"A Hard Left Turn Looms" - Wealth Inequality In The United States

Via Global Macro Monitor,

This is not a chart that generates confidence in future political and social stability. 

 It looks like the jaws of a Great White ready to bite someone in the arse.

Hat Tip: Real-World Economics Review Blog

Clearly a contributing factor in the rise of populism and anti-elitism, and 2016’s political Black Swan.   

It will only get worse during the Trump administration and then we suspect the country will soon make a hard left turn.   


Stay tuned.

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Comments

HopefulCynical NidStyles Thu, 03/08/2018 - 16:12 Permalink

This guy is either totally clueless or wishful thinking. More and more people every day - every HOUR - are waking up to the fact that the ruling paradigm of the world has morphed into OUTRIGHT MARXISM. And I mean REAL Marxism, not that egalitarian bullshit they spew to the masses to con their way into power. What, pray tell, is real Marxism? Take it away, Mr. Orwell:

 

ALL ANIMALS ARE EQUAL

BUT SOME ANIMALS

ARE MORE EQUAL

THAN OTHERS.

In reply to by NidStyles

FreddieX HopefulCynical Thu, 03/08/2018 - 16:20 Permalink

https://www.wsws.org/en/articles/2018/02/28/pers-f28.html

How is this for JAWS ?

https://www.wsws.org/asset/bc084252-5eb5-4bd3-88a9-eaa984a1781M/image.p…

In 2017, there were only seven work stoppages involving more than 1,000 workers, the second smallest number since at least 1947. The lowest was in 2009, the first year of the Obama administration, immediately following the 2008 financial collapse and the government bailout of Wall Street. The number of workers involved in large-scale work stoppages fell from an average of 1.5 million per year in the 1970s to 70,000 this decade (and only 25,000 last year)—a decline of more than 95 percent.

This same period, from the 1980s to today, has seen an enormous concentration of income and wealth in the ruling elite. The national income share for the bottom half of the population fell from 20 percent in 1980 to 12 percent in 2014, while the income share for the top 1 percent rose from 12 percent to 20 percent. Wealth and income is even more heavily concentrated in the top 0.1 and 0.01 percent of the population.

...

This essential function of the unions—to suppress working class resistance to attacks by corporations and the government—was articulated explicitly just one day earlier in US Supreme Court oral arguments in the case of Janus v. AFSCME (American Federation of State County and Municipal Employees).

...

In his argument before the court, David Frederick, representing AFSCME Council 31 in Illinois, stated: “The key thing that has been bargained for in this contract for agency fees is a limitation on striking. And that is true in many collective bargaining agreements.”

Fredrick continued: “The fees are the tradeoff. Union security is the tradeoff for no strikes.” If the court makes the decision to overturn prior precedent allowing states to mandate agency fees, he warned, “you can raise an untold specter of labor unrest throughout the country.”

The argument could not be clearer: The financial stability of the trade union apparatus is essential for preventing the growth of working class opposition. This extraordinarily frank statement was made before one of the most important state instruments of the ruling class, the Supreme Court. It demonstrated how conscious the unions are of their role as industrial police for the US corporate elite and its state institutions.

In reply to by HopefulCynical

new game FreddieX Thu, 03/08/2018 - 17:33 Permalink

late 1990's unions sold out at the top, glassman stegall, slick dick willie, GW- NWO , homeland security squid, obomarixts-progs and here we are. 24 years of sell outs, plus about 800 congress and senate dicks(counting turnover). one patriot during this sell out- the honorable, Sir Ron Paul.

fuck what merica has become- a splat in the toilet...

In reply to by FreddieX

MoralsAreEssential Squid-puppets … Thu, 03/08/2018 - 16:23 Permalink

The Global Elites are really Neoliberals which force "liberal" Marxist CULTURAL norms onto the 99% while robbing them blind, deaf, and dumb with crony capitalism.  Same as feudalism before The Rights of Man financially speaking.  The real HORROR is that with the Demon Tech Armageddon of AI synchronized 5G Network D-Day 18 months being rolled in Norway, surreptitious in some cases and voluntary in gullible Sheeple chipping, there won't be a need for ANY Holographic governments pretending to "represent" Plebs.  It will be a world of human bodies with imprisoned souls and NO Free Will whatsoever.  18 Months left to defeat this.

In reply to by Squid-puppets …

any_mouse Squid-puppets … Thu, 03/08/2018 - 17:20 Permalink

Exactly.

