, when a business is foreign owned-America only benefits from the salaries paid, but the profits benefits foreigners and foreign countries.