E It Is 1% Capitalism That Is The Problem

It is NOT the “best economy ever” acquired at the cost of keeping unions weak and the environment degraded, it is not Trumpism that isn’t working for working people. Are there not people who want to work, and cannot find a job? Due to the peculiar statistics about employment and unemployment, we don’t even know how many millions of them there are.

No, it is not Capitalism that is creating such horrible conditions as the one in which people in the upper and middle classes die by overwork, and the poor die horrible deaths for lack of work.

It is the 1% Capitalism.

It is economic inequality that is the rot at the core of our lives.

I should qualify that. In our heart of hearts, we common mortals know that. Even card-carrying members of the One Percenters, from Warren Buffet down, know that the problem is economic inequality.

It is the rear guard composed of economists who do NOT know that.

I should qualify this, too. The economics profession bifurcates. Some say that inequality is a Law of Nature about which there is nothing to do; some even say that inequality is GOOD for us, otherwise, we would not have—what? The “economy”? Many do not go that far but certainly, maintain that inequality is good for GROWTH.

No, I should qualify this too. Even card-carrying members of the economics profession know that inequality is the rot at the core of 1% Capitalism. Inequality is the tree; 1% Capitalism is the fruit.

Indeed, the literature produced by economists on this topic uses untold terabytes of data. I feel the pain of computers groaning under that weight.

Trouble is, this brave phalanx of economists searches for inequality EVERYWHERE—BUT IN THE ECONOMY.

Thus, the spread of pixie dust that obfuscates the reality. Some economists, aided and abetted by sociologists, even blame either the character or the intelligence of the 99 Percenters.

Enough already. When will economists look into the economy to find the sources of inequality?

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Disclosure: Carmine Gorga is president of The Somist Institute and a former Fulbright Scholar.

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Gary Anderson 5 months ago Contributor's comment

Great article, and thoughtful. Certainly we are failing where China is succeeding. That communists can run capitalism better than the capitalists is certainly disconcerting. But it shows the weakness of letting the 1 percent write all the laws. Belt and Road is proof of what I say: talkmarkets.com/.../belt-and-road-the-sri-lanka-china-port

Doug Morris 5 months ago Member's comment

Couldn't have said it better.