Assets of world’s “high net wealth” millionaires surged to $70 trillion in 2017

Posted on June 22, 2018 by Reid Mukai

By Barry Grey

The concentration of the planet’s wealth in the hands of a narrow financial elite is growing by leaps and bounds. A new report published Tuesday reveals that the wealth of the world’s 18.1 million “high net worth individuals”—those having investable assets of $1 million or more—shot up by 10.6 percent last year to top $70 trillion for the first time ever.

The “World Wealth Report 2018,” issued by the consulting firm Capgemini, revealed that the combined wealth of the world’s millionaires rose for the sixth consecutive year in 2017 to reach $70.2 trillion. It is on target to surpass $100 trillion by 2025.

Capgemini defines a high net wealth individual (HNWI) as someone with assets above $1 million, excluding his or her primary residence, collectibles, consumables and consumer durables. This defines a wealthy elite that owns more than $1 million in stocks, bonds, real estate or other investments.

The number of HNWIs grew almost 10 percent, or 1.6 million. The United States, Japan, Germany and China are the four largest markets for millionaires, accounting for 61 percent of the world’s HNWIs. The US tops the list with 5.3 million HNWIs, a 10 percent increase from 2016.

However, the Asia-Pacific region has most of these millionaires overall and accounted for the bulk of the increase in both the number of HNWIs (74.9 percent of the total) and the rise in their global wealth (68.8 percent). Economic inequality appears to be rising faster in this region than any other. Japan saw a 9 percent increase in HNWI millionaires, China an 11 percent rise and India a stunning 20 percent increase.

The financial oligarchy itself resides within what the report calls “ultra-high net wealth individuals,” those with $30 million or more in investable assets. They comprise only 1 percent of HNWIs, or 174,000 individuals, but they account for a vastly disproportionate share of the overall wealth of HNWI millionaires, as well as the increase in HNWI wealth. These ultra-HNWIs own some 35 percent of total NHWI wealth. In 2017, their ranks grew by 11.2 percent and their wealth by 12 percent, reaching $24.5 trillion.

The main factor driving the rapid enrichment of the financial aristocracy is the record rise in stock prices. “High net worth individuals around the world enjoyed investment returns above 20 percent for the second year in a row,” Anirban Bose, head of Capgemini’s financial services global strategic business unit, wrote in the report’s preface. The report noted that global market capitalization grew 21.8 percent in 2017.

The stock market has served as the primary mechanism for central banks and governments around the world to increase the wealth of the financial oligarchy, which dominates the world economy and all of the official institutions of society and dictates the policies of governments. For decades, the central banks, led by the US Federal Reserve, working in tandem with governments of the nominal “left” no less than the right, have deliberately engineered a vast transfer of wealth from the working class to the ruling elite by pursuing policies designed to pump up the financial markets.

These polices have been intensified since the 2008 financial crash. The Fed and the US government, first under Bush and then Obama, responded to the Wall Street meltdown by enacting measures to ensure that the oligarchs recouped all of their losses and were able to exploit the crisis to further enrich themselves. In addition to bailing out the banks and hedge funds with trillions of dollars in tax-payer money, they provided virtually free credit to Wall Street by means of near-zero interest rates and used “quantitative easing”—a euphemism for money-printing—to offload the banks’ bad loans onto the Fed’s balance sheet.

From the low-point of the post-crash recession in March 2009 to the present, US stock prices have risen four-fold, stoking a similar stock bonanza internationally.

This stock market boom and the entire process of social plunder have depended on the suppression of working class opposition and a savage attack on workers’ living standards by means of austerity and wage-cutting. The throttling of the class struggle has been contracted out to the trade unions, the industrial police agencies of the ruling class.

One of the most significant findings in the Capgemini report is that the total financial wealth of the world’s HNWIs more than doubled between 2008 and 2017, rising from $32.8 trillion to $70.2 trillion. This same period has seen, in the world inhabited by the vast majority of humans, a growth of poverty, hunger, homelessness, disease and, in the United States, a decline in life expectancy, a surge in infant and maternal mortality, and record rates of suicide and drug addiction.

This attack has continued and intensified under Trump, as well as governments in Europe, Latin America and Asia. Just last week the Federal Reserve raised interest rates and announced a tightening of monetary policy in response to the growth of workers’ strikes and protests. The oligarchy is petrified that lower unemployment and a tight labor market will encourage a militant wages movement that would undercut the entire basis of the stock market surge. It is moving to slow the economy and drive up unemployment.

To place the wealth of the world’s multi-millionaires and billionaires in perspective, the total of $24.5 trillion owned by “ultra-high net wealth individuals” is almost one-fifth of the world gross domestic product of $135 trillion.

$24.5 trillion is more than the GDP of the United States. It is more than the combined GDPs of the next three countries—China, Japan and Germany.

Just the global increase in ultra-HNWI wealth in 2017, $2.6 trillion, is larger than the GDPs of countries such as Italy, Brazil, Canada and Russia.

What could this money be used for were it not squandered to satisfy the demands of the rich and the super-rich for mansions, private jets and yachts? To give an example, the United Nations estimates it would cost $30 billion a year to eradicate world hunger. That means the money currently controlled by the world’s ultra-HNWIs could eliminate world hunger for 817 years.

The “World Wealth Report 2018” is only the latest in a wave of studies documenting the ever tightening grip of a tiny financial oligarchy and its ultra-wealthy periphery over the world’s resources. Wealth concentration on such a scale makes it impossible to seriously address a single social issue. The staggering diversion of resources into private wealth accumulation by the financial oligarchy starves society of the resources it needs to deal with the most basic problems.

The working class has no choice but to confront head-on the problem of economic inequality. The financial elite enforces its social interests through the wholesale buying of political parties and politicians, making democracy under capitalism nothing but a hollow shell. Any attempt within the framework of the profit system to carry out a modest reallocation of resources to ensure that all people had the basic rudiments of nutrition, health care and education would provoke a furious response from the oligarchy, which has at its disposal not only the courts, politicians and mass media, but, even more decisively, the police and the army.

When social reform becomes impossible, social revolution becomes inevitable. There is no avoiding the conclusion that it is necessary to expropriate the wealth of the financial oligarchs.

America’s Dystopian Future

Posted on May 25, 2018 by Reid Mukai

By Robert Hunziker

Source: CounterPunch

Imagine a privatized America where rugged individualism reigns supreme within a vast network of corporate America, Inc., similar to 19th century wild west lifestyle, no social security, no Medicare, no Medicaid, no public law enforcement as individuals stand their own ground. Read all about it in Scott Erickson’s History of the Decline and Fall of America (Azaria Press, 2018).

Erickson’s newly released semi-fictional satire of American history and subsequent decline into deepening pits of despair is a sure-fire treasure trove of Americana, at its best. It’s a page-turner par excellence, rich in accurate textured American history and jam-packed with imagery of a dystopian future that is simply unavoidable based upon America’s character and development over the past two centuries. The dye was cast long before onset of dystopian existence.

The History of the Decline and Fall of America highlights and exposes inherent limitations of democratic capitalism whilst explaining in full living color a future American dystopia that is fully expected based upon America’s beginnings from the time of Captain John Smith at historic Jamestown (1607). The history lesson therein is superb, not missing a beat of what shaped America up to the final tipping point of neoliberal dogma and beyond into a deep dark world order.

This beautifully written and conceived historical fiction is a witty tour de force of America past, present, and future, weaving together all of the historical elements into one coherent story from the widely accepted version of American “business success ” of the early period, but over time wistfully morphing into abject failure!

That process of failure, the root causes, is what intrigues, for example, “Americans were not only inventing a country but inventing what it meant to be an American.” Indeed, America came into being as a brand new experiment in capitalistic democracy. Within that quest for a new way forward, inclusive of equality and fraternity amongst equals, Erickson discovers and reveals unique American traits that belie that mission, leading to a neoliberal/privatization hellhole that goes horribly wrong.

