The Source of our Rage: The Ruling Elite Is Protected from the Consequences of its Dominance

There are many sources of rage: injustice, the destruction of truth, powerlessness. But if we had to identify the one key source of non-elite rage that cuts across all age, ethnicity, gender and regional boundaries, it is this: The Ruling Elite is protected from the destructive consequences of its predatory dominance.

We see this reality across the entire political, social and economic landscape.

If I had to pick one chart that illustrates the widening divide between the Ruling Elite and the non-elites, it is this chart of wages as a share of the nation’s output (GDP): 46 years of relentless decline, interrupted by gushing fountains of credit and asset bubbles that enriched the few while leaving the economic landscape of the many in ruins.

The Ruling Elite once had an obligation to uphold the social contract as a responsibility that came with their vast privilege, power and wealth (i.e. noblesse oblige).

America’s Ruling Elite has transmogrified into an incestuous self-serving few unapologetically plundering the many. In their hubris-soaked arrogance, their right to rule is unquestioningly based on their moral and intellectual superiority to “the little people” they loot with abandon.

Rather than feel a responsibility to the nation, America’s Elite views the status quo as a free pass to self-aggrandizement.

Much has changed in America in the past 46 years. Not only have wages and salaries declined as a share of “economic growth,” but the wealth that has been generated has flowed to the top of the wealth/power pyramid (see chart below).

Social mobility has also declined drastically: Restoring America’s Economic Mobility, as has trust in government and key institutions.

As Frank Buckley, the author of The Way Back: Restoring the Promise of America observed:

“In a corrupt country, trust is a rare commodity. That’s America today. Only 19 percent of Americans say they trust the government most of the time, down from 73 percent in 1958 according to the Pew Research Center.”

The top .01% has seen its share of the household wealth triple from 7% to 22% in the past four decades, while the share of the nation’s wealth owned by the bottom 90% has plummeted from 36% to 23%.

As I described in America’s Ruling Elite Has Failed and Deserves to Be Fired and Now That the Presidential-Election Side Show Is Finally Ending…., the economy is rapidly undergoing structural changes that tend to reward the top 5% class of technocrats and managers and the top .1% with millions in mobile capital, while leaving the bottom 95% in the dust.

Rather than address this rising inequality directly and honestly, the Ruling Elite has parroted propaganda and policies that protect their gains while obfuscating the reality that most American households have been losing ground for decades, a decline that has been masked by replacing real income with rising debt.

The ceaseless parroting of the Ruling Elite and the Mainstream Media that prosperity has been rising for everyone is nothing less than the destruction of truth. This propaganda has one purpose: to mask the inequality and injustice built into the American status quo.

The rapid concentration of wealth has also concentrated political power in the hands of a few who seamlessly combine public and private modes of power.

This wealth and power protects the Ruling Elite from the perverse consequences of their dominance. Their precious offspring rarely serve at the point of the American military’s spear, they never lose their jobs or income when corporations shift production (and R&D, etc.) overseas, and they are never replaced with illegal immigrants paid under the table.

Rather, the Ruling Elite is pleased to pay immigrants a pittance to care for their children, clean their luxe homes, walk their dogs, etc.

This is why we’re enraged: we bear the consequences of the Ruling Elite’s dominance. The system is rigged to benefit the few, who use their wealth and power to protect themselves from the destructive consequences of their self-serving dominance.

This rage is as yet inchoate, sensed but not yet understood as the inevitable result of a broken system and a predatory Elite that exploits the system to maximize their private gain by any means available.

ELECTION NOTE: As I write this Tuesday evening, it appears Donald Trump may win the presidency. For those who cannot understand how anyone could possibly vote for Trump, please read the above essay again and ponder what people were voting against by voting for Trump.

They may well have been voting against the corrupt, self-serving status quo rather than voting for the individual Donald Trump.

There are very few opportunities for powerless non-elites to register their disapproval of the nation’s Ruling Elite and the corrupt status quo. Voting for an outsider in a national election is one such rare opportunity.

As I noted in October, The Ruling Elite Has Lost the Consent of the Governed (October 20, 2016).

If you still don’t understand how Trump could win, please read the above essay as many times as is necessary for you to get it: the status quo of corrupt self-serving insiders generates injustice and inequality as its only possible output.

