Covid State of Things

October 9, 2021 // 9 Comments »

It is important to stop every once in awhile and sum up where things are, to lay down some breadcrumbs to refer back to when someone asks “How did we end up here?”

In many ways, the story is the same story. The message of 9/11 was give up freedom for safety, trust the government, and treat your neighbors as potential threats. Now 20 years later, you realize you went along with it because you were scared. The message of Covid is to give up more freedom for safety, trust the government, and treat your neighbors as potential threats. Fear is infectious and now we’re here.

As a young David Petraeus asked early in the Iraq War, tell me how this ends. What is the Covid endgame? Victory was once defined as making testing available to all. Then lock downs to free up ventilators. Then vaccinations available to all. No one knows anymore what the goal is but some sort of return-to-normal with 100 percent vaccination and 0 percent infection is as real as a democratic Afghanistan once seemed.

What started as “two weeks to flatten the curve” has metastasized into 18 months of lockdowns, masks mandates, and vax passports. Most of what has already happened was dismissed as conspiracy theories less than a year ago. Our society — work, education, shopping, entertainment, socialization — has been fundamentally changed by decree, emergency powers taken by government not given by the people. Each of the 50 states is its own world now, with its own rules.

We are still somewhat free to move from one to another, though flight may soon be only for the vaccinated. Hawaii has previously closed its borders, then opened them only to people who vaxxed or tested. It became the first state to prohibit Americans from visiting a part of America. The state is looking at publishing the names of those who should be in quarantine so that their neighbors can inform on them. Hawaii also became the first state to arrest American citizens for traveling inside America. Two men are currently locked up for trying to enter the state unvaxxed and untested. Their sentence was 10 days in jail, literal quarantine at gunpoint. The understood right of Americans to travel freely among the states has stood the tests of time, war, and economic crisis, only to stumble on a virus. Such horizontal federalism threatens to stop the Constitution at certain state borders.

Hawaii is just one state. However, the new Biden travel regulations will soon require American citizens returning from abroad to undergo some sort of vax and testing regime. For the first time, Americans will need to demonstrate something other than citizenship to exercise the right to return to their own country. Biden’s plan tasks the airlines with determining overseas who can get on a plane to America, citizen or not. That move is a critical departure. The right to travel has been long understood to be a part of the 5A liberty of which the citizen cannot be deprived without due process. Existing quarantine laws (some of which date, ironically, to leprosy scares from when Hawaii was a U.S. territory) required the decision to admit a (sick) American to be made at a U.S. port of entry by a U.S. government official, assuring some modicum of due process. By out sourcing enforcement to an airline clerk in Paris, as with outsourcing censorship to Twitter, Biden disposes of Constitutional protections.

Those who ask to see the science behind decrees (why 50 percent capacity at bars and not 63 percent or 41?) are canceled, shunned, and mocked. How was it determined six feet of social distancing, not four or 12, is best? No one seems to know. And why doesn’t the size of the room and its airflow matter? Can’t talk about that. Oppose some new rule however absurd and be labeled a child killer by your neighbors. The acts of violence connected with masks and duct taping passengers on airplanes are considered ends that justify the means and are growing. One progressive voice advocates treating the unvaccinated last at the hospital (the writer, a gay man, isn’t old enough to remember when people demanded gays not get AIDS treatment because they chose sodomy.) Are masks effective? It doesn’t matter, because it was never just about how effective masks are against the virus. What matters are masks are very effective as a entry-level test of compliance, then later as a symbol, you know, like armbands.

Given how what were dismissed as conspiracy theories only months ago are now policy, it is tempting to take a self-righteous victory lap. We were right. But all that has been finally made clear is the what. The most important question is always why. Cui bono, who benefits?

The Democrats clearly surfed Covid fear to beat Trump. But Biden shows no real interest in following through, assuming the role of tyrant, squeezing Covid for every grand plan he has on his list, as Bush did with playing 9/11 into invading everywhere. Joe’s crimes against liberty add up to something significant, but they have been implemented haphazardly. He never created, for example, a massive overgrinding Covid Security Agency like TSA. Biden and the Dems just wanted to ride a successful vax summer into the upcoming midterms. Other small thinkers like Andrew Cuomo, who wanted to use his new public image as the Trump Covid Slayer into a White House bid were taken care of as needed, much like Bernie was disappeared.

