Five Studies: The Psychology of the Ultra-Rich, According to the Research

OLIGARCHY

Bernie Sanders says that billionaires have “psychiatric issues.” He’s not entirely incorrect.

By Livia Gershon

Source: Pacific Standard

“Let me tell you about the very rich. They are different from you and me. They possess and enjoy early, and it does something to them, makes them soft where we are hard, and cynical where we are trustful, in a way that, unless you were born rich, it is very difficult to understand. They think, deep in their hearts, that they are better than we are because we had to discover the compensations and refuges of life for ourselves. Even when they enter deep into our world or sink below us, they still think that they are better than we are. They are different.”
—F. Scott Fitzgerald

Bernie Sanders’ unexpectedly popular presidential campaign features a lot of rhetoric that we don’t usually hear in mainstream politics. One striking example is the Vermont senator’s contention that the ultra-rich suffer from “psychiatric issues” that manifest in an addiction to money and a worldview divorced from reality.

When we talk about inequality, we often spend lot of time considering poor people’s attitudes and behaviors, from whether they get married to how they talk to their kids. We’re less likely to stop and look at how the rich are different. But extremely wealthy people play a huge role in increasing inequality. With their heavy political clout, they help shape government economic policies, supporting very different positions from those of average Americans. From their perches on corporate boards and compensation committees they also give direct raises to their fellow oligarchs.

As inequality grows, in the United States and in the world, the shape of the wealthiest classes is also changing. The significance of inherited wealth fell rapidly in the mid-20th century, making way for the “self-made” rich. Now, though, there’s growing evidence that, as Thomas Piketty has famously argued, dynasties are making a comeback.

So there’s good reason to pay at least as much attention to the behaviors and beliefs of the rich as we do to those of the poor. But what does research tell us about the nature of wealth? How does it affect those who have it? Studies suggest the wealthy really do have significant psychological differences from the middle class in how they view money, and how they look at their relationship with society.

1. MONEY BUYS HAPPINESS—KIND OF

Richer people tend to be happier, but not by all that much. And it’s not really right to say money makes them happy. Wealth only makes affluent people more satisfied to the extent that it gives them more control over their own lives, making them feel richer. (Anyone who feels financially and personally stable because they’ve got a steady job, enough money to get them through an emergency, and a nicer house than their neighbor is likely to be happier than the poorest multi-millionaire in a hyper-rich enclave they can’t really afford.) Still, holding everything else equal, people who have more money have more stability. Of course, they also usually know they’re well off. And those two factors make them happier.

—”How Money Buys Happiness: Genetic and Environmental Processes Linking Finances and Life Satisfaction,” Wendy Johnson and Robert F. Krueger, Journal of Personality and Social Psychology, Vol 90(4), Apr 2006

 2. BUT RICH PEOPLE HAVE DIFFERENT CRITERIA FOR HAPPINESS

Asked about what makes people happy, extremely rich Americans, just like average Americans, typically put love first. But the ultra-wealthy are more likely than everyone else to say happiness depends on winning the appreciation and respect of others. They’re also more likely to cite the realization of personal potential as a key to happiness. But they’re much less likely than non-wealthy people to say that physical health is most important. (Perhaps because they’ve never been uninsured?) Rich people are also a bit more likely than the rest of us to say having a lot of money can occasionally present an obstacle to happiness.

—”Happiness of the Very Wealthy,” Ed Diener, Jeff Horwitz, and Robert A. Emmons, Social Indicators Research, April 1985

3. THE WEALTHY ARE MORE AND MORE LIKELY TO IDENTIFY WITH AN INTERNATIONAL ECONOMIC ELITE

Board members of the world’s largest corporations—a significant and influential segment of the ultra-rich—are increasingly likely to serve on the boards of foreign and multinational companies. Even directors who don’t serve on the boards of foreign companies usually interact with others who do. In other words, modern corporate elites are likely to be part of cosmopolitan, global social networks, whereas most poor and middle-class people are more likely to identify with their home populations.

—”Transnationalists and National Networkers in the Global Corporate Elite,” William K. Carroll, Global Networks, June 2009

4. AS A RESULT, THEY’RE NOT GREAT AT EMPATHY

People from higher socioeconomic classes do worse on a test where they’re asked to identify emotions in photographs of human faces. They’re also less accurate at perceiving the emotional states of others in real-life interactions. In fact, researchers can reduce people’s empathy just by prompting them to think of themselves as relatively high-status. Test subjects who are asked to imagine an interaction with someone from a lower social rung get worse at understanding other people’s emotions. The trouble higher-status people have recognizing emotions is tied to the fact that they tend to think about themselves and others in terms of fixed traits (“She’s a nervous person.”) In contrast, people from lower social classes are more likely to use contextual explanations for people’s behavior (“This interview is making her uncomfortable.”)

—”Social Class, Contextualism, and Empathic Accuracy,” Michael W. Kraus, Stéphane Côté, and Dacher Keltner, Psychological Science, October 25, 2010

5. AND THEY THINK DOMESTIC INEQUALITY REPRESENTS JUST DESSERTS

Americans are known for our trust in an ideal of meritocracy. When you ask the general public to assess statements like “most people who want to get ahead can make it if they’re willing to work hard,” well over 70 percent of us agree. But what happens when people see high levels of income inequality in their daily lives? It turns out that low-income Americans are less likely to believe in meritocracy if they live in counties with extreme economic inequality—places where they’re likely to run into much richer people a lot. For high-income people, the effect is exactly the opposite. The study’s authors suggest that rich people could be using a defense mechanism to stave off guilt and justify their relatively privileged position within a visibly unequal system. But, for whatever reason, the more inequality rich people see in their home county, they more likely they are to believe that meritocracy is working.

—”False Consciousness or Class Awareness? Local Income Inequality, Personal Economic Position, and Belief in American Meritocracy,” Benjamin J. Newman, Christopher D. Johnston, and Patrick L. Lown, American Journal of Political Science, April 2015

 

Upside down economics of debt, poverty, unemployment: Ready to seize solutions now, or do you require more pain?

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By Carl Herman

Source: The Daily Censored

“If people were really self-interested, they would stop trying to be individualistic.” – John B. Cobb, founder of Seizing an Alternative conference (and here, videos here)

Economic Hitman John Perkins’ 2-minutes on today’s neo-colonialism capitalism:

Demonocracy’s 2-minutes on what the US national debt looks like if shown in actual amounts of $100 bills:

Earth economics is upside down.

Accelerating technology can and should provide:

  • more personal freedom from labor,
  • more beauty in infrastructure and nature,
  • greater joy in our freedom to create and explore our beautiful, powerful, and diverse virtues (something like “resource-based economics” as researched by The Venus Project).

We know what we have is in contrived Orwellian opposition of what leadership should create. We know that what we receive is literal criminal fraud:

I could go on to literally ~100 areas of crucial concern.

The first challenge for the 99.99% is to trust their own Emperor’s New Clothes observations that Earth is truly in this tragic-comedy rather than listen to the .01%’s lies attempting to cover naked facts anyone can see.

Please understand that I represent likely hundreds of thousands of professionals making factual claims with objective evidence anyone with a high school-level of education can verify. For example, the June 2015 Seizing an Alternative conference (and here, videos here) at the Claremont Colleges had hundreds of professionals presenting data and solutions in over 80 areas of speciality. My paper and videos for this conference is here.

The purpose of education since the “Age of Enlightenment” is to present facts for public verification, and to seize the victory of refuting lies by would-be dictators, especially when such lies are obvious and of crucial public importance.

The path forward as we build a critical mass of humans recognizing the Emperor’s New Clothes truth is to demand arrests and solutions, obviously:

  1. ARRESTS: the first responsible action upon recognizing massive crimes that annually kill millions, harm billions, and loot trillions is to demand that law enforcement and military enact arrests of criminal leaders to stop the crimes and begin unwinding the truth of what happened in Earth’s tragic-comedy (four-part article series with videos on arrests as the obvious citizen response).
  2. SOLUTIONS: the .01% with corporate media have suppressed solutions documented beginning with Benjamin Franklin how government can abundantly operate without taxes: monetary and credit reform allow the public to have near-instant prosperity: full-employment, zero public deficits and debt, the best infrastructure we can imagine, falling prices, and release of public TRILLIONS held in “rainy day” accounts. Full documentation here.

Humanity’s choices:

  1. Ongoing .01% Orwellian, upside-down, tragic-comic, Emperor’s New Clothes crimes with all the pain, fear, harm, death, debt, poverty, enslavement, crime, destruction, and despair.
  2. Arrests to stop the crimes of the present, and ready-to-start solutions to build a brighter future.

Be your brightest light as the person you’ve always wanted to be.

