Tag Archives: economic inequality

A 2% Financial Wealth Tax Would Provide A $12,000 Annual Stipend To Every American Household

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Careful analysis reveals a number of excellent arguments for the implementation of a Universal Basic Income.

By Paul Buchheit

Source: Nation of Change

It’s not hard to envision the benefits in work opportunities, stress reduction, child care, entrepreneurial activity, and artistic pursuits for American households with an extra $1,000 per month. It’s also very easy to justify a financial wealth tax, given that the dramatic stock market surge in recent years is largely due to an unprecedented degree of technological and financial productivity that derives from the work efforts and taxes of ALL Americans. A 2% annual tax on financial wealth is a small price to pay for the great fortunes bestowed on the most fortunate Americans.

The REASONS? Careful analysis reveals a number of excellent arguments for the implementation of a Universal Basic Income (UBI).

(1) Our Jobs are Disappearing

A 2013 Oxford study determined that nearly HALF of American jobs are at risk of being replaced by computers, AI, and robots. Society simply can’t keep up with technology. As for the skeptics who cite the Industrial Revolution and its job-enhancing aftermath (which actually took 60 years to develop), the McKinsey Global Institute says that society is being transformed at a pace “ten times faster and at 300 times the scale” of the radical changes of two hundred years ago.

(2) Half of America is Stressed Out or Sick

Half of Americans are in or near poverty, unable to meet emergency expenses, living from paycheck to paycheck, and getting physically and emotionally ill because of it. Numerous UBI experiments have led to increased well-being for their participants. A guaranteed income reduces the debilitating effects of inequality. As one recipient put it, “It takes me out of depression…I feel more sociable.”

(3) Children Need Our Help

This could be the best reason for monthly household stipends. Parents, especially mothers, are unable to work outside the home because of the all-important need to care for their children. Because we currently lack a UBI, more and more children are facing hunger and health problems and educational disadvantages.

(4) We Need More Entrepreneurs

A sudden influx of $12,000 per year for 126 million households will greatly stimulate the economy, potentially allowing millions of Americans to TAKE RISKS that could lead to new forms of innovation and productivity.

Perhaps most significantly, a guaranteed income could relieve some of the pressure on our newest generation of young adults, who are deep in debt, underemployed, increasingly unable to live on their own, and ill-positioned to take the entrepreneurial chances that are needed to spur innovative business growth. No other group of Americans could make more productive use of an immediate boost in income.

(5) We Need the Arts & Sciences

A recent Gallup poll found that nearly 70% of workers don’t feel ‘engaged’ (enthusiastic and committed) in their jobs. The work chosen by UBI recipients could unleash artistic talents and creative impulses that have been suppressed by personal financial concerns, leading, very possibly, to a repeat of the 1930s, when the Works Progress Administration hired thousands of artists and actors and musicians to help sustain the cultural needs of the nation.

Arguments against

The usual uninformed and condescending opposing argument is that UBI recipients will waste the money, spending it on alcohol and drugs and other ‘temptation’ goods. Not true. Studies from the World Bank and the Brooks World Poverty Institute found that money going to poor families is used primarily for essential needs, and that the recipients experience greater physical and mental well-being as a result of their increased incomes. Other arguments against the workability of the UBI are countered by the many successful experiments conducted in the present and recent past: Finland, Canada, Netherlands, Kenya, India, Great Britain, Uganda, Namibia, and in the U.S. in Alaska and California.

How to pay for it

Largely because of the stock market, U.S. financial wealth has surged to $77 trillion, with the richest 10% owning over three-quarters of it. Just a 2 percent tax on total financial wealth would generate enough revenue to provide a $12,000 annual stipend to every American household (including those of the richest families).

It’s easy to justify a wealth tax. Over half of all basic research is paid for by our tax dollars. All the technology in our phones and computers started with government research and funding. Pharmaceutical companies wouldn’t exist without decades of support from the National Institutes of Health. Yet the tech and pharmaceutical companies claim patents on the products paid for and developed by the American people.

The collection of a wealth tax would not be simple, since only about half of U.S. financial wealth is held directly in equities and liquid assets (Table 5-2). But it’s doable. As Thomas Piketty notes, “A progressive tax on net wealth is better than a progressive tax on consumption because first, net wealth is better defined for very wealthy individuals..”