The flow has all been one direction, more control and less liberty. If the threat is so obvious, why has this needed to be so coercive? So here comes the theory we’ll look back on to judge in full: there are powerful forces at work, by design or by luck when a door opened. Covid has not been about small political moves, it has always been about massive societal change.

Education, the absolute only route for advancement out of the 99 percent (albeit not guaranteed) ceased to exist for many, who either stopped attending or merely suffered through thrown together online “classes.” The average IQ of American children fell 22 points during the pandemic and suicide rates exploded. As the pandemic took hold, more than a million children did not enroll in school. Many of them were the most vulnerable: five-year-olds in low-income neighborhoods. Think lack of diversity is a problem? Try ignorance.

Many more were among those tricked into joining Darwin’s club by refusing vaccinations for the dumbest reasons. Large numbers of blacks were convinced the Covid vaccine was a massive medical experiment with them as the guinea pigs (70 percent of black New Yorkers and over half of Latinos aren’t vaxxed; BLM plans an “uprising” against vax mandates) Rural whites were convinced the vaccines contain tracking microchips or were otherwise toxic. Liberals were blunted by Kamala Harris’ claim she would never trust a vaccine developed under Trump. Large swatches of the less useful in society (“deplorables”) are either dead, dying, or effectively mandated off the playing field forever. Someone else now controls who works, who gets educated, who lives.

Economic disparity and homelessness increased. If you are allowed to work (from home) you assume more of the costs of hiring you, like providing office space. More and more people are dependent on debt, with their noses held just above water (i.e., they can make minimum payments) by government money: stimulus checks, unemployment, the whole A-Z of benefits. What little the wealthy pay in taxes is recycled through the poor back upward. Pathetically in the world’s last superpower, the majority of young people now say YouTuber or influencer are their top job choices (true.) Start a GoFundMe and make one frozen burrito last two meals are their budget strategies (kidding, sort of.) The police don’t create safety as much as they manages the results of the inequality by force.

Can’t travel. Can’t work. Can’t go to school. Can’t make medical decisions. Can’t interact with neighbors (they’re dangerous.) Can’t walk into places without government permission (you’re dangerous.) Can’t depend on Constitutional protections in an emergency. Meanwhile the very wealthiest own spaceships. Naw, can’t be.

Copyright © 2020. All rights reserved. The views expressed here are solely those of the author(s) in their private capacity.

Posted in Democracy, Economy

Economic Disparity and COVID in New York City

August 23, 2020 // 2 Comments »

The separateness in this city, New York, and by extension much of the nation curled around it from America’s eastern edge, stands out. There are the hyper-wealthy and there are the multi-generational permanent poor. New York has more of each than any other city in America. In writing about them it has been easy to stress how far apart they live, even though the mansions of the Upper West Side are less than a mile from the crack dealers uptown. The rich don’t ride public transportation, they don’t send their kids to public schools, they shop and dine in very different places with private security to ensure everything stays just far enough apart to keep it all together.

But that misses the dependencies that until now have simply been a given in the ecosystem. The traditional view of this applied to New York has been the rich need the poor to exploit as cheap labor, textbook economic inequality. But with COVID as the spark, the bomb of economic inequality may soon Beruit America’s greatest city. Things are changing and New York needs to ask itself what it wants to be when it grows up.

It’s simple. New York is populated by the incredibly wealthy and the incredibly poor. The wealthy and the companies they work for pay most of the taxes. The poor do not work, or are underemployed, and consume most of the taxes through social programs. COVID is driving the wealthy and their offices out of the city. No one will be left to pay for the poor, who are stuck here, and the city will collapse in the transition. A classic failed state scenario. The new social contract.

New York City is home to 118 billionaires, more than any other American city. New York City is also home to nearly one million millionaires, more than any other city in the world. Among those millionaires some 8,865 are classified as “high net worth,” with more than $30 million each.

