|
|
 |
The Seeds of Social Revolution: Extreme Wealth Inequality November 15, 2024
The seeds of social revolution have been sown and sprouted. What we harvest is up to us.
If there is any potential catalyst for social upheaval that attracts less attention than extreme wealth inequality, it's mighty obscure. As I noted yesterday, the present extreme of wealth inequality draws an occasional bit of lip service or handwringing, but very little serious focus, despite ample historical foundations for its role in sowing the seeds of social revolutions. As I tried to explain in yesterday's post, extreme wealth inequality might not be the spark that ignites a revolution, but it is a tectonic shift that destabilizes the social order. For extreme wealth inequality isn't a consequence of fate or sorcery; it is the consequence of policies that favor the few at the expense of the many, a reality that is exceedingly uncomfortable for those benefiting from the asymmetry. For a rundown of the policies that have exacerbated wealth inequality, consider the following excerpts from Time magazine, September 2020: The Top 1% of Americans Have Taken $50 Trillion From the Bottom 90% -- And That's Made the U.S. Less Secure. "There are some who blame the current plight of working Americans on structural changes in the underlying economy--on automation, and especially on globalization. According to this popular narrative, the lower wages of the past 40 years were the unfortunate but necessary price of keeping American businesses competitive in an increasingly cutthroat global market. But in fact, the $50 trillion transfer of wealth the RAND report documents has occurred entirely within the American economy, not between it and its trading partners. No, this upward redistribution of income, wealth, and power wasn't inevitable; it was a choice--a direct result of the trickle-down policies we chose to implement since 1975. We chose to cut taxes on billionaires and to deregulate the financial industry. We chose to allow CEOs to manipulate share prices through stock buybacks, and to lavishly reward themselves with the proceeds. We chose to permit giant corporations, through mergers and acquisitions, to accumulate the vast monopoly power necessary to dictate both prices charged and wages paid. We chose to erode the minimum wage and the overtime threshold and the bargaining power of labor. For four decades, we chose to elect political leaders who put the material interests of the rich and powerful above those of the American people." In other words, extreme wealth inequality is not the result of economic forces outside our control; it's the result of our policy responses to changing social, political and economic conditions. While those benefiting from the policies attribute the asymmetric distribution of the economy's gains to "forces outside our control" such as globalization and automation, those losing ground sense that this is an excuse for taking advantage of the situation, to the detriment of the national interest. We can best understand extreme wealth inequality as the destabilizing result of one set of competing economic interests gaining dominance over other economic interests: broadly speaking, the balance between labor and capital has collapsed in favor of capital. To take one example, consider the minimum wage, which did not kept up with inflation for decades as a policy decision. The different interests within each sector can also destabilize into asymmetric distributions. For example, within the broad category of capital, there are many competing interests: industrial capital, financial capital, land-based capital, domestic and global interests, and so on. Within labor, there are blue-collar and white collar interests, and gradations of skills, regional interests, and so on. Broadly speaking, globalization and financialization greatly increased the share of some interests at the expense of others. The social boundaries of what's acceptable and unacceptable change, enabling or restricting financial policies. For example, in the postwar boom of the 1950s, corporate CEOs earned multiples of their average employee that by today's standards were ludicrously low, as present-day CEOs routinely take home compensation (including stock options) that are in the tens of millions of dollars annually. In the broad sweep of history, extreme asymmetries in the distribution of the economy's output are rebalanced one way or the other, if not with policy changes than by the overthrow of the status quo. The book The Great Leveler: Violence and the History of Inequality from the Stone Age to the Twenty-First Century breaks down the various pieces of this complex puzzle. The history and data are too varied to be easily summarized, but we can start with humanity's innate sense of fairness in social organizations: we sense when our contributions are getting short shrift while others are grabbing shares that are not commensurate with their contributions--despite their claims to "earning" their outsized shares. Some write this off as envy, and to be sure envy is an innate human response, but fairness and envy are two different things. If someone strips us of power that we once held to benefit their own accumulation of wealth, our sense that this is unfair is not envy. We seem to be approaching the point where a rebalancing of extreme asymmetries is at hand, and so we have to choose between policy changes and social upheaval. Those benefiting from the current asymmetrical distribution naturally feel that all is right with the world, while those whose purchasing power and political power have been stripmined feel that regaining what was taken from them is only fair. Here's the data on our asymmetric distribution of wealth again. You can skip this if you've already seen the charts. The RAND study Trends in Income From 1975 to 2018 concluded that capital siphoned $50 trillion from labor from 1975 to 2018. Using data from the Federal Reserve's FRED database (series A4102E1A156NBEA), correspondent Alain M. calculated the actual sum for the period 1970 to 2022 (2022 being the most recent data available) was a staggering $149 trillion: his spreadsheet is available here as a PDF: Employees Share of Gross Domestic Income 1970-2022. If wage earners' share of Gross Domestic Income had remained at 51% instead of declining to 43%, wage earners would have received an additional $149 trillion over those 52 years. 
