Once again we have a situation that appears to be an aberration, a social anomaly...but in fact it heralds the return of ‘the way things used to be’.
Wealth gap swallows up the American Dream
NAPLES, Fla. — In the luxurious neighborhood of Port Royal, home to the likes of mystery writer Janet Evanovich and mutual fund magnate John Donahue, homeowners are insulated from many of life's daily cares — including the real estate slump. This year, 15 estates in the country club community have sold for $5 million to $16 million. But in the rest of Collier County, home sales have plunged a gut-wrenching 50%.
Elsewhere across the USA, the megarich are still snapping up homes in such enclaves as Vail, Colo., and Beverly Hills, and often paying cash. Sales of homes above $5 million are up 11% this year and are on track to break another record, according to an analysis by DataQuick Information Systems for USA TODAY. As for the national average, by contrast, sales are off about 8%. Prices fell in September for a second-consecutive month, partly because they'd soared beyond the reach of many.
Yes good citizen, the way things ‘used to be’. There’s a whole generation alive today that grew up never knowing how after the Great Depression, wealthy = bad...and because of that, a whole generation of wealthy people went into hiding, which is to say they disguised themselves as ‘average’ people.
Which makes one wonder just how much of a ‘coincidence’ it is that the living standards of the ‘average’ person rose dramatically during this same period of time.
Well good citizen, we are about to witness, like the war(s) to end all war(s) [World Wars I & II] that the second ‘Great Depression’, by every indication (and like the World Wars) will dwarf its predecessor.
Poor historians, who will hereafter be forced to ‘differentiate’ between ‘ The Great Depression(s) as I & II. Is it sadder still that many of those born during the first Great Depression will be on hand to witness the second?
Doesn’t this fact alone tell you something about our hallowed (capitalist) socio-economic system?
I’m allowed to quote one more paragraph from the cited article and I chose this one:
"There's the rich, and then there's everything else, in terms of the economy but also in terms of social class," says Edward Wolff, a New York University professor and expert on the wealth gap. He likens it to the social divisions of the 1890s, adding: "If you don't counteract the extreme inequality trends, I see some social upheaval coming. That's my worst fear."
Well said Mr. Wolff, well said...even if all you’ve done is belabor the obvious.
The article goes on to ‘bemoan’ the difficulties faced by those who cater to the gated communities by pointing out these people can’t afford to live where they work, which is causing a ‘labor shortage’.
Will the wealthy ‘accommodate’ these workers by offering 40, 50, or even 90-year mortgages? (Which is already a reality in Japan...)
Moving in this direction will do nothing to counteract the inequality because the ‘magic number’ [length of the mortgage] will make sure that these people can’t afford homes that are actually inside the gated areas.
But I digress.
The objective of this piece is to address the ‘inequality’ cited by Mr. Wolff, a phenomenon that’s always been there but went into hiding after the first Great Depression.
You see good citizen, prior to the first Great Depression the social order was rigidly enforced. Everyone knew their ‘place’ and few (were foolish enough) to openly question it.
Nobody complained about working conditions or how little they were paid because if the wrong word went in the right ear not only would you be fired, you’d also end up blacklisted.
Not that anything like that occurs today.
Yes, before the first Great Depression, the wealthy kept to themselves (associating only with members of their own class) and if a worker became ‘troublesome’ they’d get rid of them and hire someone else...for as little as they could get away with.
But alas! Along came that damn depression where so many lost so much. How could those who walked away unscathed show their face in public (without being lynched?)
One can only imagine that PR firms were on the job even then. Those who survived (or even profited) from the Great Depression ‘remade’ their image into being just regular folks who were now just as broke as everyone else was.
But, selfless individuals that they were, they offered to work with us to help ‘rebuild’ our shattered nation.
Thus began the ‘greatest’ generation. The generation who whipped the Germans not once but twice (strange that, eh?) along with driving the good ol’ US of A to economic (and military) preeminence around the globe.
From a bad thing came a good thing...except that wages were up and profits were down. Worse, people were getting smarter...not just a few of them but a lot of them!
This was bad enough but the newly smart people were also openly questioning the status quo!
Didn’t these people know their place?
So ended the ‘greatest generation’. With the Great Depression now safely in the past it was time once again to ‘return’ to the old ways and re-introduce the concept ‘greed is good.’
The class war was re-ignited and the Democrats, whose policies produced the most prosperous society the world has ever known, were abandoned.
The rest, as they say, is history. In the thirty-three years since the Vietnam conflict ended the progeny of those who survived the first Great Depression unscathed have used their control of both the labor and consumer markets to ‘punish’ us and show us how powerless we are.
The status quo’s main ally in this 33-year war of subjugation, the US government.
Which brings us to a more interesting question as the term ‘status quo’ is purposefully vague.
Who, exactly, is it that’s ‘punishing’ us? Who are these people that think, nay, believe they are better than the rest of us?
Most are right under your nose, their names are on (or associated with) the products you buy or even the city or county you live in. Others are local political dynasties and many are both.
The ‘status quo’ represents those who have gained both political and economic power and brutally wield both to keep it.
You shouldn’t have to tax your gray matter too hard to produce a short list of the Brahmins in your area. There’s no need to name names because you already know who they are.
The interesting thing about this sort of mental exercise is how large and interconnected the list is.
While they aren’t all ‘megarich’ every one of them is certainly ‘well to do’...which is to say, far and away they’re better off than you are.
But that’s class war for you.
It’s a group of people whose main interest is keeping you in your place...so you won’t remove them from what they’ve come to view as theirs.
Herein lies the rub; those who have attained the ‘American Dream’ have a vested interest in preventing you from attaining it too.
All of their talk about competition is exactly that, talk. You’re either (born) a member of the club or you aren’t.
Like Exxon and Mobil, there is the ‘appearance’ of competition but the reality is that they are both the same companies.
Extend that to store brands and name brands...both produced in the same plant...or ‘upscale’ and ‘bargain outlets’ where the only difference is the price tag.
It’s all an illusion good citizen, an illusion with one purpose and one purpose only, to keep you in your ‘place’...thereby keeping you out of what they’ve come to consider as ‘their’ place.
We could all be enjoying unprecedented prosperity...but unprecedented prosperity would lead to competition, real competition for the ‘good things’ in life.
Thus we suffer the alternative, painful economic degradation so the ‘good things’ stay where they belong, in the hands of those who can afford them and in many cases, those who got to them first.
For your children’s sake, the status quo must go!
Because like the headline says, the wealthy have ‘swallowed’ the American Dream...and they’re going to swallow you next!
Thanks for letting me inside your head,
Gegner