They pay the taxes. The top one percent of NYC taxpayers pay nearly 50 percent of all personal income taxes collected in New York. Personal income tax in the New York Metro-Region accounts for 59 percent of all revenues. Property taxes property taxes amount to more than billion dollars a year in revenue, about half of that from office space.

Now for how the other half lives. Below those wealthy people in every sense of the word city has the largest homeless population of any American metropolis, to include 114,000 children. The number of New Yorkers living below the poverty line is larger than the population of Philadelphia, and would be the country’s 7th largest city. More than 400,000 New Yorkers reside in public housing. Another 235,000 receive rent assistance. The Queensbridge Houses in Long Island City is North America’s largest housing project with 3,142 apartments.

That all costs a lot of money. The New York City Housing Authority says it needs $24 billion over the next decade just for vital repairs. That’s on top of a standing cost approaching $4 billion a year just to keep current housing operating. A lot of the money used to come from the Federal government before a multibillion-dollar decline in federal Section 9 funds. Today there is a shortfall and repairs, including lead removal, are being put off.

NYC also has a $34 billion budget for public schools, many of which function as distribution points for child food aid, medical care, day care, and a range of social services. Costs for unemployment payouts are up dramatically because of COVID. The budget for a city as complex as New York is huge, a mess of federal, state, and local funding sources, multi-year grants. It can be sliced and diced many ways, but the one that matters is the simplest: the people and companies who pay for New York’s poor are leaving. The city is already facing a $7.4 billion tax revenue hit from the initial effects of the coronavirus. The money is there; New York’s wealthiest individuals have increased their net worth by $44.9 billion during the pandemic. It’s just not here.

New York’s Governor Andrew Cuomo has seen a bit of the iceberg in the distance. He recently took to MSNBC to beg the city’s wealthy, who fled the coronavirus outbreak, to return. Cuomo said he was extremely worried about New York City weathering COVID if too many of the well-heeled taxpayers who fled decide there is no need to move back. “They are in their Hamptons homes, or Hudson Valley or Connecticut. I talk to them literally every day. I say. ‘When are you coming back? I’ll buy you a drink. I’ll cook. But they’re not coming back right now. And you know what else they’re thinking, if I stay there, they pay a lower income tax because they don’t pay the New York City surcharge. So, that would be a bad place if we had to go there.”

Included in the surcharge are not only NYC’s notoriously high taxes. The recent repeal of the federal allowance for state and local tax deductions (SALT) costs New York’s high earner tax filers some $15 billion in additional federal taxes annually.

“They don’t want to come back to the city,” Partnership for NYC President Kathryn Wylde warned. “It’s hard to move a company… but it’s much easier for individuals to move,” she said, noting that most offices plan to allow remote work indefinitely. “It’s a big concern that we’re going to lose more of our tax base then we’ve already lost.”

While overall only 5 percent of residents left the city as of May, in the city’s very wealthiest blocks residential population decreased by 40 percent or more. Across the city the higher-earning a neighborhood is, the more likely it is to have emptied out. Even the amount of trash collected in wealthy neighborhoods has dropped, a tell-tale sign no one is home. A real estate agent told me she estimates about a third of the apartments in my mid-range 300 unit building are empty. The ones for sale or rent attract few customers. She says it’s worse than post-9/11 because at least then the mood was “How do we get NYC back?” instead of now, when we just stand over the body and tsk tsk through our masks.

Enough New Yorkers are running toward the exits that it has shaken up the area’s housing market. Another real estate agent describes the frantic, hypercompetitive bidding in the nearby New Jersey suburbs as a “blood sport.” “We are seeing 20 offers on houses. We are seeing things going 30 percent over the asking price. It’s kind of insane.”

Fewer than one-tenth of Manhattan office workers have returned to the workplace a month after New York gave businesses the green light to return to the buildings they ran from in March. Having had several months to notice what not paying Manhattan office rents might do for their bottom line, large companies are virtually leaving. Despite the folky image of New York as a paradise of Mom and Pop restaurants and quaint shops, about 50 percent of those who pay most of the taxes work for large firms. More Fortune 500 companies, 71, have their headquarters in NYC, than any other city in America. They are keeping their employees working from home. Conde Nast, the publishing company and majority client in the signature new World Trade Center, is moving out. Since the coronavirus hit the office has largely been vacant anyway and the publisher has given no indication when workers will return.