As GDP and household wealth have soared, he bottom 50% of American households' share of the nation's financial wealth has declined. 
The top 0.01%'s wealth soared far above inflation. 
The ownership of stocks in concentrated in the top 10% households, who own 90% of this asset class. 
Housing prices have risen sharply, becoming unaffordable for the majority of households. Those who bought homes long ago in desirable areas have reaped enormous gains, a generational / class / regional asymmetry. 
The seeds of social revolution have been sown and sprouted. What we harvest is up to us. The Slow Death of the Single Family Home (30:57 min). My recent books: Disclosure: As an Amazon Associate I earn from qualifying purchases originated via links to Amazon products on this site. The Mythology of Progress, Anti-Progress and a Mythology for the 21st Century print $18, (Kindle $8.95, Hardcover $24 (215 pages, 2024) Read the Introduction and first chapter for free (PDF) Self-Reliance in the 21st Century print $18, (Kindle $8.95, audiobook $13.08 (96 pages, 2022) Read the first chapter for free (PDF) The Asian Heroine Who Seduced Me (Novel) print $10.95, Kindle $6.95 Read an excerpt for free (PDF) When You Can't Go On: Burnout, Reckoning and Renewal $18 print, $8.95 Kindle ebook; audiobook Read the first section for free (PDF) Global Crisis, National Renewal: A (Revolutionary) Grand Strategy for the United States (Kindle $9.95, print $24, audiobook) Read Chapter One for free (PDF). A Hacker's Teleology: Sharing the Wealth of Our Shrinking Planet (Kindle $8.95, print $20, audiobook $17.46) Read the first section for free (PDF). Will You Be Richer or Poorer?: Profit, Power, and AI in a Traumatized World (Kindle $5, print $10, audiobook) Read the first section for free (PDF). The Adventures of the Consulting Philosopher: The Disappearance of Drake (Novel) $4.95 Kindle, $10.95 print); read the first chapters for free (PDF) Money and Work Unchained $6.95 Kindle, $15 print) Read the first section for free Become a $3/month patron of my work via patreon.com. Subscribe to my Substack for free The Mythology of Progress, Anti-Progress and a Mythology for the 21st Century print $18, (Kindle $8.95, Hardcover $24 (215 pages, 2024) Read the Introduction and first chapter for free (PDF) 
What if growth--and policies to accelerate growth--are no longer working because our fix for every problem--growth for growth's sake--is failing? We're told Progress is inevitable as a result of technology, but everyday life is getting harder, not easier--the opposite of Progress, what I call Anti-Progress.
What if the real source of the unraveling is far deeper than economics or politics? What if the problem is what we see as the inevitable destiny of humanity--Progress--is actually a modern mythology, disconnected from the real-world consequences of growth for growth's sake? We indignantly reject that Progress is a mythology, but our need for mythology hasn't gone away because we've mastered technology; we've created a modern mythology of technology that is heedless of its own consequences. To truly progress, we need a new mythology aligned to 21st century realities. That's the goal of this book. Read the Introduction and first chapter for free Self-Reliance in the 21st Century print $18, (Kindle $8.95, audiobook $13.08 (96 pages, 2022) Read the first chapter for free (PDF) 
Just as no one was left unaffected by the rise of globalization, no one will be unaffected by its demise.
The only response that reduces our vulnerability is self-reliance: de-risk your life by carving a path that works for you.