And certainly a financial industry that knows how to package worthless loans into A-rated mortgage-backed securities should be able to figure out how to tax the investment companies that manage the rest of our ever-increasing national wealth.

 

“If poor people knew how rich rich people are, there would be riots in the streets”

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By Staff, Anticap.wordpress.com

Source: Popular Resistance

Chris Rock may be right. Still, Americans are well aware that economic inequality in their country is obscene, even though they often underestimate the growing gap between the poor and the rich.

But it’s Frank Rich, who conducted the interview with the American comedian, who made the more perceptive observation:

For all the current conversation about income inequality, class is still sort of the elephant in the room.

All the experts agree—from Thomas Piketty and the other members of the World Inequality Lab team to John C. Weicher of the conservative Hudson Institute—that inequality in the United States, especially the unequal distribution of wealth, has been worsening for decades now. Both before and after the crash of 2007-08. And there’s no sign that things are going to get better anytime soon, unless radical changes are made.

But, as it turns out, even the experts underestimate the degree of inequality in the United States. The usual numbers that are produced and disseminated indicate that, in 2014 (the last year for which data are available), the top 1 percent of Americans owned one third (35 percent) of total household wealth while the bottom 90 percent had less than half (45.3 percent) of the wealth.

According to my calculations, illustrated in the chart at the top of the post, the situation in the United States is much worse. In 2014, the top 1 percent (red line) owned almost two thirds of the financial or business wealth, while the bottom 90 percent (blue line) had only six percent. That represents an enormous change from the already-unequal situation in 1978, when the shares were much closer (28.6 percent for the top 1 percent and 23.2 percent for the bottom 90 percent).

Why the large difference between my numbers and theirs? It all depends on how wealth is defined. Both the World Inequality Lab and the Federal Reserve (in the Survey of Consumer Finances) include housing and retirement pensions in household wealth—and those two categories comprise most of the so-called wealth of most Americans. They just don’t own much in the way of financial or business wealth. They live in their houses and they retire based on contributions from their wages and salaries over the course of their work lives. They produce but don’t take home any of the surplus; therefore, they just don’t have the ability to amass any real wealth.

For the small group at the top, things are quite different. They do get a cut of the surplus, which they use, not only to purchase housing and put aside in their pensions, but to accumulate real wealth, for themselves and their families. If we take out housing and pensions and calculate just the shares of financial or business wealth—and, thus, equities, fixed-income claims, and business assets—the degree of inequality is much, much worse.

Yes, rich people in the United States are very rich—even more than either regular Americans or the experts believe.

But that’s not the real elephant in the room. The big issue that everyone is aware of, but nobody wants to talk about, is class. And that’s the reason there should be, if not riots, at least a sustained political movement to transform the existing economic and social structures in the United States.

Time To Make Life Hard For The Rich

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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.

Why Fear and Self-hatred Destroy Human Sharing and Solidarity

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Photo by Adam Dean

By Robert J. Burrowes

As our world spirals deeper into an abyss from which it is becoming increasingly difficult to extricate ourselves, some very prominent activists have lamented the lack of human solidarity in the face of the ongoing genocide of the Rohingya. See ‘The Rohingya tragedy shows human solidarity is a lie’ and ‘Wrongs of rights activism around Rohingyas’.

While I share the genuine concern of the Yemeni Nobel peace laureate Tawakkol Karman and Burmese dissident and scholar Dr Maung Zarni, and have offered my own way forward for responding powerfully to the ongoing genocide of the Rohingya – see ‘A Nonviolent Strategy to Defeat Genocide’ – in my view the lack of solidarity they mention is utterly pervasive and readily evident in our lacklustre official and personal responses to the many ongoing crises in which humanity finds itself.

To mention just the most obvious: Every day governments spend $US2 billion on weapons and warfare while a billion people lack the basic resources to live a decent life (and more than 100,000 of these people starve to death). Every day millions of people live under dictatorship, occupation or suffer the impacts of military invasion. Every day another 28,800 people are forcibly displaced from their home. Every day another 200 species of life are driven to extinction. And every day our biosphere is driven one step closer to making human life (and perhaps all life) on Earth impossible. See ‘Killing the Biosphere to Fast-track Human Extinction’.