That fascinating pathway is explained via enchanting quips, for example, de Tocqueville’s remarkably astute comment: “ I know of no country, indeed, where the move of money has taken a stronger hold on the affections of men.” This one isolated statement from the 1830s tells a tale of American character molded by artificiality of wealth creation simply for the sake of possessing it. America’s pursuit of happiness was the “pursuit of affluence” and remained its dominant trait for the “remaining 200-plus years of American history.”

Indeed, those predominant American character traits are flushed-out and analyzed in the context of eventual failure, of a dystopian world order emanating out of America’s clumsy experimentation with empire-building and constantly striving for the pot at the end of the rainbow, meaning economic growth above all else. It was a frontier spirit that fed into elusive goals of preeminence: “The frontier resulted in Americans being doers rather than thinkers….”

Real scenes of real American cocksuredness, as well as the clumsiness associated with raw ignorance, come to life, e.g., during the presidential race between Ike and Adlai Stevenson in 1954: “A revealing incident occurred while Stevenson was campaigning for president. A citizen shouted to Stevenson that he ‘had the vote of every thinking person.’Stevenson replied, ‘That’s not enough. We need a majority!”
This is excellent history, comparable to a textbook, as well as a peek into the future shaped via trends rooted throughout Americana. Erickson’s lessons in American history are genuine and accurate, which gives the book depth and a powerful sense of significance well beyond similar treatises that try to lay the challenging groundwork leading to how a nation turns sour into a dystopian society.

He weaves the path of Manifest Destiny all the way from 1840s to the planting of the American flag on the surface of the moon. Until the 1970s when American pre-eminence tipped downward, humiliated in Vietnam in what future generations came to know as The Vietnam Syndrome,” the psychological attempt to live with the unacceptable reality that it was possible for America to not win.

Not only was America no longer a winner in war, its “unparalleled level of affluence… began to decline.” The 1970s marked the high point, forever downward into a bottomless septic tank, a cloaca of messy foul shit earmarking America’s final destiny, third world status within a realm of excessive, pretense of wealth glistening behind spiked electronic gates.

The signs of decline were easy to spot by the early-mid 2000s: “… the situation had declined dramatically. According to statistics from 2015, among industrialized nations, America was notable for having the highest poverty rate, the lowest score on the UN index of ‘material well-being of children,’ the highest health care expenditures, the highest infant mortality rate, the highest prevalence of mental health problems, the highest obesity rate, the highest consumption of antidepressants per capita, the highest homicide rate, and the largest prison population per capita. By international standards, the rural counties of southern West Virginia and eastern Kentucky qualified as developing countries, as did large sections of American cities such as Detroit, Cleveland, Gary, and many others.” (Pg. 112)

Thereafter, America’s youth no longer embraced the long-standing belief that they would have more than their parents. No, they knew it would be less and less. America entered a “permanent recession” cycle.
By the late 2030s American experienced a series of extreme crises. A number of cities declared bankruptcy. Houston, America’s 4th largest city goes bankrupt. Cleveland goes bankrupt. The head of the Federal Reserve quits and becomes a banjo player in a bluegrass group. America’s banking system collapses under the weight of fishy loans and massive crazed derivatives all permitted by increasingly hands-off regulations. The brutal hand of libertarianism smears a once proud republic.

Regular citizens, entire families carry torches surrounding Wall Street in protest of loss savings, ATMs not functioning, banks closed. An economic death spiral unleashed. The Save America Act followed, consisting of pure right wing neoliberal fix-its to save corporate America, to save Wall Street, turning to America, Inc. as the only answer to all that ails.

And, as the financial markets unravel in the face of nationwide bankruptcies, the government convincingly informs the public: “We need to defy the Constitution in order to preserve it… Americans were so thoroughly confused about the relationship between government and economics that most of them thought that the terms democracy, free-enterprise, and capitalism were the same thing.” (Pg. 165)

As time progresses, America’s Labor Day is changed to Management Day, and the Catholic Church is permitted to re-name the Statue of Liberty as “Our Lady of Perpetual Economic Growth.” America the nation turns into America, Inc. It is the only way the establishment knows to drive the country out of its doldrums. As such, The Star Spangled Banner is changed to The Free Market Ramble.

Privatization of the entire country in harmony with massive tax cuts alongside elimination of Social Security, Medicare, Medicaid, public education, law enforcement, postal service, and maintenance of roads and infrastructure, thereafter, people take care of themselves from birth to the death, alone with family backing. Self-directed medical care becomes a beacon of survival of the fittest of the fittest. Those that participated as y0ungsters in Boy/Girl Scouts have a leg up in a society that increasingly places emphasis on rugged individualism. However, the many, many weaklings stumble in rows after rows of slimy gutters.

In the end, and similar to America’s 2008-09 financial collapse, which was only a warm up for much bigger things to come: “The decisive trigger, the one that pushed America beyond the point of no return, was the total collapse of the economy. It had been something of a miracle that the doomed economy had not collapsed long before. Toward the end it had been sustained by little more than momentum, since according to all economic indicators it should not have been functioning at all. The economic system based on infinite growth had reached the point where it could grow no more. American banks could not pay off previous debt by making further loans to generate more money. The pyramid scheme was over… An eerie calm descended upon all those involved in economics and finance.”

US Collapse – the Spectacle of Our Time

Posted on May 11, 2018 by Reid Mukai

By Finnian Cunningham

Source: Axis of Logic

May you live in interesting times, goes the Chinese proverb. Few can doubt that we are indeed living in such an interesting time. Big changes are afoot in the world, it seems.

None more so than the collapsing of the American Empire.

The US is going through an historic “correction” in the same way that the Soviet Union did some 30 years ago when the latter was confronted with the reality of its unsustainable political and economic system. (That’s not meant to imply, however, that socialism is unviable, because arguably the Soviet Union had fatally strayed from its genuine socialist project into something more akin to unwieldy state capitalism.)

In any case, all empires come to an end eventually. History is littered with the debris of countless empires. Why should the American Empire be any different? It’s not. Only arrogant “American exceptionalism” deludes itself from the reality.

The notable thing is just how in denial the political class and the US news media are about the unfolding American crisis.

This is partly where the whole “Russiagate” narrative comes into play. Blaming Russia for allegedly destabilizing US politics and society is a cover for denial over the internal rot facing the US.

Some may scoff at the very idea of an “American Empire”. That’s something Europeans did, not us, goes the apologist for US power. The quick retort to that view is to point out that the US has over 1,000 military bases in more than 100 countries around the world. If that is not a manifestation of empire then what is?

For seven decades since the Second World War, “Pax Americana” was the grandiose name given to US imperial design for the global order. The period was far from peaceful as the vainglorious name suggests. Dozens of wars, proxy conflicts and violent subversions were carried by the US on every continent in order to maintain its empire. The so-called “global policeman” was more often a “global thug”.

That US empire is now teetering at the cusp of an emerging multipolar world order led by China, Russia and other rising powers.

When US leaders complain about China and Russia “reshaping the global order” to reflect their interests what the American leaders are tacitly admitting is the coming end of Washington’s presumed hegemony.

Rather than accepting the fate of demise, the US is aggressively resisting by denigrating China and Russia’s power as somehow illegitimate. It’s the classic denial reaction of a sore loser.

So, what are the telltale signs that the US is indeed undergoing a seminal “correction” — or collapse?

The heyday of American capitalism is well passed. The once awesome productive system is a skeleton of its former self. The rise of massive social poverty alongside obscene wealth among a tiny elite is a sure sign that the once mighty American economy is chronically moribund. The country’s soaring $20 trillion national debt is another symptom of chronic atrophy.

