The real cost of income inequality
This citizen listened to NPR’s, The Diane Rehm Show, April 20, with Diane and Joseph Stiglitz, the Noble Prize winning economist, discussing income inequality. But at no point did either zero in on why income inequality exists in our country and at such unprecedented levels.
Income inequality exists in our country because it is the inevitable result of an economic system designed to foster income inequality in order to succeed. Because when short term profit, extraction and consumption, coupled with long term unemployment, are the fundamental necessities of a Somali “free rape-it” economic system, long term income, investment, conservation and employment will be eliminated for it to succeed.
This is why technology is used by management to eliminate labor, and why the internet furthers the erosion of our local economies, because every product or service we purchase on the “net” is one more product or service we could’ve purchased locally. In both cases these technologies are eliminating local economies and employment for corporate monopoly.
Therefore, to suggest the Morlock Washington elite are interested in shrinking Eloi income inequality is laughable, because their corporate political success depends on furthering income inequality, because America’s large corporations and politicians profit from this Somali economic model.
Diane and Mr. Stiglitz discussed a political solution for this inequity in 2016 and this would’ve been credible if we had a reliable political system and secure voting, but we don’t, because the corporations own every party, candidate and voting machine in this country.
Further, when Hillary Clinton has taken $1 billion from Wall St. over the past decade, who do you think she’ll answer to? We already know where the Republican neoliberal and libertarian candidate’s stand—in every corporate boardroom in America—so whatever any of these politicians may say in 2016 about income inequality; it’ll be lip-service.
The corporate political elite in Washington have wed themselves to an economic model and political system designed to destroy our nation, because when a country’s wealth is sequestered to a smaller and smaller percentage of the population, the larger public will suffer and perish from this disparity inevitably.
And there’s no way to avoid this outcome, because an economic model based on competition is founded on short term domination and confiscation, not long term cooperation and distribution. And so as costs steadily increase over time to garner the 1 percent a profit, the 99 percent will be pinched further to meet these costs until only the 1 percent can afford them. This is the real cost of income inequality from global outsourcing and offshoring.
For an economy based on increasing elite profit, not general welfare, must continually wrest more income from the majority through those costs to meet that profit, even if it means destroying that majority. And when you have infinite growth in a finite world the ecology will be destroyed by a capital model that must increasingly consume that world to profit corporately, not sustain humanly or conserve nationally.
This was Jimmy Carter’s eventual message, and so we are witnessing the final stages of unregulated laissez faire capitalism eat itself to death. This will be no feast for any nation as Marx foretold.
Consequently, the Federalist capital elite which formed the Constitution remains in control to this day, as Alexander Hamilton declared then, “All communities divide themselves into the few and the many. The first are the rich and well born, the other the mass of the people…The people are turbulent and changing; they seldom judge or determine right. Give therefore to the first a distinct permanent share in the government. They will check the unsteadiness of the second, and…will ever maintain good government.” Indeed.