Former World Bank economist Herman Daly and co-author John B. Cobb of For the Common Good discuss our condition and pathways forward in this 40-minute interview:

Carl Herman is a National Board Certified Teacher of US Government, Economics, and History; also credentialed in Mathematics. He worked with both US political parties over 18 years and two UN Summits with the citizen’s lobby, RESULTS, for US domestic and foreign policy to end poverty. He can be reached at Carl_Herman@post.harvard.edu

On the Meaning of “Middle Class” and the State of the Middle Class

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By Dr. Nicholas Partyka

Source: The Hampton Institute

When politicians talk, one of the recurring themes about which they spew platitudes is the economy. It would be the subject of another essay to unpack what is meant by “the economy” when politicians and other capitalist elements use that term. This aside, in discussing the economy there is a phrase that politicians use with such alacrity that it has become trite. This phrase is, “middle class”. Politicians, pundits, and social commentators deploy this term in many contexts, but almost always appealing to its ubiquity of membership, critical role in democracy, and moral virtue in their speeches. These constant references to the middle class in the popular political discourse have rendered this term impenetrably vague. If we listen to politicians then one would be led to believe that most Americans are members of this middle class, whose health and prosperity the politicians never tire of proclaiming as their highest priority. Speeches are one thing, reality another. Let us interrogate this concept of the “middle class”, and see what to make of this notion that plays such a prominent role in American political discourse on the economy.

With an election year looming, and a Presidential election at that, with their seemingly always lengthening election cycle, the phrase “middle class” will only be heard more and more frequently from now until after November 2016. The President’s recent invocation of the phrase “middle class economics” is only the latest salvo between the two dominant capitalist political parties, as they try to position themselves in the public’s mind as the true defender of – the almost apotheosized- middle class. Candidates and their supporters will be arguing more and more vigorously about which party, or which policies, will do more to help this middle class. About the only thing that candidates from both parties will agree on is that the middle class is in trouble, and that economic policies should be designed which maximally promote the welfare of this class. The two major political parties in this country have divergent views about what kinds of policies best aid this alleged middle class. However, both parties are attempting to win votes by claiming to be champions of the middle class, a class with which a great many Americans still continue to identify themselves.

We’re going to explore two distinct, but interrelated questions in what follows. First, we’ll want to know, Who and how many, people are middle class? Second, we’ll want to ask, What does it mean to be middle class? The answers to these questions will likely have to be made relative to particular societies at particular times; though some generalization is possible. To begin we’ll look at what it has meant historically to be middle class. Then we’ll look more in depth into the meaning of being middle class in the contemporary American context. What we will find is a great deal more confusion and ambiguity about this notion of a “middle class”. So much so that we should start to wonder if this notion retains any usefulness.
The Middle Classes, Historically

For most of history being middle class simply meant occupying, however tenuously, a social status that was between that of a slave and that of a noble. Basically, the middle class was composed of everyone who was not technically a chattel slave, and lacking the noble pedigree of a true aristocrat. In most societies of the ancient world this simple definition would indeed make most people middle class. However, this understanding glosses over the highly variegated nature of socio-economic positions possible between technical chattel slavery and blue-blooded nobility. For instance, debt bondage and serfdom, both forms of un-free labour, would not cause one to be dropped from the middle class on this accounting. For example, in the ancient world slaves were often employed as overseers, that is in a management capacity. It would not have been uncommon for slave overseers to sometimes direct the labour of technically free men.

We can see in certain socio-political cleavages that splits have occurred in many contexts between the lower ranks of these middle classes and the higher elements of this class. Middle classes have struggled against entrenched aristocracy and nobility at many points in history for social advancement and political inclusion. However, almost always, in the critical moment, the higher elements of these middle classes would betray the interests of the lower elements, whose bodies, blood and ballots had been used to gain them inclusion. Marx would come to call these “higher elements” of the middle classes petit-bourgeoisie, signifying the much greater material, and indeed much more importantly, aspirational affinity with the bourgeoisie than the proletariat.

Two examples will suffice here. In ancient Greece we see the demos, or “the people” engaging in political struggle for inclusion in the political life of the polis. But who is this demos? First, Greeks used the word demos in two distinct ways. In one sense, we might call the wide sense, it meant the whole citizen body of city-state in general. In the narrow sense, on the other hand, the demos meant the ‘common people’, the ‘lower classes’, the aporoi, the propertyless. This group included a very wide range of socio-economic and political situations, and certainly contained an upper and lower group. The main cleavage within the ranks of the demos is between the better off elements and those struggling to get by. It goes without saying that slaves would not be counted among the demos. Those who are struggling are more, or in worst case entirely, dependent on others for their livelihood. The Greeks called Thetes and Banausoi. The former we might call day-labourers or wage earners, the latter we could translate loosely as artisans. These were the lowest two of Solon’s five social classes, and while not slaves, were subject to various kinds of forced labour. Though some artisans and merchants could be quite wealthy, most were not. Most merchants, as opposed to retailers, though were likely to be foreigners, and thus not eligible for citizenship.

When we focus on the internal political conflicts of the Greek polis of the Classical period (roughly the 5th and 4th centuries BC), what we see is a struggle over citizenship, that is over access to political participation in government. While the socio-economic and political realities of the ancient world are complex, in the main the conflicts were between an urban middle class of mainly artisans and middling farmers on the one hand, and the traditional land-owning oligarchy which monopolized political power on the other.[1] The political struggles over demokratia in this period revolved mainly around whether or not the banausoi and thetes should be given citizenship rights. Chiefly important among the rights of citizens were the right to vote in the Assembly, to hold public office, the serve as a juror in the dikasteria, to bring matters before the courts; at Athens in particular, citizens would be entitled to receive a share in any disbursement of the polis‘s dividends from the proceeds of the Laurium silver mines.

The demos was the main agent of social change in the ancient Greek polis, the traditional aristocracy certainly saw it this way. They saw “middle class” elements as being too politically ambitious, which is in part why they deploy the term pejoratively. By “middle class elements” the traditional aristocracy would have lumped together both very wealthy artisans, and much more humble enterprises, all of whom were united in not being aristocrats by blood lineage. Wealthy merchants and artisans might themselves employ slaves both for carrying out production, as well as the overseeing of this work, but they lacked the “best” kind of background. This made them unsuitable for political participation in the eyes of established elites. Smaller artisans and merchants, who didn’t have exorbitant wealth to recommend them, would have been thought only the more unsuited to political life.

All of the main institutions of Classical Greek demokratia were devices designed to help poor and working-class free men defend themselves from the depredations of their richer counterparts. Rule by majority vote in an Assembly, ekklesia, open to all citizens; freedom of speech, parrhesia, in the assembly; large popular courts of law, dikasteria, composed of fellow citizens; rule of law, isonomia, as passed by the Assembly and administered in the courts; the belief that political power should be scrutinized, subject to euthyna, are all practices that helped the aporoi defend their highly precarious social position from the predatory behavior of wealthy citizens. As one eminent scholar describes, “Since the majority of citizens everywhere owned little or no property, the propertied class complained that demokratia was the rule of demos in the narrower sense and in effect the domination of the poor over the rich.”[2]

In the ancient Greek polis political participation was usually restricted to those native adult men who could meet a certain property qualification. In the main, in order to be a citizen one had to possess enough wealth to afford to outfit themselves with the hoplite panopoly. This was the complete set of armaments associated with the heavy armed infantry. If one could afford to buy one’s own armor, and afford the leisure time to learn to fight as part of a phalanx formation, then one was considered worthy to participate in the political life of the polis. The idea being that if one was wealthy enough to afford the hoplite panopoly then one had enough of a stake in the success and survival of the polis to be entitled to a role in the government of the city-state. Those “old money” and nouveau riche aristocrats who were wealthy enough could afford to outfit themselves with horses as well as more ornate armor and weapons, and thus the traditional prestige associated with the cavalry. The question of democracy in the ancient Greek world, was thus a struggle over the inclusion of those who could not afford the traditional citizenship qualification based on the connection of wealth and military service, and who because they were not slaves could make legitimate claims to be entitled to such inclusion.

Renaissance Italy serves as another great example. In the rise of the classic northern Italian city-state podestaral form of communal government there was employed in the popular political discourse a term, the popolo. Loosely translated, it means the people. However, once again we’ll see that this notion of the people actually covers over a major divergence within between well-off members and working-class members. As one scholar claims, “When, therefore, the long and venomous struggle broke out between the popolo (the “people”) and the nobility, the popular movement drew its force and numbers from the middle classes, not from the poor, the day labourers, or the unskilled”.[3]

The political conflict in 13th century northern Italian city-states was, much like in the ancient Greek world, fundamentally about participation. Beginning in the 12th century, a political conflict between church and secular authorities saw the rise of communal governments in all the major Renaissance city-states in northern Italy. At the time, this form of government was identified with the self-government of local magnates and aristocrats instead of more alien authorities imposed by church leaders in Rome. In this early phase of commune government, “The nobility dominated the consulate, manipulated the general assembly, and ruled the city, except where the emperor successfully intervened, as at Vicenza, Siena, and Volterra, or where the political power of the Bishop persisted.”[4]

It was against this restricted form of government that the political forces of the popolo were arrayed in the 13th century. By organizing for combat against the military forces of the nobility, the popolo was able to seize power in the commune and change the structure of commune government, in that it was able to secure more participation for those in its ranks; or more correctly, some of those in its ranks. The popolo, much like the demos, was a class composed of better off artisans, tradesman, merchants, et cetera. It was a class of persons who had to work for a living, that is they had to do physical labour themselves to achieve their subsistence. These people were free, in that they were not slaves or serfs, but were not aristocrats, they did not possess the right kind of lineage. Political participation was at this time still restricted to those who did have the proper kind of aristocratic genealogy.