Recent self-congratulatory whooping by President Trump of “economic recovery” is like the joy felt from looking at a mirage. The roaring stock market is an elite phenomenon which can just as easily slump over night.
What the champagne bubbles can’t disguise is the structural failing of US capitalism to reverse exploding inequality and endemic poverty across America. The national prowess of US capitalism has been superseded by global capitalism where American corporations among others scour the planet for cheap labor and tax havens. There is no going back to a supposed golden age, no matter how much Trump crows about “America First”.

The other side of the coin from historic US economic demise is the concomitant rise in its militarism as a way to compensate for its overall loss of power.

It is no coincidence that since the end of the Cold War following the dissolution of the Soviet Union, US military interventions around the world have erupted with increased frequency and duration. The US is in a veritable permanent state of war actively deploying its forces simultaneously in several countries, particularly in the oil-rich Middle East.

Washington of course gives itself a fig leaf cover by calling its surge in militarism a “war on terror” or “defending allies”. But, increasingly, US war conduct is seen for what it plainly is — violation of international law and the sovereignty of nations for the pursuit of American imperial interests.

In short, the US is patently lashing out as a rogue regime. There’s no disguising that fiendish fact.

In addition to waging wars, bombing countries, sponsoring terrorist proxies and assassinating enemies at will with drones, Washington is increasingly threatening others with military aggression. In recent months, North Korea and Iran have been openly threatened based on spurious claims. Russia and China have also been explicitly warned of American aggression in several strategic documents published by the Trump administration.

The grounds for American belligerence are baseless. As noted, the real motive is to do with compensating for its own inherent political, economic and social crises. That then amounts to American leaders inciting conflicts and wars, which is in itself a grave violation of international law — a crime against peace, according to Nuremberg principles.

The American Empire is failing and flailing. This is the spectacle of our time. The Western mainstream news media are either blind, ignorant or complicit in denying the historic collapse. Such media are indulging reckless fantasies of the US political class to distract from the potential internal implosion. Casting around for scapegoats to “explain” the deep inherent problems, the political class are using Russia and alleged Russian “interference” as a pretext.

World history has reached a foreboding cross-roads due to the collapsing of the American Empire. Can we navigate a safe path forward avoiding catastrophic war that often accompanies the demise of empires?

A lot, it seems, depends on ordinary American people becoming politically organized to challenge their dysfunctional system run by and for the elites. If the American people cannot hold their elites to account and break their corrupt rule, overhauling it with something more equitable and democratic, then the world is in peril of being plunged into total war. We can only but wish our American brothers and sisters solidarity and success.

What Lies Beyond Capitalism and Socialism?

Posted on May 2, 2018 by Reid Mukai

By Charles Hugh Smith

Source: Of Two Minds

The status quo, in all its various forms, is dominated by incentives that strengthen the centralization of wealth and power.

As longtime readers know, my work aims to 1) explain why the status quo — the socio-economic-political system we inhabit — is unsustainable, divisive, and doomed to collapse under its own weight and 2) sketch out an alternative Mode of Production/way of living that is sustainable, consumes far less resources while providing for the needs of the human populace — not just for our material daily bread but for positive social roles, purpose, hope, meaning and opportunity, needs that are by and large ignored or marginalized in the current system.

One cognitive/emotional roadblock I encounter is the nearly universal assumption that there are only two systems: the State (government) or the Market (free trade/ free enterprise). This divide plays out politically as the Right (capitalism, favoring markets) and the Left (socialism, favoring the state). Everything from Communism to Libertarianism can be placed on this spectrum.

But what if the State and the Market are the sources of our unsustainability? What if they are intrinsically incapable of fixing what’s broken?

The roadblock here is adherents to one camp or the other are emotionally attached to their ideological choice, to the point that these ideological attachments have a quasi-religious character.

Believers in the market as the solution to virtually any problem refuse to accept any limits on the market’s efficacy, and believers in greater state power/control refuse to accept any limits on the state’s efficacy.

I often feel like I’ve been transported back to the 30 Years War between Catholics and Protestants in the 1600s.

I’ve written numerous books that (in part) cover the inherent limits of markets and the state, so I’ll keep this brief. Markets are based on two premises: 1) profits are the key motivator of human activity and 2) whatever is scarce can be replaced by something that is abundant (for example, when we’ve wiped out all the wild Bluefin tuna, we can substitute farmed catfish.)

But what about work that creates value but isn’t profitable? This simply doesn’t compute in the market mentality. Neither does the fact that wiping out the wild fisheries disrupts an ecosystem that is essentially impossible to value in terms that markets understand: in a market, the supply and the demand in this moment set the price and thus the value of everything.

But ecosystems simply cannot be valued by the price set in the moment by current supply and demand.

As for the state, its ontological imperative is to concentrate power, and since wealth is power, this means concentrating political and financial power. Once bureaucracies have concentrated power, insiders focus on securing budgets and benefits, and limiting transparency and accountability, as these endanger the insiders’ power, security and perquisites.

Both of these systems share a single quasi-religious ideology: a belief that endless economic growth is an intrinsic good, for it is the ultimate foundation of all human prosperity. In other words, we can only prosper and become more secure if we’re consuming more of everything: resources, credit, energy, and so on.

The second shared ideological faith is that centralizing wealth and power are not just inevitable but good. In other words, Left and Right share a single quasi-religious belief that centralization is not just inevitable but positive; the only difference is in who should hold the concentrated wealth/power, private owners or the state.

This ideology assumes a winner take most structure of winners and losers, with the winnings being concentrated in the hands of a few at the top of the Winners. Thus rising inequality and divisiveness are assumed to be the natural state of any economy.

This ideology underpins the entire status quo spectrum. The “growth at any cost is good” part of the single ideology underpinning the status quo is captured by the 1960 Soviet-era film Letter Never Sent; in its haunting, surreal final scene, a character envisions a grand wilderness untouched by human hands transformed into an industrial wasteland of belching chimneys and sprawling factories. This was not a nightmare–this was the Soviet dream, and indeed, the dream of the “growth at any cost is good” West.

Simply put, the status quo of markets and states is incapable of DeGrowth, i.e. consuming less of everything, including credit, “money”, profits, taxes—everything that fuels both the state and the market. As I have taken pains to explain, it doesn’t matter if a factory is owned by private owners or the state: the mandate of capital is to grow. If capital doesn’t grow, the resulting losses will sink the enterprise—including the state itself.

What lies beyond “growth at any cost” capitalism and socialism? My answer is the self-funded community economy, a system that is self-funded (i.e. no need for a central bank or Treasury) with a digital currency that is created and distributed for the sole purpose of funding work that addresses scarcities in local communities.

I outline this system in my book A Radiocally Beneficial World: Automation, Technology and Creating Jobs for All.

Rather than concentrate power in the hands of state insiders, this system distributes power to communities are participants. Rather than concentrate the power to create currency for the benefit of banks and the state, this system distributes the power to create currency for the sole benefit of those working on behalf of the community, on projects prioritized by the community.

This community economy recognizes that some work is valuable but not profitable. The profit-driven market will never do this work, and the central state is (to use Peter Drucker’s term) the wrong unit size to ascertain each community’s needs and scarcities.

Clearly, we need a socio-economic-political system that has the structure to not just grasp the necessity of DeGrowth and positive social roles (work benefiting the greater community) but to embrace these goals as its raison d’etre (reason to exist).

Human activity is largely guided by incentives, both chemical incentives in our brains and incentives presented by the society/economy we inhabit. In the current system, concentrating power and wealth in the hands of the few at the expense of the many and wasting resources / destroying ecosystems are incentivized if the activity is profitable to some enterprise or deemed necessary by the state.

In the current system, the state incentivizes protecting its wealth and power and the security/benefits of its insiders, and markets incentivize maximizing profits by any means available.

As I have explained many times in the blog and my books, we inhabit a state-cartel economy: the most profitable form of enterprise is the quasi-monopoly or cartel that limits supply and competition in order to extract the maximum profit from its customers.