It is no better in other sectors. A third of NYC’s small businesses are closing. On Madison Avenue in the ultra-rich 60s and 70s blocks most lux stores are closed. Retail foot traffic is down 85 percent from a year ago. The former customers are in Connecticut and the Hamptons, and so major art galleries have shuttered their city locations to open branches where the rich have relocated. Neiman Marcus is closing its flagship store in Hudson Yards. Tourism, once worth $70 billion a year, has fallen to near zero.

Meanwhile, progressive Mayor De Blasio has lost touch with his city. After years of failing to address economic inequality by simply throwing free money to the poor and limiting the ability of the police to protect them, and us, from rising crime, his COVID focus has been on shutting down schools and converting 139 luxury hotels to filthy homeless shelters. Alongside AOC, he has called for higher taxes and more federal funds, neither of which is coming. As for the wealthy who have paid for his social justice experiments to date, he says “We don’t make decisions based on a wealthy few. Some may be fair-weathered friends, but they will be replaced by others.”

What others? The concentration of major corporations once pulled talent to the city from across the globe; if you wanted to work for JP Morgan on Wall Street, you had to live here. That’s why NYC has skyscrapers; a lot of people once needed to live and especially work in the same place. Not any more. Technology and work-at-home changes have eliminated geography.

For the super wealthy, New York once topped the global list of desirable places to live based on four factors: wealth, investment, lifestyle and future. The first meant a desire to live among other wealthy people (we know where that’s headed), investment returns on real estate (not looking great, if you can even find a buyer), lifestyle (now destroyed with bars, restaurants, shopping, museums, and theatres closed indefinitely, coupled with rising crime) and…

The future. New York pre-COVID had the highest projected GDP growth of any city. Now we’re left with the question if COVID continues to hollow out the city, who will be left to pay for New York? As one commentator said, NYC risks leading America into becoming “Brazil with Nukes,” a future of constant political and social chaos, with a ruling class content to wall itself off from the greater society’s problems.

Copyright © 2020. All rights reserved. The views expressed here are solely those of the author(s) in their private capacity.

Posted in Democracy, Economy

Democrats Need to Stop Dry Humping the American Dream

May 13, 2019 // 2 Comments »

Economic inequality could be the signature issue for Democrats, one that speaks to purple voters, progressives, and maybe even some current Trump supporters. But the Dems do not seem to understand this. They need to decide if they are running as a party of governance, or just one of protest.

The Democrats are simultaneously throwing away an issue that resonates with progressives: economic inequality drives the search for scapegoats, the handmaiden of racism and hate. It has to be someone else’s fault I’m not doing well, because “they” get free food from the government or because of immigration policies which take my job away to give to “them.” Reduce economic inequality and you will reduce its societal ills is a very powerful anti-Trump message.

Using government money to reduce economic inequality goes against the ethos of many. But we have underestimated the societal disruption economic inequality created in America even as we mark a surge in deaths of despair from alcohol, suicide, and opioids, Robert Merry, writing in The American Conservative, calls our time “definitional” and wonders if the polity will hold. While we wait for everyone to lift themselves up by their bootstraps, we are missing what a volatile people we are, and have ceded our darkest tendencies to those who manipulate them for their own gain. We have become too violent and too well-armed and too goaded by social media to let the market sort this out.

Yet according to a CNN poll, 71% of Americans still rate the nation’s economic conditions favorably. Democrats must explain to Americans while things are not visibly bad on the surface, they are fundamentally not good for about 90% of us. Silliness like “Trump might still crash the market” or “Obama deserves the credit” simply encourage the short-term thinking that drives that CNN poll. Democrats need to explain the long term — the top 0.1% of households now hold about the same amount of wealth as the bottom 90%, and it is only getting worse. The share earned by the top 0.01% rose from 0.5% in 1973 to 3.3% in 2010. Something that threatens the financial life of 90% of us is a majority, not minority, problem.