Marxism was created to defuse the Republican (classic sense) revolutions that were occurring in Europe in the 1840s. That was when everybody who wasn't wealthy worked together against the owners.

Set up the long running class war between the lower class and the middle class. Diverting attention away from the upper class.

Funny though, how they never show inequality back through history.

Might the current level simply be a return to normal high wealth inequality?

The American Dream.

In reply to by Squid-puppets …

TuPhat AlphaSeraph Thu, 03/08/2018 - 16:16 Permalink

S and H do a lot of jawboning but very little facts to back it up.  I did not see the evidence you speak of.  They do have a lot of data from history that they cherry pick to fit their narrative and leave out all the things that don't fit.  They also twist the timeline and the timing of the turnings to fit into the story but I am not convinced that it means anything.

In reply to by AlphaSeraph

JibjeResearch Deep Snorkeler Thu, 03/08/2018 - 15:01 Permalink

Capitalism ===> Capital

Capital IS NOT about the average citizen and the poor.

It's the fault of the average poor citizens who failed to understand the meaning of Capitalism.

And you too, do not know the meaning of Capitalism, and don't copy and paste what the dictionary or the internet says about Capitalism.

As it currently stands, Capitalism is working exactly as the true meaning of Capitalism.

Where ever the Capital goes, the market rises.  Where ever the Capital leaves, the market crashes.  This is the true meaning of Capitalism.

In reply to by Deep Snorkeler

Cloud9.5 Kyddyl Thu, 03/08/2018 - 16:41 Permalink

I have certainly benefited from it.  Not like my parents.  They have been retired longer than they worked.  My dad has passed now, but my mom has been on disability due to encephalitis for more than forty years.

It gets to be a bad thing when it collapses the system.  When you look at the unfunded liabilities, you have to come to the conclusion that all these chickens are going to come home to roost. http://www.usdebtclock.org/

 

In reply to by Kyddyl

CRM114 Cloud9.5 Thu, 03/08/2018 - 19:20 Permalink

You speak of the cities. Out here on the perimeter, almost everything is done by the equivalent of a yard sale. No exchange takes place without both parties checking the other is completely happy, for the profit from a dodgy deal is never worth the loss of friendship. The cities are socialist, the back forty is not.

In reply to by Cloud9.5

HRClinton Deep Snorkeler Thu, 03/08/2018 - 15:16 Permalink

These gigantic (financial) companies have only themselves to blame, and their crappy corporate governance: By, For, Of the Self-Chosen Few.

For the sake of extreme personal wealth, they have created the Hydra that is Crony Capitalism.

As part of that, they have rationalized an unprecedented transfer of wealth from the 99% to the 1%.  Actually, it's more to the 0.01% (the 1% of the 1%) billionaire class, if you've followed data shown on this and other sites.

They and their Propaganda agents use good sounding weasel-words, that keep the sheep calm. Words like:

Shareholder value, profitability, global footprint... <--- All BS for the ignorant, scared, malleable masses, and the Stockholm Syndrome boot-lickers.

If they wanted to avoid the financial and ensuing social ills, they could have and should have:

1. Kept the income ratio of the CEO to the average worker at <50:1, as it was until the 1980s and the Reagan/Bush "Deregulations", instead of the obscene ratio of >500:1 we see today.

2. Would not have built up China, at the expense of US Main St.

At this point, I shall revel in the Schadenfreude of Common justice to be dished out. Even if I see the money class swinging from lamp posts or spraying out of a wood chipper. 

They have broken and burned the Social Contract. If they don't give a damn about us, then why TF should we give a crap about them?  Fork 'em! 

In reply to by Deep Snorkeler

Economy-X Deep Snorkeler Thu, 03/08/2018 - 15:25 Permalink

Giant corporations are not "above capitalism" or a distortion of it, anymore than a grown man is somehow a distortion of a boy. Each is the natural consequence of developing according to the genetic logic of their beginnings.

Capitalism is a competitive economic system. Over time this competition leads to weaker companies dying, and stronger companies getting bigger and bigger. When they get bigger they generate enormous economies of scale, and productivity increases vastly.

This means that any innovators challenging incumbents, or even creating new market sectors must very quickly scale up to corporate size or face extinction. It was Karl Marx who long ago identified this process called concentration and centralization of capital, and predicted in 1863 that the giant monopoly corporation would dominate the future of capitalism (if it survived long enough).