Monopolies (or quasi-monopolies such as Google, which holds a majority share of global search revenues, excluding China) and cartels quickly amass profits which they then use to secure protection of their cartel from the state via lobbying, campaign contributions, etc. The elites controlling the state benefit from this arrangement, and so the system inevitably becomes a state-cartel system dominated by the state and private sector cartels and incentives that benefit the wealth and power of these institutions.

Once we understand the inevitability of this marriage of state and cartel, we understand socialism and capitalism–the State and Markets–are the yin and yang of one system. Reformers may recognize some of the inherent limits of the state and the market, but they believe these problems can be solved by tweaking policies–in systems-speak, modifying the parameters of the existing subsystems of lawmaking, the judiciary, regulatory agencies, and so on.

But as Donella Meadows explained in her classic paper, Leverage Points: Places to Intervene in a System tweaking the parameters doesn’t actually change the system. For that, we must add a new feedback loop.

The status quo, in all its various forms, is dominated by incentives that strengthen the centralization of wealth and power, increase inequality and divisiveness and the permanent expansion of consumption and credit. That this path leads to implosion / collapse does not compute because the status quo is constructed on the fundamental assumption that permanent growth/expansion of consumption, credit, wealth and state power is not just possible but necessary.

As many of us have labored to show, the financial system has been pushed to unprecedented extremes to maintain the illusion that rapid growth of consumption and credit can be maintained essentially forever.

We need an alternative system that’s built on sustainable incentives and feedback loops so we have a new blueprint to follow as the current arrangement unravels in the next decade or two.

Security and prosperity are worthy goals, but the means to achieve them, as well as the definition of security / prosperity, must be reworked from the ground up. We need to include positive social roles and meaningful work as essential components of security/prosperity.

My conception of a Third / Community Economy does not replace either the state or the free-enterprise market; rather, it does what neither of the existing structures can do. It adds opportunity, purpose, positive social roles and earned income for those left out of the state/cartel/market economy.

The Military Industrial Complex Strikes Again: War Spending Will Bankrupt America

Posted on March 6, 2018 by Reid Mukai

By John W. Whitehead

Source: The Rutherford Institute

“Why throw money at defense when everything is falling down around us? Do we need to spend more money on our military (about $600 billion this year) than the next seven countries combined? Do we need 1.4 million active military personnel and 850,000 reserves when the enemy at the moment — ISIS — numbers in the low tens of thousands? If so, it seems there’s something radically wrong with our strategy. Should 55% of the federal government’s discretionary spending go to the military and only 3% to transportation when the toll in American lives is far greater from failing infrastructure than from terrorism? Does California need nearly as many active military bases (31, according to militarybases.com) as it has UC and state university campuses (33)? And does the state need more active duty military personnel (168,000, according to Governing magazine) than public elementary school teachers (139,000)?”— Steve Lopez, Los Angeles Times

Mark my words, America’s war spending will bankrupt the nation.

For that matter, America’s war spending has already bankrupted the nation to the tune of more than $20 trillion dollars.

Now the Trump Administration is pushing for a $4.4 trillion budget for fiscal year 2019 that would add $7 trillion to the already unsustainable federal deficit in order to sustain America’s military empire abroad and dramatically expand the police state here at home. Trump also wants American taxpayers to cover the cost of building that infamous border wall.

Truly, Trump may turn out to be, as policy analyst Stan Collender warned, “the biggest deficit- and debt-increasing president of all time.”

For those in need of a quick reminder: “A budget deficit is the difference between what the federal government spends and what it takes in. The national debt, also known as the public debt, is the result of the federal government borrowing money to cover years and years of budget deficits.”

Right now, the U.S. government is operating in the negative on every front: it’s spending far more than what it makes (and takes from the American taxpayers) and it is borrowing heavily (from foreign governments and Social Security) to keep the government operating and keep funding its endless wars abroad.

This is how military empires fall and fail: by spreading themselves too thin and spending themselves to death.

It happened in Rome. It’s happening again.

Not content to merely police the globe, in recent decades, America has gradually transformed its homeland into a battlefield with militarized police and weapons better suited to a war zone.

Since taking office, President Trump—much like his predecessors—has marched in lockstep with the military. Now Trump wants $716 billion to expand America’s military empire abroad and billions more to hire cops, build more prisons and wage more profit-driven war-on-drugs/war-on-terrorism/war-on-crime programs that eat away at the Fourth Amendment while failing to make the country any safer.

Even the funds requested for infrastructure will do little to shore up the nation’s crumbling roads, bridges, railways, highways, power grids and dams.

No matter how your break it down, this is not a budget aimed at perfecting the Union, establishing justice, insuring domestic tranquility, providing for the common defense, promoting general welfare, or securing the blessings of liberty for the American people.

No, this is a budget aimed at pandering to the powerful money interests (military, corporate and security) that run the Deep State and hold the government in its clutches.

So much for Trump’s campaign promises to balance the budget and drain the swamps of corruption.

The glaring economic truth is that at the end of the day, it’s the military industrial complex—and not the sick, the elderly or the poor—that is pushing America towards bankruptcy.

As investigative journalist Uri Friedman puts it, for more than 15 years now, the United States has been fighting terrorism with a credit card, “essentially bankrolling the wars with debt, in the form of purchases of U.S. Treasury bonds by U.S.-based entities like pension funds and state and local governments, and by countries like China and Japan.”

The illicit merger of the armaments industry and the Pentagon that President Dwight D. Eisenhower warned us against more than 50 years ago has come to represent perhaps the greatest threat to the nation’s fragile infrastructure today.

Having been co-opted by greedy defense contractors, corrupt politicians and incompetent government officials, America’s expanding military empire is bleeding the country dry at a rate of more than $15 billion a month (or $20 million an hour)—and that’s just what the government spends on foreign wars.

That does not include the cost of maintaining and staffing the 1000-plus U.S. military bases spread around the globe.

Incredibly, although the U.S. constitutes only 5% of the world’s population, America boasts almost 50% of the world’s total military expenditure, spending more on the military than the next 19 biggest spending nations combined.

In fact, the Pentagon spends more on war than all 50 states combined spend on health, education, welfare, and safety.

War is not cheap.

Although the federal government obscures so much about its defense spending that accurate figures are difficult to procure, we do know that since 2001, the U.S. government has spent more than $1.8 trillion in the wars in Afghanistan and Iraq (that’s $8.3 million per hour).

That doesn’t include wars and military exercises waged around the globe, which are expected to push the total bill upwards of $12 trillion by 2053.

Mind you, these ongoing wars—riddled by corruption, graft and bumbling incompetence—have done little to keep the country safe while enriching the military industrial complex—and private defense contractors—at taxpayer expense.

Just recently, for example, a leading accounting firm concluded that one of the Pentagon’s largest agencies “can’t account for hundreds of millions of dollars’ worth of spending.”

Just consider the fact that it costs American taxpayers $2.1 million per year for each soldier deployed in Afghanistan.

Imagine what you could do with that money if it were spent on domestic needs here at home.

Unfortunately, that’s not going to happen anytime soon, not as long as the money interests in Washington keep calling the shots and profiting from the spoils of war.

War has become a huge money-making venture, and America, with its vast military empire, is one of its best buyers and sellers. Not only does the U.S. have the largest defense budget, it also ranks highest as the world’s largest arms exporter.

The American military-industrial complex has erected an empire unsurpassed in history in its breadth and scope, one dedicated to conducting perpetual warfare throughout the earth.

For example, while erecting a security surveillance state in the U.S., the military-industrial complex has perpetuated a worldwide military empire with American troops stationed in 177 countries (over 70% of the countries worldwide).

In the process, billions have been spent erecting luxury military installations throughout the world.

