Tag Archives: Wealth Disparity

Now Just Five Men Own Almost as Much Wealth as Half the World’s Population

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By Paul Buchheit

Source: CommonDreams

Last year it was 8 men, then down to 6, and now almost 5.

While Americans fixate on Trump, the super-rich are absconding with our wealth, and the plague of inequality continues to grow. An analysis of 2016 data found that the poorest five deciles of the world population own about $410 billion in total wealth. As of 06/08/17, the world’s richest five men owned over $400 billion in wealth. Thus, on average, each man owns nearly as much as 750 million people.

Why Do We Let a Few People Shift Great Portions of the World’s Wealth to Themselves? 

Most of the super-super-rich are Americans. We the American people created the Internet, developed and funded Artificial Intelligence, and built a massive transportation infrastructure, yet we let just a few individuals take almost all the credit, along with hundreds of billions of dollars.

Defenders of the out-of-control wealth gap insist that all is OK, because, after all, America is a ‘meritocracy’ in which the super-wealthy have ‘earned’ all they have. They heed the words of Warren Buffett: “The genius of the American economy, our emphasis on a meritocracy and a market system and a rule of law has enabled generation after generation to live better than their parents did.”

But it’s not a meritocracy. Children are no longer living better than their parents did. In the eight years since the recession the Wilshire Total Market valuation has more than TRIPLED, rising from a little over $8 trillion to nearly $25 trillion. The great majority of it has gone to the very richest Americans. In 2016 alone, the richest 1% effectively shifted nearly $4 trillion in wealth away from the rest of the nation to themselves, with nearly half of the wealth transfer ($1.94 trillion) coming from the nation’s poorest 90%—the middle and lower classes. That’s over $17,000 in housing and savings per lower-to-middle-class household lost to the super-rich.

A meritocracy? Bill Gates, Mark Zuckerberg, and Jeff Bezos have done little that wouldn’t have happened anyway. ALL modern U.S. technology started with—and to a great extent continues with—our tax dollars and our research institutes and our subsidies to corporations.

Why Do We Let Unqualified Rich People Tell Us How To Live? Especially Bill Gates! 

In 1975, at the age of 20, Bill Gates founded Microsoft with high school buddy Paul Allen. At the time Gary Kildall’s CP/M operating system was the industry standard. Even Gates’ company used it. But Kildall was an innovator, not a businessman, and when IBM came calling for an OS for the new IBM PC, his delays drove the big mainframe company to Gates. Even though the newly established Microsoft company couldn’t fill IBM’s needs, Gates and Allen saw an opportunity, and so they hurriedly bought the rights to another local company’s OS — which was based on Kildall’s CP/M system. Kildall wanted to sue, but intellectual property law for software had not yet been established. Kildall was a maker who got taken.

So Bill Gates took from others to become the richest man in the world. And now, because of his great wealth and the meritocracy myth, MANY PEOPLE LOOK TO HIM FOR SOLUTIONS IN VITAL AREAS OF HUMAN NEED, such as education and global food production.

—Gates on Education: He has promoted galvanic skin response monitors to measure the biological reactions of students, and the videotaping of teachers to evaluate their performances. About schools he said, “The best results have come in cities where the mayor is in charge of the school system. So you have one executive, and the school board isn’t as powerful.”

—Gates on Africa: With investments in or deals with Monsanto, Cargill, and Merck, Gates has demonstrated his preference for corporate control over poor countries deemed unable to help themselves. But no problem—according to Gates, “By 2035, there will be almost no poor countries left in the world.”

Warren Buffett: Demanding To Be Taxed at a Higher Rate (As Long As His Own Company Doesn’t Have To Pay) 

Warren Buffett has advocated for higher taxes on the rich and a reasonable estate tax. But his company Berkshire Hathaway has used “hypothetical amounts” to ‘pay’ its taxes while actually deferring $77 billion in real taxes.

Jeff Bezos: $50 Billion in Less Than Two Years, and Fighting Taxes All the Way 

Since the end of 2015 Jeff Bezos has accumulated enough wealth to cover the entire $50 billion U.S. housing budget, which serves five million Americans. Bezos, who has profited greatly from the Internet and the infrastructure built up over many years by many people with many of our tax dollars, has used tax havens and high-priced lobbyists to avoid the taxes owed by his company.

Mark Zuckerberg (6th Richest in World, 4th Richest in America) 

While Zuckerberg was developing his version of social networking at Harvard, Columbia University students Adam Goldberg and Wayne Ting built a system called Campus Network, which was much more sophisticated than the early versions of Facebook. But Zuckerberg had the Harvard name and better financial support. It was also alleged that Zuckerberg hacked into competitors’ computers to compromise user data.

Now with his billions he has created a ‘charitable’ foundation, which in reality is a tax-exempt limited liability company, leaving him free to make political donations or sell his holdings, all without paying taxes.

Everything has fallen into place for young Zuckerberg. Nothing left to do but run for president.

The False Promise of Philanthropy 

Many super-rich individuals have pledged the majority of their fortunes to philanthropic causes. That’s very generous, if they keep their promises. But that’s not really the point.

American billionaires all made their money because of the research and innovation and infrastructure that make up the foundation of our modern technologies. They have taken credit, along with their massive fortunes, for successes that derive from society rather than from a few individuals. It should not be any one person’s decision about the proper use of that wealth. Instead a significant portion of annual national wealth gains should be promised to education, housing, health research, and infrastructure. That is what Americans and their parents and grandparents have earned after a half-century of hard work and productivity.

Are We (Collectively) Depressed?

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By Charles Hugh Smith

Source: Of Two Minds

We need to encourage honesty above optimism. Once we can speak honestly, there is a foundation for optimism.

Psychoanalysis teaches that one cause of depression is repressed anger.

The rising tide of collective anger is visible in many places: road rage, violent street clashes between groups seething for a fight, the destruction of friendships for holding the “incorrect” ideological views, and so on. I Think We Can Safely Say The American Culture War Has Been Taken As Far As It Can Go.

A coarsening of the entire social order is increasingly visible: The Age of Rudeness.

This raises a larger question: are we as a society becoming depressed as we repress our righteous anger and our sense of powerlessness as economic and social inequality rises?

