The Rigged Economy Supply Chain & the Rigged Layer Equation

Table of Contents

As stated in the first chapter, past movements failed to eradicate the rigged layer because they had trouble defining exactly what was the root of the problem and often could not provide strong evidence for their claims. Vagueness, essentially, was their downfall. Enter the Rigged Economy Supply Chain and the Rigged Layer Equation

The Zero Theft Movement can only succeed if we turn the vague, unsubstantiated claims of the past into a clear calculation proving the rigged economic layer exists. We need a systematic breakdown of the economy that answers: 

  • What economic areas/sectors are or have been rigged?
  • How the rigging occurred?
  • Who are the parties responsible?
  • What is the best estimate of the amount ripped off from the American public? 

The Rigged Layer Equation allows us to accurately estimate how much theft is occurring in one specific area of the economy and the economy as a whole. Thus, when we claim the economy is rigged, we will have developed strong theft reports with evidence from reputable sources and a theft amount with our working out.  

But accurately calculating an estimate for the amount stolen in each area requires breaking down each link in the process. We achieve that by examining the Rigged Economy Supply Chain from top to bottom, then from the bottom to the top. In order to the Rigged Economy Supply Chain, we need to intervene by making ethical and effective actions in the right places. 

How the Rigged Layer Equation Works

In year X (e.g. 1970), GDP-per-citizen was X’ dollars. As time passes, capitalism’s powerful output results in aggressive GDP growth. By year Y (1990, let’s say), GDP-per-citizen (Y’) should have grown in proportion to the increases in GDP if the economy wasn’t rigged sometime during those two decades between years X and Y.  

Note: Y’ is adjusted for ethical real inflation (covered later). We use GDP-per-citizen as it eliminates skew caused by population growth.

By pinpointing when and which areas are or were rigged, we can start to accurately estimate and debate how much money was ripped off of us, per citizen. A sudden or growing disparity between an industry’s GDP and the GDP-per-employee will allow us to get even closer to calculating the extent of the rigged layer of the economy.  

How the Rigged Economy Supply Chain Works

This equation serves as our tool to examine the Rigged Economy Supply Chain through our traversals. 

Let’s look at three traversals of the pharmaceutical industry. The situation is: a citizen needs medicine to treat a serious illness.

M = Ethical rates 

S = Stolen dollars

R = Rigged rates

T = Total profits

High numbers are companies and production.  Low numbers are citizens satisfying needs.

Traversal #1: Meeting Citizens’ Needs with Ethical Rates (M)

Traversal #1 shows how an ethical supply chain functions. Legislators establish laws preventing rigged behavior; regulators enforce those laws, and companies abide by the rules. 

In this pharmaceutical case, legislators and regulators promote market competition by cracking down on unethical patent extensions, price fixing schemes between pharma companies, and so on.  

0: A citizen is extremely ill and needs medicine. In order to live, they must buy the medicine.

30: Competition causes ethical prices (M) for the citizens while allowing companies to recoup R&D costs and make a reasonable profit.

50: Congress has passed laws that protect M, and pharmaceutical regulators enforce said laws. Rigged behavior and rigged rates (R) are outlawed, considered illegal in an ethical economy. 

In this case, they make sure patent laws aren’t used to rig the economy. We will go in-depth around ethical vs rigged market behavior in relation to patent laws, especially as it pertains to the pharmaceutical industry in future chapters.

60: In a free market, companies vy to develop the most effective treatment they can.  

80: Companies price their medicines competitively (i.e. without collusion or coordination with other pharmaceutical companies). True competition results in M (just prices for citizens).

90: M also enables companies to recoup their R&D costs required to invent the medicine and earn an ethical profit. Based on legislation and regulation, they cannot use R to unethically boost profits.

100: Companies capitalize on their ethical profits by making sustainable investments, including providing early capital to budding businesses. 

Traversal #1 shows an ethical supply chain, where citizens’ needs can be met while companies make a profit. All sides contribute to creating a sustainable system long-term (citizens/consumers receive treatment and companies recoup R&D costs and make ethical profits).

Traversal #2: Crony Corporations rig prices

Let’s say the citizenry calls for the government to have the ability to negotiate drug prices for Medicare Part D. The government listens to the people and gives the Secretary of the HHS (Health and Human Services) the ability to negotiate drug prices. 

Currently, the HHS Secretary is banned from negotiating due to the non-interference clause in the Medicare Modernization Act. Crony pharmaceutical companies forced President Bush to make it illegal for the government to negotiate medicine prices, otherwise, Medicare wouldn’t have been able to purchase medicine.

Traversal #2’s focus is on the corporation’s actions to steal by rigging the market. We will, therefore, assume the government helps citizens in the rigged economy supply chain.

0: A citizen is extremely ill and needs medicine. In order to live, they must buy the medicine.

30: Competition causes M for the citizens while allowing companies to recoup R&D costs and make a reasonable profit.