Much as in the case of the ancient Greek world, the main political cleavage in the Renaissance northern Italian city-state between the popolo and nobilitas largely concerned the way individuals made a living. Nobles owned large landed estates, and derived their wealth and status from being able to control the labour of others, i.e. vassals and serfs. Those who were not aristocrats could be wealthy, could own land, but typically had to work themselves. That is, the typical member of the popolo could not control the labour of others to the same extent that a noble could. The political conflicts of the 13th century were not simplistic conflicts between land owners and merchants, the reality was much more complicated than that.

Both popolo and nobilitas would be distinguished from a day-labourer in that they would be considered independent in the right sort of way, they would be considered the people who had real freedom. What distinguishes the position of the poorest classes is that they are dependent on others for their livelihood. Thus, for example, the serf is dependent on the lord, the tenant farmer on the land-owner, and the day-labourer on the employer who pays him. These kinds of people would have been considered not really free in the right way, especially politically. Though all God’s children would have been understood to be free, some were not considered free enough to be worthy of inclusion in government.

In what would become an unfortunate recurring tendency, once the leading – i.e. the wealthiest- elements in the “middle class”, the popolo, achieved inclusion in communal government, they allied with the old aristocracy and turned against the lower, more ‘middling’ elements in the popolo to suppress their continued agitations for further liberalization of political participation. Thus, as one scholar puts it,

“Up to about the middle of the thirteenth century, it was in the interest of bankers and -long-distance traders to batter the entrenched communal oligarchy with an eye to loosening the political monopoly of the old consular families, mostly of noble lineage… But after about 1250 or 1260, having fully achieved their aims and in fact now menaced by the political ambitions of the middle classes, they broke with the popolo, thereby dividing and undermining the popular movement”.[5]

With the erosion of nobility and its traditional privileges across Europe and North America from the 17th century onward, as well as the formal abolition of chattel slavery in these societies, this traditional understanding of middle classes is not sufficient for the world we inhabit. Being neither a slave nor a noble will not help many locate their social position in contemporary societies, when these societies do not formally legally recognize slavery or nobility. As capitalism remade societies across western Europe and North America in this same period, it reshaped the nature of the classes that composed those societies. Thus, a new way to understand what the middle-class is will be needed.
The Idea of the Middle Class in Post-WWII America

There are some who are reluctant to define the middle class using income measurements. The alternative proposed by many of these critics is a more aspirational definition based on consumption. This definition is based on both the level and the kind of consumption desired by individuals who aspire to be middle-class, ie. who desire to live what is deemed a middle-class lifestyle. Most of the essential features of this conception of the middle class are derived from the experience of Americans post WWII. The vast pool of purchasing power accumulated by US citizens during the war led in the post-war period to rising standards of living for a wide swath of the population. The patterns of consumption, the norms and values, of what we today consider definitional of the middle class in America were originated to a large extent in this period.

It was in this period that the idea of the “American Dream”, as it is currently understood, originates. This post-war vision of increasingly wealthy Americans achieving higher material standards of living is the well-spring of many of the elements of middle-class-ness that we take for granted. The conception of middle-class-ness as consisting of things like widespread home ownership, ownership of a motor vehicle or vehicles, stable long-term employment, ability to send children to college, take a family vacation, et cetera, was born during this era.

If we try to understand the middle class this way, we should investigate what the patterns of consumption for a middle-class individual, or family, today requires in terms of income, and how many Americans actually possess the financial means to afford this lifestyle. According to one recent report, it was estimated that a middle-class “American dream” lifestyle would cost $130,000 a year for a family of four.[6] The median income for individual income-earners in the US in 2013 was around $52,000, not even half of that estimated cost. According to a 2010 study by the Commerce Department only a family with two income-earners in the 75th percentile or above could afford the middle-class lifestyle described in the previous report. [7] According to data from a 2014 report by the Congressional Research Service only around 20% of American household could afford this price tag of a “middle-class” lifestyle.

If one takes only the items listed as “essential” in the report cited in the previous paragraph the total cost of a middle-class lifestyle, which is still above the current median income. This accounting clearly leaves out other important expenses, like taxes, that one will incur, as well as makes impossible any expenditure on important items like savings, and recreation. Now, of course food prices change, and fuel prices change, and these effect how wealthy consumers feel, as decreases in food and fuel costs can be transferred to increase consumption of “extras” like college savings for children, or family vacations. One should also note that this report categorized cell phone and internet expenditure as an “extra”. In today’s world these things are properly considered more akin to utilities, they are essentials for living.

Clearly, the level of income needed for achievement of a characteristically middle-class, or “American dream”, lifestyle is out of reach for a great many individuals and families. This is likely part of why the percentage of those identifying themselves as lower-class, or lower-middle class in recent surveys has increased.[8] Indeed, even a family with two income-earners, in the 25th percentile only has an income about equivalent to the median. Meanwhile, as of 2010, an individual income-earner in the 50th percentile only made around $25,000. The rising costs of college, the continued stagnation of wages – especially at the lowest ends of the labour market – as well as the reductions in employer-based pension and benefit programs for most workers have a contributed to making the mid-twentieth century American vision of middle-class existence more and more out of reach for large swaths of Americans.

The post-war American experience, if put in proper context, is the product of a historically unprecedented epoch. According to the research presented by Thomas Piketty in his book Capital in the Twenty-First Century, the middle part of the twentieth century was the only time in the last 300 years that his law of capital (r>g) was reversed.[9] This was a special period in which the growth rate exceeded the return to capital, and thus workers received increasing wages, and increasing purchasing power. It was in this historically unique period that the main expectations, norms, values, and status symbols of modern American “middle-class” lifestyle were born.

If we look the heyday of the American middle class in the 1950s and 1960s what we see is a transformation of American society born of a historical accident. Piketty’s research demonstrates that income inequality in the US basically plateaued over these decades, after decreasing sharply during the period from 1913-1945, that is the period of the World Wars and the Great Depression. What the French call “les trente glorieuses”, and others have called a pax Americana, was the direct result of the tumult of the wars and economic crises of the first half of the twentieth century. Workers in the western world generally experienced a boom, in that they experienced rising living standards, wages, and benefits. In Europe these benefits often took the form of national programs, while in America they were largely employer-based; healthcare and retirement are good examples. It was in this environment of rising levels of access to material consumption that the dominant aspects of the outlook of the middle class in America took shape.

Without the devastating effects of two world wars and an economic depression of immense scale, governments, especially in the US, would not have made the concessions that they did to workers, to organized labour in particular. The need to secure consistent, reliable production of vital war supplies, which might be disrupted by labour agitation, inclined the US government to enter the fray of industrial warfare on the side of workers during the First World War; at least to the extent required to ensure production for war. The Great Depression was an important cause of the establishment of the main pillars of the American welfare system in the 1930s. Labour unions achieved even greater privileges during the Second World War, as the leadership of organized labour organizations were increasingly co-opted by the corporate interests they were supposed to oppose. As a result of the need to take sometimes drastic measures to fight two wars and a titanic economic depression the US government enacted policies which resulted in a reduction in income inequality. This reduction in inequality combined with rising levels of material consumption, due to workers increased ability to bargain collectively with the support of the legal apparatus of the state, define this unprecedented period in economic history.
Middle Class Confusion

Clarification about the meaning of “middle class” is especially important because Americans seem to be confused about this notion of “middle class”, about who is in it, and what it means to be in it. It is a well-know and, much commented on, phenomenon in American political culture that almost everyone tends to perceive themselves as “middle-class”. What makes this fact interesting, and thus worthy of the decades of commentary and analysis it has received, is the startling economic inequality that coexists with this perception.

Though the rates of self-identification with being middle-class have varied over time, a healthy portion of Americans still identify as being middle class. Even now, after decades of erosion in the position of workers due to stagnating wages, reductions in benefits, cuts to social programs and education, increasing international competition, and the shifting of various kinds of work to the global south and other peripheral economies, as well as more recently the effects of the 2008 financial crisis, 44% of people surveyed in one recent survey self-identified as being middle-class. [10] Indeed this figure has fallen over the years of the Great Recession, self-identification as middle-class fell from 53% in 2008, to 49% in 2012, and then to 44% in 2014. Thus, even in bad times, as a great many people are still struggling, a great many people continue to perceive themselves as middle-class.

