Robert Reich, Berkeley's Chancellor Professor of Public Policy has presented an outstanding Blog on the impact of wealth gap and the future it provides. If you havent read it it is here: http://www.huffingtonpost.com/...
While I agree with the thesis of Professor Reich's argument, it does rely on several facts not in evidence...
Most importantly, it seems to suggest that the corporate magnets at the top of the 1% would do better by taking a smaller slice of a growing and expanding U.S. economy than by taking a larger portion of a contracting or stagnant U.S. economy. Further, he states that we have not had the political will to rebuild a capitalist system that accounts for the new productivity revolution. Certainly data does back this up as far as the statement goes. However, it does presume that it is the U.S. economy is the target of this wealth extraction.
I agree that after the great depression and the world wars, this point of view made perfect sense. For international players, the U.S. economy represented the only short term gains one might realistically approach. China was still too far in its infancy, and there was the whole Mao thing to contend with. The Soviet block also presented similar troubles. Europe had no wealth left and return to productivity would take a very long time. So building a fair, and working capitalist system here in the U.S. was the only way to make money from others work. There may have been a tinge of patriotism there as well, since we had just been through a war. However, the over-riding factor must have been realistic time frames for return following the world wide depression. Sure there was some pushback to reforms, but this was for show. The reformed economy of the U.S. after the depression was allowed to happen by the corporations that paid for their congressmen.
Today, I would argue that globalization allows for wealth extraction in a wide number of countries and economies. With corporate profiteering controlling more and more of the world-wide economy, I propose that it isnt the U.S. economy that the 1% is after. Toward this end, it is absolutely in their best interests to ignore the interests of U.S. economic growth. My view is simply that the bet is against the U.S. and on developing economies such as China and India. All the political theater we have seen in the GOP's "legislative agenda" is meant for distraction. It has nothing to do with political will, it has to do with control, control of markets, production, sourcing, distribution: a directed mis-information and confusion campaign to make Americans believe in a vision of our own superiority while at the same time, using its wealth to build new markets abroad. China, for example, is a much larger market. It is no surprise that our policies toward China has been to, as G.W. Bush put it, raise their standard of living (consumerism) to that of the U.S. Similarly in India.
My point here isnt that Reich is wrong. Only that he assumes one target of profit growth, when in fact, there has been a well funded and well hidden agenda to turn the world economy towards other lead players. The tentacles of our largest corporations reach deeply into the economic production of communities abroad. Winners and loser are chosen by those with enough money to buy political systems.
Sounds alarmist? Sounds almost TP-ish? Maybe I have been watching a bit too many of those X-file reruns. But if so, consider this: U.S. productivity is through the roof. Yet millions are being spent to convince us that regulatory environments prevent the U.S. from profitability. Green energy sources DO work and the energy companies today have more than enough cash on hand to dominate this market. We will eventually have to use them as oil supplies dwindle. Yet hundreds of millions are spent to convince us that we must rely on the world oil market for future energy needs. Most Americans dont even know that domestically produced oil goes into this market and isnt used here at home. Unionization is not strongly correlated with weak profitability, yet millions are spent to break unions. Privatization of education, the welfare safety net, the prison systems, all of which cost more, but engender dependence on the corporate-defined world markets. And, what is more, similar efforts are in place in Europe... Dont believe it? Look at the Koch holdings abroad and who is sitting at the advising tables in Brussels.
The 1% more than realize that there is little to no money left in the 99%, so why the ruse? Why convince us that our own government cant help us? Why the military-like strike against OWS? They know that they COULD make money in the U.S. under a capitalist system that works. But they know they could make more sitting atop of a world-dominating corporate structure.
So ladies and gents, it isnt Orwell's "1984." Instead, welcome to the "Brave New World" of Huxley. The game is a world economy with a few pulling the strings.