I just finished watching “Capitalism – A Love Story” by Michael Moore. If you haven’t seen it, it will educate you on exactly who is running America and how backwards this country has become on so many ways. You can watch it on Netflix or you can buy the DVD.
So let’s get started on some of the main points of the documentary. Plutonomy. What is plutonomy?
n. An economy that is driven by or that disproportionately benefits wealthy people, or one where the creation of wealth is the principal goal.
[Blend of pluto- (wealth) and economy.]
The Citigroup circulated a confidential memo only to it’s wealthiest customers. (haha however it was leaked) These memo discuss the power of the Plutonomy in America, and how it will strengthen, as long as the “the rest us” (the non-plutonics) could be kept in the dark about the Plutonomy existence, its role, and its over-arching control in the American Economy.
Even though the Plutonomy (the top 1%) control over 50% of the net worth in America — they don’t control the Votes!
The thing they most fear is the principle of “one person — one vote”.
You see despite their extreme wealth and power, they only have 1% of the vote; “the rest us” control the other 99% of the votes. So if we ever caught on and, I don’t know, maybe raised their taxes back to where it use to be (40-90% range), well maybe they couldn’t have a Yacht in every city, or a Mansion in a half dozen states. Maybe they couldn’t “lose count” of how many homes they owned.
Remember the issue of eliminating the Bush taxes on the rich this pass election. Does this sound familiar…why the Republicans fought so hard to keep the low tax rates for the rich intact?
The memo states:
Our whole plutonomy thesis is based on the idea that the rich will keep getting richer. This thesis is not without its risks. For example, a policy error leading to asset deflation, would likely damage plutonomy. Furthermore, the rising wealth gap between the rich and poor will probably at some point lead to a political backlash. Whilst the rich are getting a greater share of the wealth, and the poor a lesser share, political enfrachisement remains as was — one person, one vote (in the plutonomies). At some point it is likely that labor will fight back against the rising profit share of the rich and there will be a political backlash against the rising wealth of the rich. This could be felt through higher taxation on the rich (or indirectly though higher corporate taxes/regulation) or through trying to protect indigenous (home-grow)] laborers, in a push-back on globalization — either anti-mmigration, or protectionism. We don’t see this happening yet, though there are signs of rising political tensions. However we are keeping a close eye on developments.