There is no one universally accepted way to define the middle-class. Perhaps this is part of the reason why politicians are able to make so much political hay with it. This is also part of how it is possible for a great many rather wealthy see themselves as middle-class at the same time as many of the working poor. It is also part of how many super-wealthy individuals come to perceive others less wealthy than themselves, though still obscenely wealthy, as ‘merely’ middle-class.[11] This lack of a consensus about a definition is certainly one of the reasons there is so much confusion about the middle-class, and who belongs to it, and how one belongs to it.

Conventionally, the middle is understood as everyone in the second, third, and fourth income quintiles. Basically, everyone who is not in the top-fifth or the bottom-fifth of income earners is defined as middle-class. In America today this definition of middle-class is roughly equivalent to those earning between $30,000 and $80,000 a year.[12] This is quite a large middle-class. One might think that it is rather too large. Indeed, how can one assimilate the experiences of an individual, or even more a family, living on $30,000 to one making $80,000? One could, I think quite properly, say that these two sets of experiences are so incommensurable materially as to make them awkward members of a common middle-class. Let us note in this connection that the federal government defines the poverty threshold for a family of four as a bit less than $24,000 a year. So, it would seem hard to think the experiences of family living on about 25% more than the poverty level would be anything like those of a family making more than two and a half times that amount.

That this conception is too wide to be very useful, and for the reasons I alluded to, is admitted by the fact that, at least colloquially, we have adopted the distinctions between ‘upper’ and ‘lower’ middle class. This distinction testifies to the difference in material position of individuals, or families, in the upper and lower ends of the middle. The lifestyle, the patterns of consumption, level of access to opportunity, and much else, varies so much between these groups that the distinction suggests itself, and is so patently apparent that no one questions its propriety.

Perhaps then we should narrow our definition of middle-class to only the third income quintile. This understanding of middle-class would include those making roughly $40,000 to $65,000. Even the top end of this range would still be half of what one estimate suggests a middle-class lifestyle would cost. Moreover, only about 15% of income earners would count as middle-class on this way of understanding the middle class. [13] This fact would certainly seem inconsistent with the widespread perception that the middle-class is the numerically largest class. Even if we expand back to our original range of $30-80,000, only about 40% of income earners would be middle-class. While this figure has the virtue of appearing to match up quite closely with the level of self-reported identification as being middle-class, it suffers from the vagueness we noted above. The upper limit of the 4th income quintile is north of $100,000. I do not think it is a stretch to say the material circumstances of a “middle-class” family making anywhere from the median to the upper limit has much in common with those families earning closer to the lower threshold of “middle class”.

By several ways of trying to understand the middle class we come up with results that fall short of matching our expectations and common perceptions. We seem to end up with either an unhelpfully expansive notion of the middle-class that encompasses individuals and families with greatly divergent material circumstances. Or, one ends up with a more precise statistical conception of the middle class, but wherein fewer persons are understood to be middle-class than commonly report being so in surveys. Part of explaining this confusion about the middle-class is the fact that Americans are either unaware or deeply confused about the nature of the distribution of wealth in this country. Many people report feeling like they are middle-class, but only as a result of ignorance or confusion about the nature of wealth inequality in America. Indeed, it would be crazy to deny that part of one’s perception of class position is the relative position of others. Were more Americans aware of the real nature of the distribution of wealth they would likely feel less middle-class, and more lower-class. According to the results of one recent research study, a representative sample of Americans reported thinking that the share of total income possessed by the middle class in America, i.e. the second through fourth income quintiles, was just north of 40%. Respondents also reported thinking the third income quintile alone possesses over 10% of total national wealth. In fact, the real share possessed by the first through fourth income quintiles combined is less than 20%, and the third quintile alone possesses closer to 5% than greater than the 10% that was reported.[14]

Another important aspect of the explanation for why there is so much confusion about the middle class is the confusion individuals face given their precarious position in the socio-economic hierarchy. Given how much inequality has risen over the last few decades there has been an increase in the perception that the post-war American middle-class lifestyle is out of reach for a great many hard-working people. Rising inequality combined with the effects of a calamitous financial crises, followed by years of recession, caused many to report falling in social class. The youngest cohort especially was hard hit, with now 49% reporting being in the lower or lower-middle class. It also caused many who identify as middle-class to feel this status increasingly precarious. Indeed, according to a Pew Research study from 2014 almost as many Americans reported being lower-class as middle-class, and the spread between the two was a mere 4%.[15]
The Working Class

We have seen now that this notion of the “middle class” is highly problematic. When we attempt a rational accounting of it, what we find is that our social reality confounds many of the expectations that most Americans have when they talk about the middle class. We find that though many Americans report in surveys that they are middle-class, the middle class is small, and shrinking. Once we distinguish upper from lower in the middle class, the true middle is really a small part of the income spectrum. One cannot get too far below the median income for one to be more lower class than middle class, nor can one get too far above without becoming upper-middle, or even elite. For instance, $100,000 in income would put one at the upper limit of the fourth income quintile, while an income at or above $150,000 would place one among the top 10% of income-earners. One cannot thus get too far beyond the $80,000 average income of the fourth income quintile without ending up less middle class than upper class.

If we judge belonging to the middle class as a function of ability to consume, then again we find that the traditional middle-class lifestyle ideal is increasingly out of reach for large swaths of the American population. What we see now is that we need a new way to think about class, about the socio-economic positions that people occupy and how these are best described. Getting a handle on what class one belongs to is important, especially in these election cycles, as appeals for votes are made to members of the various social classes that compose the electorate. How is one to know which kind of candidate or policy to vote for if one does not know what candidates or policies will advance their interests? And how is one to know what will advance one’s interests if one does know have an accurate understanding of their own socio-economic reality?

Rather than muddle on with this vague notion of a middle class, we should substitute a new understanding of class and class relations. This understanding of class should emphasize the role that working conditions play in determining socio-economic position, or class. This understanding will of course have much overlap with the dominant income-based understanding. For indeed, working conditions and wage rates are often highly correlated in market economies, that is, typically the lower the pay the worse the working conditions (in one form or another) and vice versa. When we take the kinds of jobs people work into account, the picture that emerges is one which demonstrates the importance of thinking in terms of a working class rather than a middle class. When we start putting working conditions in the forefront of our conception of social class we gain a much accurate, and explanatory conception of class.

One example that helps demonstrate this need for an understanding of class based on working conditions is the practice of “flex-time”. In the upper end of the labour market this concept is instantiated by programs that allow workers to do their work on their own schedule, freeing workers of the need to always be in the office during the traditional working day. This allows workers to achieve a better work-life balance, by having more flexibility with the time they need to devote to work. On the lower end of the labour market flex-time typically takes the form of on-call forms of scheduling. This is an extension of the logic of the “just-in-time” inventory management systems that have come to dominate manufacturing industries, and applied to the labour force of a variety of businesses, but especially retail firms. The idea, in both cases, is to only have as much as it needed of both on hand at any one time, so as to free up capital from unnecessary investment in extra stock or extra labour.
Conclusion

Have middle classes existed in history, yes. Did a middle class exist in the US during the middle part of the twentieth century, yes. However, in both cases these answers must be qualified, if the nuance of reality is not to be lost. Yet, in appending these qualifications we change the nature of the answers, and thus must come to see the original answer as importantly flawed. In both cases we find the reality of the middle class(es) does not match up with our modern expectations and perceptions about the middle class. In the first case, one might be subject to various forms of un-free labour despite still being technically not a slave, and thus free but by no means rich, or even independent. In the latter case, we find that this ideal of the middle class was quite restricted, and the alleged golden age of its reign was certainly not seen as such by the many marginalized groups of that era. We also see that its very existence occurs because of the confluence of historical circumstances that would be near impossible to re-create.

The idea of being “middle class” is also a source of confusion when compared to modern thinking about the middle class, and its role in society. Indeed, much of the meaning of being “middle class” has always involved poor people, those who work for wages for a living, aping the consumption trends of their ‘social betters’. Thus, even while during the classic 19th century hay-day of industrialization the middle class, ie. the petit bourgeoisie, was fairly small it nonetheless transmitted its social norms, consumption patterns, taste in art and décor, to those below them on the social ladder. It was not this middling class, but rather the working class, the proletariat, whose consumption, aping the middle class above them, drove the rise of a “middle class society”. This process of transmittal of social norms, values, and patterns of consumption is eloquently detailed by Thorsten Veblen in his Theory of the Leisure Class.

