In a morally healthy society income can belong only to one of the following categories:

Wages, salaries and bonuses paid for taking part in labor activity

Payments from social security institutions financed by state and public funds-in-trust that are not a remuneration for taking part in labor activity

Income received as a help from another person who has a motivation of his own. This help should be lent on the basis of a mutual agreement that does not violate the rights of the person receiving help (help should solve problems and not create new ones).

But income received from loan interest, including interest on bank deposits is legalized theft. This racketeering is an anonymous one because the racketeer does not deal with the people he robs personally, and therefore those who are being robbed by him have no opportunity of countering him personally.

Opponents to the above-mentioned viewpoint on moderate loan interest rates including interest on bank deposits will have to explain the following to the average laborer:

Why have some categories of unearned income been acknowledged as legal and other categories of unearned income — as illegal and criminal?

Why seizing legalized unearned income on one’s own accord has also been recognized as crime and is punished by law?

It is particularly desirable to explain it to the average laborer and not to the «average tax-payer» because in the historically real economy a tax-payer can turn out not to be a laborer though he pays taxes on his unearned income which is legalized in the society. And the laborer[50] has to provide food, clothes and all the things necessary for everyone including tax-payers who live an «honest» and law-abiding life on the unearned income that is legalized. The laborer has a right to know why he is supposed to provide for the life of those who can work but don’t, and sometimes to provide them with a higher standard of consumption than the one his own family can afford.

The idea to form the so-called «middle-class» is connected with the wish of major parasite investors, who live mostly by unearned income, to get lost among the facelessness of this «middle», where people do labor but their income consists to a large extent of the unearned income from «stock» of different sorts. The parasite investors seek to achieve it in order that the «middle class» would pettily watch the pennies it gets from it and stand up for the whole corrupt parasitic system.

An example of how thoughtless «middle-class» penny-watchers rise to defend the corrupt parasitic system is their objection to re-organizing credit and finance system on the basis of eliminating loan interest and interest on bank deposits.

Objections of this sort proceed from the assumption that eliminating loan interest (including interest on bank deposits) will cut down the credit resource of the bank system, as people will no longer place money into banks. This will undermine the very institution of credit (and consequently the economy on the whole). Such objections are unfounded.

First, the price list (price-current) on any marketplace is determined by the society’s nominal paying capacity including its crediting constituent and responds to any changes occurring on it. In other words the larger the portion of money loaned and not paid back in the volume of purchased products and services, the higher nominal prices.

Second, there are other means of macroeconomic regulation to ensure a credit status of the bank system, which will allow it to work efficiently[51].

But if every form of loan interest were banned by law, it would bring the society into a morally healthier state, it would improve its economy and finance, it would be accompanied by countless positive phenomena in other spheres of civilization’s activity whose value cannot be calculated by means of accounting.

As a result, macroeconomy will be primarily controlled by the rational will of people. This will is now being ousted from the sphere of macroeconomic management and suppressed in it by thoughtless automatism of collecting loan interest that ensures the welfare of the usurers’ corporation no matter how bad their mistakes and misuses in the macroeconomic policy on credit and investments are.

Therefore while loan interest is still in force, especially «immoderate» loan interest that serves to generate debts that are sure to be impossible to pay back, i.e. serves to establish a system of slavery on the financial basis, the following holds true:

Evading taxes is a method of resisting usurious slavery, moreover so when a large part of state budget is spent on «servicing» the state’s liabilities to foreign and domestic usurers and profiteers from the stock exchange;

The tax police and legal institutions serving it are in many aspects akin to the polizei whom the Nazi invaders hired among the locals in order to implement their strategy of enslaving the peoples of Russia.

Many entrepreneurs and employees cannot explain the difference and connection between usury and taxation as it has been done above, yet they feel both the difference and the connection between them. And because they feel them they formulate their policy on the micro-level of economy according to what was said above.

That is why the politicians who hope to legalize the income of physical and juridical persons, return the capital that had vanished abroad back to Russia are deceiving themselves. They will not achieve this without dealing away with systemic usury and speculations on «stock» as well as with scientific justification of their supposed necessity and inevitability in the economy of the civilization.

Russia feels it and is aware of this. And she won’t be able to develop further until legalized unearned income is eliminated. Attempts to act by force are only aggravating and prolonging the current crisis and will lead those who use force and their accomplices to no good.

Digression 2 :

The Axioms of Modern Economics

In order to make clear what conception[52] of controlling the productive forces of mankind H. Ford adhered to we must clearly define several theses regarding the modern system of production and distribution of products and services in the society.

Most of them are obvious because they constitute some of the objective qualities of the social and economic life of our age. Yet regardless of that the economic theories dominating in modern science are founded upon the assumption that different opinions hold true for the issues discussed and that the views stated below are supposedly false.

We shall not recall the times of Adam Smith and earlier. We shall leave alone Robinson Crusoe and Friday living on an imaginary island. We shall turn to normal everyday life of any modern society that has developed a technosphere and that has become dependant on it. One can make the following statements about its life and economy.

FIRST. With minor exceptions there are no products or services we consume that can be produced by someone on his or her own. Production of any object or service starting with the conception of its design and up to delivering it to the customer requires collective labor both directly aimed at producing the object or service and indirectly connected with its production (manufacture and maintenance of technical equipment, ensuring necessary conditions that accompany production, for example heating on the premises etc.)

In other words, collective labor of many people, sometimes passed on from generation to generation, is the basis of the we l fare of society on the whole. And it’s the basis of the welfare of social groups and ind i viduals within it. And any kind of personal labor that forms a part of such collective work is a combination of directly productive labor and management labor. The last is aimed at coordinating activity of me m bers of a single collective, as well coordinating activity of many co l lectives .