For example, the U.S. Embassy built in Iraq, dubbed “Fortress Baghdad,” covers 104 acres and boasts a “city within a city” that includes six apartment buildings, a Marine barracks, swimming pool, shops and 15-foot-thick walls. Camp Anaconda in Iraq, like many U.S. military bases scattered across the globe, was structured to resemble a mini-city with pools, fast food restaurants, miniature golf courses and movie theaters.

While most Americans can scarcely afford the cost of heating and cooling their own homes, the American government spends $20 billion annually just to provide air conditioning for military installations in Iraq and Afghanistan.

In essence, what we’re doing is “we’re air conditioning the desert over there in Afghanistan, Iraq, and other places,” noted retired brigadier general Steven Anderson, a former chief logistician for Gen. David Petraeus in Iraq.

Think about that for a minute.

There’s a good reason why “bloated,” “corrupt” and “inefficient” are among the words most commonly applied to the government, especially the Department of Defense and its contractors.

For instance, a study by the Government Accountability Office found that $70 billion worth of cost overruns by the Pentagon were caused by management failures. To put that in perspective, that equates to one and a half times the State Department’s entire $47 billion annual budget.

Fraud is rampant.

A government audit, for example, found that defense contractor Boeing has been massively overcharging taxpayers for mundane parts, resulting in tens of millions of dollars in overspending. As the report noted, the American taxpayer paid:

$71 for a metal pin that should cost just 4 cents; $644.75 for a small gear smaller than a dime that sells for $12.51: more than a 5,100 percent increase in price. $1,678.61 for another tiny part, also smaller than a dime, that could have been bought within DoD for $7.71: a 21,000 percent increase. $71.01 for a straight, thin metal pin that DoD had on hand, unused by the tens of thousands, for 4 cents: an increase of over 177,000 percent.

Price gouging has become an accepted form of corruption within the American military empire.

And if you think gas prices at home can get high, just consider what the American taxpayer is being forced to shell out overseas: once all the expenses of delivering gas to troops in the field are factored in, we’re paying between $18-30 per gallon for gas in Iraq and Afghanistan.

Incredibly, despite reports of corruption, abuse and waste, the mega-corporations behind much of this ineptitude and corruption continue to be awarded military contracts worth billions of dollars.

The rationale may keep changing for why American military forces are in Afghanistan, Iraq and elsewhere, but the one that remains constant is that those who run the government are feeding the appetite of the military industrial complex.

What began in 2001 as part of an alleged effort to root out al Qaeda has turned into a goldmine for the military industrial complex and its army of private contractors.

Just consider: the Pentagon in 2008 spent more money every five seconds in Iraq than the average American earned in a year.

Yet Congress and the White House want taxpayers to accept that the only way to reduce the nation’s ballooning deficit is by cutting “entitlement” programs such as Social Security and Medicare?

As Martin Luther King Jr. recognized, under a military empire, war and its profiteering will always take precedence over the people’s basic human needs.

Simply put, we cannot afford to maintain our over-extended military empire.

“Money is the new 800-pound gorilla,” remarked a senior administration official involved in Afghanistan. “It shifts the debate from ‘Is the strategy working?’ to ‘Can we afford this?’ And when you view it that way, the scope of the mission that we have now is far, far less defensible.”

Or as one commentator noted, “Foreclosing the future of our country should not be confused with defending it.”

Inevitably, military empires collapse.

As Cullen Murphy, author of Are We Rome? and editor-at-large of Vanity Fair writes:

A millennium hence America will be hard to recognize. It may not exist as a nation-state in the form it does now—or even exist at all. Will the transitions ahead be gradual and peaceful or abrupt and catastrophic? Will our descendants be living productive lives in a society better than the one we inhabit now? Whatever happens, will valuable aspects of America’s legacy weave through the fabric of civilizations to come? Will historians someday have reason to ask, Did America really fall?

The problem we wrestle with is none other than a distorted American empire, complete with mega-corporations, security-industrial complexes and a burgeoning military. And it has its sights set on absolute domination.

Eventually, however, all military empires fail.

At the height of its power, even the mighty Roman Empire could not stare down a collapsing economy and a burgeoning military. Prolonged periods of war and false economic prosperity largely led to its demise. As historian Chalmers Johnson predicts:

The fate of previous democratic empires suggests that such a conflict is unsustainable and will be resolved in one of two ways. Rome attempted to keep its empire and lost its democracy. Britain chose to remain democratic and in the process let go its empire. Intentionally or not, the people of the United States already are well embarked upon the course of non-democratic empire.

I would suggest that what we have is a confluence of factors and influences that go beyond mere comparisons to Rome.

It is a union of Orwell’s 1984 with its shadowy, totalitarian government—i.e., fascism, the union of government and corporate powers—and a total surveillance state with a military empire extended throughout the world.

As we have seen with the militarizing of the police, the growth of and reliance on militarism as the solution for our problems both domestically and abroad affects the basic principles upon which American society should operate.

We must keep in mind that a military empire will be ruled not by lofty ideals of equality and justice but by the power of the sword. Those in the military are primarily trained to conduct warfare, not preserve the peace.

Here’s the kicker, though: if the American empire falls and the American economy collapses—and with it the last vestiges of our constitutional republic—it will be the government and its trillion-dollar war budgets that are to blame.

Of course, the government has already anticipated this breakdown.

That’s why the government has transformed America into a war zone, turned the nation into a surveillance state, and labelled “we the people” as enemy combatants.

For years now, the government has worked with the military to prepare for widespread civil unrest brought about by “economic collapse, loss of functioning political and legal order, purposeful domestic resistance or insurgency, pervasive public health emergencies, and catastrophic natural and human disasters.”

Having spent more than half a century exporting war to foreign lands, profiting from war, and creating a national economy seemingly dependent on the spoils of war, the war hawks long ago turned their profit-driven appetites on us, bringing home the spoils of war—the military tanks, grenade launchers, Kevlar helmets, assault rifles, gas masks, ammunition, battering rams, night vision binoculars, etc.—and handing them over to local police, thereby turning America into a battlefield.

As I make clear in my book Battlefield America: The War on the American People, this is how the police state wins and “we the people” lose.

More than 50 years ago, President Dwight Eisenhower warned us not to let the profit-driven war machine endanger our liberties or democratic processes.

We failed to heed his warning.

As Eisenhower recognized in a speech given to the American Society of Newspaper Editors, on Apr. 16, 1953, the consequences of allowing the military-industrial complex to wage war, exhaust our resources and dictate our national priorities are beyond grave:

“Every gun that is made, every warship launched, every rocket fired signifies, in the final sense, a theft from those who hunger and are not fed, those who are cold and are not clothed. This world in arms is not spending money alone. It is spending the sweat of its laborers, the genius of its scientists, the hopes of its children. The cost of one modern heavy bomber is this: a modern brick school in more than 30 cities. It is two electric power plants, each serving a town of 60,000 population. It is two fine, fully equipped hospitals. It is some fifty miles of concrete pavement. We pay for a single fighter plane with a half million bushels of wheat. We pay for a single destroyer with new homes that could have housed more than 8,000 people… This is not a way of life at all, in any true sense. Under the cloud of threatening war, it is humanity hanging from a cross of iron.”

Time To Make Life Hard For The Rich

Posted on March 1, 2018 by Reid Mukai

By Hamilton Nolan

Source: Splinter

It is time for polite, respectable, rational people to start saying what has become painfully obvious: It is time to stop respecting the rich, and start stealing from them. In earnest.

Inequality is eating America alive. It has been growing for decades. To say that “the American dream is dead” is no longer a poetic exaggeration—it is an accurate description of 40 years of wage stagnation and declining economic mobility that has produced a generation that cannot expect to live better than their parents did. Not because of devastating war or plague, but because of a very specific set of rules governing a very specific economic system that encourages the accumulation of great wealth among a tiny portion of the population, to the detriment of the vast majority of people. Our political and business leaders have chosen to embrace a system that favors capital over labor. A system in which the more you already have, the more you make, and the less you have, the harder it is to build wealth. It is a system designed to increase inequality. It is functioning exactly as designed. And now, it is about to get worse.