Today, this notion of the middle class, a remnant of the mid-century post-war Pax Americana, stands in the way of proper thinking about the role of class in society and the role of class in individuals’ lives. We need to be free of this notion if we’re going to able to correctly perceive how class works, and how it has changed. Remember that this notion of the middle class in post-war America was built on stable, long-term employment, with benefits, and pension plans, that paid enough to own a home, buy a car, household appliances, vacations, college educations, and more. In today’s economy these kinds of employment features of increasingly harder to come by for increasingly large segments of the labour market.

What one finds is that as automation increases, and as services increasingly dominate over production, more and more workers are forced into ever more precarious forms of employment. These tenuous relationships serve employers desire for flexibility, ie. ability to (re)move capital quickly, but increase burdens on working class people; especially on their time. Instead of thinking of themselves as “middle class”, these workers should more correctly perceive themselves to be part of what Guy Standing calls the Precariat[16]. The Precariat is already a class in-itself, but the ideology of the middle class in the US prevents it to a great extent from developing into a class for-itself. Opposed to this class is what Standing calls the Salariat, that is, the minority of a firms’ workers who are central to operations. These are core workers who typically earn a salary, have benefits, sick time, vacation days, and many of the other trappings of the fabled American middle class lifestyle.

Politicians will continue to talk in speeches, interviews, and the like about a middle class that supposedly exists in America, and how they will do the most to help it, typically by enacting the policies that will allow it to flourish. From what we have seen here working class people should no longer be duped into thinking that those politicians are addressing them. The rhetoric that dominates our politics simply does not match the reality of the contemporary economy, in particular the labour market. When we adopt a more appropriate view of class we see an economy characterized not by a broad-based and prosperous middle class, but rather by increasing inequality. We see a labour market where trends in job conditions and benefits very much resemble those in real wages. When we adopt a different view of class we see a very different answer to the question, Is there a middle class in America? No, not in a way that matches the mid-century American ideal.

Notes

[1] For a thorough analysis of the political and social conflict in the ancient Greek world see, G.E.M. de Ste. Croix’s The Class Struggle in the Ancient Greek World. 1981. Cornell University Press, 1998.

[2] De Ste. Croix 1998, 284

[3] Martines, Lauro. Power and Imagination; City-States in Renaissance Italy. 1979. Vintage Books, 1980; 40.

[4] Martines 1980, 29.

[5] Martines 1980, 61

[9] In Piketty’s equation (r) = after tax rate of return to capital, and (g) = the rate of growth of per capita income, a proxy for economic growth. For further information about Piketty’s research see my review of his book for The Hampton Institute.

[16] See his book, The Precariat: The New Dangerous Class. Bloomsbury Academic; 2011.

25 Signs That The Global Elite’s Ship Is About To Sink

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By Lance Schuttler

Source: The Mind Unleashed

Make no mistake about it. The tide has turned on the global elite and there will be no going back. A new day is rising for humanity as those who have planned for complete control are now being exposed, cornered and investigated from many different angles. There is no need to buy into the fear-based propaganda the major media and even several alternative media outlets dispense. Very good things are happening and even better things are coming. Let’s take a look at some of the major stories that have occurred in the last 8 weeks alone. Piecing the puzzle together, we see that the jig is up and the events surrounding it are growing in size and speed.

1. 57 Nations approved as founding members of the China-led Asian Infrastructure Investment Bank. Notable countries who signed on June 29th, 2015 include Russia, India, Iran, Switzerland, Germany, France, Saudi Arabia, Australia, Indonesia, the UK, Italy and Austria. Notables who did not join are the U.S. and Japan.

2. May 12th, 2015: Russia asks Greece to join the BRICS Alliance. Notice the BRICS trend in the stories to follow.

3. May 24th, 2015: The Pentagon released documents to Judicial Watch, a government watchdog law firm,
proving that the US Government played a central role in creating ISIL. Interestingly, the mainstream media failed to cover this story. A few weeks later, ex US Intelligence officials confirm the report.

4. May 31st, 2015: Greece’s Prime Minister Alexis Tsipras writes an open letter, warns European leaders they are “making a grave mistake,” and suggests they re-read Hemingways’s “For Whom The Bell Tolls.”

5. June 2nd, 2015: The U.S. Federal Government was hacked as the personal data of 4 million current, former and prospective employees believed to have been breached. 3 weeks later FBI Director James Comey told US Senators the actual number could be 18 million. Some believe the hack was coordinated to gather further evidence
of crimes by certain government officials. More on that further down.

6. June 2nd, 2015: Kentucky Senator Rand Paul calls for the U.S. Government to declassify 28 pages in the 9/11 attack report that the Bush Administration blacked out.

7. June 3rd, 2015: Famous musician Akon announces his Solar Academy will bring solar power to over 600 million people in Africa. A major victory for clean energy and humanity.

8. June 4th, 2015: Whistle-blower Edward Snowden says a “profound difference” had occurred since releasing the NSA documents and that the balance of power has shifted in our world.  Is he referring to the BRICS Alliance?

9. June 5th, 2015: “There Will Be A Reset of The Financial Industry.” The International Monetary Fund says the Chinese yuan is no longer undervalued. This sets the stage for the yuan to be recognized as a global reserve currency, something the U.S. Dollar (which is backed by war and oil) does not like.

10. June 7, 2015: Deutsche Bank, one of the world’s largest banks, co-CEO’s Jain and Fitschen resign. Two days later, German prosecutors raided the Bank’s headquarters in a criminal tax-fraud probe.

11. June 15, 2015: China says the G-7 Summit in Germany was a “gathering of debtors.” They mean this literally as the Bretton Woods western financial system is based on debt. And in fact, the entire western financial system has been running illegally and is technically bankrupt. For more on the real history of Bretton Woods and its connection to JFK, The Global Collateral Accounts and the gold standard, read here.

12. June 17th, 2015 is quite the day with the next four stories all being reported at that time. First, JP Morgan’s number 2, the Vice Chairman Jimmy Lee, suddenly and unexpectedly passes over. Since late 2013, the list of high-level banking officials to have passed over has grown to 70. Clearly, something is happening.

13. June 17, 2015: Russia and China announced that all natural gas and crude oil sales between
the two countries will now be done in Chinese yuan( formerly the U.S. Dollar) and will be convertible into Russian Rubles. The U.S. Dollar hegemony is waning.

14. June 17, 2015: The State of Texas has signed a bill that calls for the repatriation of their gold from the Federal Government. When asked what would happen if the government tried to steal back the gold, State Representative Giovanni Capriglione said this: There is a motto in the office of almost every state legislator in Texas, and it’s a flag that we have [from the Texas Revolution], it’s below a cannon and what the motto says is, “Come and Take it.”

15. June 17, 2015: Greece’s Hellenic Parliament’s Debt Truth Committee released a report stating that the debt Greece “owes” is illegal, illegitimate and odious, according to international law. Further, they stated the IMF and ECB ( European Central Bank) having illegally and knowingly imposed these illegitimate debts upon Greece and other nations. A direct call out to the global banking cartel.

16. June 18th, 2015: Baron David de Rothschild has been indicted by a French court over financial fraud. French police have been ordered by the court to track down Baron. The Rothschild family has long been viewed as the family sitting atop the global financial ponzi scheme. Lawyer Antonio Flores told reporters, ” it’s a real breakthrough moment for everyone involved.”

17. June 18, 2015: In a 2-1 ruling, the 2nd Circuit U.S. Court of Appeals says Bush era officials can be held liable for detaining innocent people after the 9/11 attack. Will this lead to some major arrests?

18. June 19, 2015: While European leaders try to save face on the debt crisis, Greek PM Alexis Tsipras was in Russia and gave a speech at the St. Petersburg Economic Forum, stating that “the economic center of the planet has already shifted” and that new powers are playing an “important role on an economic and geopolitical level.” * Reread story header number 8…BRICS, anyone? Oh, and Greece and Russia signed a €2 billion gas pipeline deal that day too…a strategic economic and geopolitical game-changer.

19. July 5th, 2015: Greece votes “NO” to the creditors’ bailout offer. This is a massive stance for humanity that Greece just took against the banking elite. As of this writing, a “deal” has been reached but is expected to fall apart in the coming days. Kicking the can down the road does not solve the issue, but rather speeds up the revolution mindset of many frustrated Greek citizens. September/October is when many financial experts are saying that some fireworks are to be expected. 

20. July 7th, 2015: The BRICS Bank officially opens for business.

21. July 8th, 2015: On this day, several strange events occurred. The NYSE was taken down for multiple hours, the Wall Street Journal was taken offline just after the stock exchange went down, United Airlines was forced to ground all of its flights nationwide due to computer “issues,” and 2,500 people losing power in Washington D.C. This whistle-blower journalist just wrote that his Pentagon sources said the Pentagon/BRICS Alliance took it down as a “dry run.”