When Ralph Waldo Emerson wrote his famous essay Self-Reliance in 1841, the economy was localized and households supplied many of their own essentials. Now we're dependent on distant sources for our essentials. For Emerson, self-reliance is thinking for ourselves rather than taking the conventional path. Self-reliance today means reordering our priorities and values. Self-reliance is often confused with self-sufficiency--the equivalent of Thoreau's cabin. But self-reliance isn't about piling up money or an isolated cabin; it's about cooperating with trustworthy others in productive networks. The book details the essential mindset of self-reliance and 18 nuts and bolts principles of self-reliance in the 21st century. Podcast with Richard Bonugli: Self Reliance in the 21st Century (43 min)
Recent entries: The Seeds of Social Revolution: Extreme Wealth Inequality November 15, 2024 The Elephant in the Room--No, the Other Elephant November 14, 2024 Machiavelli's Sage Advice to Transformational Leaders November 13, 2024 The Cost of Owning a Home Is Soaring November 11, 2024 Unaffordable Housing and Homeless Encampments: How Did It Get This Bad? November 8, 2024 The Limits of Government November 6, 2024 Central Planning: China's Miracle--and Malaise November 4, 2024 The Extremely Profitable Inner Workings of Digital Addiction November 1, 2024 Is Social Media Actually "Media," Or Is It Something Else? October 30, 2024
Welcome to the Circular Firing Squad
October 29, 2024
Contributions/subscriptions are acknowledged in the order received. Your name and email remain confidential and will not be given to any other individual, company or agency. All contributors are listed below in acknowledgement of my gratitude.
Of Two Minds Site Links home musings my books archives books/films policies/disclosures social media/search Aphorisms How to Contribute, Subscribe/Unsubscribe sites/blogs of interest original music/songs Get a Job (book) contributors my definition of success why readers donate/subscribe to Of Two Minds mobile site (Blogspot) mobile site (m.oftwominds.com)
HUGE GIANT BIG FAT DISCLAIMER: Nothing on this site should be construed as investment advice or guidance. It is not intended as investment advice or guidance, nor is it offered as such.... (read more) WHY EMAIL TO THIS SITE IS READ BUT MAY NOT BE ACKNOWLEDGED: Regrettably, I am so sorely pressed for time and energy that I am unable to respond to the vast majority of emails. Please know I read all emails, but I can only devote a very limited number of hours to this blog and all correspondence.... Subscriptions to the Weekly Musings Reports Subscribers enable Of Two Minds to post free content. Without your financial support, the free content would disappear for the simple reason that I cannot keep body and soul together on my meager book sales alone. Your financial support is very much appreciated. Subscribers ($7/mo) and those who have contributed $70 or more annually receive weekly exclusive Musings Reports ($70/year is about $1.35 a week). Each weekly Musings Report offers four features: 1. Exclusive essay on an extraordinarily diverse range of insightful topics 2. Summary of the blog this week 3. Best thing that happened to me this week 4. From Left Field (a curated selection of interesting links) There are four easy ways to subscribe: Substack, Patreon, US Mail and Paypal: How to Contribute, Subscribe/Unsubscribe to Of Two Minds What subscribers are saying about the Musings: "What makes you a channel worth paying for? It's actually pretty simple - you possess a clarity of thought that most of us can only dream of, and a perspective that allows you to focus on the truth with laser-like precision." Jim S. Thank you very much for supporting oftwominds.com with your subscription or contribution.