Facebooktwittergoogle_plusredditpinterestlinkedinmail
This entry was posted in General and tagged , , . Bookmark the permalink.
  • justquitnow

    Maybe Trump hasn’t been a politician but we didn’t elect an “outsider” we just put the GOP in complete power.

  • WillDippel

    Here is an article that looks at the relationship between wealth and ethnicity/race in the United States:

    http://viableopposition.blogspot.ca/2016/08/the-growing-ethnicracial-wealth-gap.html

    The notable presence of public policies that exacerbate racial and economic inequality and the lack of will by Washington to change the system mean that the ethnic/racial wealth gap is becoming more firmly entrenched in society.

    • diogenes

      This is a bogus distraction. The fundamental economic watersheds in America are not racial or ethnic — they are ECONOMIC, dummy. 0.1% (one in a thousand) own 28% of America, the rest of the 1% own another 23% — 51% total, a controlling interest. Not only do they entirely outweigh the entire other 99%, they outweigh black, white, native american, asian, etc. The most significant ethnic distinction about the composition of the 0.1% is that over 40% are jewish (that’s according to the jewish publication Forward, and it was bragging), whereas Jews are only 2% of the population at large — that’s an overrepresentation of 2000%. But don’t you dare say so — unless you’re a jewish publication bragging — because, if you do, “you’re an anti-semite”. And I’ll bet you $20, without looking, that this statistic isn’t mentioned in the article linked.

  • Nov 10, 2016 The End of the Federal Reserve hegemony – 2017?

    The ‘creature from Jekyll island’ (the aptly named organisation “Federal Reserve Bank” is neither federal, nor a full reserve as such!) is on its last legs as it struggles to retain the US dollar hegemony. Why worry about the $19 trillion debt level, the highest in the world, when you’ve got the dollar printing machine?

    https://youtu.be/1JExTWifdKc

    • Shameer Mulji

      End of the Federal Reserve hegemony can’t come soon enough.

      • I agree with you 100% Shameer Mulji. They have murdered enough people around the world already it is way past time for a firing line and a goodbye once and for all for all Banksters.

  • Nov. 9, 2016 James O’Keefe: Main Stream Media Is Now Powerless

    As a direct result of this political cycle, James O’Keefe reflects on the power shift the United States has just experienced with regard to the role and efficacy of the legacy media.

    https://youtu.be/sAUPZZVwEaY

  • The underlying problem comes down to two issues. The first issue is that throughout history returns on capital have been higher than economic growth (see Piketty), and that as a consequence wealth has become increasingly concentrated. This trend cannot continue as it would collapse the financial and economic system. The second issue is that the financial system is backed by public guarantees that enabled bankers to pocket profits at the expense of the public at large. These issues have not been addressed until now so that a new financial crisis is in the making.

    The reason why we have low interest rates and may see negative interest rates in the future is that capital cannot grow faster than the economy. This resulted in a faltering demand. The solution was at first to use lower interest rates to allow people to go deeper into debt, but that will not work in the future. The solution is to make people with excess capital invest or spend it so that others have a job and can pay off their debts.

    The solution is twofold. The first part is to charge a tax on cash so that it is attractive to lend out money at negative interest rates. Interest rates should go negative because there is an excess of capital and a lack of investment opportunities. The second part is to set the maximum interest rates on loans to zero. Interest is also a reward for risk, so a maximum interest rate would curb risky lending, and banks don’t have to be rescued when things go wrong. That would effectively end the situation where banks make profits at the expense of the public at large.

    I have named this idea “Natural Money” in honour of Silvio Gesell who first proposed a tax on money. It may be the best solution in the current economic situation. Others may be more government spending and higher inflation, but I am not in favour of those.

    • diogenes

      Banking is legalized counterfeiting, top to bottom. That’s what “fractional banking” is: FRAUD. The solution is HANG THE BANKERS.

      • And burn the witches too.

        There was very little debt and there were very few banks until Capitalism came along. Banking and debts helped to increase trade and production to unprecedented levels by creating money that doesn’t exist to start businesses that don’t yet exist that will make products which will be bought by the people those businesses will hire with this newly created money. Debt is the basis of the capitalist economy.