22. July 7th, 2015: Backing up one day we see that the hacking group Anonymous tweeted this on the evening prior to the stock exchange hack: Wonder if tomorrow is going to be bad for Wall Street….we can only hope. 
David Wilcock has previously written a detailed document stating that Anonymous is working with certain patriotic US Military forces to legally take down the banking elite.. This aligns nicely with what the whistle-blower journalist, Benjamin Fulford, just wrote this week about the Pentagon and BRICS Alliance in the previous story.

23. July 14th, 2015: Iran, China, Russia, France, Germany, the U.K. and the U.S. reach a historic deal on Iran’s nuclear program. Entire books could be written on the geopolitical, financial and technological implications of this move. There are also reports that the reality of this situation is that Iran has free energy technology and will be using this to help bring down the banking/political/oil industry elite. This would make sense as the strongest opponents to this deal have been Israel and its Prime Minister and several American politicians like the Bushes, Marco Rubio and Ted Cruz. 

24. July 15th, 2015: Santa Cruz County votes to stop doing business with 5 major banks, including JP Morgan Chase, Barclays, Citigroup, Royal Bank of Scotland and UBS. Watch this set off a chain reaction in those who will follow suit.

25. Now: You are here on the planet at this time to make a wonderful contribution. Please continue playing your role for the benefit of us all.

It is clear that something big is happening. Use this information to move forward with optimism and hope. Share with your friends. Discuss with your friends. Continue to search and dig for the truth. Two people I strongly suggest the reader looking into are Benjamin Fulford, the whistleblower who was the Asia Pacific Bureau Chief for Forbes Magazine and is listed in stories number 21 and 22, and Neil Keenan, who is working with many well connected sources to open up the global collateral accounts. These accounts are what President Kennedy was assassinated over and are what the banking elite does not want the public to know exists. This revolution WILL NOT be televised.

Global One Percent Celebrate at the Bohemian Grove

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By Peter Phillips

Source: Dissident Voice

July 18th 2015 was the first day of this year’s summer camp for the world’s business and political aristocracy and their invited guests. 2,000 to 3,000 men, mostly from the wealthiest global one percent, gather at Bohemian Grove, 70 miles north of San Francisco in California’s Sonoma County—to sit around the campfire and chew the fat—off-the-record—with ex-presidents, corporate leaders and global financiers.

Speakers this year giving “Lakeside Chats” include past Secretary of Defense and the CIA Leon Panetta, Paul Volcker Jr. former Federal Reserve Chairman, retired Admiral Mike Mullen former Chairman of the Joint Chiefs of Staff, NYU Law Professor Bryan Stevenson, producer Norman Lear, the founder of AOL Steve Case, and Christopher Hill former US Ambassador to Iraq.

The Bohemian Grove summer encampments have become one of the most famous private men’s retreats in the world. Club members and several hundred world-class guests gather annually in the last weeks of July to recreate what has been called “the greatest men’s party on earth.” Spanning three weekends, the outdoors event includes lectures, rituals, theater, camp parties, golf, swimming, skeet shooting, politics, sideline business meetings and feasts of food and alcohol.

One might imagine modern-day aristocrats like Henry Kissinger, the Koch brothers, and Donald Rumsfeld amid a circle of friends sipping cognac and discussing how the “unqualified” masses cannot be trusted to carry out policy, and how elites must set values that can be translated into “standards of authority.”

Private men’s clubs, like the San Francisco Bohemian Club, have historically represented institutionalized race, gender and class inequality. English gentlemen’s clubs emerged during Great Britain’s empire building period as an exclusive place free of troublesome women, under-classes, and non-whites. Copied in the United States, elite private men’s clubs served the same self-celebration purposes as their English counterparts.

The San Francisco Bohemian Club was formed in 1872 as a gathering place for newspaper reporters and men of the arts and literature. By the 1880s local businessmen joined the Club in large numbers, quickly making business elites the dominant group. More than 2,500 men are members today. Most are from California, while several hundred originate from some 35 states and a dozen foreign countries. About one-fifth of the members are either directors of one or more of the Fortune 1000 companies, corporate CEOs, top governmental officials (current and former) and/or members of important policy councils or major foundations. The remaining members are mostly regional business/legal elites with a small mix of academics, military officers, artists, or medical doctors.

Foremost at the Bohemian Grove is an atmosphere of social interaction and networking. You can sit around a campfire with directors of PG&E, or Bank of America. You can shoot skeet with the former secretaries of state and defense, or you can enjoy a sing-along with a Council of Foreign Relations director or a Business Roundtable executive. All of this makes for ample time to develop personal long-lasting connections with powerful influential men.

On the surface, the Bohemian Grove is a private place where global and regional elites meet for fun and enjoyment. Behind the scene, however, the Bohemian Grove is an American version of building insider ties, consensual understandings, and lasting connections in the service of class solidarity. Ties reinforced at the Grove manifest themselves in global trade meetings, party politics, campaign financing, and top-down corporatism.

Peter Phillips is a Professor of Sociology at Sonoma State University, and President of Media Freedom Foundation/Project Censored. He wrote his dissertation on the Bohemian Club in 1994. Read other articles by Peter, or visit Peter’s website.

 

The enduring reality of government by wealth and some of its consequences

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By John Chuckman

Source: Intrepid Report

If you really want to understand the world in which we live—its endless wars, coups, interventions, and brutality towards great masses of people—you need to start with a correct understanding of the political machinery at work.

Talk of liberal interventions or fighting for rights, Western values, and democracy are hopelessly naïve and mostly deliberately deceptive. America’s record in such matters is one of securing everything from bananas, copper, and crude oil concessions to, at the very least, foreign governments obedient to its mandates after removing a disliked leader, whether elected or not. There is no concern for principles outside of their being featured in blowhard, insincere political speeches. The interests of America’s government do not match the interests of ordinary people, those in America or anywhere else, and, were the informed consent of the governed genuinely involved in launching bloody adventures, they likely never would happen.

The underlying reality of how people in the West are governed now compared to hundreds of years ago is surprisingly unchanged, much the way the rules governing how chemical bonds form have not changed despite a long and great parade of events and discoveries in the visible world. Despite all the revolts, revolutions, congresses, constitutions, and great movements over the centuries, we are in fact governed in the same essential way, people.

Of course to see this, you have to strip away the forms and rituals we have constructed over the centuries, forms and rituals which create impressive effects much like the green smoke and thunderous voice of the Wizard of Oz, a wizened old man who worked from his curtained control room, pulling levers and hitting buttons to create intimidating effects. Most Americans remain impressed with the smoke and thunder and cheap magic tricks, it requiring some dedicated effort to shake off well-done illusions, and, as I’ve written before, Americans work extremely hard in their jobs or live a kind of marginal life trying to scrape by on low wages or part-time work, either of which situations leaves little time or inclination to question what government is really doing and for whose benefit.

And so long as America remains under the rule of wealth, it is unlikely other states, as in Western Europe, will emerge from it because America’s establishment has such decisive influence—economic, financial, military, and political—over many of them.

What is considered as wealth changes over time and with economic development, and with those changes so do its interests as well as the practices of its power. Great deposits of copper ore or crude oil In the Middle Ages were virtually worthless. Wealth then was land for agriculture, forestry, and hunting, with the family names of owners determined by their estates. The revenue from that natural wealth was converted to great houses and jewels and the implements of war. War, too, was a source of wealth with most wars being little more than adventures for dominance and looting on a grand scale. Again, as in our own day, they were dressed up with slogans about principles or causes which had almost no meaning. The case of the “Christian” Crusades, which continued their pillaging and orgy of killing, on and off, for centuries, springs to mind. Soldiers and sailors, up until modern times, were not motivated by their paltry pay and poor supplies, it being understood as a condition of employment that they would enjoy a share of the bounty looted in any campaign.

Today, the forms wealth are as diverse and complex as is our society, and many of them are not apparent to ordinary people in the way great estates and hunting rights and obligations in war and peace to great lords were apparent in 800. Even as late as, say, 1850, wealth in the form of belching factories employing armies of people was often still quite apparent, but today’s complex banking and securities and financial institutions are not well understood by most people, although they represent immense wealth just as real in its demands and power as estates and obligations of the 9th century. Wealth today also comes from huge global manufacturing concerns of every description often with operations scattered out of sight, great shipping and transportation fleets, or electronic and communications empires. Land itself remains an important form of wealth where it can produce industrial-scale crops or contains deposits of valuable minerals or can generate flows of electricity or has been developed into great cities or resorts. War remains a source of wealth, only on a scale which could not have been imagined a few hundred years ago, but the spoils no longer go to soldiers in professional armies, they go to those responsible for the war, often in forms not easily recognized, as with special rights and concessions and secret arrangements.

As the nature of wealth evolved from the Middle Ages to the Modern Era, outward forms and rituals of government also changed. We have moved from the near-absolute power of kings and autocrats through aristocracies and republics with senates to a great variety of forms, parliaments and congresses, which appear designed to yield, to one degree or another, to the consent of the governed.

