Would you believe it’s simply the central play in a 21st century revolution? Or perhaps more a palace coup by a new elite. A new elite of low-level members of the one percent and even lowlier members of the 10% trying to steal the wealth of the super-wealthy elite. No doubt inspired by the rise of the Russian gangster state across the past 30 years, that has given immense wealth to the oligarchs who support Putin’s rule.
Sure, that may seem odd if we compare the US to Russia. The wealthiest 10% of Russians have 70% of all Russian wealth, while the poorest 50% have just 3%. So, the US is already almost identical, with the top 10% having 68.3% of all US wealth, while the poorest 50% have just 2.5%.
But so much of that upper wealth is off limits, either because it’s family owned and passed through generations or it’s been accummulated quickly by entrepreneurs taking advantage of the theoretically meritocratic US society. The new elite have neither family connections nor the ability to generate huge wealth by merit. So they want to take it from those who do.
Which is why these wealthy Americans are turning on immigrants, though you can see similar movements in many Western nations.
The super-wealthy can grow their wealth without working, thanks to income from capital. They have so much wealth, they can invest it to make more wealth. The problem with this approach is that over time, as overall wealth grows, the rate of return falls as more wealth is competing for the same investment opportunities. This problem can be avoided by increasing productivity and the population. As productivity increases, investment opportunities increase. While population increases ensure competition for employment keeps wages low and simultaneously stimulates market demand.
But in the US, as the birth rate has been declining, the wealthy have had to turn to immigration to maintain population growth. Allowing immigrant workers into the US has allowed the super-wealthy to maintain their high incomes, while continuing to do no work for it. But immigrants have no value to the new elite, so they can target them freely and blame them for making the poorest Americans struggle so much.
It’s nonsense of course. Most immigrants are treated even worse than most working Americans. Together, the bottom 50% of workers earn just 13.4% of all US income, down from 17% in 1989, even though they’re doing the hardest and most unpleasant jobs. Meanwhile, since 1989 the top 10%’s share of US income has increased to 46.8%. Almost half of that going to the top 1% alone.
While it would make more sense to be angry with the top 10%, the collaboration of much of the media with the new elite ensures many of the poorest workers blame immigrants and join these very 21st revolutions in support of the new elites.
Democracy breeds a different form of revolution. A revolution where the uprising doesn’t take to the barricades and slaughter the elite. The people just take to the ballot box and vote out the old oppressors.
But don’t expect too much from it. Pick something up, hold it in front of you and focus on a point on it. Now rotate it through 360º. One revolution. Notice how it’s back to where it started. That’s the problem with revolution. It result’s in different faces in the swamp, but for everyone else, nothing changes. Or more often than not, it gets worse.
So, the new aspiring elite are prepared to hurt the income from capital in the short term, but once they’re in charge, they’ll need to get the population growing again so they don’t need to work. And they won’t be able to use immigrants.
Is that why these new right wing nationalists promote Christianity and the traditional family values of women staying at home making lots of babies?
What you just read? ☝ Shouldn't more people read it?
Share it now, before you forget
