The rich get richer and the poor get poorer. Is this a coincidence?
The heart of conservative economics is the idea that rich people’s wealth eventually benefits everybody. Rich people begin businesses, hire the poor, and pay them. Rich people spend money on goods the poorer people manufacture. So the wealth at the top “trickles down.”
We’re supposed to see a diagram here of the shape of society as roughly like a diamond, viewed from the side, with most people in the middle class. And as the rich get richer, the top of the diagram moves up, pulling lower ranks up.
But actually the bottom of society is not moving up. So as the top goes up, society just gets longer and more unequal. That’s what’s happening.
Trickle down theory is fairy dust. (But it drives a lot of government policy.) To a large extent, very wealthy people invest in things that bring no benefit for the working poor: paintings, jewelry, real estate.
What’s the alternative? Well there’s a new idea called the Winner Take All theory which says in this competitive society people have an intense drive to win. And the prize for rising to the top is that you grab it all – or a huge percentage – then the losers divide up what’s left.
A winner-take-all society has a different shape. A tall pyramid.
That shape is more accurate, because currently the top 1% of our population actually owns 40% of the wealth. This means a sharp inequality.
So are the rich getting richer at the expense of the poor?
The Left is naturally opposed to laissez faire (free market) economics because it produces big wealth only for some people. What it always produces is inequality. The Left doesn’t like hierarchy (inequality) anyway, and the inequality creates great pain for the people who are left behind. The Right actually encourages social inequality. Some of them say it makes the economy run better.
There’s a statistic which population experts now use called the Gini Index. It shows how unequal a society is. It runs on a scale from 0 (perfect equality) to 1 (perfect inequality) and in the U.S. it has been increasing steadily, and it stood at 0.47 in 2011. If the Gini Index gets high, it predicts social unrest.
And there’s some new scientific research comparing nations. It shows that the more social inequality in a country, the shorter the life expectancies. For everybody. Naturally, the Right is vigorously ignoring that research. But it’s your health. That research is the single biggest threat to free market economics. More here.
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Keeping the pilot light on
Since the late 1970s and Ronald Reagan’s inauguration we’ve seen supply side economics, deregulation, an explosive growth of free markets, the sapping of union power.
The Left’s objective is still vague. Liberalism gets its spirit from equity, justice, and collective action. That spirit is all but broken, witness the precipitous inequalities in America, witness the virtual disappearance from our language of terms like “the common good,” witness unions at their all-time low memberships, witness the Supreme Court retreating from enforcement of anti-trust laws.
During the Bush administration, the Left’s tolerance melted into passivity. Energetic leftists of the 1960s, once in the media spotlight, grew wealthy and cautious.
Not just that. Any spirit on the left was also broken down into fractions. Watch a peace march, a good place to find leftists, and you saw a sea of different banners, for as many different causes. All of them good. But there is no center.
The left reached another crisis point. Since then, an agitated search for what’s to blame.
It’s partly the money. The left needs to find something else besides wealth. Today, everybody in America sleeps safe under a star, the idea that one day, they will be rich. Americans navigate their whole lives by that star. So commercialism dominates everything – and it has saturated even the left. Commercialism everywhere. Lefties worry about their credit score and worry about security.
Sold out.
This President has abandoned any serious atteempts at facing up to the banks. It looks like loss of nerve.
Which way to turn?
After Obama took the presidency, the first order of business was the economic collapse – undoing the money mess created by the Bush administration. Rebuilding our infrastructure. Rebuilding our schools. – But all of those had the tone of cleaning up somebody’s old wreckage. Fixing health care. Job by necessary job. But all that is not ‘forward.’
It’s partly that Liberals have lost their ‘forward.’ This is as deep a crisis as our submission to Wall Street. It is a collective loss of nerve.
There’s no fallen flag to grab up in the Liberal movement because there is no longer any flag.
Congress has no unified ‘forward.’ The American people have no unified forward. Once, we had the Occupy Movement. It suffered from lack of any forward agenda, and caved to police action. So now liberals talk about their frightening college debts or get fearful about retirement. Since we have no more effective restriction on exorbitant interest rates, they sap anybody’s courage.
The heart of the matter is that there is no new ideology.
There’s few leftist commentators, talk show liberals who churn the air like windmills.
But no coherent new theory, to unify.
Except here.
Only on this blog can you read whetherexploitation is ethical. Only here can you read about the contradiction between the American workplace – undemocratic and authoritarian – and the surrounding democracy. Read why social inequality is a killer (there’s new scientific evidence). About the long shadow of materialism. On widening corruption. Here the zero-sum concept is explained. Read how, in the long run, exorbitant greed may threaten democracyitself. A brief summary of opposing Right and Left philosophies here andhere.
Opinion is power.
But every year for the last 30 years, debate has faded; the left almost became mute. Liberals have avoided theory confrontations. Not in Congress, not at beer parties.
Every time that happened, the left’s light dimmed.
Left ideology. This blog is where we keep the pilot light on.
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How the Right dominates
People are fascinated by conflict.
The Right wing is energetically shoving blame for the national economy onto the Left. One of the right’s bullies, Bill O’Reilly, dealt out his thrashings on t.v.
Right wing commentators run an ostentatious tyranny. It is the source of the public’s fascination with the Right.
The Left considers itself too nice for this bruiser style. The Left simply doesn’t have head-crushers like Limbaugh and O’Reilly. There is no Fox News on the left, and right-wing radio shows vastly outnumber left-wing. The Left thinks that being morally good, maybe showing a tolerant sense of humor, should be enough to prevail.
It is not, and the Left has no real idea how to push back. So the Left, with its natural compassion, its collective action, its trust, its usury laws, are all being put through the meat grinder.
Surviving a reactionary
One look at this man and you know you’re dead: here.
Civil war looming within the Democratic party?
The Democratic party has lost its soul. Here’s why.
If our children are being raised on Ayn Rand, we’re in trouble
– here’swhy.
Left Blog
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