Depression is a complex phenomenon, but it typically includes a loss of hope and vitality, absence of goals, the reinforcement of negative internal dialogs, and anhedonia, the loss of the joy of living (joie de vivre).

Depressive thoughts (and the emotions they generate) tend to be self-reinforcing, and this is why it’s so difficult to break out of depression once in its grip.

One part of the healing process is to expose the sources of anger that we are repressing. As psychiatrist Karen Horney explained in her 1950 masterwork, Neurosis and Human Growth: The Struggle Towards Self-Realization, anger at ourselves sometimes arises from our failure to live up to the many “shoulds” we’ve internalized, and the idealized track we’ve laid out for ourselves and our lives.

The recent article, The American Dream Is Killing Us does a good job of explaining how our failure to obtain the expected rewards of “doing all the right things” (getting a college degree, working hard, etc.) breeds resentment and despair.

Since we did the “right things,” the system “should” deliver the financial rewards and security we expected. This systemic failure to deliver the promised rewards is eroding social mobility and the social contract while generating frustration, anger, etc.

We are increasingly angry at the system, but we reserve some anger for ourselves, because the mass-media trumpets how well the economy is doing and how some people are doing extremely well. Naturally, we wonder, why them and not us? The failure is thus internalized.

One response to this sense that the system no longer works as advertised is to seek the relative comfort of echo chambers–places we can go to hear confirmation that this systemic stagnation is the opposing political party’s fault.

We don’t just self-sort ourselves into political “tribes” online–we congregate in increasingly segregated communities and states: The Simple Reason Why A Second American Civil War May Be Inevitable.

Americans are moving to communities that align more with their politics. Liberals are moving to liberal areas, and conservatives are moving to conservative communities. It’s been going on for decades. When Jimmy Carter was elected in 1976, 26.8% of Americans lived in landslide counties; that is counties where the president won or lost by 20% of the vote.

By 2004, 48.3% of the population lived in these counties. This trend continues to worsen. As Americans move to their preferred geographic bubbles, they face less exposure to opposing viewpoints, and their own opinions become more extreme. This trend is at the heart of why politics have become so polarizing in America.

We’re self-sorting at every level. Because of this, Americans are only going to grow more extreme in their beliefs, and see people on the other side of the political spectrum as more alien.”

Part of the American Exceptionalism we hear so much about is a can-do optimism: set your mind to it and everything is possible.

The failure to prosper as anticipated is generating a range of negative emotions that are “un-American”: complaining that you didn’t get a high-paying secure job despite having a college degree (or advanced degree) sounds like sour-grapes: the message is you didn’t work hard enough, you didn’t get the right diploma, etc.

It can’t be the system that’s failed, right? I discuss this in my book Why Our Status Quo Failed and Is Beyond Reform: the top 10% who are benefiting mightily dominate politics and the media, and their assumption is: the system is working great for me, so it must be working for everyone. That’s the implicit narrative parroted by status quo mouthpieces.

The inability to express our despair and anger generates depression. Some people will redouble their efforts, others will seek to lay the blame on “the other” (some external group) and others will give up. What few people will do is look at the sources of systemic injustice.

Perhaps we need a national dialog about declining expectations, rising inequality and the failure of the status quo that avoids the blame-game and the internalization trap (i.e. it’s your own fault you’re not well-off).

We need ways to express our resentment, anger, despair, etc. that are directed at the source, the complex system we inhabit, not “the other.” We need to encourage honesty above optimism. Once we can speak honestly, there is a foundation for optimism.

 

America’s Oligarchs Will Control 70% Of National Wealth By 2021

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By Whitney Webb

Source: AntiMedia

America’s rich just won’t quit getting richer, according to a new study released in mid-June by the Boston Consulting Group (BCG), a global management consulting firm. The study, which seeks to analyze the global wealth management industry, as well as the evolution of private wealth, uncovered some startling statistics that suggest that global financial inequality will grow significantly by the year 2021.

The firm found that the already massive gap between the world’s wealthy elite – the approximately 18 million households that hold at least more than $1 million in assets – and everyone else is continuing to widen at a remarkable rate. The estimated 70 million people who make up these households were found to control 45 percent of the world’s $166.5 trillion in wealth. And in just four more years, it is estimated that they will control more than half of the world’s wealth, despite representing less than 1 percent of the world’s current population.

However, while rising inequality is a global phenomenon, it is especially pronounced in the United States. While wealth inequality in the U.S. is by no means an unknown phenomenon, the U.S. is significantly more unequal than most other countries, with the nation’s elite currently holding 63 percent of the private wealth. The U.S. elite’s share of national wealth is also growing much faster than the global average, with millionaires and billionaires expected to control an estimated 70 percent of the nation’s wealth by 2021.

The U.S.’ high wealth inequality largely owes to post-World War II government policies that have seen almost a quarter of all national income go to its wealthiest residents. Meanwhile, wages for the majority of Americans have remained stagnant for decades – in contrast to the richest Americans, their future economic outlook is incredibly bleak by comparison.

The U.S. is also home to more billionaires and millionaires than anywhere else in the world, which partly explains how U.S. policy has come to favor them over the years. According to Bloomberg, two out of five millionaires and billionaires live in the United States – and their ranks are growing.

While the world’s richest citizens may be pleased by the results of BCG’s recent study, there is plenty for them to be worried about if history is any indicator. Indeed, history shows that societies with drastic wealth inequality are much more unstable and more likely to experience drastic economic failure or outright societal collapse.

For instance, a 2014 study conducted by the National Socio-Environmental Synthesis Center noted that over-consumption and wealth inequality have occurred in the collapse of every civilization over the last 5,000 years. That same study also warned that rising inequality could easily lead to an unsustainable use of resources and the “irreversible collapse” of global industrial civilization.

This warning seems particularly prescient, given that wealth inequality in the U.S. is well above that of past civilizations that eventually collapsed as a result of these factors. For example, at the time of the collapse of the Roman Empire, the top 1 percent of the Roman elite controlled just 16 percent of the society’s wealth, a measly figure compared to the percentage commanded by the 1-percenters of the U.S.

While the BCG study paints a rosy picture for the world’s millionaires and billionaires, particularly in the United States, they should be gravely concerned that their growing accumulation of wealth could have drastic consequences – not just for those poorer than them, but for everyone.

