AMERIKA: The Ruling Elite Is Protected from the Consequences of its Dominance – By Charles Hugh Smith

Source – oftwominds.com

– “…The last failed remnants of the state-cartel hierarchies left over from World War II must implode before we can move forward. Healthcare, defense, pharmaceuticals, higher education, the mainstream media and the systems of governance must all decay to the point that no one can be protected from the destructive consequences of their failure, and no paychecks can be issued by these failed systems”:

(The Source of our Rage: The Ruling Elite Is Protected from the Consequences of its Dominance – By Charles Hugh Smith)

There are many sources of rage: injustice, the destruction of truth, powerlessness. But if we had to identify the one key source of non-elite rage that cuts across all age, ethnicity, gender and regional boundaries, it is this: The Ruling Elite is protected from the destructive consequences of its predatory dominance.

We see this reality across the entire political, social and economic landscape.

If I had to pick one chart that illustrates the widening divide between the Ruling Elite and the non-elites, it is this chart of wages as a share of the nation’s output (GDP): 46 years of relentless decline, interrupted by gushing fountains of credit and asset bubbles that enriched the few while leaving the economic landscape of the many in ruins.

The Ruling Elite once had an obligation to uphold the social contract as a responsibility that came with their vast privilege, power and wealth (i.e. noblesse oblige).

America’s Ruling Elite has transmogrified into an incestuous self-serving few unapologetically plundering the many. In their hubris-soaked arrogance, their right to rule is unquestioningly based on their moral and intellectual superiority to “the little people” they loot with abandon.

Rather than feel a responsibility to the nation, America’s Elite views the status quo as a free pass to self-aggrandizement.

Much has changed in America in the past 46 years. Not only have wages and salaries declined as a share of “economic growth,” but the wealth that has been generated has flowed to the top of the wealth/power pyramid (see chart below).

Social mobility has also declined drastically: Restoring America’s Economic Mobility, as has trust in government and key institutions.

As Frank Buckley, the author of The Way Back: Restoring the Promise of America observed:

“In a corrupt country, trust is a rare commodity. That’s America today. Only 19 percent of Americans say they trust the government most of the time, down from 73 percent in 1958 according to the Pew Research Center.”

The top .01% has seen its share of the household wealth triple from 7% to 22% in the past four decades, while the share of the nation’s wealth owned by the bottom 90% has plummeted from 36% to 23%.

As I described in America’s Ruling Elite Has Failed and Deserves to Be Fired and Now That the Presidential-Election Side Show Is Finally Ending…., the economy is rapidly undergoing structural changes that tend to reward the top 5% class of technocrats and managers and the top .1% with millions in mobile capital, while leaving the bottom 95% in the dust.

Rather than address this rising inequality directly and honestly, the Ruling Elite has parroted propaganda and policies that protect their gains while obfuscating the reality that most American households have been losing ground for decades, a decline that has been masked by replacing real income with rising debt.

The ceaseless parroting of the Ruling Elite and the Mainstream Media that prosperity has been rising for everyone is nothing less than the destruction of truth. This propaganda has one purpose: to mask the inequality and injustice built into the American status quo.

The rapid concentration of wealth has also concentrated political power in the hands of a few who seamlessly combine public and private modes of power.

This wealth and power protects the Ruling Elite from the perverse consequences of their dominance. Their precious offspring rarely serve at the point of the American military’s spear, they never lose their jobs or income when corporations shift production (and R&D, etc.) overseas, and they are never replaced with illegal immigrants paid under the table.

Rather, the Ruling Elite is pleased to pay immigrants a pittance to care for their children, clean their luxe homes, walk their dogs, etc.

This is why we’re enraged: we bear the consequences of the Ruling Elite’s dominance. The system is rigged to benefit the few, who use their wealth and power to protect themselves from the destructive consequences of their self-serving dominance.

This rage is as yet inchoate, sensed but not yet understood as the inevitable result of a broken system and a predatory Elite that exploits the system to maximize their private gain by any means available.

ELECTION NOTE: As I write this Tuesday evening, it appears Donald Trump may win the presidency. For those who cannot understand how anyone could possibly vote for Trump, please read the above essay again and ponder what people were voting against by voting for Trump.

They may well have been voting against the corrupt, self-serving status quo rather than voting for the individual Donald Trump.

There are very few opportunities for powerless non-elites to register their disapproval of the nation’s Ruling Elite and the corrupt status quo. Voting for an outsider in a national election is one such rare opportunity.

As I noted in October, The Ruling Elite Has Lost the Consent of the Governed (October 20, 2016).

If you still don’t understand how Trump could win, please read the above essay as many times as is necessary for you to get it: the status quo of corrupt self-serving insiders generates injustice and inequality as its only possible output.

http://www.oftwominds.com/blognov16/rage11-16.html

Related…

America’s Ruling Elite Has Failed and Deserves to Be Fired – By Charles Hugh Smith

America’s Ruling Elite is freaking out because a significant percentage of the American public is trying to fire them. The Ruling Elite has failed and deserves to be fired, and deep down, they know it–and this awareness of their self-serving failure fuels their panic and their loathing of the non-elite Americans who are trying to fire them.

