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Monday, January 20, 2014

Rising Tides, Sinking Boats

It's virtually impossible to imagine anyone being surprised by the report that 85 individuals now possess as much as half of humanity. Now, there are qualifiers of sorts -- if you're even an average schmuck in the US or Europe, chances are that in terms of assets and income, you're ahead of a healthy chunk of folks who live on a dollar or two a day, and don't own a pot to piss in. The average American frequently forgets (or doesn't even know) that 1 in 3 people live in either China or India, and 1 in 2 -- half of all human beings -- live in Asia.

Still, as the Krugster points out in what has become more or less a weekly homily to be ignored by our betters (or bettors), inequality is increasing everywhere, here as much or more than anywhere else. This seems to be mathematically at odds with the supply-side mythos, the Reaganauts who spoke wistfully of "trickling down" and a "rising tide lifting all boats." There is only so much stuff even magnificently wealthy people can buy and own and use, so it gets hoarded or "invested," usually overseas in both cases so's to avoid paying even a percentage point or two on their precious.

I politely suggest that if you find yourself on the short end of the stick, your options are few and far between. You can bend over and take it for the rest of your life; you can talk about how much it sucks, as if Barry O or Elizabeth Warren will actually do anything about it. Sooner or later someone, or some group, will choose the violent insurrection option, but the problem there is that usually an ineffectual or flat-out wrong target is chosen. Political figures operate at the behest of their owners; they have little choice but to dance with them that brung 'em.

Which leaves identifying properly the operators of these collectively ruinous enterprises, the soulless bastards who would rather dump a kajillionty dollars into astroturf teabagger propaganda efforts, than to put the same money -- or even less -- into something that benefits someone other than themselves. The animals Krugman describes, the smug, vile pricks who want to be Leo DiCaprio in The Wolf of Wall Street, always get away with it, leaving their rented dogsbodies in DC to take the abuse and hyperbole, while they scuttle off to the Hamptons or the Bahamas and hoard their pelf.

Obviously, not every single wealthy person is a shiftless douche who inherited every dime they have. But many of them are, and act like it, or act like they're the only ones who have ever worked for anything, and everyone else is just some worthless combination of dumb and lazy. Worse yet, even among those that earned every cent they got with no help from anyone at any point in their lives, they mostly (Warren Buffett being a notable exception) persist in avoiding any and all taxes if they can help it.

As we always say, this is not politics, it's math. Increasing inequality by definition means reduced opportunities and mobility for everyone else. To the people who refuse to say anything bad about them because they hope to be them someday (just read the LA Times comments, if you can stomach it), all you can tell those folks is, good luck with that. They might as well spend their entire next paycheck on Powerball tickets, for all it'll get them.

So let's get after these assholes, once and for all. Properly identified, one then has the option of bringing out the tumbrels and guillotines, or better yet, developing ways to disintermediate them. Their worst nightmare, the unproductive rich, is for their rackets to no longer work, the idea that they might actually have to work for a living. Refuse to participate in their system. This is why Bitcoin is starting to attract so much scrutiny, as is Silk Road, Kim Dotcom, and other players and aspects of the parallel system. They can't stand the idea that one day, enough of us might come to the realization that we can do just fine without them, that we never really needed them in the first place.

Money and value are, after all, simply tacit agreements on what things are "worth" for trading. What would happen if enough people decided that they no longer agreed with that collective understanding? As the Orlov article points out, even a 10% hit would cripple them. It would cascade downstream -- but it already has been, and will only get worse anyway. Might as well have at least some control over our fates, right?

1 comment:

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