Economic anxiety, more than what the left imagines as racial or cultural uneasiness, lies deep in the Heartland. Trump spoke to it in 2016 in the guise of promises to bring back coal mining’s glory days, raise tariffs, and slow immigration. Democrats should speak sense to that anxiety. The answer should be infrastructure.

Bernie Sanders loves infrastructure. Elizabeth Warren wants to rebuild the middle class. Biden’s liked it since he was VP. Infrastructure underlies other candidates’ plans for guaranteed incomes and assured jobs. It’s hard to find anyone against infrastructure. But no one has presented something sweeping, linear, and encompassing enough to reach at economic inequality. This isn’t about jobs per se – unemployment is at a near-50 year low – but about how we live. Earnings for non-management, private-sector workers reached their peak in 1973, the high water mark of the middle class out there in Youngstown and South Bend, left today dry heaving about what’s still called the American Dream.

The response comes from the last time economic inequality was this bad. America needs a new version of the 1935 Works Progress Administration (WPA) to build roads, bridges, and rail lines. A new WPA to create jobs people can do without significant training (not everyone can learn to code) and which pay living wages with real healthcare. Get echelons of people too used to chronic under-employment used to working for a living again. People working multiple jobs should not need food aid as many do today.

Almost every community in the United States got a new park, bridge, or school under the WPA, never mind airports, train stations, over 600,000 miles of roads, the Golden Gate Bridge, and Hoover Dam. Upgrading all that after 80 years to improve lives is a powerful message. Fight growing racism and hate with the self-respect work gives. You don’t need to create an enemy if you don’t see yourself as a victim.

The Democrats flirted with something like this recently, after Chuck Schumer and Nancy Pelosi met with Trump to “agree” on a $2 trillion infrastructure initiative. But peek behind the curtain and it’s just rhetoric. Despite knowing the House controls the budget, Pelosi almost immediately crossed her arms and declared it is Trump’s job, not hers, to figure out how to pay for it. The whole thing appears to be a cynical ploy to claim “Because Trump” we can’t have nice things.

Let how to pay for it become part of the Democratic platform. But the message better be more sophisticated than “were gonna tax the rich” because voters have been burned too many times, when “the rich” ended up being themselves paying higher taxes while the benefits fell to those below. The real rich, the 0.01%, seem to always have a loophole. This simplistic message is particularly dangerous in 2020 when many purple voters fear what progressives might do unfettered (Free medical care! No more college loans! A pony for everyone, just look under your seats!)

The thing is the money is already there, or at least has been when we wanted it to be. The WPA over eight years used about 6.7% of the era’s GDP to pull the nation out of a full-blown depression with some 20% unemployment. Currently the U.S. spends about 3.3% of its GDP on military.

But we don’t need that much. The U.S. spends $70 billion a year on food aid for 40 million Americans; repurpose some of that into living wages so people can earn their supper. During the last few wars, reconstruction and the building of infrastructure for Iraqis ate up $60.45 billion. The total for the same failures is more than $154 billion in Afghanistan, with the counter still running at about $9 billion a year on such projects. Only the most inane pundit could call such re-appropriation “anti-military” instead of pro-American; no much-needed bridge for you, Middleton, Ohio, we’re gonna build it in Helmand Province instead. The Obama-era American Recovery and Reinvestment Act, with its more modest goal of a short-term stimulus not intended to address inequality, spent $105.3 billion on infrastructure. Unemployment is obviously much lower today, and the goal – better jobs to nudge economic inequality – is different. Those numbers would make an accessible start.

Some 64% of Americans agreed with an earlier Trump proposal to improve U.S. infrastructure (75% support spending federal money to improve infrastructure when the idea was polled without Trump’s name.) Infrastructure spending also has bipartisan support: 78% of Republicans and 54% of Democrats agree with the need for more.

Democrats must tell voters what they’ll do, instead of just saying one day it may be Not Trump in the White House. Infrastructure has bipartisan support, will reach purple voters and progressives, and address fundamental problems. The impact of the WPA is long, a bright moment in our history when government raised people out of depression. Imagine the power of owning that legacy.