Extra-Special Bonus Aphorisms:
"There is no security on this earth; there is only opportunity." (Douglas MacArthur) "We are what we repeatedly do." (Aristotle) "Do the thing and you shall have the power." (Ralph Waldo Emerson) "Any intelligent fool can make things bigger, more complex, and more violent. It takes a touch of genius and a lot of courage to move in the opposite direction." (E.F. Schumacher, via Tom R.) "He who will not risk cannot win." (John Paul Jones) "When we drink coffee, ideas march in like the army." (Honore de Balzac) "Progress is not possible without deviation." (Frank Zappa, via Richard Metzger) "Victory favors those who take pains." (amat victoria curam) "The man who has a garden and a library has everything." (Cicero, via Lee Bentley) "A healthy homecooked family meal and a home garden are revolutionary acts." (CHS) "Do you know what amazes me more than anything else? The impotence of force to organize anything." (Napoleon Bonaparte) "The way of the Tao is reversal" Or "Reversal is the movement of Tao." (Lao Tzu) "Chance favours the prepared mind." (Louis Pasteur) "Success consists of going from failure to failure without loss of enthusiasm." (Winston Churchill) "Where there is ruin, there is hope for treasures." (Rumi) "The realm of gratitude is boundless." (CHS, 11/25/15) "History doesn't have a reverse gear." (CHS, 12/22/15) Smith's Law of Conservation of Risk: Every sustained action has more than one consequence. Some consequences will appear positive for a time before revealing their destructive nature. Some consequences will be intended, some will not. Some will be foreseeable, some will not. Some will be controllable, some will not. Those that are unforeseen and uncontrollable will trigger waves of other unforeseen and uncontrollable consequences. (July 8, 2014)(thanks to Lew G. for retitling the idea.) Smith's Neofeudalism Principle #1: If the citizenry cannot replace a kleptocratic authoritarian government and/or limit the power of the financial Aristocracy at the ballot box, the nation is a democracy in name only. The Smith Corollary to Metcalfe's Law (The Network Effect): the value of the network is created not just by the number of connected devices/users but by the value of the information and knowledge shared by users in sub-networks and in the entire network. (CHS, 4/6/16) My Credo of Liberation: I no longer care if the power centers of our society--the distant, fortified castles of our financial feudal system--are changed by my actions, for I am liberated by the act of resistance. I am no longer complicit in perpetuating fraudulent feudalism and the pathology of concentrated power. I no longer covet signifiers of membership in the Upper Caste that serves the plutocracy. I am liberated from self-destructive consumerist-State financialization and the delusion that debt servitude and obedience to sociopathological Elites serve my self-interests. (Thank you, Klaus-Peter L., for reminding me) "We've become a culture of excuses rather than solutions: solutions always require sustained effort and discipline." (CHS 4/9/16) "Fraud as a way of life caters an extravagant banquet of consequences." (CHS 4/14/16) "Creativity = problem solving = value creation." (CHS 6/4/16) "Truth is powerful because it is the core dynamic of solving problems." (CHS 7/21/17) "We live in a system of human emotions that masquerades as a science (economics)." (CHS 1/1/18) "Always remember, your focus determines your reality." (George Lucas) "Diversity is for poor people. Sameness is for the successful." (GFB) "When power dissipates suddenly, it dissipates completely." (CHS 7/14/19) "Disobedience is the true foundation of liberty. The obedient must be slaves." (Henry David Thoreau) "Markets cannot price in the value of non-monetized natural assets such as diverse ecosystems." (CHS 7/14/19) "Magical thinking isn't optimism, it is folly." CHS 1/3/22) "Tune in (to self-reliance), drop out (of hyper-consumerism and debt-serfdom) and turn on (to relocalizing capital and agency)." (CHS 1/5/22) "The path to everything you desire starts here: like yourself as you are right now." (CHS 11/20/22) "There are only two signals: how many essentials you produce and share and if you're consuming less with better results. Everything else is noise." (CHS 12/17/22) "Liberation is no longer needing any confirmation or feedback from others or the world for one's sense of self. Wealth, fame, recognition, admiration, praise, prestige, approval, sainthood, martyrdom, success: none are needed, none are desired." (CHS 12/26/22) "When fame, wealth, prestige, status and glory are out of reach, you're free to pursue other more valuable things." (CHS 2/6/22) "It is the sacred duty of every activist who seeks to better their community to grow and share as much life-giving food as is humanly possible." (CHS 6/15/23) "Being anonymous, gray and unknown is the ideal state of freedom." (CHS 3/15/24) "We seem to have entered a world of anti-leisure and anti-productivity in which the unpaid shadow work demanded to keep all the complicated digital bits in motion obliterate our leisure and productivity." CHS (5/22/24) "It is axiomatic that failing systems work the best just before they fail catastrophically." Ray W. "Looking younger is mere technique; thinking younger demands creativity." CHS (10/16/24) |
|
||||||||||
|
All content, HTML coding, format design, design elements, original images, videos and musical compositions
and recordings on www.oftwominds.com are protected by copyright
© 2024 Charles Hugh Smith, All global rights
reserved in all media, unless otherwise credited or noted.
Terms of Service:
All content on this blog is provided by Trewe LLC for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owner will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information. These terms and conditions of use are subject to change at anytime and without notice.
Our Privacy Policy:
PRIVACY NOTICE FOR EEA INDIVIDUALS
Notice of Compliance with
The California Consumer Protection Act
Regarding Cookies:
Our Commission Policy:
|
|
|
|||||
| home email me (no promise of response, sorry, here's why) mirror site | |||||