But appearances, as in the case of the Wizard of Oz, can be deceiving.

Today, a single wealthy individual cannot make the kind of demands upon ordinary people that marked arrangements in the Middle Ages—although that must be qualified as I’m sure anyone who has become involved in a dispute with a wealthy neighbor or a great corporation will be happy to explain—but the class of wealthy people can indeed make just such demands, and they do so all the time. You will be taxed to pay for the schemes that their lobbying establishes, your water and air will contain the pollution of their manufacturing and mining, your children will be sent to kill and die in their wars, the ethics or morals you were taught as a child will be trampled upon, and virtually all important legislation will deal with the rights and interests of wealth, and not those of the broad mass of people.

In America, once in four years you will be asked to choose between two names, both of which have been closely vetted by the powers that be, to elect as head of government. Not only have they been vetted, but the immense costs of their campaigns in reaching you on television, at rallies, and with opinion polls to regularly fine tune their words will be paid almost exclusively by those whose real interests are at stake in every major election, the wealthy and their important serving institutions of government. The end effect is not really all that different than the old single-candidate Soviet elections at which the press trained Americans to sneer.

Many of America’s founding fathers had dark suspicions about the existence of wealth being secure in the presence of democratic government, and that is why they created forms—mostly adapted from Britain, a place no one regarded as a democracy then—to keep wealth safe. Over a couple of centuries, the original arrangements were modified, the country moving from a tiny one percent or so privileged voters—for perspective, that’s roughly the same as the percent of voters in China’s Communist Party deciding who rules the country—to something approaching universal suffrage, but always arrangements were made to safeguard wealth against the assumed predations of democracy.

In elections for the American Senate, the legislative body with real power, authority, and privilege, you again will be asked to choose between two well-vetted and well-connected candidates. Others may run, but they will be rendered helpless by the vetted candidates’ flood of money and resources, you will never hear their voices, and America’s press—itself an empire of wealth serving wealth—will waste no time on their views. In the case of the Senate, you will be asked once in six years to vote, with the elections staggered so that only one-third of that body faces election at any time—a perfectly-conceived formula for keeping the old bunch in charge despite issues which might have generated election discontent. In fact, you can never “throw the bums out” in America. Anyway, there really isn’t much risk for senators running for re-election, with incumbents winning about 95% of the time. Senate seats are so secure they sometimes become family sinecures, handed down from father to son. After the election, unless you live in a small-population, insignificant state, you will never see or meet your senator, and you will certainly have no opportunity to lobby. Virtually all seeing, meeting, and lobbying will be done by the wealthy sponsors of the successful candidates or by their hired help.

The average American senator is said to spend two-thirds of his or her time securing funds for the next election, and such elections have now been bid-up to unbelievable amounts of money. The huge costs serve as what economists call “a barrier to entry,” a kind of high financial wall which keeps others from entering the political market, or, if somehow they do manage to enter, keeps them from effectively competing. Only the other wealth-vetted and connected candidate will have any hope of collecting a big enough pot of money to threaten an incumbent. The belief that people giving millions of dollars to candidates expect nothing in return is not even worth discussing. What they get—apart from goodies like important and prestigious appointments or valuable government contracts—is access, and access is exactly what most people never enjoy. Intimate access to politicians in high office, people always mindful of the necessity for another overflowing campaign war chest, is genuine power.

It is not impossible to have compatibility between democracy and wealth, but it requires a set of laws and regulations concerned with campaign financing, lobbying, and disestablishing a political duopoly of two privileged parties, laws which simply cannot happen in America over our lifetimes. In America, law makes corporations persons, and the highest court, packed by judges appointed to serve wealth’s interests, has ruled that campaign money is free speech. These are not things easily turned around.

The American system of campaign financing not only assures the secure power of domestic wealth, it assures also the influence of wealthy lobbies serving the interests of foreign states, Israel being the most outstanding example. Other foreign states also exploit this system to varying degrees, but no other state has more than five million American citizens in great part keen to serve its interests. And many of them are successful, affluent, and well-placed people enjoying a connected set of organizations and well-funded lobbies. Other foreign states also do not enjoy having many of their lobbyists in America being dual-citizens, free to move back and forth between the country being lobbied and the country being lobbied for, surely an ethical issue for politics and foreign affairs of the first magnitude. It is a unique situation in many respects, and it has helped create a unique set of problems in the world.

The wealthy interests of America happen to share some important interests with lobbyists for Israel, including securing the Western world’s supply of energy and not permitting the rise of states of any power in the Middle East who disagree with America’s essential views. It is important to keep in mind that “America’s essential views” are not necessarily the views of most of the American people and that many of those “essential views” have never received genuine informed consent. Elections conducted the way America’s high-level elections are conducted are incapable of bestowing meaningful consent, especially in vitally important matters.

The Israeli-American alliance is something of an unholy one because in binding America so closely to Israel, some huge and unresolvable conflicts have been created. Israel is associated with a long series of wars and abuses in the region, and, ipso facto, so is America. Israel, given the nature of its founding, expansion, and practices, is not liked by any neighboring states, although many now cooperate secretly, and sometimes even openly, in areas of mutual interest and have learned to tolerate its existence, the way generally eased by large American bribes or equally large American threats.

Traditionally, states in the Middle East are not democracies. Their often short histories have given limited opportunity for wide-spread development and prosperity creating a strong middle-class, the sine qua non for democracy. With the United States always (insincerely) praising democracy—including Israel’s grotesque contradiction of “democracy for some but not others”—it has been caught in a bind between supporting what it says it opposes and opposing what it says it supports.

Its proposed solution was a huge CIA project, nicknamed “the Arab Spring” by America’s wealth-serving and often dishonest press, a set of manufactured uprisings intended to bring a semblance of democracy to the region. It has been largely a failure, ending with some countries trapped in chaos or civil war and others, notably Egypt, briefly gaining a government Israel hated intensely, the truth being that genuine democracy in virtually any of these countries will not be friendly to Israel’s geopolitical ambitions in the region nor to those of its American promoter and protector. While the “Arab Spring” was allowed to proceed in some states, in others, where it was neither intended nor desired, such as Saudi Arabia or Bahrain, spill-over effects were deliberately and violently suppressed with American assistance. So the American-Israeli relationship now still locks the United States effectively in fighting against democracy in some countries and in supporting absolute monarchs and oligarchs in others, while in still others, such as Syria and Iraq, it is involved literally in smashing them as states, in violation of all international law and long-term good sense.

The entire situation is an ongoing disaster and is almost certainly not sustainable over the long term. How do you insist a huge country like Egypt remain a backwater without democratic rights indefinitely? How can you justify the destruction of an ancient and beautiful country like Syria? How can you justify supporting absolute monarchs and keeping their people in total political darkness? How do you continue supporting Israel in its abuse of millions, depriving them of every human right, or in its constant aggression to secure its hegemony? The drive for regional hegemony is all that is behind Israel’s constant hectoring of Iran, and how is that behavior different to the aggressive wars condemned by the Nuremburg Tribunal? It’s not, of course. Further, destructive, deliberately-induced conflicts like that in Syria, by degrading its economic advance, only slow the day for democracy’s having a real chance to emerge.

So here is America, self-proclaimed land of the free, mired in a vast situation where it works to suppress democracy, supports tyrants, and supports aggressive war because its leaders, with no genuine consent of the governed, have put it there, and this is just one of many unhealthy and destructive consequences of wealth’s rule in the United States. Wealth has no inherent interest in democracy, and it is entirely up to a people anywhere to demand respect for democracy through laws.

John Chuckman is former chief economist for a large Canadian oil company. He has many interests and is a lifelong student of history. He writes with a passionate desire for honesty, the rule of reason, and concern for human decency. John regards it as a badge of honor to have left the United States as a poor young man from the South Side of Chicago when the country embarked on the pointless murder of something like 3 million Vietnamese in their own land because they happened to embrace the wrong economic loyalties. He lives in Canada, which he is fond of calling “the peaceable kingdom.” John’s columns appear regularly on Counterpunch, Media Monitors, Politics Canada, Baltimore Chronicle, Intrepid Report, Scoop (New Zealand), Asian Tribune, Aljazeerah.info, Smirking Chimp, Dissident Voice, and many other Internet sites. He has been translated into at least ten languages and is regularly translated into Italian and Spanish. Several of his essays have been published in book collections, including two college texts. His first book has just been published, “The Decline of the American Empire and the Rise of China as a Global Power,” published by Constable and Robinson, London. Contact him at jc60649@yahoo.com.

 

U.S. Wealth-Concentration: The Most-Accurate Current Estimates

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By Eric Zuesse

Source: Washington’s Blog

CURRENT REALITIES:

Wealthiest Tenth (10%) of Americans Own 75% of America; They Draw 40% of All U.S. Income.

