Economic Demise and Public Unrest Predicted (But Don’t Get Your Hopes Up)


Comment: People in the USA believe that they are on the home stretch to collapse. But there is no way to estimate just when the crisis will hit.

As always, recall that people who are not happy with their societies are expressing HOPE when they say that their societies might go into crisis soon. A crisis would be an improvement.

Therefore take the following pro-statist prediction of doom with a bucket of salt:

The global elite think they’re sitting pretty. How wrong they are.

Democrats keep telling themselves that Hillary Clinton “really” won the 2016 election (or would have, had it not been for interference by Vladimir Putin and James Comey). Republicans keep patting themselves on the back about how much power they now wield at all levels of government. And centrists throughout the West are breathing a sigh of relief about Emmanuel Macron’s likely victory over the National Front’s Marine Le Pen in the second round of the French presidential election on May 7.

You can almost hear the sentiments echoing down the corridors of (political and economic) power on both sides of the Atlantic: “There’s nothing to worry about. Everything’s fine. No need for serious soul searching or changes of direction. Sure, populism’s a nuisance. But we’re keeping it at bay. We just need to stay the course, fiddle around the edges a little bit, and certainly not give an inch to the racists and xenophobes who keep making trouble. We know how the world works, and we can handle the necessary fine tuning of the meritocracy. We got this.”

And why wouldn’t they think this way? They are themselves the greatest beneficiaries of the global meritocracy — and that very fact serves to validate its worth. They live in or near urban centers that are booming with jobs in tech, finance, media, and other fields that draw on the expertise they acquired in their educations at the greatest universities in the world. They work hard and are rewarded with high salaries, frequent travel, nice cars, and cutting-edge gadgets. It’s fun, anxious, thrilling — an intoxicating mix of brutal asceticism and ecstatic hedonism.

The problem is that growing numbers of people — here in America, in the U.K., in France, and beyond — don’t see it like this at all. Or rather, they only see it from the outside, a position from which it looks very different. What they see is a system that is fundamentally unjust, rigged, and shot through with corruption and self-dealing.

They see Marissa Meyer, the CEO of Yahoo, taking home a cool $186 million in stock (on top of many millions in additional salary and bonuses) for five years of “largely unsuccessful” work.

They see Henrique De Castro, who worked briefly for Meyer at Yahoo, pulling $109 million in compensation for a disastrous 15 months on the job.

They see Roger Ailes and Bill O’Reilly getting fired from Fox News for sexually harassing a parade of women over the years — and taking home tens of millions of dollars each in severance.

They see former Democratic President Barack Obama sharing a $65 million book advance with his wife, earning $400,000 for a single speech scheduled to be delivered in the fall at investment bank Cantor Fitzgerald, and gallivanting around the globe with David Geffen, Bruce Springsteen, Tom Hanks, Oprah Winfrey, and Bono.

In Washington, they see a president who promised to act as the people’s voice appointing a long list of millionaires and billionaires to top positions. They see the White House and Congress struggling to pass a health-care bill that will leave millions more without insurance coverage at a time when a majority of Americans and a plurality of Republicans favor a single-payer system that would cover all. They see a president proposing to drastically cut corporate and individual taxes (including the elimination of inheritance taxes, which will benefit only the richest of the rich) when polls show that the top frustration with the tax system is that corporations and the wealthy don’t pay their fair share. They see a unified push to cut government programs at a moment when polls show a growing share of the public prefers bigger government.

Why Republican moderates are not to be trusted on health care
To those on the center-left who are disgusted by the plutocratic antics of the Republican Party but dismiss the significance of Obama cashing in on his time in the White House by enriching himself and hobnobbing with the most famous people on the planet, I’d only note that “optics” (also known as “appearances”) matter in politics — perhaps more than anything else.

And this is how things appear at this historical moment: The world is run by an international elite that lives in a rarified world of seemingly boundless power and luxury. Though the members of this elite consider their own power and luxury to be completely legitimate, it is not. It is the product of a system that’s rigged to benefit them while everybody else languishes in declining small cities and provincial towns, eking out a dreary existence, toiling away their lives in menial service-sector jobs or scraping by on disability checks while seeking out a modicum of fleeting joy in the dumbstruck haze of a painkiller high.

Unless something fundamental changes, the gap separating these worlds will only increase, economically, culturally, and psychologically. Republicans show every sign of continuing to pursue policies that actively make the economic problems worse. Centrist Democrats, meanwhile, appear to be both unwilling to propose a sweeping critique of the outlook and policies that got us to this point in the first place and inclined to dismiss the populist anger building all around us as an expression of atavistic prejudice.

This cannot last. At this rate, make no mistake: The global elite will fall.

http://theweek.com/articles/694923/global-elite-are-headed-fall-dont-even-know

Advertisements
This entry was posted in political economy. Bookmark the permalink.

2 Responses to Economic Demise and Public Unrest Predicted (But Don’t Get Your Hopes Up)

  1. BMan says:

    I gave up predicting “when” it will happen. With every breaking wind, I would think, this is the straw that breaks the back, only to find out there is another avenue of wealth to steal.

    This is certain: they will not crash it until they remove as much of the wealth as possible. Look for 401K’s, retirement packages, and pensions to go… THEN she goes down.

    Then it is Katy bar the door.

    • Pensions are a big trigger issue.

      If any big USA city has a pension crisis, it could explode.

      Of course, the fat cats of the USA will defend their loot, but the world could get disrupted by a black swan. I like to think the black swan will come from Asia, but in fact I have no rational way of justifying that speculation.

Comments are closed.