Well it has, and the only way to have an economy without giant corporations is to have an economy that is not capitalist. Just to reiterate, corporations are not the ruin of the free market, they are the children of the market, its finest and most beloved sons and daughters. Anyone who thinks otherwise would do well to read some of Marx's economics (as opposed to his politics), as it is the finest analysis of capitalism's genetic structure. Or just talk to any business person. Practitioners know this is all true.

In reply to by Deep Snorkeler

HRClinton Economy-X Thu, 03/08/2018 - 15:42 Permalink

You omitted the part where the big corporations change the rules to favor them, and to disfavor small upstarts, by raising "The cost of doing business", via exponential regulatory compliance, staffing compliance, legal compliance, and taxation complexity.

There is no Feedback loop to simplify, to cleanse, to kill off (i.e. break up) the Top Predators, aka TBTF and TBTJ.

In reply to by Economy-X

Dr. Acula Economy-X Thu, 03/08/2018 - 15:46 Permalink

"Over time this competition leads to weaker companies dying, and stronger companies getting bigger and bigger."

Their is a counteracting force where large companies become industrial autarchies internally exchanging many goods and services which do not have the prices ordinarilly set by a market. Blinded by a lack of price information, they cannot rationally decide whether a given internal exchange is worthwhile or not. They lose the ability to perform economic calculation.

In reply to by Economy-X

any_mouse Economy-X Thu, 03/08/2018 - 17:35 Permalink

Marx was a distraction.

The son of a wealthy family.

Married a woman of the Rothschild family.

Marx was an agent to prevent actual overthrow of the wealthy few by everybody else.

In 1917 the Bolsheviks shipped the entire Imperial Russian Treasury to Financiers in the West.

The Russian people did not benefit.

The Red revolution also ended the Pale of Settlement.

In reply to by Economy-X

Arrow4Truth abgary1 Thu, 03/08/2018 - 21:12 Permalink

The central banks certainly play a role but did not create the dilemma. Surely by reading through the thread, which by the way is one of, if not the most clearly articulated collective assembly of historically inspired detail providing a nice "connect the dots" picture of who, how, and why, that I've seen. Well done boys and girls. Well done. Worth mentioning such that Marx (Moses Mordecia Levy) has been referenced several times is that his Manifesto was inspired by the Communist Rabbi Moses Hess, who formulated the first written principles of Communism. For those that have yet to formulate a visual from the picture presented by connecting all of those factual dots, I would suggest some research into Zionism and the Talmud. Reference the Protocols as well. Much of the MSM dialogue is driven by the Russiagate bullshit but, who owns the MSM? The million dollar question is, "Where do we go from here?"

In reply to by abgary1

Gatto Deep Snorkeler Thu, 03/08/2018 - 19:22 Permalink

" . . .  our society is dominated by gigantic financial companies that have put themselves above capitalism, above law, above sanity"

That IS socialism!  That is what the people that are against socialism are against, government force, bailouts, regulatory capture, everything you mention!   

 "There are two and only two ways that any economy can be organized.  One is by freedom and voluntary choice - the way of capitalism.  The other way is by force and dictation - the way of socialism!"  - Murray Rothbard

In reply to by Deep Snorkeler

pods The Dreadnought Thu, 03/08/2018 - 14:40 Permalink

Nope, it will be pushed by some commie (Bernie anyone?) that promises to "soak it to the rich."  This sounds great to the people sitting at home in their doublewide sipping some cheap swill while watching "the rich" on their private islands.

What will happen is that any legislation will soak it to the "hope to be rich" and will further isolate the wealthy from the rest of us.  That is always how it goes until things collapse.  

Hopefully things blow up and the cheap credit feast that the wealthy have enjoyed will evaporate and people will start again being paid to do actual things.

I won't hold my breath though. The wealthy did not become wealthy by accident.  And as soon as they become wealthy, they keep that status by buying favor from the government.

pods

In reply to by The Dreadnought

DillyDilly pods Thu, 03/08/2018 - 14:52 Permalink

October Revolution 2.0

 

Didn't exactly end well for Lenin, Trotsky, or anyone else for that matter (cept that a small committee of jews got to live in the presidential palace for a few years while mostly everyone else died of typhus, starvation, frostbite, & war).

 

But I don't know if I can wait that long to see it all fail.

In reply to by pods