If you think this chart of soaring student loan debt is a sign of “success,” you are 1) delusional 2) protected from the dire consequences of this failure 3) getting your paycheck from this failed system. That in a nutshell is the state of the nation: those who are protected from the consequences of failure are loyal to the Establishment, as are the millions drawing a paycheck from systems they know are irredeemable failures.

Let’s review the central institutions of the nation:

1. Healthcare: a failed system doomed to bankrupt the nation.

2. Defense: a failed system of cartels and Pentagon fiefdoms that have saddled the nation with enormously costly failed weapons systems like the F-35 and the LCS.

3. Higher Education: a bloated, failed system that is bankrupting an entire generation while mis-educating them for productive roles in the emerging economy. (I cover this in depth in The Nearly Free University and the Emerging Economy and Get a Job, Build a Real Career and Defy a Bewildering Economy.)

4. Foreign policy: Iraq: a disaster. Afghanistan: a disaster. Libya: a disaster. Syria: a disaster. Need I go on?

5. Political governance: a corrupt system of self-serving elites, lobbyists, pay-to-play, corporate puppet-masters, and sociopaths who see themselves as above the law.

In Why Our Status Quo Failed and Is Beyond Reform, I explain why the only possible output of these systems is failure.

The sole output of America’s Establishment/Ruling Elite is self-serving hubris.

In the open market, failed leadership has consequences. Customers vanish and the enterprise goes bankrupt, or shareholders and employees rally to fire the failed leadership.

In our state-cartel system, failed leadership only tightens its grip on the nation’s throat. The Deep State can’t be fired, nor does it ever stand for election. The two political parties are interchangeable, as are the politicos who race from fund-raiser to fund-raiser.

It’s tempting to blame the individuals who inhale the wealth and power of our failed system, but it’s the system, not the individuals, though a more corrupt, craven, self-serving lot cannot easily be assembled.

In broad brush, the Establishment and its Ruling Elite are still fighting World War II. The solution to the Great Depression and fascism was to cede complete control of the economy, the media and the social order to the central state.

Tens of millions of people were aggregated into vast industrial corporations or the Armed Forces. Everyone heard the same “news” and had the same limited choices of work and consumption.

It was easier for the federal government to control a handful of cartel-corporations and unions, and this cemented the state-cartel system that remains dominant today.

But the world and the economy changed, and this model was no longer efficient or effective. Sprawling corporations with captive domestic markets started facing global competition, and networks of interchangeable suppliers were much more efficient than vertically organized corporations.

Adding layers of government bureaucracy to manage increasing complexity was no longer effective or affordable as labor costs rose and the efficiencies of networks outpaced cumbersome hierarchies.

People lost faith in their government and their cartel-corporations because the truth broke through the state-managed propaganda. Industrial corporations were revealed as greedy polluters; auto manufacturers churned out vehicles with scant care for safety, and the federal government lied to the citizens about the war in Vietnam, and much else.

The Internet was the stake through the heart of this inefficient, ineffective state-cartel hierarchy. The Internet enabled a level of transparency that was impossible in the old state-cartel model in which everyone watched the same three TV networks and read the same managed “news.”

Consumers could now access the experience of other consumers directly, bypassing the filtering mechanisms of a complicit state and the corporate PR/marketing machinery.

Governments were pressured to (very reluctantly) make public all sorts of material that was safely private in the good old days of backroom dealing and sweetheart contracts with pals.

The central state’s resistance to transparency only reinforced the public’s loss of trust. The more money and power the state grabbed, the greater the level of corruption and self-serving insider dealing. The more the state managed the private cartels of banking, Big Pharma, higher education, the military-industrial complex, healthcare insurers, etc., the more costs soared while the quality of the output plummeted.

The current self-serving Ruling Elite deserves to be fired for its abject failure of leadership. The nation desperately needs leaders who understand the economy and nation are in the midst of a new industrial/digital revolution that favors networks over hierarchy and transparency over state-cartel corruption.

Unfortunately, as I explain in Resistance, Revolution, Liberation: A Model for Positive Change, the central state has no mechanisms for devolving power to decentralized networks, or surrendering either power or budgets. The central state only knows how to aggregate more power and skim more money from the private economy.

The last failed remnants of the state-cartel hierarchies left over from World War II must implode before we can move forward. Healthcare, defense, pharmaceuticals, higher education, the mainstream media and the systems of governance must all decay to the point that no one can be protected from the destructive consequences of their failure, and no paychecks can be issued by these failed systems.

Only then can we face the reality that failure has consequences.

America’s Ruling Elite Has Failed and Deserves to Be Fired

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s