It is not as if any of this information is unavailable. Just as many people and major international organizations are well aware of the plight of the Rohingya, it is also the case that many people and these organizations are well aware of the state of our world in other respects. And still virtually nothing meaningful happens (although there are tokenistic responses to some of these crises).

Hence, it is a straightforward observation that human solidarity is notably absent in virtually any attempt to tackle the major issues of our time. And the Rohingya are just one manifestation of this problem.

Given that I have long observed this phenomenon both personally and politically, and it concerns me as well, I would like to explain psychologically why the lack of sharing and solidarity is such a pervasive problem and suggest what we can do about it.

In order to feel concern for those who are suffering, and to want to act in solidarity to alleviate their suffering, it is necessary to experience certain feelings such as sympathy, empathy, compassion, love and (personal) power. Moreover, it is necessary that these feelings are not suppressed or overwhelmed by fear and, equally importantly, not overwhelmed by a feeling of (unconscious) self-hatred. If someone is scared and full of unconscious self-hatred, then they can have little interest in sharing their own resources or acting in solidarity with those who need help. And this applies whether the adversely impacted individual is a close relative or friend, or someone on the other side of the world.

So why is fear in this context so important? Simply because fear grotesquely distorts perception and behaviour. Let me explain why and how.

If an individual is (consciously or unconsciously) frightened that one or more of their vital needs will not be met, they will be unable to share resources or to act in solidarity with others, whatever the circumstances. In virtually all cases where an individual experiences this fear, the needs that the individual fears will not be met are emotional ones (including the needs for listening, understanding and love). However, the fearful individual is never aware of these deep emotional needs and of the functional ways of having these needs met which, admittedly, is not easy to do given that listening, understanding and love are not readily available from others who have themselves been denied these needs.

Moreover, because the emotional needs are ‘hidden’ from the individual, the individual (particularly one who lives in a materialist culture) often projects that the need they want met is, in fact, a material need.

This projection occurs because children who are crying, angry or frightened are often scared into not expressing their feelings and offered material items – such as a toy or food – to distract them instead. The distractive items become addictive drugs. This is why most violence is overtly directed at gaining control of material, rather than emotional, resources. The material resource becomes a dysfunctional and quite inadequate replacement for satisfaction of the emotional need. And, because the material resource cannot ‘work’ to meet an emotional need, the individual is most likely to keep using direct and/or structural violence to gain control of more material resources in an unconscious and utterly futile attempt to meet unidentified emotional needs.

This is the reason why people such as the Rothschild family, Jeff Bezos, Bill Gates, Warren Buffett, Amancio Ortega, Mark Zuckerberg, Carlos Slim, the Walton family and the Koch brothers as well as the world’s other billionaires and millionaires seek material wealth, and are willing to do so by taking advantage of structures of exploitation held in place by the US military. They are certainly wealthy in the material sense; unfortunately, they are utterly terrified (and full of self-hatred) and each of them justly deserves the appellation ‘poor little rich boy’ (or girl).

If this was not the case, their conscience, their compassion, their empathy, their sympathy and, indeed, their love would compel them to use or disperse their wealth in ways that would alleviate world poverty and nurture restoration of the ancient, just and ecologically sustainable economy: local self-reliance. See ‘The Flame Tree Project to Save Life on Earth’.

Of course, it is not just the billionaires and millionaires of the corporate elite who have suffered this fate.

Those intellectuals in universities and think tanks who accept payment to ‘justify’ (or simply participate in without question) the worldwide system of violence and exploitation, those politicians, bureaucrats and ordinary businesspeople who accept payment to manage it, those judges and lawyers who accept payment to act as its legal (but immoral) guardians, those media editors and journalists who accept payment to obscure the truth, as well as the many middle and working class people who accept payment to perform other roles to defend it (such as those in the military, police, prison and education systems), are either emotionally void or just too frightened to resist violence and exploitation, in one or more of its many manifestations.