How long are people supposed to tolerate being smacked in the face? By the rich? Who already have more than enough? It is not as though the fact that inequality is a crisis is a fact that snuck up on anyone. Economists have seen the trend for decades, and the general public has been well aware of it since at least the financial crisis. Obama called it “the defining challenge of our time.” Thomas Piketty became a rock star by writing a very dry book about it. It’s not an underground thing. It is well known and well understood by the people in control of the institutions with the power to change it. The response to this dire situation by the Republican Party, which a wholly owned subsidiary of the American capital-holding class, has been to pass a tax bill that will horribly exacerbate economic inequality in this country. It is a considered decision to make a bad situation worse. It is a deliberate choice—during a time when the rich already have too much—to take from the poor in order to give the rich (including members of Congress and the President) more. That is not a metaphor. That is the reality. That is what the Republican party is about to accomplish on behalf of the donor class, calling it “middle class tax relief” in the face of mathematical proof to the contrary. Even to my cynical ass, the sheer fuck you-ness of this action towards the majority of the country is breathtaking. This is not just a failure to solve a severe problem; it is the expenditure of vast amounts of political capital to make the severe problem worse so that a tiny handful of people will get wealthier than anyone needs to be.

Ideally, in a democracy, elected leaders reflecting the interests of the people would pass taxes and regulations to reverse the growing inequality here. For that to happen, we would need to end gerrymandering and reform campaign finance and probably abolish the Senate and the Electoral College, and that’s just for starters. It is not imminent, in other words. Our broken political system, which is designed to reward money with political power, is actually moving in the opposite direction of a solution. Who is suffering because of this? Most Americans. Certainly the bottom 50% are acutely suffering—money that would have been in their paychecks has been instead funneled upwards into the pockets of the rich. Every desperate family that has found themselves coming up short for rent or food or medicine, every American who has downgraded her dreams and aspirations because they became financially implausible, has been directly harmed by the political and economic class war perpetuated by the rich, even if they cannot see the perpetrators with their own eyes. I think that people have been more than patient in the face of this slow-moving crisis. In 2009, when the markets crashed and millions were laid off, nobody rioted and kidnapped the financiers and burned their homes. The outcome of that lack of direct action is the situation we find ourselves in today.

Violence against people is morally wrong and a bad way to solve problems. But capital is different. One thing that would help to create the political environment conducive to solving the inequality problem would be to make the cost of accumulating all that capital too high to be worth it. In other words, to create a downside to being too rich. I have personally stood in a room full of hedge fund titans and billionaire investors warning one another explicitly that inequality must be addressed lest the U.S. become a place like Latin America, where rich people are forced to live behind walls, surrounded by armed guards, because of the very real risks from the rage of the poor. Rich people in this country do not want to live like that. If they see that they must stop being so greedy in order to enjoy their own freedom, they will stop being so greedy. Those conditions have to be created by people who want justice.

Our situation is absurd. Not since the Gilded Age has it been more clear that a few people have too much. Furthermore, the people with too much are investing in political clout to give themselves more. It’s just wrong. If the government won’t help, we have to help ourselves. Sticking up a billionaire on the street for $100 is not going to do it. But one can imagine other ways that angry Americans might express their dissatisfaction with our current division of wealth: A large-scale online attack against the holdings of the very rich; yachts sunk in harbors; unoccupied vacation homes in the Hamptons mysteriously burned to the ground. Sotheby’s auctions swarmed by vandals, Art Basel attacked by spraypaint-wielding mobs, protests on the doorsteps of right-wing think tanks, venomous words directed at millionaires as they dine in fancy restaurants. People have a right to life and safety, but property does not. A life spent screwing the little people so that you can acquire lots of stuff loses its allure when you know that all that stuff will be smashed to pieces by angry little people. It is not hard to put together a list of those who should be targeted—Forbes publishes it every year. Likewise, public campaign finance records give us a pretty good idea of exactly who is funding the politicians who are perpetuating this economic war on behalf of the rich.

It is nice to imagine a grand, well-targeted computer hack that would neatly transfer billions of dollars out of the accounts of, say, the Walton family and into a charity account that would disburse the money to the poor in untraceable ways. That seems far-fetched. Realistically, what people can do now is to start thinking about ways to make it uncomfortable to be too rich. Socially uncomfortable and otherwise. When the accumulation of great wealth ceases to be a praiseworthy endeavor and instead becomes viewed as a sick, greedy pastime whose only reward is the hatred of your fellow citizens and the inability to live comfortably without fear of your excessive property being destroyed, rich people will rethink their goals. Until then, inequality will keep rising, and everything, for most people, will continue to slowly, slowly get worse.

Boobs on Credit

Posted on January 3, 2018 by Reid Mukai

From BreastImplantFailure.net

By Jim Quinn

Source: The Burning Platform

Do you ever hear something so startlingly mind numbingly ridiculous you realize it must be a sign things have gotten so fucked up something has got to give? As I was driving to work yesterday morning on the Schuylkill Expressway a commercial comes on the radio from a plastic surgeon advertising for anyone looking for a better set of boobs. I had never heard a plastic surgeon commercial before, so I thought that was unusual. But, that wasn’t the best part. This plastic surgeon was offering no money down 18 month interest free financing on your new boobs.

I wonder if they are moving boobs with subprime debt the same way the auto companies have used subprime debt to move cars. Of course, when a deadbeat defaults on an auto loan the car is easily repossessed. What happens when a bimbo defaults on her boob loan? How narrow minded of me. What happens when some dude who wants to be a bimbo defaults on his/her loan? I guess it was just a matter of time before breast enhancement met debt enhancement in this warped world of materialism, narcissism, financialization, and delusions.

Now that revolving credit has reached a new all-time high of $1 trillion and total consumer debt outstanding has exceeded it’s 2008 peak at $12.8 trillion, the Fed has completed its job of helping the average American again in-debt themselves up to their eyeballs. This is considered a success story in this twisted, perverted, bizarro world we call America today. The solution to an epic debt induced global financial catastrophe caused by Federal Reserve easy money, Wall Street fraud, and Washington DC corruption has been to increase global debt by 50% since 2007, with virtually all of it created by central bankers and the governments they control.

In what demented Ivy League educated academic mind would piling $68 trillion more debt on the backs of taxpayers as a cure for a disease caused by the initial $149 trillion of debt be considered rational and sustainable? It’s like having pancreatic cancer and trying to cure it with a self inflicted gunshot. And no one seems to care about or even notice the coming reset when this mass debt induced hysteria of delusion turns into the biggest financial collapse in the history of mankind.

This entire ponzi scheme edifice of debt is nothing but a confidence game. When people begin to realize they can’t repay their own debts, start to understand their governments will never honor their debt based promises, and realize central bankers are nothing more than pretend wizards behind a curtain, the confidence will evaporate in an instant and a collapse which will make 2008/2009 look like a walk in the park will ensue. That’s when civil and global war will engulf the world and teach people real lessons about the real world.

The boobs on credit commercial I heard this week is just another example of Wall Street and their Deep State crony co-conspirators completing their scheme to financialize every aspect of our lives and entrap us in chains of debt, beholden to these modern day Wall Street slave owners. When you see the record number of retail bankruptcies and store closings happening when GDP is supposedly rising by 3% and witness with your own two eyes the number of vacant storefronts and restaurants across our great land of materialism, you might wonder why revolving credit card debt is at a new all-time high.