The Crisis of US Imperial Governance and the Struggle for a New World

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By Danny Haiphong

Source: Black Agenda Report

“Economic crisis at home and endless war abroad has placed finance and monopoly capital in political disarray.”

When I was here last year, I spoke a lot about ideology and how the struggle for social transformation in the mainland of imperialism partly depended upon the ideological development of oppressed people trapped within US borders. The 2016 elections were beginning to pick-up momentum, but it was unclear what direction they would go. Fast-forward to the present and, I don’t know about you all, but I am exhausted. The election of Donald Trump has presented both new and old challenges. It has created an almost circus-like political environment with dire consequences for the masses. What precipitated the circus-show is a crisis of governance that has been intentionally misunderstood by US imperialism’s corporately owned media and political elite.

To distort the crisis, a state of anti-Russian madness has been prescribed to medicate political consciousness in rapidly changing times. The rise of China and Russia has exposed the bankruptcy of US imperialism on all fronts. Economic crisis at home and endless war abroad has placed finance and monopoly capital in political disarray. Donald Trump took advantage of the chaos. He spoke about jobs, he spoke about wars, and he spoke to the growing insecurities of white Americans of working and middle class status who no longer can rely on the wages of whiteness for guaranteed prosperity. The duopoly and its capitalist masters had no one to offer, indeed nothing to offer, so Trump rode in on his orange horse to become the head of state of imperialism.

“The rise of China and Russia has exposed the bankruptcy of US imperialism on all fronts.”

The ruling class does not want people in the United States to understand the context of the Trump Presidency. It has reapplied Cold War fears with Russia as the prime target. Russia’s geopolitical moves away from imperialism have been deemed just as criminal as China’s economic supremacy. The US does not depend as much on Russia in the economic sense, but it trembles in fear at the prospect of growing Russian economic activity across Eurasia. Yet, provoking Russia militarily will lead to World War. This is a risk the ruling class appears willing to take as the anti-Russia narrative in the US has only intensified since Hillary Clinton made the erroneous claim of Russian interference in the 2016 elections.

According to the US ruling class and its “intelligence officials,” Russia promotes “fakes news” to assist Donald Trump. Russian President Vladimir Putin lurks in our social media, and is hacking his way through algorithms to smear the US political system. Russia is infecting minds with its Russia Today “propaganda” arm. The Ruskies have no regard for the damage they have caused to so-called US democracy. Putin wants total control of the US and will wield his most talented social media users to get the job done. This is what the corporate media sounds like these days.

“The U.S. trembles in fear at the prospect of growing Russian economic activity across Eurasia.”

Of course, the US ruling class doesn’t want to talk about how US intelligence already collects the numbers, emails, and calls of every single person in the world who uses a cell phone or computer. They don’t want to tell you about how the US has interfered in every election in Russia since the Soviet Union fell, or how it has led bloody proxy wars and coups in over fifty countries in as many years. They don’t want to discuss how Russia has absolutely nothing to do with the millions of incarcerated people in the US or the fact that it is the US monopoly capitalist economy, not the emerging capitalist economy of Russia, which has automated many of the jobs and siphoned much of the wealth that once belonged to a privileged sector of US workers. No, it would rather attention be placed on the Russian boogeyman.

Anti-Russian hysteria doesn’t just distract the broad masses of people from the legitimate causes of the conditions afflicting the working and unemployed. It feeds into an atmosphere of war that strikes the very roots of the US social order. Imperialism is the rule of monopoly and finance capital. This system has run its course. It cannot hold onto political legitimacy any more than it can spur economic development beyond the meager 1 to 2 percent growth calculated year after year. In a sense, war is all the system has left. And war is exactly what the ruling class will get, with or without Trump.

“They don’t want to tell you about how the US has interfered in every election in Russia since the Soviet Union fell, or how it has led bloody proxy wars and coups in over fifty countries in as many years.”

War with Russia is today’s clarion call for “American unity.” In times of crisis, the US imperial state has relied on war to bring political and economic relief from domestic crisis. Every major US-led war has in part been waged for this purpose. What differs now is that war with Russia could bring about the destruction of humanity. Scientists have confirmed that nuclear war could make the planet uninhabitable.

What is also different about this current war drive with Russia is how it marks the historical conclusion of the current stage in the world imperialist order. When the US threatened nuclear war with the atomic bombing of Japan in 1945 and the Cuban missile crisis almost two decades later, the world was in the midst of a transition from Western monopoly capitalism to proletarian socialism. Revolutions in Vietnam, Cuba, and the Soviet Union, to name a few, threatened to undo the very notion of private property. And while US and Western backlash nearly eliminated the socialist bloc by 1991, the imperialist order entered a transition stage of its own that some call “neo-liberalism.”

Neo-liberalism has greatly expanded the reach of capitalism’s tentacles and widened the impact of capitalist crisis since its inception in the late 1970s. Neo-liberalism has unleashed unfettered capitalist production by imposing economic stagnation on participating countries. Meanwhile, China’s socialist model has paved a different path, one marked by unprecedented growth and poverty reduction. China has understandably attracted underdeveloped nations so desperately seeking to escape from the clutches of neo-colonial impoverishment. Russia has grown close to China, providing both countries with much assistance in the way of constructing a multi-polar economic arrangement based on the principles of sovereignty and mutually beneficial cooperation. According to the logic of neo-liberal capital, only war with Russia and China can save the system from itself.

“War with Russia could bring about the destruction of humanity.”

This conclusion stems from the fact that neo-liberal capital is not growing, it is contracting. Eighty-percent of workers are near-poor in the US while six mega billionaires hold ownership of over half of the planet’s wealth. Concentrated profit does not mean that all is well with the ruling class. Internal contradictions are eating the capitalist system alive. Neither finance capital nor its monopoly investors can arrest the resultant decline. The growth of technology to speed up production and profit has left millions stuck in permanent unemployment. A high-tech system of production is an expensive system of production, requiring lower wages and debt to absorb the falling rate of profit. Global overproduction has thus developed alongside mass misery.

