Palmer Events Center
Economic Woes Are Really Not the Fault of the Poor
RECEIVED Fri., Nov. 12, 2010
Dear Editor,
We've barely begun our inexorable swirl down the economic drain, and who are my conservative friends poised to blame for it? Why, the poor, of course. OK, that's oversimplifying it a bit: "People who don't work, taking money from those who do" is the actual conservative narrative, and like any good story, there are good guys and there are villains. Too bad it isn't actually true. Look it up yourself: The bottom 20% of the American population makes due on a measly 6% of our total annual wealth (GDP). Fact is, the real reason we can't shake these current economic blues is that the demand side of the classic supply and demand equation has been badly wounded, and while you've been busy struggling to pay your bills these last years, the entire middle and lower classes have lost enough ground to the rich that we can no longer play like we're keeping up. How did this happen? Their pay-for-access plan worked well, is how. Legislative policies of all kinds have overwhelmingly favored the very wealthiest which has meant that our fair share of creating their riches has instead steadily migrated upward. The result is a mere wealth "disparity" morphing into a wealth “distortion.” These days the Top 10 boasts upward of 80% of American GDP, which means there aren't many percentage points left for us schmucks stuck in the middle. If you've been paying attention to current events, you'll know the fortunate class isn't quite willing to do the patriotic and sensible thing and just give some of the money back; however, the good news is that capitalism has an elegant mechanism to equalize this inherent unfairness: Much of the paper wealth of the super rich – their stocks, bonds, and currency – will simply vaporize in value in the coming months, putting us on a more equal footing. Of course, we'll all be poorer, too, but in merely five years or so, supply and demand should reach some sort of workable equilibrium and our pain should begin to subside. Here's the bad news: Remember that thing about people not working taking from those who do – well, there's a 50-50 chance that's going to be you soon. In literature, they call that “irony.” Hey, it was a hell of ride while it lasted. Enjoy the soup, everybody!
We've barely begun our inexorable swirl down the economic drain, and who are my conservative friends poised to blame for it? Why, the poor, of course. OK, that's oversimplifying it a bit: "People who don't work, taking money from those who do" is the actual conservative narrative, and like any good story, there are good guys and there are villains. Too bad it isn't actually true. Look it up yourself: The bottom 20% of the American population makes due on a measly 6% of our total annual wealth (GDP). Fact is, the real reason we can't shake these current economic blues is that the demand side of the classic supply and demand equation has been badly wounded, and while you've been busy struggling to pay your bills these last years, the entire middle and lower classes have lost enough ground to the rich that we can no longer play like we're keeping up. How did this happen? Their pay-for-access plan worked well, is how. Legislative policies of all kinds have overwhelmingly favored the very wealthiest which has meant that our fair share of creating their riches has instead steadily migrated upward. The result is a mere wealth "disparity" morphing into a wealth “distortion.” These days the Top 10 boasts upward of 80% of American GDP, which means there aren't many percentage points left for us schmucks stuck in the middle. If you've been paying attention to current events, you'll know the fortunate class isn't quite willing to do the patriotic and sensible thing and just give some of the money back; however, the good news is that capitalism has an elegant mechanism to equalize this inherent unfairness: Much of the paper wealth of the super rich – their stocks, bonds, and currency – will simply vaporize in value in the coming months, putting us on a more equal footing. Of course, we'll all be poorer, too, but in merely five years or so, supply and demand should reach some sort of workable equilibrium and our pain should begin to subside. Here's the bad news: Remember that thing about people not working taking from those who do – well, there's a 50-50 chance that's going to be you soon. In literature, they call that “irony.” Hey, it was a hell of ride while it lasted. Enjoy the soup, everybody!
Mitchell DeVillier