Revisiting Plutonomy: The Rich Getting Richer

[WIP]

This might be old news for some....but not likely very many, since Citigroup has spent the last five years trying to scrub this report off the internet. I just happened to hear about it when I followed a link to a video clip from Bill Moyer's PBS show.

from the transcript

Plutocracy is not an American word but it's become an American phenomenon. Back in the fall of 2005, the Wall Street giant Citigroup even coined a variation on it, plutonomy, an economic system where the privileged few make sure the rich get richer with government on their side. By the next spring, Citigroup decided the time had come to publicly "bang the drum on plutonomy."

And bang they did, with an "equity strategy" for their investors, entitled, "Revisiting Plutonomy: The Rich Getting Richer." Here are some excerpts:

"Asset booms, a rising profit share and favorable treatment by market-friendly governments have allowed the rich to prosper...[and] take an increasing share of income and wealth over the last 20 years..."

"...the top 10%, particularly the top 1% of the US-- the plutonomists in our parlance-- have benefited disproportionately from the recent productivity surge in the US...[and] from globalization and the productivity boom, at the relative expense of labor."

"...[and they] are likely to get even wealthier in the coming years. [because] the dynamics of plutonomy are still intact."

And so they were, before the great collapse of 2008. And so they are, today, after the fall. While millions of people have lost their jobs, their homes, and their savings, the plutonomists are doing just fine. In some cases, even better, thanks to our bailout of the big banks which meant record profits and record bonuses for Wall Street.

Now why is this? Because over the past 30 years the plutocrats, or plutonomists — choose your poison — have used their vastly increased wealth to capture the flag and assure the government does their bidding. Remember that Citigroup reference to "market-friendly governments" on their side? It hasn't mattered which party has been in power — government has done Wall Street's bidding.

So! It's called Plutonomy...and it didn't just happen by accident. And making the rest of us poorer was also intended since, as many conservative economists have noted - a prosperous and comfortable working class is increasingly difficult to control. Putting the middle class on a downward spiral makes them less trouble for employers to manage; so at some point in the latter half of the 20th Century, many, if not most of the major corporations realized it was more beneficial for them to work collectively for their common interests, than fight against each other for market share.

[bush_cheney2004]

That's why they are called "rich people". As for this being "news", it is anything but. Bill Moyer's knows how to play both sides of the street:

http://www.undueinfluence.com/bill_moyers.htm

[Topaz]

The old saying "what goes UP must come down" will probably happen to some of these people and when it does how will they survive? just look at what happen to the rich in the Depression '29. Some jump out of windows because they lost everything, they thought. I can see the US getting in to the problems Greece has and who going to have the trillions of $$ to help it. What happens if the US $$ is devalued and becomes worthless to the global economy? Don't say it can't happen, now a days anything is possible and IF it does all those rich people will just like us, only more miserable.

[Moonlight Graham]

Rich people deserve more tax cuts. Welfare cheques must be cut back because the working poor are lazy and obviously not working hard enough.

[bush_cheney2004]

.... What happens if the US $$ is devalued and becomes worthless to the global economy? Don't say it can't happen, now a days anything is possible and IF it does all those rich people will just like us, only more miserable.

The US dollar is already being purposely devalued as part of the monetization of debt. Yet "rich people" are still doing OK...hell, better than OK. Class envy will not make you rich.

[bush_cheney2004]

Rich people deserve more tax cuts. Welfare cheques must be cut back because the working poor are lazy and obviously not working hard enough.

Why would the "working poor" get a welfare check?

[eyeball]

So where is the economic singularity? Shouldn't Reagonomics have floated all our boats to the promised land by now?

Did anyone think to install a reset button on this stupid contraption of an economy?

Edited June 29, 2011 by eyeball

[bush_cheney2004]

So where is the economic singularity? Shouldn't Reagonomics have floated all our boats to the promised land by now?

Did anyone think to install a reset button on this stupid contraption of an economy?

Relying on living or dead Americans for your economic salvation in Canada is never a good idea.

[Bonam]

The old saying "what goes UP must come down" will probably happen to some of these people and when it does how will they survive?

People become rich as well as losing their riches all the time, both in good and bad economic times.

Don't say it can't happen, now a days anything is possible and IF it does all those rich people will just like us, only more miserable.

Most of those that are self-made rich will find a way to prosper regardless of the surrounding economic situation. People become rich for a reason, whether its drive, intelligence, connections, etc. Those will still be there even if wealth is lost.

Edited June 29, 2011 by Bonam

[Michael Hardner]

When are we getting the 4 day workweek ? Is that set to happen soon ?

[WIP]

Most of those that are self-made rich will find a way to prosper regardless of the surrounding economic situation. People become rich for a reason, whether its drive, intelligence, connections, etc. Those will still be there even if wealth is lost.

