The Cascade Effect is a mathematical theory that is visualized by the falling of water in mountain valleys that intertwines and goes on random tangents dependent upon the variations in pitch and terrain. But unavoidably volume and velocity increase exponentially.
This theory is easily repeated in real life algorithms as seen in ecology, sociology, economics, and more.
An ecological cascade effect is a series of secondary extinctions that is triggered by the primary extinction of a key species in an ecosystem. Secondary extinctions are likely to occur when the threatened species are: dependent on a few specific food sources, mutualistic (dependent on the key species in some way), or forced to coexist with an invasive species that is introduced to the ecosystem. Species introductions to a foreign ecosystem can often devastate entire communities, and even entire ecosystems. These exotic species monopolize the ecosystem’s resources, and since they have no natural predators to decrease their growth, they are able to increase indefinitely.
Economically we can see this in action in the cyclical nature fostered by extreme income inequalty of the poor. From traffic flow models, to increases in activity at retail outlets the patterns show at the beginning of the month, the usual pay period for the poor,
that there is a cascade of economic activity at the first of the month that dries to barely a trickle in the last two weeks.
The lower end of the economic scale is no longer the only class being impacted by the cascade of spending that occurs after they receive money.
Not satisfied with stealing their pensions Wall Street is strangling the middle class. When the average employee after midway through the month is pinching pennies a whole new cascade effect occurs.
Investors have taken notice of the shrinking middle. Shares of Sears and J. C. Penney have fallen more than 50 percent since the end of 2009, even as upper-end stores like Nordstrom and bargain-basement chains like Dollar Tree and Family Dollar Stores have more than doubled in value over the same period.
Competition from online giants like Amazon has only added to the problems faced by old-line retailers, of course. But changes in the restaurant business show that the effects of rising inequality are widespread.
A shift at Darden, which calls itself the world’s largest full-service restaurant owner, encapsulates the trend.Foot traffic at midtier, casual dining properties like Red Lobster and Olive Garden has dropped in every quarter but one since 2005, according to John Glass, a restaurant industry analyst at Morgan Stanley.
Now that wait staff can't pay rent. Buy food. Pay for childcare.
And how about the fuel, clothing, beauty care, baby sitter, and trip to the pub after? Dinner delivered? Nope cost too much. So much for cooks and drivers. They too can't pay their bills.
The downward spiral will continue until we decisively act.
*I'm posting this to income inequality kos in case someone needs to edit links for me.