 
 
BONUS:

The Gini coefficient is a measurement of the income distribution within a country which shows the gap between the rich and the poor. Zero represents perfect equality (everyone has the same income) and one representing perfect inequality (one person earns the entire country’s income and everyone else has nothing.) A higher Gini coefficient number means greater inequality. America overall (GDP) earns money in the same range as most European nations, but has a Gini number more in line with Russia, China, and chunks of the third world. That is an unique situation globally. Here are some more hard numbers.

 
This article by Paul Krugman in the NYT goes to great lengths to create the spurious argument it is Republicans who despise the slack jawed yokels even more than the Democrats do.
 
Matt Bennett of the center-left group Third Way put it clearly “There are things about this economy that are very popular — low unemployment, a lot of jobs, there’s been some real wage increase. We attribute zero of that to good Trump policy. But he will claim credit. What that means is that [Democrats] need a very clear economic narrative that resonates deeply with the voters that we have to win, and we better not be caught up in our own blue bubble world.”

Copyright © 2020. All rights reserved. The views expressed here are solely those of the author(s) in their private capacity.

Posted in Democracy, Economy

Economics, POC, and Who You Should Support in 2020

March 23, 2019 // 15 Comments »

“See, in America we have this thing about ‘people of color.’ POC. I think you’re one.” I was explaining things American to a visitor. He was actually from Spain, so he was Spanish, not Hispanic. We were trying to figure out if he was a POC.
 

This was not some sort of intellectual Sudoku to pass the time; core Democratic strategy is based on this POC idea. The U.S. is poised to become a non-majority nation (“minority white”) within 25 years, meaning about half of us will be POC. The Democratic party believes these POC will vote for their candidates, while the Republican party will wither away cherry picking voters from the dwindling cesspool of deplorable whites.

My Spanish friend considered himself European. “So I guess I am white, yes?” he offered. But his skin was clearly a few shades darker than mine, though he pointed out that was only because my relatives came from the cold part of Europe and he came from the sunny part. But he spoke Spanish. At least in America my new friend qualified as a POC.

His Seamless order arrived. He said gracias to the delivery guy and handed over a one dollar tip. “What do I have in common with him?” the Spaniard asked, “except the rudimentary ability to speak the same language, same as 560 million others.” I rolled my eyes at the delivery guy, a universal gesture of “people don’t tip, right?” solidarity.

I noted to my friend as I pulled into traffic, headed back to his hotel, the Democrats in 2020 would likely have at least POC vice presidential candidate who “looked like him.” But the whole POC thing did not sit well. Why did Americans, he asked, want leaders who physically looked like them? “Didn’t it used to be wrong to judge people by the color of their skin,” he said. “Why is it OK to choose someone because they’re black but racist to choose someone because they aren’t?” I shared in 2019 a candidate named Richard who graduated from Columbia needed to go around saying “call me Beto” to lighten his whiteness.
 

Things really got confusing when I explained the Democratic strategy of it’s-our-turn when white people drop below 50% seemed to be based on the idea that a newly arrived Chinese migrant and a 70-year-old Mexican-American CEO and people from Trinidad, Ghana, and the Bronx with three different levels of education all had something inherently in common. And something inherently not in common with everyone tainted various shades of pink.

I mentioned reparations; until slavery was ended in the United States, human beings were legally considered capital, just like owning stocks and bonds today. But the Spaniard knew enough about history to wonder what reparations would be offered to the thousands of Chinese treated as animals to build the railroads, or the 8,000 Irish who died digging the New Basin Canal. Or the whole families of Jews living on the Lower East Side of New York who were forced to employ their children to make clothing for uptown “white” stores. Later in the same century, wages were “voluntarily” cut to the bone at factories in Ohio to save jobs which disappeared anyway after the owners wrung the last profits out.

The more we talked, the more it all seemed to be about labor, low paid or never paid, and less about the C of the P doing the work. Inequality unequally distributed by race changes little about the base reality that for about 90% of us it is the controlling factor in our lives. It was like we were missing the thing behind the thing. Or someone was trying to hide it.

