Inequality For All

"Inequality For All" is the name of the new movie hosted by Robert Reich. It's a shocking film in some respects but nothing is more shocking than the simple fact it will fade into existence without ever being heard. Part of this is because without wanting to admit it, Reich lays out a case for the final unworkability of capitalism (which NOBODY wants to face). Instead, he presents the case we are on the wrong track but that it can be corrected.

Wrong.

But it is that false hope that allows him to be so clear in facts that should have the entire country up in arms. As can be seen by the graph above, ever since the Reagan devolution workers' wages have remained stagnant while income concentration has skyrocketed among the top percentile. Workers' wages aren't rising because there is no money for it. It's simply because profits are no longer equitably shared. Since most people don't have the esteem to fight for themselves, workers have compensated in other ways.

One worker in the film claimed this was fair treatment for him

First was the introduction of women into the workforce. Now it takes two wage earners to get by instead of one (minus childcare costs, of course). But you can only do that trick once. As wages remained flat workers then pulled the equity out of their homes to maintain their lifestyle. Again, a one time trick. Finally, debt has exploded in the last twenty years to keep from facing the hard truths. We've reached the limits of that too.

So where do we go from here? Into a vicious cycle of less spending, creating less job opportunities which leads to less spending, etc. We're out of tricks and permanently damaged. After thirty years are workers suddenly going to rise up and demand equity? Too late for that, suckers! Workers are now in the position of simply groveling for a job, willing to sell heart, mind and soul to the corporation just to survive. All leverage has been given away in a misguided idea of self-interest.

Ask almost anyone and they will tell you unions are evil, government regulations are hurting business and taxing the "job creators" is immoral. These are all conservative talking points we've come to accept as axioms for responsibility. The fact that anyone believes this garbage shows how few people truly are interested in responsibility. We have put greedy people in power as way to protect our own greed. Why does anyone expect a good outcome from this?

One of the talking heads in the film is the CEO of a large pillow manufacturer. He "absolves" himself of his wicked ways by verbally lamenting our current situation of inequality while oblivious to the solution he's free to implement. He states his income tax rate is 11% of his salary in "eight figures". This allows a huge absorption of money going to the top as working families spit out double or more his tax rate. But what is never addressed is why doesn't this CEO simply pay his workers more? Clearly, the money is there.

One good point the CEO does make is that he is not a job creator nor is there any such thing as a job creator. Only customers can create jobs, he points out. So if all those who allege concern over protecting the "job creators" were sincere they'd be fighting for the middle class since 70% of the economy is based in consumer spending. But greed is not a rational state of mind so even facts of self-preservation have no bearing.

If Robert Reich were to read this he'd say I'm being cynical in my assertion that nothing can be done without giving up our greed based system. But I don't subscribe to cynicism anymore than I do to a Pollyanna outlook. Optimism lies only in the truth. I simply observe the laws of nature that rule over us with or without our consent. And the truth of the matter is: give up your greed or give up your life.