The answer is Wall Street has successfully financialized virtually every aspect of our day to day lives. Consumer and taxpayer transactions which required cash or check ten years ago can now be paid with a credit card. You can pay your IRS bill with a credit card. You can pay your real estate taxes with a credit card. You can pay your utilities with a credit card. You can pay your school tuition with a credit card. You can pay your rent with a credit card. You can “buy” furniture and appliances without paying for seven years. And guess what? That’s what millions of average Americans are doing. In addition, they are driving “rented” $35,000 automobiles on seven year nothing down payment plans.

This massive debt induced fraud of a recovery gives the appearance of normalcy and stability. The stock market is at all-time highs is used as the narrative of central banker success. We’ve experienced extremely low volatility as the central bankers around the world have coordinated their money printing/debt creating schemes to purposely elevate financial markets to give the masses confidence that all is well. Anyone with critical thinking skills knows all is not well. The longer this fake stability is maintained the greater the collapse. Success breeds disregard for the possibility of catastrophe.

So you can call me the boy who cried wolf, but our Minsky Moment is approaching. Sometimes they do ring a bell at the top. In this case they are shaking fake boobs at the top.

“Stability leads to instability. The more stable things become and the longer things are stable, the more unstable they will be when the crisis hits.” – Hyman Minsky

Slaves and Bulldozers, Plutocrats and Widgets

Posted on December 20, 2017 by Reid Mukai

By Kristine Mattis

Source: CounterPunch

There is not an industrial company on earth, not an institution of any kind – not mine, not yours, not anyone’s – that is sustainable. I stand convicted by me, myself alone, not by anyone else, as a plunderer of the earth. But not by our civilization’s definition. By our civilization’s definition, I’m a captain of industry and in the eyes of many, a kind of modern-day hero.

— Ray Anderson, (1934-2011) CEO of Interface, Inc.

We are living a collective illusion known as the civilized world. We feign concern for our horrendous conditions of poverty, socioeconomic inequality, deteriorating public health, and severe environmental degradation (to which climate change is merely one factor), but everything we do belies that distress. These issues comprise the largest risks to the survival of the human species, as well as the most significant amoral atrocities on the planet. Both individually and as a species, our health, safety, and ability the live a decent, dignified life have always been imperiled by these predicaments. Yet, we continue along with complete cognitive dissonance in that the crux of our lives – our jobs, our consumer culture – all contribute to, perpetuate, and exacerbate the unsustainable and morally reprehensible conditions of our existence. But while we are all marginally responsible for the multitude of calamities befalling us, the one group who bears the brunt of the blame for our social and ecological decay is the wealthy.

Have you looked around and seen just what humanity has done to our stunning Earth? We’ve bulldozed the beauty for bucks. Far too much of what was once a glorious paradise is now a complete disaster of unfathomable proportions. A disaster wholly of our own making. In America, and in most places around the world, from the moment we are born we are preparing for a future career, and more specifically, for the lifelong goal of making money. But on the whole, most of the jobs we do end up being more detrimental than beneficial to society and the environment. We characterize work through measures of productivity, but producing more and more unnecessary, meaningless, and often useless products compromises our physical environment, which in turn, compromises the health of humans, other beings, and our entire planetary ecosystem.

So many of the things that form the basis of our civilization should not, and perhaps cannot, exist in a just and sustainable world. Items like arms and artillery, synthetic chemicals, concentrated animal feeding operations, plastic, smartphones and other electronic gadgetrydo not feed a sustainable and equitable world but create more needless havoc. The irony, though, is that the very people who run the systems that incessantly construct and promulgate these harmful, redundant, or unnecessary products are the richest and most successful people on earth.

We define success in our society almost exclusively in terms of wealth, with its attendant power and sometimes, fame. Rich people are the recipients of adulation and reverence for nothing more than their accumulation of wealth and material products. We like to think that riches come by way of great intellect, talent, skill, and a strong work ethic, but in reality, monetary success is more a matter of inherited socioeconomic status, ambition, and determination, rather than ability and aptitude. Most of all, to achieve wealth means to have a myopic resolve, not only to look away from how the sausage is made, but to not care how the sausage is made.

The wealthy in our society then become the people with the most power and influence. While ironically, they are the people least deserving of our respect. They are the exact people whom we should look upon with the utmost skepticism and even disdain. They should not be in the position to make decisions about our collective lives and the workings of our society, because their financial success is completely antithetical to societal justice and sustainability.

It doesn’t take great acumen or diligence to make a lot of money; it takes a narrow-minded, insular, immoral, sometimes psychopathic view of life, in which personal pleasure and profit are the primary variables. It’s quite easy to do well financially and find personal satisfaction if the exploitation of humans, other animals, and the entire biosphere is left outside of the realm of your career consciousness. As Ray Anderson, CEO of Interface Carpet admitted,“For 21 yearsI never gave a thought to what we were taking from the earth or doing to the earth in the making of our products.” He built his fortune without consideration to the effects of his enterprise until someone brought the deleterious consequences to his attention.

We like to believe the cream rises to the top, but the truth is that the top is actually full of scum. We have seen in recent weeks, if we did not know already, that entertainment, politics, and indeed, all of the wealthiest industries are cesspools of moral depravity, especially at the apex.

There may be some exceptions, but scum is the rule. Some might call these people ambitious, some might call them razor-focused, others would call them sociopathic. It takes a careful regimen of willful ignorance and/or denial to not consider all the harms that directly and indirectly result from avenues toward career achievements in the process of our normal lives – harms such as exploitation of labor, torture of animals, and toxic contamination and of food, water, and natural resources.

Material success requires rape and pillage, figuratively and literally. Donald Trump bragged that when you have the kind of wealth he has, you can treat women as objects and just “grab ’em by the pussy.” You can also exploit resources, exploit labor, befoul the environment, and endanger public health with few or no consequences. On a purely moral basis, only scum could have the hubris to consider others as mere playthings for their own enjoyment, to feel superior enough to warrant their extreme wealth which they did not earn but stole from the commons, and to believe that they deserve obscene riches when the majority of others do not even have basic life necessities.

How often have you heard the phrases “not that there is anything wrong with being rich,” or “I don’t begrudge him his wealth”? Wealth should be considered reprehensible. Wealth has always been in the hands of the few to the detriment of the many, and one’s access to it has always been almost wholly correlated with one’s socioeconomic status at birth. Yet we rationalize this immoral situation and pretend that the proverbial “pie,” of which we all need a slice, is infinite in size and that wealth is accessible to anyone. We assume that being rich is not only acceptable but aspirational. It is neither in a just and sustainable world.

On a finite planet every excess dollar, every excess material good, every extra home, car, garment, trinket, piece of food, or beverage that one person possesses essentially correlates to an item that another person does not have. When we normalize one person having more than he/she needs in a world where billions have far less than the bare minimum required to meet their basic needs, then we are obliged to rethink our morality. When a simple handbag can cost between $12K and $300K and we as a society see nothing wrong with that kind of excess in the face of poverty, hunger, homelessness, and disease, we are not only completely socially corrupt, we are spelling our own doom. Poverty only exists because excessive wealth exists and neither is compatible with a sustainable and humane civilization.

To achieve a sustainable world, we must relinquish our use of non-renewable resources, we must utilize renewable resources at a level in which they have the time and ability to replenish, and we must leave no waste that is not regenerative. To achieve an equitable world, we must relinquish our greed and desire for opulence, excess, and disproportionate influence. In fact, sustainability is also a function of equity. However, our current society is predicated on the antithesis of all such requirements.

Wealthy people gain their successes because they have tunnel vision. They are singularly focused on themselves, their careers, and/or on money. They do not take into consideration the externalities involved in their actions. They pay little mind to the exploitation involved in their pursuits. Ethics never supersedes ambition. Therefore, these are the exact people who should not be in charge of making policies for the benefit of society and should not be in charge of civic ventures. To be able to be so wealthy without shame, guilt, or acknowledgement that your own wealth impedes the lives of others is to be either ignorant or indifferent. We are facing global ecological and economic collapse. Who made this happen? The wealthiest people of the world. If you are rich you do not have the solution. You are the problem.

