political economy

nytimes.com
Opinion | Stop Pretending You’re Not Rich
Forget the 1 percent for a moment. It’s the top fifth that rules.
By Richard V. Reeves

When I was growing up, my mother would sometimes threaten my brother and me with elocution lessons. It is no secret that how you talk matters a lot in a class-saturated society like the United Kingdom. Peterborough, our increasingly diverse hometown, was prosperous enough, but not upscale. Six in 10 of the city’s residents voted for Brexit — a useful inverse poshness indicator. (In Thursday’s general election, Peterborough returned a Labour MP for the first time since 2001.)

Our mother, from a rural working-class background herself, wanted us to be able to rise up the class ladder, unencumbered by the wrong accent. The elocution lessons never materialized, but we did have to attend ballroom dancing lessons on Saturday mornings. She didn’t want us to put a foot wrong there, either.

As it turned out, my brother and I did just fine, in no small part because of the stable, loving, middle-class home in which we were raised. Any lingering working-class traces in my own accent were wiped away by three disinfectant years at Oxford. My wife claims they resurface when I drink, but she doesn’t know what she’s talking about — she’s American.

I always found the class consciousness of Britain depressing. It is one of the reasons we brought our British-born sons to America. Here, class is quaint, something to observe in wonder through imported TV shows like “Downton Abbey” or “The Crown.”

So imagine my horror at discovering that the United States is more calcified by class than Britain, especially toward the top. The big difference is that most of the people on the highest rung in America are in denial about their privilege. The American myth of meritocracy allows them to attribute their position to their brilliance and diligence, rather than to luck or a rigged system. At least posh people in England have the decency to feel guilty.

In Britain, it is politically impossible to be prime minister and send your children to the equivalent of a private high school. Even Old Etonian David Cameron couldn’t do it. In the United States, the most liberal politician can pay for a lavish education in the private sector. Some of my most progressive friends send their children to $30,000-a-year high schools. The surprise is not that they do it. It is that they do it without so much as a murmur of moral disquiet.

Beneath a veneer of classlessness, the American class reproduction machine operates with ruthless efficiency. In particular, the upper middle class is solidifying. This favored fifth at the top of the income distribution, with an average annual household income of $200,000, has been separating from the 80 percent below. Collectively, this top fifth has seen a $4 trillion-plus increase in pretax income since 1979, compared to just over $3 trillion for everyone else. Some of those gains went to the top 1 percent. But most went to the 19 percent just beneath them.

The rhetoric of “We are the 99 percent” has in fact been dangerously self-serving, allowing people with healthy six-figure incomes to convince themselves that they are somehow in the same economic boat as ordinary Americans, and that it is just the so-called super rich who are to blame for inequality.

Politicians and policy wonks worry about the persistence of poverty across generations, but affluence is inherited more strongly. Most disturbing, we now know how firmly class positions are being transmitted across generations. Most of the children born into households in the top 20 percent will stay there or drop only as far as the next quintile. As Gary Solon, one of the leading scholars of social mobility, put it recently, “Rather than a poverty trap, there seems instead to be more stickiness at the other end: a ‘wealth trap,’ if you will.”

There’s a kind of class double-think going on here. On the one hand, upper-middle-class Americans believe they are operating in a meritocracy (a belief that allows them to feel entitled to their winnings); on the other hand, they constantly engage in antimeritocratic behavior in order to give their own children a leg up. To the extent that there is any ethical deliberation, it usually results in a justification along the lines of “Well, maybe it’s wrong, but everyone’s doing it.”

(Continue Reading)

youtube

Alan Watts and Terence McKenna: “There is no Authority but Yourself”

A more realistic and thoroughgoing Marxian approach to the question of imperialism in our age, drawing on the fundamental parameters of classical imperialism theory while taking into consideration changing historical conditions, needs to center on capital accumulation. Here the crucial fact is the shift of manufacturing industry in recent decades from the global North to the global South. In 1980 the share of world industrial employment of developing countries had risen to 52 percent; by 2012 this had increased to 83 percent. […] What needs to be explained, however, is that despite this tectonic shift of industry to the periphery, the basic conditions of center and periphery continue in most cases to hold. This is manifested in the seeming inability of countries in the global South, taken as a whole—and leaving out Greater China (including Hong Kong, Macao, and Taiwan Province)—to catch up economically with the nations at the center of the system.

[…]

Economically, the outward movement of generalized-monopoly capitalism is propelled primarily by the competitive struggle for low cost position via global sourcing of labor and increasingly scarce raw materials, and the monopoly rents that all of this generates. The result, as we have seen, is enormous cost savings in production for individual monopolistic enterprises, generating widening profit margins, which, coupled with more traditional forms of tribute, leads to a continual inflow of imperial rent to the center of the system. The full extent of extracted surplus is disguised by the enormous complexity of global value chains, exchange ratios, hidden accounts, and above all by the nature of capitalist GDP accounting itself.

[…]

The phase of global monopoly-finance capital, tied to the globalization of production and the systematization of imperial rent, has generated a financial oligarchy and a return to dynastic wealth, mostly in the core nations, confronting an increasingly generalized (but also highly segmented) working class worldwide. The leading section of the capitalist class in the core countries now consists of what could be called global rentiers, dependent on the growth of global monopoly-finance capital, and its increasing concentration and centralization. The reproduction of this new imperialist system, as Amin explains in Capitalism in the Age of Globalization, rests on the perpetuation of five monopolies: (1) technological monopoly; (2) financial control of worldwide markets; (3) monopolistic access to the planet’s natural resources; (4) media and communication monopolies; and (5) monopolies over weapons of mass destruction. Behind all of this lie the giant monopolistic firms themselves, with the revenue of the top 500 global private firms currently equal to about 30 percent of world revenue, funneled primarily through the centers of the capitalist system and the core financial markets. As Boron points out with respect to the world’s 200 largest multinational corporations, “96 percent…have their headquarters in only eight countries, are legally registered as incorporated companies of eight countries; and their boards of directors sit in eight countries of metropolitan capital. Less than 2 percent of their boards of directors’ members are non-nationals…. Their reach is global, but their property and their owners have a clear national base.”

[…]

The responsibility of the left under these circumstances is to confront, in Lenin’s terms, the “contradictions, conflicts, and convulsions—not only economical, but also political, national, etc.”—that increasingly characterize our era. This means fostering a more “audacious” global movement from below in which the key challenge will be the dismantling of imperialism, understood as the entire basis of capitalism in our time—with the object of creating a more horizontal, egalitarian, peaceful, and sustainable social-metabolic order controlled by the associated producers.

John Bellamy Foster, “The New Imperialism of Globalized Monopoly-Finance Capital” (2015)

I just think it’s important to remind everyone now and then that Albert Einstein was a communist which is good because communism is good.

Ps source is in the upper left corner of the image, I recommend reading it. It’s good.