Such conditions are at the root of mass incarceration, where millions of mostly Black and poor workers are warehoused in cages because there is nothing on the outside that the system can offer. They are also the root of mass surveillance, as the system must keep tabs on an increasingly restless population and justify infringements on civil liberties as necessary counter-terror measures. The War on Terror and Drugs have been prerequisites toward keeping the population scared and its attention away from the US capitalist overlords who fund and support drug trafficking and terrorism for political gain. And when all else fails, blame Russia.

“The system must keep tabs on an increasingly restless population and justify infringements on civil liberties as necessary counter-terror measures.”

The struggle against neo-liberal capital and anti-Russian hysteria is a struggle to transform and revolutionize society. This struggle requires both practical political organization and ideological development. There will be no revolution without revolutionary thought, and no revolution without revolutionary action. All too often the left is debating which one is the most important for the future success of a revolutionary movement. The answer is both, together.

For most, this explanation is understandably too broad to inform individual political energy. Liberal thought and action thus becomes attractive because it hides behind the cloak of the possible and pragmatic. It is easier to think in terms of electoral politics than in global struggle. It is far more simple to advocate for a cooperative economy or universal basic income without spelling out the broad context that prevents their formation. In order for any material victories to be won on a mass scale, the victors must understand the world in which they fight.

“A movement for social transformation in the US has still yet to be born.”

Conscious struggle has brought about meaningful and deep changes in recent years. Mumia Abu-Jamal is now receiving Hep-C treatment after years of struggle with the State of Pennsylvania. The release of Chelsea Manning and Oscar Rivera Lopez also come to mind. Solidarity with Cuba freed the Cuban 5 and has given the socialist nation more opportunities to develop its economy. But these victories have come in the midst of great cost. A movement for social transformation in the US has still yet to be born, as the presence of dozens of political prisoners and the ongoing US blockade against Cuba reminds us.

Not once did I mention the Democratic or Republican Party. Both parties have done their part to create the crisis before us. A rejection of the two-parties means an embrace of the struggle against imperialism worldwide. It means that the nations with US targets on their backs should be seen as potential allies. Yes, this includes Russia. And Syria. It includes the left movements in Latin America. In the spirit of Malcolm X, the Black liberation movement, and the historic anti-imperialist struggle around the world, the time has come to search for real bonds of solidarity around the world to aid in the struggle against white supremacy, capitalism, and empire in the US and the West. Let no one, not even those who call themselves “the left,” tell you otherwise.

 

Danny Haiphong is an Asian activist and political analyst in the Boston area. He canbereachedatwakeupriseup1990@gmail.com

Deep State, shallow politics, dumb economics

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By Frank Scott

Source: Intrepid Report

In 1965, the USA had 780,000 people in prison, jail, on parole or on probation.

By 2010, that population had grown by more than nine times, to 7 million and the prison business was booming as never before, creating profits, jobs and unparalleled human misery.

In 1954, the integration of public schools was seen as a great victory for civil rights and Americans now designated as “people of color”*. Today more than 50% of the prison population is designated as “people of color” and the disintegration of the entire public school system continues for all Americans designated as people.

In 2015, there were 536 billionaires in the U.S.A. In a nation of more than 325 million people, that represents less than 2 millionths of one percent of the population. For the textually challenged, that looks like this:.000002%

Wow.

How hard those truly brilliant people must have worked to achieve those riches. And one of them was Donald Trump!

Imagine how many cases they had to plead in court, classes to teach in school, buses to drive, meals to prepare, floors to wash, crops to pick, mail to deliver and deals to make? Well, actually, they mostly made deals using their great wisdom and brilliance at investing wisely. You and I could do as well if we worked as hard and were as smart and industrious as they are, including Donald Trump!

And if we were paid a thousand dollars an hour for our hard work, and we worked twenty four hours a day, seven days a week, fifty two weeks a year, maybe if we stashed all that cash and didn’t spend any of it we might have a billion dollars.

Nope.

In fact, if you worked twenty four hours a day, seven days a week, fifty two weeks a year and did that for ten years, at one thousand dollars an hour, never stopped, never took any time off and never spent any of the money and just stashed it, you still wouldn’t have a billion dollars.

Is this a great democracy or what?

In that same year of 2015, America’s GDP for pets, which was $38.5 billion in 2006, had grown to $60.3 billion. Twelve companies insured 1.4 million pets owned by 79.6 million American families (65% of households) with premiums amounting to 660.5 million dollars.

163.8 million dogs and cats are comfortably housed in a political economy that has half a million of its people homeless and more than 20% of its children living in poverty. This is certainly reason enough for us to demand that Russia, North Korea, Syria and other nations adopt our democratically civilized way of living or suffer the consequences of our superior wrath. Right?

As of March1, 2017, our national debt was close to $20 trillion, which is more than our GDP, which is truly a gross domestic product. We the people of this great democracy pay more than $440 billion a year in interest on that debt.

Who do we pay it to?

Where’d they get the money to loan us?

Who prints and backs this money supply?

If you have any money among your plastic, look at one of the bills of any denomination and note that the power behind the cash is not the dead presidents or Rockefeller, Carnegie, Zuckerburg, Soros, Bezos, Visa or MasterCard but something called “The United States of America.”

That is not a private bank or a billionaire. That’s you. That’s us.

Remember, we, the public, print the money, in our name, and somehow it gets to a private source which loans it to us and charges us interest for the privilege. Would you like to buy a bridge?

Our personal debt, incurred to keep the economy going with our consuming and owed to the same market gods, was over $18 trillion. Almost as high as our public debt. Somehow, we owe it to the same people who loaned us our own money for public expenses. Wow.

Are they really smart?

Or are we really stupid?

Many Americans are treated as lower than scum for being working class and “uneducated.” Why are so many Americans so “uneducated”? Could it have anything to do with the fact that at some point they went through grammar and high schools taught by (drum roll) college-educated people**? And winding up with presidents like a truly brilliant rich guy with degrees from Yale and Harvard (wow!) who starts wars in the Middle East that have gone on longer than any in our history, with the consent of 534 out of 535 democratically (?) elected college graduates in congress?

Whether the organized crime lobby (Wall Street, banks, billionaires) supports guns for individuals, Israelis or the Military Industrial Complex, it remains in control of the political economics of American government. NRAIPAC and its ilk own, rent and control the White House, Congress and Corporate media. That was the case before Trump and still is the case now.