Moreover, governments that use military violence to gain control of material resources are simply governments composed of many individuals with this dysfunctionality, which is very common in industrialized countries that promote materialism. Thus, cultures that unconsciously allow and encourage this dysfunctional projection (that an emotional need is met by material acquisition) are the most violent both domestically and internationally. This also explains why industrialized (material) countries use military violence to maintain political and economic structures that allow ongoing exploitation of non-industrialized countries in Africa, Asia and Central/South America.

But, equally importantly, many ‘ordinary’ people are just too scared to share (more than a token of) what they have and to act in solidarity with those who suffer whether through military or other violence, exploitation, persecution, oppression or occupation. Of course, it takes courage to resist this violent world order. But underlying courage is a sense of responsibility towards one’s fellow beings (human and otherwise) and the future.

As noted above, however, fear is not the only problem. Two primary outcomes of fear are self-hatred and powerlessness. Here is how it happens.

When each of us is a child, if our parents, teachers and/or the other adults around us are frightened by a feeling – such as sadness, anger or fear – that we are expressing, then they will use a variety of techniques to stop us expressing this feeling. They might, for example, comfort us to stop us crying, scare us out of expressing our anger (particularly at them) and reassure us so that we do not feel afraid.

Tragically, however, responses such as these have the outcome of scaring us into unconsciously suppressing our awareness of how we feel when, of course, evolutionary pressures generated emotional responses (some pleasant, some less so) to events in our life in order to help guide us into behaving appropriately at any given moment. And this suppression of how we feel is disastrous if we want children to grow up behaving functionally. This is more fully explained in ‘Why Violence?’ and ‘Fearless Psychology and Fearful Psychology: Principles and Practice’.

So where does self-hatred fit into all of this? Well, if a child is angry in response to some violence to which they are being subjected (usually, of course, in an attempt to control their behavior), then they will attempt to defend themselves against this violence in an effort to persevere with their original intention.

However, if the child is then terrorized into submission by a parent or other adult (by being threatened with or experiencing some form of violence, often given the inaccurate label of ‘punishment’) the child will be compelled to unconsciously suppress their awareness of the original feelings, including anger, that were generating their behavior.

Unfortunately, there is a heavy cost to this suppression because each child is genetically programmed to follow their own self-will (manifesting through such mental functions as thoughts, feelings and conscience) rather than to obey the will of another (whether it be parent, teacher, religious figure or anyone else).

Hence, if a child is successfully terrorized into not behaving in accordance with their own self-will, they will experience a strong feeling of self-hatred precisely because they have submitted, out of fear, to the will of another.

Conscious self-hatred is an intensely unpleasant feeling to experience, however, and because the child is systematically terrorized out of expressing and acting on most of their feelings (which is why 100% of children go to school wherever school is available and compulsory: children are not given freedom of choice) the feeling of self-hatred is suppressed along with these many other feelings. Having learned to do this, subsequent opportunities for this self-hatred to be felt are progressively more easily suppressed.

An unconscious feeling does not ‘go away’ however; it is unconsciously projected elsewhere. Suppressed self-hatred is always unconsciously projected as hatred of someone else, some other group (usually of another sex, race, religion or class) and/or something else, often in imitation of the violent parent/adult (because imitation will be given ‘permission’ by the violent parent/adult). And this inevitably leads to destructive behaviors towards that individual, group and/or the ‘something else’ (including the Earth’s environment).

But, and this is important to recognize, this destructive behaviour might simply manifest as inaction: doing nothing in response to someone else’s (or the Earth’s) obvious need.

So the unconscious fear and self-hatred are projected as fear of and hatred for living beings as well as the Earth, and manifests as behavior that is destructive, often by inaction, of themselves, others and the planet.

The tragic reality is that it takes very little violence to terrorize a child and this is why a substantial proportion of the human population is consumed by their own fear and self-hatred, and feels powerless as a result. Consider the people immediately around you: many spend most of their time, consciously or unconsciously, abusing themselves, others and/or the environment, and doing nothing in response to the plight of our world.

So what can we do?

Given existing parenting practice, fear and self-hatred are not easily avoided although they are not necessarily all-consuming. But to be free of them completely requires just one thing: the fearlessness to love oneself truly. What does this mean?