Wealthiest Hundredth (1%) of Americans Own 43% of America; They Draw 20% of All U.S. Income.

Wealthiest Thousandth (0.1%) of Americans Own 22% of America; They Draw 8% of All U.S. Income.

Wealthiest Ten-Thousandth (0.01%) Own 11.2% of America; They Draw 5% of All U.S. Income.

Wealthiest 0.0025% (Forbes 400) Own 2.75% (of all trackable privately-held wealth, not including ‘non-profits’ that are controlled by them).

That last (2.75%) is this $2.29 trillion divided by this $83,296 billion (representing all of the privately owned wealth in the U.S.), in the final quarter of 2014.

Incidentally, the wealthiest tenth are worth over $1 million and draw incomes above $200,000; so: they’re all “millionaires” in common parlance; all of the “top 10%” are.

Following will be mirror-images of the above-cited breakdowns:

Poorest 90% of Americans Own 25% of America; They Draw 60% of All U.S. Income.

Poorest 99% of Americans Own 57% of America; They Draw 80% of All U.S. Income.

Poorest 99.9% of Americans Own 78% of America; They Draw 92% of All U.S. Income.

Poorest 99.99% of Americans Own Less Than 88.8% of America; They Draw Less Than 95% of All U.S. Income.

Poorer 50%: Comprehensive figures for the wealthier and poorer 50% of Americans haven’t been published as recently. However, for the year 2010, the wealthier 50% of Americans owned 98.9% of America, and the poorer 50% of Americans owned 1.1% of America. That was the year after the crash had supposedly ended in 2009. The last prior year in that same study was 2007, the economic peak, and it showed the wealthier half owning 97.5% of America, and the poorer half owning 2.5% of it. In other words: the losses from the Wall Street economic crash went overwhelmingly to the poorer half of the U.S. population (their wealth going down from 2.5% to only 1.1% of America’s total), because of the bailouts to Wall Street. Wall Street complains about “welfare programs,” as if it’s the poor who get bailed out; but those complaints are merely part of Wall Street’s — and their billionaires’ — scams that are targeted to sway fools. The figures show the exact opposite to be the actual truth. America is overwhelmingly a kleptocracy by the top against everybody else; not a “welfare state for the poor.” That’s just aristocrats’ scam, pumped by the economists they hire, and by the ‘news’ media which are controlled by aristocrats, and believed by suckers they fool.

HERE ARE THE TRENDS:

Right before the crash, in 2006 and 2007, the top 1% owned 33.8% of America; they drew 21.4% of all U.S. income.

A Congressional Research Service study, “An Analysis of the Distribution of Wealth Across Households, 1989-2010,” found that between the economic peak in 2007, and the end of the opening phase of the Wall Street bailouts in 2010, wealth-inequality in America soared, rising even faster than it had been rising during the George W. Bush years. As a consequence, whereas in 2007, the top 1% owned 33.8% of America, by 2010 this figure had risen to 34.5% — and the latest figure is 43%; so, this soaring is continuing (it wasn’t occurring only at the start of Obama’s Administration). What was bad under Bush has thus become lots worse under Obama, despite all of Obama’s rhetoric against wealth-inequality. And yet the Wall Street bailouts continue (under the guise of “QE”), as if the trickle-down policies of Obama and the Republicans had “ended” the “recession” for Americans generally, instead of only for the top 1% — which latter was the reality, and which reality makes a mockery of economists, who say that the “recession ended in 2009.” “Ended,” for whom? The policy is to bail out the megabanksters who made trillions from the MBS scams that brought the economy down — those people were bailed out when they were deep in the hole — while not bailing out their homeowners and cheated investors, who never recovered; statistics show they continue to suffer from those crimes. As a consequence, under Obama, wealth has risen only for the wealthiest of Americans.

However, incomes have been rising slightly for everyone else. For example, the “Bottom 99% Incomes Real Growth” during “2009-2014” was only 4.3% — less than 1% per year — while for the “Top 1%” it was 58% during that 5-year time-expanse. But that — bad as it is — is nonetheless an improvement, on income.

Throughout Obama’s first term, 2009-2012, the “Bottom 99% Incomes Real Growth” had been only 0.4% — less than 1% throughout that entire four-year period. The “Top 1%” received 95% of the “Incomes Real Growth” then. And yet, even though even the incomes of the bottom 99% of the U.S. population were stagnant throughout that four-year period ending in 2012 (all of Obama’s first term), economists still say that the “recession ended in 2009.” And the reality was even worse than this incomes-picture shows, because, in terms of wealth, which is even more important than income, there hasn’t yet  been a “recovery,” in the U.S., for the bottom 99% of Americans. What there has been, instead, is continuing scams, misinforming the public, about what’s actually happening, and what happened, and what caused it to happen. It’s just a racket.

THE DEEPER MEANING:

Under Presidents G.W. Bush and Barack Obama, economic inequality in America has been more extreme, for more years, than under any Presidents in all of the previous U.S. history. But, at least, Bush didn’t pretend to care about it. Obama does. He pretended to a concern for justice which he never really had; he was always merely faking liberalism. It was thus entirely true-to-form that President Obama had his Solicitor General present an argument to the U.S. Supreme Court that lying in politics is Constitutionally protected “free speech.”

But what, then, is really left of ‘democracy’ in the U.S.? After all, even before Obama, democracy in America was already dying, if not yet dead. And what meaningful democracy can even possibly exist in a nation where lying in politics is constitutionally protected ‘free speech,’ which no state may penalize, under any conditions? How may “the people” even conceivably rule in a republic where politicians can reasonably be expected to win only lying-contests, because not to lie in such a nation is not to be politically competitive there at all? Can democracy really consist of contests in deception? Is such a political race-to-the-bottom consistent with democracy?

Or, is it instead the case that such extreme wealth-disparities as exist in the U.S. are the natural result of decades of politics being (perhaps increasingly within recent times) little more than lying-contests? Is that the deeper truth, behind the deplorable figures here?

Is this extreme inequality the result of state-imposed reduction of ‘democracy’ to being basically contests in deceiving the public? Is that what it’s really all about — a racket, basically, against the public, for and on behalf of the aristocracy?

Is this extreme inequality the intended result, or is it merely the result of the stupidity of those who just happen to win high national office in the United States?

Do the farm animals just happen to end up as burger-meat? Or is that what they are there for? We know. Do they?

Congress Approves Greater Corporate Predation

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By Stephen Lendman

Source: Steve Lendman Blog

On June 18, House members narrowly approved fast track Trade Promotion Authority (TPA) – using procedural gimmicks, bribes and heavy pressure, the usual way corrupt politicians operate.

On June 23, Senate members followed suit. A cloture motion to end debate passed – clearing the way for a Wednesday vote expected to support TPA.

Public Citizen President Robert Weissman commented saying:

The usual “legislative contortions an gimmicks…hand(ed) (corporate predators) their top priority” – the right to ram through Congress with minimal debate and no amendments anti-consumer rapacious trade deals no responsible societies would tolerate.

Overwhelming public opposition doesn’t matter. So-called “free” trade deals are hugely unfair.

People know “these deals will means more export of jobs, more downward pressure on wages,” said Weissman – plus more environmental destruction and loss of consumer protections.

Proposed TPP and TTIP trade bills are corporate scams – designed to rip off populations for maximum profits, no matter the cost to human lives and welfare.

They’ll wreck public healthcare. They’ll make it unaffordable for growing millions. They’ll undermine food safety. They’ll advance environmental destruction. Their secret provisions if made public would cause mass outrage.

Weissman struck a positive note saying when “the American people see what (are) actually in (these) agreements, they are going to force their representatives in Washington to vote (them) down.”

Environmental organization 350.org executive director May Boeve expressed “outrage that Congress…voted to fast track pollution, rather than the job-creating clean energy we need to address climate change.”

“It’s clear this deal would extend the world’s dependence on fracked gas, forbid our negotiators from ever using trade agreements in the fight against global warming, and make it easier for big polluters to burn carbon while suing anyone who gets in the way.”

“That’s why we’re so disappointed President Obama has taken up the banner for ramming this legislative pollution through the halls of Congress, in a way he never pushed for a climate bill.”

Food and Water Watch executive director Wenonah Hauter said “(s)enators who who provided the margin of Fast Track victory will face angry voters in their next elections.”

“Constituents will hold them accountable for putting the interests of transnational corporations ahead of the public.”

Monied interests run things. Whatever they want, they get. Congressional support for fast track and nightmarish trade deals to follow alone show why America is unfit to live in.

 

Stephen Lendman lives in Chicago. He can be reached at lendmanstephen@sbcglobal.net.

His new book as editor and contributor is titled “Flashpoint in Ukraine: US Drive for Hegemony Risks WW III.”

http://www.claritypress.com/LendmanIII.html

Visit his blog site at sjlendman.blogspot.com.

Listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network.