The world is run on slave labor, indentured servitude, animal and natural resource exploitation, and endless generation of waste and contamination. Material success comes with adopting a shortsighted view of the world – closing yourself off to your own connection to global anthropogenic climate change, toxification, and inequality.

So many of the wealthy who consider themselves socially and environmentally aware perceive no connection between their own wealth accumulation and the causes they claim to champion. Instead of curtailing their materialism, they rationalize it. Instead of acknowledging that their consumerism intensifies global resource extraction, they produce more products (often erroneously labeled “green”) to sustain their riches. When the wealthy are not hawking products for their for-profit activities, they have the audacity to solicit for charitable organizations that are only necessitated by the economic system that produces poverty and environmental devastation in the wake of their extravagant wealth. They ask donations from the majority of citizens who are barely making ends meet, when they themselves could surrender probably 90% of their accumulated wealth and not notice a marked change in their material status whatsoever. The elites who are not in denial about the problems we face want scientific and technological solutions – solutions that they can throw their money at and have others solve so they do not have to think about their own contribution to the problems.

But there are no silver bullets to end inequality and environmental destruction, while continuing with business as usual in civilized society. Science cannot save us. Scientific research itself relies on the same unsustainable production, consumption, use of resources, and waste as every other industry.

Technology mavens always tout the great social or biological service that their new technology will provide. Their innovations comes under the guise of helping the world, but the majority of the time, their creations are frivolous and do not do much more than use natural resources, create waste, and earn them exorbitant profit. At the university where I earned my doctoral degree there is a masters program in biotechnology and there’s a reason why their curriculum extends beyond just science, containing at least two required business courses. Of course, business is fundamental to their instruction because the principle purpose of our education, of our careers, is profit.

All of the harmful products and practices in our civilization – military arms, sweatshops, low wages, pesticides, plastics, throw-away items, excess of products, animal cruelty, overuse of medicine and surgery – only exist to increase revenue for the rich. None are fair or just or equitable or sustainable. Our societal justification of the above items just marks our collective delusion. These products and practices persist in the name of profit, and we rationalize their continuation just as we rationalize extravagant wealth.

When Senator Bernie Sanders was on TV decrying President Barack Obama’s half-million dollar speaking engagements on Wall Street, the anchors of the program said to him, “Wouldn’t you do it if you could?” Bernie replied, “I wouldn’t be asked.” Rather, he should have explained that anyone with integrity would not accept money they do not need for some sort of quid pro quo from a destructive and corrupt institution. The hosts of the show surmised that everyone would jump at the opportunity to earn money if they had the chance. It is precisely that sort of mindset that enables these broadcasters to inhabit their influential positions on a national television program and to earn millions of dollars. They demonstrate what unethical opportunists they, and most of the rich, actually are. Their lack of ethics is internalized and taken for granted by not only them, but most of the rest of our society. They are more than willing to be bought at whatever price for whatever service. “Just doing my job” does not serve as an excuse for immorality.

Nevertheless, there are people who have chosen lives based on conviction rather than money. Former Uruguayan President Jose Mujica and Seattle City Council member Kashama Sawant chose to earn the local average income for their official positions and donate the remainder of their salaries toward social justice work. Biologist and writer Sandra Steingraber donated a portion of her $100K Heinz Award prize toward the fight against hydraulic fracturing (fracking) rather than spend it on personal treats. Likewise, teacher Jesse Hagopian donated his $100K settlement for being unjustly attacked with pepper-spray by Seattle police toward social justice action. Not everyone is looking to cash in, and not everyone is seeking the next, biggest profit-making endeavor.

Living with integrity and simplicity is difficult. People do not choose to live this way because their personal sacrifice will change the world. They do so because it is the right thing to do. They do so because having too much means others don’t have enough. They do so because living by example allows others who care to see that a life of wealth and consumerism augments inequality and unsustainability; it is not the only way to live and need not be. They live this way because only by walking the walk rather than talking the talk will we ever start to achieve justice and sustainability to help preserve the future of our species.

In recent years there have been waves and wave of protests throughout the country and the world in response to myriad societal maladies. The best protest we can do in America now is to reject the bourgeois life – reject excessive wealth and the material components that come with it, reject profligate consumption, reject consumerism, reject wasteful holidays, reject wasteful trinkets, reject all that is incompatible with what we purport to champion. For example, retired talk-show host David Letterman appears sincere in his dedication toward helping combat climate change, while at the same time, he remains co-owner of an auto racing team. In the world in which we currently live, auto racing is completely incongruent with climate change mitigation. We can’t pretend to value matters like justice and sustainability unless the way we live upholds those values. We can’t decouple our livelihoods from our lives.

The rich tend to ensconce themselves in their well-manicured communities, shop with abandon, and disregard the abject poverty, environmental degradation, and injustices all around them. They are in the process of spending small portions of their vast fortunes building survival bunkers to withstand either the revolutionary upheaval that may soon come as a result of immeasurable socioeconomic inequality, or the catastrophic ecological collapse that may result from reckless resource extraction and expenditure. How misguided or cynical are they to not realize that by renouncing their extreme wealth, they would need no such provisions and could play a large part in salvaging our civilization?

Need I even explain how the current tax scam pending on Capitol Hill will serve to enhance all of the socioeconomic, environmental, and public health calamities that are arising ever more rapidly and in quick succession? Need I elaborate on how our escalating climate-related weather catastrophes only reach the cataclysmic proportions they do because of the wealth disparities involved and because of the high-risk industrial components therein, that exist mainly to enrich the elite? Would these natural disasters be so disastrous if more people had the economic resilience that they deserve and if society took more precaution against the hazards of multibillion-dollar industries that manufacture products of questionable value while generating tremendous wealth to a select few?

We live n a time of unprecedented social disarray, ecological disrepair, public health decay, and moral depravity. Nearly every aspect of the way we live in modern industrial societies is completely unsustainable. Even if we were to transition to 100% solar energy tomorrow throughout the planet, the worst effects of climate change might be averted, but the plastic pollution that permeates the most far-reaching depths of the oceans would still remain, the persistent organic pollutants (POPs) and endocrine disrupting compounds (EDCs) that harm our own health and the health of the entire global ecosystem remain. Not only do they remain, but they continue to be produced, not out of necessity, but for the financial profit of the privileged few. The production of, consumption of, and waste stream from our global industrial society continues unabated. This is the system that forms the foundation of all of our lives in the civilized world, and this is the system that bestows excessive wealth to some while leaving others fighting for survival.

While it is indeed the system of capitalism that generates and sustains our societal injustice and ecological degradation, the system is comprised of people – people who could abdicate their fictional obligation to happiness via indefinitely-increasing earnings, people who can choose better, Without a preponderance of such people, no countervailing just and sustainable system can ever compete.

In 1964, Uruguayan journalist Eduardo Galeano interviewed the famous Argentinean hero of the Cuban revolution Ernesto “Che” Guevara. In the midst of a comprehensive conversation, Che stated to Galeano, ” I don’t want every Cuban to wish he were a Rockefeller.” To be sure, if we are remotely interested in a sustainable and equitable world, the attainment of wealth must be transformed from admirable to contemptible. With regard to the multitude of obstacles we face, Ralph Nader once wrote “only the super-rich can save us.” He’s right. They can save us by not existing.

	Reid Mukai on Saturday Matinee: Wizards
	Lara/Trace on Saturday Matinee: Wizards
	Lara/Trace on Saturday Matinee: From He…
	lobotero on Saturday Matinee: From He…
	Lara/Trace on Saturday Matinee: The Wicker…

After the Crash

Dispatches From a Long Recovery (Est. 10/2024)

Tag Archives: Economic Collapse

Time To Make Life Hard For The Rich