We need resistance to that system of minority control itself, and not simply the servants it hires, leases, rents or outright owns. As long as we allow a gallon of milk to cost more than a gallon of gasoline, as long as we tolerate an economics that will sustain a disease as long as profits for its treatment are greater than profits for its cure***, we not only face long range climate disaster but a much shorter range political economic calamity.

Global capitalism threatens immediate and growing poverty, war, human misery and planetary destruction no matter which political pinhead, pimp or ho lives in the subsidized residency we call the white house. As long as we allow the richest and smallest minority in our history to put only their servants up for our votes, calling this a democracy reduces us to the best-dressed peasants on the Titanic. We need to end the fundamentalist religion of private profit marketing that is becoming a greater menace by the minute and begin democratic action in a social revolution that expresses majority public interest, desire and need. Fast.

 

Notes

*All members of the human race are “of color” save for a small group called albinos. Some of us have darker or lighter skin but skin tone is of no more racial significance than brown hair, green eyes or long legs. Innocents, the ignorant and morons who still believe otherwise are science deniers at best, and anti-human at worst, no matter their skin tone.

**Those with a stake in maintaining their incomes & consumption are unlikely to participate in efforts to bring about radical change”—Michael D. Yates

***Check cancer, for starters; a multi-multi billion-dollar industry

How 90% of American Households Lost an Average of $17,000 in Wealth to the Plutocrats in 2016

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By Paul Buchheit

Source: Information Clearing House

America has always been great for the richest 1%, and it’s rapidly becoming greater. Confirmation comes from recent work by Thomas Piketty, Emmanuel Saez, and Gabriel Zucman; and from the 2015-2016 Credit Suisse Global Wealth Databooks (GWD). The data relevant to this report is summarized here.

The Richest 1% Extracted Wealth from Every Other Segment of Society 

These multi-millionaires effectively shifted nearly $4 trillion in wealth away from the rest of the nation to themselves in 2016. While there’s no need to offer condolences to the rest of the top 10%, who still have an average net worth of $1.3 million, nearly half of the wealth transfer ($1.94 trillion) came from the nation’s poorest 90% — the middle and lower classes, according to Piketty and Saez and Zucman. That’s over $17,000 in housing and savings per lower-to-middle-class household lost to the super-rich.

Put another way, the average 1% household took an additional $3 million of our national wealth in one year while education and infrastructure went largely unfunded.

It Gets Worse: Each MIDDLE-CLASS Household Lost $35,000 to the 1% 

According to Piketty and Saez and Zucman, the true middle class is “the group of adults with income between the median and the 90th percentile.” This group of 50 million households lost $1.76 trillion of their wealth in 2016, or over $35,000 each. That’s a $35,000 decline in housing and financial assets, with possibly increased debt, for every middle-class household.

Housing Wealth for the 90% Has Been Converted into Investment Wealth for the Plutocrats

In the 1980s, the housing wealth of the bottom 90% made up about 15 percent of total household wealth (Figure 8 here and Page 41 here).

In the 1980s, the corporate equities owned by the richest .01% made up about 1.2 percent of total household wealth (Figure 8 here).

Housing was 12 times greater than super-rich stock holdings back then. Now they’re nearly equal. The home values of 112,000,000 households have been reduced to just over 5 percent of total wealth, while the stocks and securities of the richest 12,000 households are approaching 5 percent of total wealth. Our homes have turned to dust, and the plutocrats have turned the dust into gold.

Even the Wages of the Poorest Americans Have Been Transferred to the Plutocrats 

It’s bad enough that the poorest 50% of America have no appreciable wealth, but their income has not increased in 40 years (see Table 1 here). More evidence comes from Pew Research.

As Piketty, Saez, and Zucman note, the richest 1% and the poorest 50% “have basically switched their income shares.” They explain, “We observe a complete collapse of the bottom 50% income share in the US between 1978 and 2015, from 20% to 12% of total income, while the top 1% income share rose from 11% to 20%.”

Making America Great for 1% of Us 

In his book, Glass House: The 1% Economy and the Shattering of the All-American Town, Brian Alexander describes today’s America through the lens of his hometown of Lancaster, Ohio, which had been a leading glasswares manufacturer. But the town started falling apart in the 1980s. A major glasswares company was bought up with borrowed money by private equity firms, which then cut jobs and wages, allowed manufacturing facilities to fall into disrepair, stopped contributing to pensions, moved company headquarters out of state, and demanded tax breaks to keep the glassware plant in Lancaster.

Capitalism as usual. Yet 59 percent of Lancaster’s county voted for Trump. Alexander explains that the people of Lancaster “remained captured by an ultra-conservative, anti-tax philosophy that prevented them from raising funds to repair the crumbling streets..”

Delusions persist about the power of the market and the dangers of governing ourselves. The business media has conditioned us to fear the words ‘social’ and ‘public,’ as if they connote evil or ineptitude or anti-Americanism. But the public good depends on cooperation. Society fosters individual accomplishment, not the other way around.

The obscene transfer of wealth and income to the plutocrats won’t end until we demand a return to the Commons, where we work as a society rather than allow predatory plutocratic individuals to control us. There are 112 million households in America that are giving thousands of their hard-earned dollars to the 1%, and we have finally begun to fight back, together, as a massive force of Americans who refuse to let the theft continue.

 

Paul Buchheit is a writer for progressive publications, and the founder and developer of social justice and educational websites, including: UsAgainstGreed.org, PayUpNow.org, and RappingHistory.org. This article was first published at Common Dreams

The Acquisitive Self, Minus the Self

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By Natasha Vargas-Cooper

Source: The Baffler

Los Angeles isn’t exactly the place that comes to mind when you think of decorous restraint in the display of wealth, even in the dregs of the Great Recession. Here in my hometown, possibly more than in any other outpost of faux-meritocratic privilege in our republic of getting and spending, untrammeled acquisition is understood as an expression of individual will—and more than that, a matter of taste.