50: Free Market competition should occur here. Rigged economy theft happens instead. The citizen has to pay R if they can even afford it. They might ration their medication in order to at least have some way to consistently combat the illness. Thus, a portion of the total amount spent on purchasing medicines (the unethical profits) is what is being ripped off from the public.

35: Through the Zero Theft Movement software, a group of ~100 Citizen investigators files a Problem Proposal, providing an economic model of how much they approximate S would be. In this particular traversal, T is how much Medicare pays considering the HHS Secretary cannot crony corporations are still unethically profiting. S is how much of T (total profit) is from R (rigged rates). Estimates will likely have different approximations, although often clustered around the same amount if many believe theft is occurring. 

40: Citizens vote that theft is occurring by pharmaceutical companies. Let’s say they approve of Problem Proposal #35 (of 100) as the best estimate for S. Citizens use the Zero Theft app to decide democratically (through a vote) S (stolen dollars). S can be calculated from S = T – M. The citizen base accepts this as the amount stolen in the rigged economy in this one area.

60: Crony corporations hire lobbyists to influence politicians and make it illegal for the HHS secretary to negotiate drug prices. Congress, however, listens to the public and manages to get the HHS Secretary the power to negotiate drug prices for Medicare Part D. 

80: Assuming this solution is successful, sales now occur exclusively at M prices.

90: M enables companies to recoup their R&D costs required to invent the medicine and earn an ethical profit. Based on legislation and regulation, they cannot use R to unethically boost profits.

100: Crony companies try to rig the pharma market by preventing the HHS Secretary from negotiating drug prices. They want Medicare medicine purchases at rigged prices (R) The unethical group actively works to achieve unethical profits.

Traversal #3: Government sells out citizens by assisting Crony Corporations

Traversal #3 will focus on the government actions to aid and abet rigged economy theft. The focus here is on members of the government, politicians, and the lobbying industry. We live in a world where politicians, the people who are meant to protect and champion what they believe to be in the best interests of the people, betray our trust by actively and passively contributing to the rigged economy supply chain. This traversal provides the contrast between what the government ethically ought to do vs their unethical behavior that costs the public hundreds of billions, if not trillions, of dollars annually.

0: A citizen is extremely ill and needs medicine. In order to live, they must buy the medicine.

30: Free market competition causes just prices (M) for the citizens while allowing companies to recoup R&D costs and make a reasonable profit.

50: Free Market competition should occur here. Rigged economy theft happens instead. The citizen has to pay R if they can even afford it. They might ration their medication in order to at least have some way to consistently combat the illness. Thus, a portion of the total amount spent on purchasing medicines (the unethical profits) is what is being ripped off from the public.

35: Through the Zero Theft Movement software, a group of ~100 Citizen investigators files a Problem Proposal, providing an economic model of how much they approximate S would be. In this particular traversal, T is how much Medicare pays considering the HHS Secretary cannot crony corporations are still unethically profiting. S is how much of T (total profit) is from R (rigged rates). Estimates will likely have different approximations, although often clustered around the same amount if many believe theft is occurring. 

40: Citizens vote whether theft is occurring by pharmaceutical companies. Let’s say they approve of Problem Proposal #35 (of 100) as the best estimate for S. Citizens use the Zero Theft app to decide democratically (through a vote) S (stolen dollars). S can be calculated from S = T – M. The citizen base accepts this as the amount stolen in the rigged economy in this one area.

60: Crony corporations hire lobbyists to influence politicians and make it illegal for the HHS Secretary to negotiate drug prices. Congress experiences regulatory capture; they continue to prevent the HHS Secretary from negotiating drug prices. This is the pivotal factor between S or zero theft occurring (S=$0).

80: Sales occur at the R price.

100: Crony companies want to rig the pharmaceutical market by making it illegal for the HHS Secretary to negotiate. They actively work in order to make this happen by hiring lobbyists to force, pressure, and/or influence politicians. They threaten (and likely use their lobbying money) to block President Bush from passing the Medicare laws on buying the medicines if they didn’t get the non-interference clause included.

Zero Theft is here to address this philosophical problem society faces with the rigged economy. By going through the Rigged Economy Supply Chain, we can collectively identify where theft is occurring and eliminate it.

Standard Disclaimer

The Zero Theft Movement does not have any interest in partisan politics/competition or attacking/defending one side. We seek to eradicate theft from the U.S economy. In other words, how the wealthy and powerful rig the system to steal money from us, the everyday citizen. We need to collectively fight against crony capitalism in order for us to all profit from an ethical economy.   

Terms like ‘steal,’ ‘theft,’ and ‘crime’ will frequently appear throughout the book. Zero Theft will NOT adhere strictly to the legal definitions of these terms (since congress sells out). We have broadly and openly defined terms like ‘steal’ and ‘theft’ to refer to the rigged economy and other debated unethical acts that can cause citizens to lose out on money they deserve to keep.