Here's another reason how they become rich, and still want more money and more power:

We are ruled by psychopaths! The worst people in society are the ones who are most likely to ruthlessly cut down others for their own benefit. They cut corners on risky schemes like deep water oil drilling and design and operation of nuclear power stations, and they aggressively maintain the oil energy economy because they really don't give a shit about consequences. The psychopaths are the cream that rises to the top in business, and in the world of politics, where sentiment could also get in the way of a ruthlessly advantageous political strategy.

And here's another example of how ruthless they are with their greed: Wikileaks cables revealed U.S. textile manufacturers and diplomats, forced the Haitian Government to back down on a proposal to increase the minimum wage to $5.00 per day....that's five F!@#$%%^ dollars a day...not even per hour! How much goddammed money do these assholes need? Well, thanks to the Columbia School of Journalism Review, they have given us a breakdown of how much Hanes was able to save by suppressing Haiti's minimum wage:

Commenting on the revelations, the Columbia Journalism Review (CJR) calculates exactly how little it would’ve cost the clothing companies to comply with the new $5 a day wages. “Haiti has about 25,000 garment workers. If you paid each of them $2 a day more, it would cost their employers $50,000 per working day, or about $12.5 million a year.” CJR notes that if Hanes had to comply with the new law, it would cost them about $1.6 million a year — yet it made $211 million in profit last year. Yet unfortunately for the people of Haiti, Hanes’ greed was too great to sacrifice so little to help so many.

http://thinkprogress.org/security/2011/06/08/239144/wikileaks-cables-haiti-wage/

[Bonam]

Yes, ruthlessness can also in some cases be a quality that leads to personal success. And they will retain that attribute too, and again be able to use it.

[Oleg Bach]

A Plutocrat is a rich man who has lost his interest in money and now seeks total domination and power over other humans - It's called a bully.

[Moonlight Graham]

Yes, ruthlessness can also in some cases be a quality that leads to personal success.

Depends on how you define 'personal success'. You're using it in the traditional sense which typically refers to economic/financial success, or some kind of notoriety in their career field.

There are a great many people who are ruthless and financially/career successful, but whom i would consider dismal failures as human beings because their anti-social behaviour destroys lives for their own gain. People like Stalin, Heinrich Himmler, and Kim Jong Il were/are very ruthless and successful too, and also utter failures of the human race.

I also don't like selfish people who try to cut in line at the grocery store. Same deal, all selfish jerks who poop on people to get ahead in life.

[dre]

Theres a difference between a society that rewards oustanding people with wealth, and a society that that concentrates wealth at an obscene rate. One wont last long.

[WIP]

Depends on how you define 'personal success'. You're using it in the traditional sense which typically refers to economic/financial success, or some kind of notoriety in their career field.

And these libertarians base their notions of individual success on the fallacy of the "self-made man"...as if they achieved all of their success on their own, and owe nothing to the society that they live in.

There are a great many people who are ruthless and financially/career successful, but whom i would consider dismal failures as human beings because their anti-social behaviour destroys lives for their own gain. People like Stalin, Heinrich Himmler, and Kim Jong Il were/are very ruthless and successful too, and also utter failures of the human race.

The crazy, psychotic despots have always been sources of calamity and widespread misery and suffering, but they are an even greater problem today if we have any hope of dealing with global problems like climate change in a rational, responsible manner.

[Oleg Bach]

Theres a difference between a society that rewards oustanding people with wealth, and a society that that concentrates wealth at an obscene rate. One wont last long.

I know a Plutocrat. He lives modestly - takes the subway - and yet he deals in deals that soar into the billions. So what is he all about...I would say one thing- To us commoners it is about money - To these people it is about dominace and control of whole societies - and they are quiet about it. There is one problem though when someone is born or becomes a Plutocrat. They just might not be fit for the position. Those who seek to rule and control all...are those who dedicated their lives to this goal. This great ambition to be a small G god on earth can be attained if that is what you want and you live and breathe this want.

[Oleg Bach]

All so: Try to get a break from a Plutocrat if you are a clever or talented individual...not going to happen because they fear intelligence - to grant an intelligent person wealth and material power would in their minds create a horrific threat - They know in the material world no matter how smart and gifted you are - you are dead in the water without finacial resourses...BUT they do grant favour to those they consider compliant - manageable - consistant - stable - loyal and not about to tip over their big chair through revolution.

[CitizenX]

Probably my favorite documentary of all times. It's about 2 1/2 hours long but may change idea of what a person is.

The Corporation is a 2003 Canadian documentary film written by Joel Bakan, and directed by Mark Achbar and Jennifer Abbott. The documentary is critical of the modern-day corporation, considering its legal status as a class of person and evaluating its behaviour towards society and the world at large as a psychiatrist might evaluate an ordinary person.

The Corporation - (Full Movie)

http://www.youtube.com/watch?v=bvPXR_6cn0s

Edited August 5, 2011 by CitizenX

[Oleg Bach]

I am a corporation - and I expect all the rights and privledges of a human being - a big huge multi-national life sucking entity..thats ME.....only difference is that I embody but one body.