Yet for all the studio money sloshing around our bright, stucco world, most of us have never encountered the miniscule stratum of humans that hovers above the rich: the pure, gilt-edged, entrenched, multigenerational wealthy. Movie star money is food stamps compared to oil money, hedge fund money, and even some of that dank old money that still floats around the haciendas of Pasadena. We might have stood kegside next to Kirsten Dunst once, but we don’t know the kinds of rich people that F. Scott Fitzgerald had in mind when he wrote that the rich “are different from you and me”: the Vanderbilts, Rothschilds, and Astors. Hell, our L.A. doesn’t even boast a new-money Midwestern poultry heiress.

We don’t see these types—let alone interact with them—because they’ve largely seceded from public view. This is the guilt-prone social formation that Paul Fussell dubbed the “top out-of-sight class,” because you typically can’t see their houses/compounds unless you have access to a helicopter. Prior to the mid-twentieth century, the top out-of-sight class had been very much in sight; Manhattan’s Fifth Avenue and Philadelphia’s Main Line mansions are still monuments to their Caligulan self-regard. But ever since the Great Depression, and its attendant booms in Social Realist art and Popular Front politics, they staged a quiet but striking mass retreat. So spooked out were the über-rich that they became almost discreet. “The situation now is very different from the one in the 1890s satirized by Thorstein Veblen in The Theory of the Leisure Class,” Fussell wrote in 1983. “In [Veblen’s] day the rich delighted to exhibit themselves conspicuously. . . . Now they hide.”

Thirty years later, this is still mostly true, but thanks to the exhibition-friendly canons of social media, the scions of excess are back and flaunting it, baby—and it’s an entirely underwhelming display. These aren’t the out-of-sight rich but their twentysomething children, flouting their parents’ wealth-whispers code of silence. With acres of unproductive time on their hands, bored rich kids are using their gold-plated iPhones to post images of their baubles of privilege, their chemical stimulants of preference, and their outlandish bar tabs on Instagram, the photo-sharing service of the moment. It’s a bit as though a Bret Easton Ellis novel has come blandly to life, without the benefit of any irony.

Predictably enough, a Tumblr photo-blog has stirred vacantly into being, to compile all these outpourings of opulence in one convenient place. Launched in 2012 by a founder who remains anonymous, Rich Kids of Instagram (RKOI for short) curates and tags photos posted on Instagram by the likes of Barron Hilton, Tiffany Trump, and other “funemployed” trust-funders. The Tumblr, which slaps a whimsical, intricately scrolled frame around each photo but adds little else, doesn’t come with a explanation or an editorial policy, other than that it purports to show you the lifestyles that the unseen rich had previously shared only with their similarly rich friends. “They have more money than you do and this is what they do,” goes the tagline.

Why should we look? The payoffs for the nonrich civilian viewer are oddly perfunctory. After all of the social mythologies we’ve lovingly constructed to envelop the delusions of the 1 percent, this is the lurid end-of-the-rainbow payoff they’ve decided to lord over the rest of us—a fistful of watches, car interiors, and European spa photos? The content of Rich Kids of Instagram is less the aftermath of an imperial Roman bacchanal than the shamefaced hangover of an especially inane and oversexed (though well-appointed!) frat party. Around about the dozenth selfie featuring a buff and/or emaciated scion nestled into a private jet with a bottle of Cristal and a $10,000 clip of cash (“Always make sure to tip your pilot and co-pilot 10k. #rulesofflyingprivate”), you can’t help but wonder, “Is that all there is?”

The Duller Image

Indeed, in strictly visual terms, the site is hard to distinguish from a luxe Sharper Image catalog—merchandised out, to be sure, but disappointingly clichéd. The rich boys of Instagram—the son of fashion mogul Roberto Cavalli, for example, and a weak-chinned fellow with the handle Lord_Steinberg—post pictures of their IWC Grande Complication Perpetual watches, multiple Lamborghinis, and six-figure bar tabs. Here, all the shiny expensive crap seems to cry out, is what I’ve done with my life in lieu of becoming an adult. The young rich ladies, such as Alexa Dell (of, you know, the Dell computers fortune), mainly document how all this pelf looks from the other side of the gender divide: they snap pics of themselves surrounded by tangerine Hermès shopping bags, eating sushi sprinkled with 24K gold flakes, and holding their American Express Centurion card minimum payment notifications (typically $40,000).

There’s not even much in the way of the makings of righteous socialist outrage. (Swazi Leaks this most definitely is not; that project, by contrast, pairs leaked photographs of Swaziland’s high-rolling absolute monarch with pictures of $1-a-day sub-subsistence conditions in the slums.) Yes, the rich kids seem determined to remind us that they have stuff the rest of us will never have. The captions they post with their photos are, at times, slyly aware of their part in inequality (cf. a picture of a private jet and a luxury car with the caption “The struggle is real”). But for all that, the kids don’t seem especially power-hungry so much as aimless and languid. Behind these faux-provocative posts lurks a desperate clamor for attention that almost verges on a cry for help—something that makes you feel a certain involuntary (and certainly undeserved) pity for these manically self-documented upper-crusters.

Nevertheless, the rich kids keep on multiplying their blandified self-inventories, and some among the rest of us, presumably, keep looking. In the beginning, few of the kids knew their Instagram feeds were being monitored by RKOI; the security detail for Alexa Dell, for one, wasn’t prepared to see some of her pictures, with recognizable details that could give away her whereabouts (usually closely guarded by her family), show up on the site. Her social media presence was quickly scrubbed. But now, many of the kids featured know they’re getting Tumblr’d, and some court the attention by submitting photos for consideration, tagged with #rkoi. Rich Kids of Instagram has earned its subjects thousands of followers for their individual feeds, and even momentarily catapulted some of the sort-of rich, perhaps splashing out on a once-a-year chartered yacht to Saint Tropez, into better company than they could ordinarily afford.

American media culture has done its part by spinning off these social-media maunderings into a full complement of incoherent dreck. Last winter, the E! cable network debuted #RichKids of Beverly Hills, a reality TV series loosely organized around the premise (if we can call it that) of the Tumblr account. (The show even features—wink, wink—an “Instagram-obsessed” cast member named Morgan Stewart, who delivers such walk-on anathemas to viewer interest as “I’ve taken so many selfies on my cell phone today it’s, like, embarrassing.” No, son, what’s embarrassing is that you’re saying this shit out loud, in front of a television camera.)