To love yourself truly, you must always courageously act out your own self-will, whatever the consequences. This requires you to feel all of your emotional responses – fear, sadness, anger, pain, joy, love … – to events, including impediments, in your life. See ‘Feelings First’. It is only when you do this that you can behave with awareness: a synthesis of all of the feedback that your various mental functions give you and the judgments that arise, in an integrated way, from this feedback. See ‘Human Intelligence or Human Awareness?’

At first glance loving yourself and acting out your own self-will might sound selfish. But it is not. Self-love is true love. The individual who does not truly love themself cannot love another. Nor will they feel such emotional responses as compassion, empathy and sympathy. Hence, this individual will not seek mutually beneficial outcomes in tackling conflict, will not seek distributive justice in resource allocation, will not value ecological sustainability and will not act in solidarity with those who are suffering. It is this individual, who is terrified, self-hating and powerless, who will act selfishly.

In addition to courageously acting out your own self-will, you might also consider making ‘My Promise to Children’.

And if you love yourself enough to be part of the struggle to end the violence and exploitation of those who are full of fear and self-hatred, you might like to consider signing the online pledge of ‘The People’s Charter to Create a Nonviolent World’ and/or using sound nonviolent strategy for your campaign or liberation struggle. See Nonviolent Campaign Strategy or Nonviolent Defense/Liberation Strategy.

Those who are terrified and self-hating never will.

 

Biodata: Robert J. Burrowes has a lifetime commitment to understanding and ending human violence. He has done extensive research since 1966 in an effort to understand why human beings are violent and has been a nonviolent activist since 1981. He is the author of ‘Why Violence?’ His email address is flametree@riseup.net and his website is here.

Websites:
Nonviolence Charter
Flame Tree Project to Save Life on Earth
‘Why Violence?’
Feelings First
Nonviolent Campaign Strategy
Nonviolent Defense/Liberation Strategy
Anita: Songs of Nonviolence
Robert Burrowes
Global Nonviolence Network

Slaves and Bulldozers, Plutocrats and Widgets

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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.

Human Anxiety in Late-Stage Capitalism

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By Phil Rockstroh

Source: Consortium News

A number of recent press articles, including an over 8,000-word feature piece in The New York Times have asked, to quote the Times’ headline, “Why Are More American Teenagers Than Ever Suffering From Severe Anxiety?”

Although the question was proffered, the reporters and editors responsible for the articles remain resolutely obtuse to the obvious: The bughouse crazy environment of late-stage capitalist culture evokes classic fight-or-flight responses attendant to episodes of severe anxiety and panic attacks.

The word panic has its derivation in reference to Pan, the Greek god of wilderness and wildness, of the animal body encoded within human beings and its attendant animalistic imperatives. To wit, deracinate an animal from its natural habitat and it will evince, on an instinctual basis, a fight-or-flight response.

If caged, the unfortunate creature will pace the confines of its imprisonment, chew and tear at its fur and flesh, become irritable, enervated, languish and even die from the deprivation of the environment it was born to inhabit. A caged animal, even if the unfortunate creature endures captivity, is not the entity nature conceived; the living being has been reduced to A Thing That Waits For Lunch.

Human beings, animals that we are, respond in a similar fashion. Experiencing anxiety is among the ways our innate animal spirits react to the capitalist cage. Inundate a teenager with the soul-defying criteria of the corporate/consumer state, with its overbearing, pre-careerist pressures, its paucity of communal eros, its demands, overt and implicit, to conform to a shallow, manic, nebulously defined yet oppressive societal order, and insist that those who cannot adapt, much less excel, are “losers” who are fated to become “basement dwellers” in their parents’ homes or, for those who lack the privilege, be cast into homelessness, then the minds of the young or old alike are apt to be inundated with feelings of angst and dread.

Worse, if teenagers are culturally conditioned to believe said feelings and responses are exclusively experienced by weaklings, parasites, and losers then their suffering might fester to the point of emotional paralysis and suicidal inclinations.

No Real Remedies

What does the capitalist state offer as remedy? Obscenely profitable, corporately manufactured and widely prescribed psychoactive medications. Treatment, which, at best, merely masks symptoms and bestows the illusion of recovery.

As R. D. Laing observed: “What we call ‘normal’ is a product of repression, denial, splitting, projection, introjection and other forms of destructive action on experience. It is radically estranged from the structure of being.”

