The Ati-thesis , Marxism

"By that definition, a state capitalist country is one where the government controls the economy and essentially acts like a single huge corporation, extracting the surplus value from the workforce in order to invest it in further production.[3] Friedrich Engels, in Socialism: Utopian and Scientific, argues that state capitalism would be the final stage of capitalism consisting of ownership and management of large-scale production and communication by the bourgeois state.[4]"

Quoted from Wikepedia

Friday, October 17, 2014

Lepage and TheTotalitarian State


Governor Lepage is working hard to get the youth signed up as workers in the the targeted sector.

There is not a lot of detail in this video. Lepage says corporations will buy student debt because corporations want workers. He doesn't explain much but he says he thinks he can make this "profitable".

Don't the students already want jobs so they can pay back the debt? And doesn't student debt belong to the student and not the state? How can the state give a tax credit in exchange for services rendered to private citizens? Why would a corporation have to buy a debt from the state in order to get students to work for them? There is a demand for jobs- and demand for workers- I think they can get together on their own without the state managing it.

Perhaps Lepage feels empowered to step in where there is no need for government to intervene because in 2013 the Maine Legislature passed

§3304. Industry partnerships

This act includes a long list of new government functions beginning with this:

1. Objectives.  The objectives of an industry partnership are to:
A. Organize businesses, employers, workers, labor organizations and industry associations into a collaborative structure that supports the sharing of information, ideas and challenges common to their industry cluster; [2013, c. 368, Pt. FFFFF, §1 (NEW).]

Forward and onward with the totalitarian state- the government will manage everything and everyone in the state to serve their own ends.

Of course education is included in this comprehensive piece of legislation- and why not. the legislature decreed the University of Maine to be a corporate instrumentality of the state in 1981, assigned itself jurisdiction over curriculum at the University of Maine in 1995 and by 2002 has installed Marxist and Socialist studies as a minor, to assist in training the youth in their roles as instrumentalities in a collectivist centrally managed society.

LePage must be flying high with his newly created totalitarian power but how exactly does this deal that he is talking about work? An employee-employer relationship is a one on one relationship. An employer wants the best employee he can get for the job and the employee wants the job best suited to him/her.

How does the state factor into this relationship? And how does the student personal debt become a bargaining chip for the state- in which the state throws in a "tax credit" which just means the state is passing the debt along to the taxpayer. Since the state is only interested in targeted sector jobs and most companies in the targeted sector will have been awarded Pine tree Zone tax credits- meaning the company does not owe taxes- and since most "tax credits" issued by the state are "refundable tax credits", that makes "tax credit" code for " I will arrange for the taxpayers to write you a big fat check !
Snapshot from comment I posted on You Tube in which the words talking about the Pine Tree Zone Tax Credits are struck out by an unidentified party for an unidentified reason.

Lepage says that he thinks he can make this profitable but for whom? Theoretically the students still owe the debt even if it is sold to another holder. The tax payer just got an increased burden- but the state will turn a profit on the high end income taxes for the above average wage jobs that LePage is arranging for students to fill- except that there is no reason for Lepage to be negotiating the job in the first place. Employees and employers have been working out their relationships for centuries without needing the agency of the state to make it happen.

And then there is the issue of buying and selling debt, which is a pre-existing private sector industry which works on its own conventions.

debt buyer is a company, sometimes a collection agency or a private debt collection law firm, that purchases delinquent or charged-off debts from a creditor for a fraction of the face value of the debt. The debt buyer can then collect on its own, utilize the services of another collection agency, repackage and resell portions of the purchased portfolio or any combination of these options. Wikipedia

Could it be that Lepage is talking about having the company buy the debt for a higher than usual amount and then make up the difference to the debt buyer with a tax credit paid for by the general Maine taxpayer? What is the reason for giving a tax credit other than it is the state's convention to use tax credits as bribes, which does not serve the common welfare, which is why, it is not really appropriate to call Maine a state. Maine is functioning as a corporation and the corporation's interests are not synonymous with the interests of the people. The people are being used as instrumentalities of the corporation- not being served by a state.

The state corporation makes unlimited use of tax credits granted to its targeted sector which likely has Pine Tree Zone tax exemptions in place so that no taxes are owed and tax credits become cash payouts.

So we are indeed going in the direction of Denmark, as described by Mikkel Clair Nissen. The youth is being set up to take high end jobs while tax credits are being used to negotiate everything, even things that do not need negotiation. Tax credits mean higher taxes. In Denmark wages are high but taxes are on average 80% of ones income. It costs a lot to have government regulate every single activity in one's life.
Food For Thought ! Note that the reply option is missing on Mr Bourgoine's post- only his post.


  1. The amendment (so-called) to the Constitution of Maine allowing this involvement in private industry through bonds, grants, loans was repugnant to the original Constitution, and thus void from the date of enactment, the people's uninformed (or misinformed) votes notwithstanding.

    1. What amendment is that? Article Ix says
      Article IX.
      General Provisions.
      Section 14.  Authority and procedure for issuance of bonds.  The credit of the State shall not be directly or indirectly loaned in any case, except as provided in sections 14-A, 14-B, 14-C and 14-D.  The Legislature shall not create any debt or debts, liability or liabilities, on behalf of the State, which shall singly, or in the aggregate, with previous debts and liabilities hereafter incurred at any one time, exceed $2,000,000,...........nd excepting also that whenever 2/3 of both Houses shall deem it necessary, by proper enactment ratified by a majority of the electors voting thereon at a general or special election, the Legislature may authorize the issuance of bonds on behalf of the State at such times and in such amounts and for such purposes as approved by such action;

      What are called "tax credits" are actually public debts when the recipients of tax credits have been issued Pine tree Zone Tax exemptions meaning that they do not owe taxes. I haven't come across a tax credit that wasn't a "refundable tax credit" meaning that if no taxes are owed, the taxpayers owe the recipient a cash payment.

      The Seed Capital Tax Credit, passed last year was expanded by allowing non-residents to partake - who will not owe Maine taxes to begin with. The total amount of those tax credits allowed for next year exceeds the constitutional debt limit. The tax credits are to be paid over a four years , exceeding constitutional time limit. I don't know i there is a fund from which these payments are drawn from but in the fiscal note for the Expanded and Improved Seed Capital tax credit, the language used in the fiscal note is "loss of revenue" which might apply if the recipients actually owed any taxes but I find it unlikely that the recipients would not have taken advantage of the Pine Tree Zone tax exemptions before going for the tax credit on their investment- which essentially means the taxpayers refund up to 60% of their investment- not factoring in the charitable matching fund via the Maine Technology Institute and other assorted gifts.

      But none of that is provided for in the constitution. It is written into the statutes.