The PG-13 Class War

If an E! show wasn’t enough, this summer saw the release of a book-like object, also called The Rich Kids of Instagram, credited to the site’s anonymous founder together with a ghostwriter/collaborator named Maya Sloan. Like its “inspiration,” the book—billed for some reason as a novel—is unrelentingly dumb, though it does supply an important clue to the weird demographic marketing strategy behind the Rich Kids franchise. It’s clearly written for kids or, um, young adults, suggesting that the notion of “aspirational” reading and viewing—the grand media euphemism for the lifestyle-voyeurism genre—is ripe for retirement. Instead, this plotless, and nearly character-less, flight of fancy is something far more inert, and less interesting: an empty vessel of careless adolescent fantasy.

The book’s careful observance of PG-13 canons of teen rebellion is so pronounced as to be obtrusive. There’s little in the way of appalling or casual sex; the cussing and chronic drug use (nothing too hard, mind you: pills, weed, blow) is there mainly for box-checking shock value. In this, as well, the book is true to the real-life Tumblr; nowhere do you see anything truly threatening or transgressive, like Jordan Belfort snorting coke out of a hooker’s ass in Martin Scorsese’s The Wolf of Wall Street. No, all you encounter, in the book as on the Tumblr feed, is the sort of teen spliff smoking you’d find at an average Dave Matthews show—but in a jet, bro!!

In the same way that such scenes beg to be seen as transgressive, the Rich Kids oeuvre begs to be seen as a populist-baiting vindication of privilege for privilege’s sake: Take that, plebes! But there’s a telling sleight of hand here. The book’s main gimmick is identical to the Tumblr’s MO: the outrage is all imputed to you, the reader, in advance, by its ostensible targets or by the medium itself. This means, in turn, that the proceedings float serenely above any semblance of real-world criticism. So, not surprisingly, the book suffers from the same thing the actual rich kids of Instagram kids do, only at far more tedious length: a depressing lack of imagination. Here, for example, is one of the novel’s rich kids fuming about her maid while also clumsily name-checking her 1,200-thread-count sateen sheet set: “Woven in Italy. For what I paid, I could buy your illegal Guatemalan cousins. That is, if you weren’t from Jersey.”

There’s no pulse-pounding social tension or class resentment on offer here—unless you’re especially aroused by inarticulate dialogue. The novel doesn’t proceed in a mood of detached anthropological inquiry, the way that, say, Louis Auchincloss or John Marquand’s old-money fictions did. There’s no anger, no weight, no insight. All you have in the way of a rich-kid call-to-arms is the empty bravado of the anonymous site creator’s acknowledgements at the front of the book: “To all the RKOI kids, who are unapologetically themselves; in a world where so few people will live out loud, you guys have guts, and for that you deserve admiration.” (And yes, Rich Kid self-awareness once again stops well short of the obvious irony involved in an anonymous social media impresario’s celebration of the overclass’s bold capacity “to live out loud.”)

For “gutsy” exemplars of individual lifestyle, the kids are distressingly uniform in their motivation, behavior, and dramatic purpose. Far from emblazoning their excellent individuality upon our collective prole brainpan, the novel’s cast of characters merges into an interchangeable ensemble of predictable, privileged reflexes and half-copped attitude. Each member of this brat pack is outfitted with a suffocatingly oversignifying name and a ponderous chapter rendered in his or her voice. To save time, here’s a rundown of the main players in the book (think of it as the literary equivalent of a bar-tab selfie):

• Annalise Hoff, a high-strung media heiress who dotes on her Murdoch/Hearst mashup Daddy: “I know: Freud would have a field day with me. I don’t take the short bus, after all. I have a Bentley waiting.”

• Christian Rixen, a Denmark Royal and jewelry designer, who employs an oddly clinical diction suggesting that this is what Southern Californian rich assholes hear when Europeans speak to them: “The countess may have birthed me, but she was far from maternal.”

• Miller Crawford, a Mayflower legacy, rifle heir, and aspiring record producer—and what passes for a self-starting entrepreneur in these circles: “I made a promise long ago: I won’t be that guy. The kind who orders staff to do petty bullshit. Sure, there are emergencies. Scoring coke for an after-hours, buying last-minute condoms. As for the rest? I can get my own double latte, thanks.”

• Todd Evergreen, a Mark Zuckerberg stand-in with a suitably generic name—an upper-middle-class kid who became an overnight billionaire by captaining an overcapitalized software startup. We don’t hear from Evergreen, who is eventually driven into paranoia and Howard Hughes–like seclusion until the novel’s crashingly unpersuasive, life-affirming coda. “I liked their things,” Evergreen says of the rich kids, “don’t get me wrong. Not for the things themselves, but how excited they got about them. How their faces lit up when they talked about them. But I liked the people for other reasons. Better reasons.”

• Desdemona Goldberg, a bipolar singer/actress: “Wow, I think, that coke was awesomeness.”

You don’t say. This novelization rounds out the Rich Kids trifecta: Tumblr, TV show, and book. The net effect is, fittingly enough, akin to that of another notorious plutocratic foray into cultural exhibitionism—a Damien Hirst installation. In both, we see our culture lords courting outrage in the most safely inert and vanity-fed forms of display. Both aim to provoke an aesthetic response that is little more than a fleeting revulsion, compounded by the inevitable gawking at the price tag attached to the finished product. And both make a huge deal of curating predators, whether it be champagne-squirting twentysomethings captured in photo-blog form (RKOI) or a really big shark lifelessly preserved in a bath of acid (Hirst).

Binge and Purge

For that matter, the Rich Kids franchise outdoes even Hirst, and achieves a further refinement of this recursive aesthetic of total consumption: it’s a monument to the acquisitive self minus the actual self. Sometimes the kids don’t even bother to take pictures of items they buy. Instead, they share photos of the shopping bags from whatever luxury store they just blew through. Other times, they display pictures of receipts, personal check stubs, or their names embossed on credit cards.

Capital is always on the verge of dematerializing our common world; as Marx and Engels famously warned back in the day, under the height of bourgeois domination, “all that is solid melts into the air.” Here, however, is a gloss on that crippling dynamic that the founders of socialism never could have anticipated: the children of capital are rendering their innermost selves—their critics-be-damned determination to live out loud—as a random agglomeration of nonsignifying digits. The beauty they transmit back, what they see, is nothing more than a place-holding string of credit limits where a human self, or at least a measure of use value, might once have been.