In short, it is insanity to be expected to adapt to socially acceptable insanity. Yet we are pressured to adapt to, thus internalize odious, groupthink concepts and tenets. To cite one such groupthink example: homelessness is natural to the human condition and is a communally acceptable situation.

Closer to fact: The problem of homelessness is the result of a societal-wide perception problem — the phenomenon is the very emblem of the scrambling, twisting, dissociating, and displacing of perception that capitalist propagandists specialize in. Homelessness would be considered a relic of a barbaric past if this very simple principle was applied: Having access to permanent shelter is a human right and not a privilege.

What kind of a vile, vicious people would deny that simple proposition? Those conditioned by a lingering Puritan/Calvinist mindset to believe: Punishment for resisting the usurpation of the fleeting hours of one’s finite life must be severe. If the over-class can no longer get away with, as was once common practice in the Puritan/Calvinist tradition, public floggings to whip the labor force into line, then those who will not or cannot comply will be cast onto the cold, unforgiving concrete of a soulless cityscape.

It comes down to this, societies that are ridden with vast wealth inequity, due to the machinations of a rapacious over-class, create the obscenity known as homelessness. Moreover, the situation is only one of the numerous obscenities inherent to state capitalism. Obscenities that include, events that are dominating the present news cycle, e.g., the predations of a lecherous movie mogul, to the sub-cretinous doings and pronouncements of a Chief of State who is a bloated, bloviating, two-legged toxic waste dump.

Trump, No Aberration 

How is it then, liberals fail to grasp the fact that the Trump presidency is not an aberration; rather, his ascension to power should be regarded as being among the high probability variables of late-stage capitalism and empire building? The psychopathic, tangerine-tinged clown Trump is the embodiment of the Second Law of Thermodynamics, a development that is concomitant to over-expanded empires. Thus he will continue to flounce deeper into the quagmire of crash-engendering, economic legerdemain and perpetual war.

Empires are death cults, and death cults, on a subliminal basis, long for their own demise. Paradoxically, the collective mindset of imperium, even as it thrusts across the expanse of the world, renders itself insular, cut off from culturally enhancing novelty, as all the while, the homeland descends into a psychical swamp of churning madness.

A draining of the swamp of the collective mind cannot come to pass, for the swamp and citizenry are one. Withal, the likes of leaders such as Trump rise from and are made manifest by the morass of the culture itself. In a swamp, the gospel of rebirth and redemption is heard in the song of humus. New life rises from its compost.

In the presence of Trump’s debased mind and tombified carcass, one is privy to arias of rot. While Hillary Clinton’s monotonous tempo was the dirge of a taxidermist — cold, desiccated of heart, and devoid of life’s numinous spark — Trump’s voice carries the depraved cacophony of a Célinean fool’s parade … its trajectory trudging towards the end of empire.

As liberals new BFFL (Best Friend for Life) George W. Bush might ask, “Is our liberals learning.”

In a word, no. For example, the collective psyche of U.S. culture as been enflamed by the revelations that actresses were coerced into sexual encounters with a movie mogul whose power in the industry was only matched, even enhanced, by his sadistic nature. The staff of his company assisted, was complicit in, or remained silent about his lechery, as did the whole of the movie industry and the entertainment press. All as NFL athletes are being threatened with expulsion from the League if they kneel during the national anthem.

The Great Unspoken 

Yet the great unspoken remains: The enabling of and submission to the degradation, exploitation and tyranny, and the lack of resistance thereof share a common and singular factor: The careerism of all concerned. The cultural milieu concomitant to capitalism is at the rotten root and noxious blossoming of the situation.

Jean-Luc Godard’s 1967 cinematic barnburner “Two or Three Things I Know About Her” should be required viewing for those unaware or in denial of the acuity of the film’s theme i.e., becoming enmeshed within the psychical landscape of dominance, degradation, and submission inherent to and inseparable from capitalist/consumer culture will cause one to become party to societal sanctioned prostitution. When life is negotiated within a collective value system that devalues and deadens the individual’s inner life thus warps every human transaction, anomie descends, the worst among a people ascend to positions of power.