“I think,” my friend said, “Americans spend so much time worried about race they miss what we Europeans understand in our bones. It is class which divide societies. Look at Britain, once nearly 100% white, yet a person just had to say a few words and you’d know who worked for who by the accent. Or India, where everyone is a POC as you Americans would say, and where they created a caste system that survived the departure of the white people.”

It did seem silly to think a Caucasian on food stamps in West Virginia had more in common with a Caucasian in L.A. producing multi-million dollar movies than a black person on food stamps in say, West Virginia again. Blacks are lazy and get free welfare, whites don’t have to try because of free privilege. “No, your Democrats are drawing the lines the wrong way,” said the Spaniard. “It is about money not melanin.” We had to look up the last word from the Spanish melanina.

We’d been driving for awhile, since right after the Seamless guy first met us. We’d arrived at The Plaza. My Spanish friend paid me for the ride through the Uber app, but with a generous cash tip. Privilege, I guess. I pocketed the $10.
 
As I set off to my other job, it started to make more sense about money even as the idea of POC made less sense. Color masks the lines that really matter, and those lines are all colored green.

Since 1980, incomes of the very rich (the .1%) grew faster than the economy, about a 400% cumulative increase. The upper middle class (the 9.9%) kept pace with the economy, while the other 90% fell behind. Race? You can be confident the .1% are mostly white, likely the 9.9%, too. But the other 90% of America is every color. Whether your housing is subsidized via a mortgage tax deduction or Section 8, you’re still on the spectrum of depending on the people really in charge to allow you a place to live.

The birth lottery determines which of those three bands we’ll sink or swim together in, because there is precious little mobility. In that bottom band 81% face flat or falling net worth (40% of Americans make below $15/hour) and so aren’t going anywhere. Education, once a vehicle, is mostly a tool now for the reproduction of current status across generations and worth paying bribes for. Uplifted by virtue of a choking mortgage, the indentured servitude of college loans, credit cards, pay day loans, and the hope of lottery tickets, is still poor. Class is sticky.

Money, not so much. Since the 9.9% have the most (at least the most the super wealthy do not yet have) they have the most to lose. At their peak in the mid-1980s the managers and technicians in this group held 35% of the nation’s wealth. Three decades later that fell 12%, exactly as much as the wealth of the 0.1% rose. A significant redistribution of wealth – upward — took place following the 2008 market collapse as bailouts, shorts, repossessions, and new laws helped the top end of the economy at cost to the bottom. What some label hardships are business opportunities to those above.

See, the people at the top are throwing nails off the back of the truck to make sure no one can catch up with them; there is a strong zero sum element to all this. The goal is to eliminate the competition. They’ll have it all when society is down to two classes, the .1% and the 99.9% and at that point we are all effectively the same color. The CEO of JP Morgan called it a bifurcated economy. Historians will recognize the endstate as feudalism.
 
You’d think someone would sound a global-climate-change level alarm about all this. Instead we divide people into tribes and make them afraid of each other by forcing competition for limited resources like healthcare. Identity politics sharpen the lines, recognizing increasingly smaller separations, like adding letters to LGBTQQIAAP.

Failed Georgia gubernatorial candidate Stacey Abrams, herself with presidential ambitions, is an example of the loud voices demanding more division. Contrast that with early model Obama at the 2004 Democratic National Convention pleading “There’s not a black America and white America and Latino America and Asian America; there’s the United States of America.”

The divisions can always be jacked up. “My opponent is a white nationalist!” and so he doesn’t just think you’re lazy, he wants to kill you. Convince average Americans to vote against their own interests by manipulating them into opposing any program that might benefit black and brown equally or more than for themselves. Keep the groups fighting left and right and they’ll never notice the real discrimination is up and down, even as massive economic forces consume all equally. That consumption is literal as Americans die from alcohol, drugs, and suicide in record numbers.
 
Meanwhile, no one has caught on identity politics is a marketing tool for votes, fruit flavored vape to bring in the kiddies. Keep that in mind as you listen to the opening shouts of the 2020 election. Listen for what’s missing in the speeches about inequality and injustice. The candidate who admits we created an apartheid of dollars for all deserves your support.

Copyright © 2020. All rights reserved. The views expressed here are solely those of the author(s) in their private capacity.

Posted in Democracy, Economy