Still, there are evidently some young self-starters who are gleaning a different aspirational message from the whole enterprise. When frequent RKOI contributor Aleem Iqbal, a nineteen-year-old whose dad owns a luxury car leasing service in England, went on a recent binge of selfie-taking, some unintended consequences ensued. The younger Iqbal saturated his Instagram feed with shots of himself driving really expensive cars with the vanity plate “LORD.” On June 6 the teenager leased a $560,000 Lamborghini Aventador Roadster, and a few hours later someone set it on fire. A week after that, three more of his luxury cars, two Audi R8 Spyder supercars and a Bentley Flying Spur, were torched. This was not his understanding of the new social contract at all. Instead of a reality TV or book deal, all his self-infatuated Instagram entries had earned him was the smoldering hulks of four plute-mobiles. On his Facebook page, the aggrieved teen called the campaign of high-end vandalism “a vile act of jealously towards my business.”

Maybe so; it could be like George Orwell said, and there really are only two classes, the rich and the haters. On the other hand, a follower of some RKOI property might have thought it was high time to perform a salutary act of simple math: subtracting some small amount of indecent luxury from the torrent of inert and unproductive excess that we all, inexplicably, must endure. Vileness, after all, is in the eye of the beholder.

How the Super-Rich Will Destroy Themselves

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HangTheBankers

By Paul Buchheit

Source: Nation of Change

Perhaps they believe that their underground survival bunkers with bullet-resistant doors and geothermal power and anti-chemical air filters and infrared surveillance devices and pepper spray detonators will sustain them for two or three generations.

Perhaps they feel immune from the killings in the streets, for they rarely venture into the streets anymore. They don’t care about the great masses of ordinary people, nor do they think they need us.

Or do they? There are a number of ways that the super-rich, because of their greed and lack of empathy for others, may be hastening their own demise, while taking the rest of us with them.

1. Pandemic (Because of Their Disdain for Global Health)

“A year ago the world was in a panic over Ebola. Now it’s Zika at the gate. When will it end?” –Public health expert Dr. Ali Khan.

It could end with a global pandemic that spreads with the speed of the 1918 Spanish Flu, but with a virulence that kills over half of us, rich and poor alike. Vanderbilt University’s Dr. William Schaffner warned us a decade ago, “You’ve got to really invest vast resources right now to protect us from a pandemic.” Added infectious disease specialist Dr. Stephen Baum, “There’s nobody making vaccines anymore because the profitability is low and the liability is high.”

The flu is just one of our worries. It has been estimated that less than 10 percent of the budget for health research is spent on diseases that cause 90 percent of the world’s illnesses. According to a study in The Lancet, of the 336 new drugs developed in the first decade of this century, only four of them were for diseases impacting third-world peoples. World Health Organization director Margaret Chan lamented the long decades of disregard for the African-centered effects of the Ebola virus: “Ebola has historically been confined to poor African nations. The R&D incentive is virtually non-existent. A profit-driven industry does not invest in products for markets that cannot pay.”

The super-rich had better make sure their anti-chemical air filters are also anti-viral.

2. Terrorism (Because of Global Inequality)

In The Spirit Level, Richard Wilkinson and Kate Pickett document some of the most frightening effects of inequality: higher levels of crime and violence, impacting all classes of people.

Inequality is worst at the global level, and the victims of global greed are getting more violent. The World Protests report concluded that the most recent decade represents one of the most agitated periods in modern history — comparable to pre-Civil-War days, World War 1, and the Civil Rights era. According to expert Scott Atran, terrorism primarily appeals to young men who are bored and underemployed; for them, “jihad is an egalitarian, equal-opportunity employer.”

The terrorism of the future could easily take the form of the viral killers mentioned above. As Dr. Khan notes, “A deadly microbe like smallpox — to which we no longer have immunity — can be easily recreated in a rogue laboratory.”

3. Drought (Because of Their Denial of Environmental Destruction)

National Geographic’s 2012 Greendex Survey reveals a remarkable human response to environmental damage: “[Those] demonstrating the least sustainable behavior as consumers, are least likely to feel guilty about the implications of their choices for the environment.” Citizens of Mexico, Brazil, China, and India tend to be most concerned about climate change, pollution, and species loss, while American, French, and British consumers are more concerned about the state of the economy and the cost of energy and fuel.

Even worse than denial is the outright suppression of climate-saving technologies, as, for example, by the American Legislative Exchange Council (ALEC), which wants to charge the “freeriders” who install solar panels on their roofs.

The result of this environmental contempt, according to a Columbia University study, is the prospect of “drought beyond the sub-tropics and into the Northern Hemisphere mid-latitudes, regions of globally important agricultural production.”

The super-rich can while away the hours in their underground bunkers watching videos of the good old days when the earth was cool.

4. Atrophy (Because of the Debt-Induced Collapse of Innovation)

A Small Business Administration study found that only 2% of the Millennial Generation are entrepreneurs (self-employed or business owners), compared to 6.7% of Baby Boomers and 5.4% in Generation X. According to the Kauffman Foundation, 20- to 34-year-olds made up over a third of all new business startups in 1997, but less than a quarter of them today. The super-rich have manipulated the financial system to the point that would-be entrepreneurs, many of them young and deeply in debt, are unable or unwilling to take chances on new startups.

Yet on a global scale youth entrepreneurship is on the rise. America is exceptional in its entrepreneurial decline.

5. Decay (Because of Their Disregard for Our Crumbling Infrastructure)

The corporate elite may face further business collapse if they continue to ignore the breakdown in our nation’s infrastructure. The American Society of Civil Engineers estimates that every American household is losing $3,400 per year in disposable income due to infrastructure deficiencies.

The tens of billions of dollars already being paid for additional transportation and storage costs may not kill the capitalists, but the losses to China and other fast-developing nations will surely deflate their stock prices and their egos.

How the Super-Rich Could Help Themselves

Amidst all the talk of unity and prayer and peace, a solution exists: job opportunities and affordable housing. The super-rich could prolong life for all of us, including themselves, if they recognized the need to support a strong society. If not, they’ll be ensconced in their bunkers with their children at their sides, with nowhere to go and nothing to do.