“Panic is the sudden realization that everything around you is alive.” — William S. Burroughs, from Ghost of Chance

When friends visited me in New York, where I lived for decades, I would take them on walking tours through the city. We would cross the Westside Highway and stroll the pedestrian walk along the Hudson River, or cross the East River by walking across the Brooklyn Bridge.

The effect of these excursions on people was often profound … the combined elements of the elemental beauty of the rivers and vastness of the city’s architecture and scope, clamor, and the dense interweaving of traditional ethnic customs and ad hoc social codes of New Yorkers often would heighten the visitors’ senses and open them to larger, more intricate awareness of themselves and extant reality … the freeways of the contemporary mind (conditioned to be constantly engaged in manic motion, with one’s mind either frenzied by an obsession with performing (ultimately futile) maneuvers directed to saving time — or stalled at a frustration inducing standstill) were replaced by the exigencies of life at street level, i.e., novel situations that had to be apprehended and negotiated.

The possibilities of life seemed greater. The crimped eros of insular suburban thought became loosened before the city’s intricacies and expansiveness. Although: Not all, or even a scant few, New Yorkers can maintain the state of being. Few of us can live by Rilke’s resolve to “make every moment holy.” Life, in the city, becomes grotesquely distorted … High rents, inflicted by hyper-gentrification, in combination with the deification of success and its cult of careerism overwhelm one’s psyche … There is so far to fall.

Angst (the word originally can be traced to the ancient Greek deity Ananke, the immovable by prayer and offering bitch Goddess of Necessity and the root word of anxiety) clamps down one’s sense of awareness. Ananke dominates the lives of the non-privileged citizenry while Narcissus, Trump’s, the Clintons’, et.al. and their financial and cultural elitists’ patron God rules the day. The pantheon of possibility has been decimated, a cultural cleansing has been perpetrated, by the egoist caprice of the beneficiaries of the late capitalist dictatorship of money.

Hence, we arrive at the primal wisdom tacitly conveyed by anxiety-borne states of fight or flight. Due to the reality that capitalism, on both an individual and collective basis, drives individuals into madness, all as the system destroys forest and field, ocean and sea and the soul-scape of all who live under its rapacious dominion, our plight comes down to this: We either struggle and strive, by and any and all means, to end the system — or it will end us.

This Chart Defines the 21st Century Economy

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By Charles Hugh Smith

Source: Of Two Minds

There is nothing inevitable about such vast, fast-rising income-wealth inequality; it is the only possible output of our financial and pay-to-play political system.

One chart defines the 21st century economy and thus its socio-political system: the chart of soaring wealth/income inequality. This chart doesn’t show a modest widening in the gap between the super-wealthy (top 1/10th of 1%) and everyone else: there is a veritable Grand Canyon between the super-wealthy and everyone else, a gap that is recent in origin.

Notice that the majority of all income growth now accrues to the the very apex of the wealth-power pyramid. This is not mere chance, it is the only possible output of our financial system. This is stunning indictment of our socio-political system, for this sort of fast-increasing concentration of income, wealth and power in the hands of the very few at the top can only occur in a financial-political system which is optimized to concentrate income, wealth and power at the top of the apex.

Well-meaning conventional economists have identified a number of structural causes of rising wealth/income inequality, dynamics that I’ve often discussed here over the past decade:

1. Global wage arbitrage resulting from the commodification of labor, a.k.a. globalization

2. A winner-takes-most power law distribution of the gains reaped from new technologies and markets

3. A widening mismatch between the skills of the workforce and the needs of a rapidly changing economy

4. The concentration of capital gains in assets such as high-end real estate, stocks and bonds that are owned almost exclusively by the top 10% of households

5. The long-term stagnation productivity

6. The secular decline in the percentage of the economy that flows to wages and salaries

While each of these is real, the elephant in the room few are willing to mention much less discuss is financialization, the siphoning off of most of the economy’s gains by those few with the power to borrow and leverage vast sums of capital to buy income streams–a dynamic that greatly enriches the rentier class which has unique access to central bank and private-sector bank credit and leverage.

Apologists seek to explain away this soaring concentration of wealth as the inevitable result of some secular trend that we’re powerless to rein in, as if the process that drives this concentration of wealth and power wasn’t political and financial.

There is nothing inevitable about such vast, fast-rising income-wealth inequality; it is the only possible output of our financial and pay-to-play political system.

Policy tweaks such as tax reform are mere public relations ploys. The cancer eating away at our economy and society arises from the Federal Reserve and the structure of our financial system, and the the degradation of our representative democracy into a pay-to-play auction to the highest bidder.

Why We’re Doomed: Our Economy’s Toxic Inequality

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By Charles Hugh Smith

Source: Of Two Minds

Anyone who thinks our toxic financial system is stable is delusional.

Why are we doomed? Those consuming over-amped “news” feeds may be tempted to answer the culture wars, nuclear war with North Korea or the Trump Presidency.

The one guaranteed source of doom is our broken financial system, which is visible in this chart of income inequality from the New York Times: Our Broken Economy, in One Simple Chart.

While the essay’s title is our broken economy, the source of this toxic concentration of income, wealth and power in the top 1/10th of 1% is more specifically our broken financial system.

What few observers understand is rapidly accelerating inequality is the only possible output of a fully financialized economy. Various do-gooders on the left and right propose schemes to cap this extraordinary rise in the concentration of income, wealth and power, for example, increasing taxes on the super-rich and lowering taxes on the working poor and middle class, but these are band-aids applied to a metastasizing tumor: financialization, which commoditizes labor, goods, services and financial instruments and funnels the income and wealth to the very apex of the wealth-power pyramid.

Take a moment to ponder what this chart is telling us about our financial system and economy. 35+ years ago, lower income households enjoyed the highest rates of income growth; the higher the income, the lower the rate of income growth.

This trend hasn’t just reversed; virtually all the income gains are now concentrated in the top 1/100th of 1%, which has pulled away from the top 1%, the top 5% and the top 10%, as well as from the bottom 90%.

The fundamental driver of this profoundly destabilizing dynamic is the disconnect of finance from the real-world economy.

The roots of this disconnect are debt: when we borrow from future earnings and energy production to fund consumption today, we are using finance to ramp up our consumption of real-world goods and services.

In small doses, this use of finance to increase consumption of real-world goods and services is beneficial: economies with access to credit can rapidly boost expansion in ways that economies with little credit cannot.

But the process of financialization is not benign. Financialization turns everything into a commodity that can be traded and leveraged as a financial entity that is no longer firmly connected to the real world.

The process of financialization requires expertise in the financial game, and it places a premium on immense flows of capital and opaque processes: for example, the bundling of debt such as mortgages or student loans into instruments that can be sold and traded.

These instruments can then become the foundation of an entirely new layer of instruments that can be sold and traded. This pyramiding of debt-based “assets” spreads risk throughout the economy while aggregating the gains into the hands of the very few with access to the capital and expertise needed to pass the risk and assets off onto others while keeping the gains.

Profit flows to what’s scarce, and in a financialized economy, goods and services have become commodities, i.e. they are rarely scarce, because somewhere in the global economy new supplies can be brought online.

What’s scarce in a financialized economy is specialized knowledge of financial games such as tax avoidance, arbitrage, packaging collateralized debt obligations and so on.

Though the billionaires who have actually launched real-world businesses get the media attention–Bill Gates, Jeff Bezos, Steve Jobs, et al.–relatively few of the top 1/10th of 1% actually created a real-world business; most are owners of capital with annual incomes of $10 million to $100 million that are finance-generated.

This is only possible in a financialized economy in which finance has become increasingly detached from the real-world economy.

Those with the capital and skills to reap billions in profits from servicing and packaging student loan debt have no interest in whether the education being purchased with the loans has any utility to the indebted students, as their profits flow not from the real world but from the debt itself.

This is how we’ve ended up with an economy characterized by profound dysfunction in the real world of higher education, healthcare, etc., and immense fortunes being earned by a few at the top of the pyramid from the financialized games that have little to no connection to the real-world economy.

Anyone who thinks our toxic financial system is stable is delusional. If history is any guide (and recall that Human Nature hasn’t changed in the 5,000 uears of recorded history), this sort of accelerating income/wealth/ power inequality is profoundly destabilizing–economically, politically and socially.

All the domestic headline crises–culture wars, opioid epidemic, etc.–are not causes of discord: they are symptoms of the inevitable consequences of a toxic financial system that has broken our economy, our system of governance and our society.