The concept of “elite overproduction” was developed by social scientist Peter Turchin around the turn of this century to describe something specific: too many rich people for not enough rich-person jobs. It’s a byproduct of inequality: a ton of poor people, sure, but also a superfluity of the wealthy, without enough positions to house them in the influence and status to which they think themselves entitled. In a modern context, that would mean senior positions in the government and civil service, along with the top tier of finance and law, but Turchin tested the hypothesis from ancient Rome to 19th-century Britain. The names and nature of the contested jobs and titles changed; the pattern remained. Turchin predicted in 2010 that by the 2020s it would be destabilising US politics.
Turchin didn’t specify exactly how much wealth puts you in a situation with an overproduced elite, but he didn’t mean debt-laden students; he didn’t mean MPs; he meant, for brevity, billionaires or the top 1%. When a lot of your media are billionaire-owned, those media sources become endlessly inventive in taking the heat off billionaires, nipping criticism in the bud by pilfering its vocabulary and throwing it back at everyone.
Elon Musk could never have got himself elected into office in the US. But as the cost-cutting tsar, a made-up role Trump has promised him, he would exert extraordinary power to cause pain, with the only choice left to citizens being whether or not to hug it. Another billionaire donor, John Paulson, has been floated for the treasury secretary job, and Trump has a track record of rewarding big-ticket donors with a seat at the table – the billionaire Stephen Schwarzman boasted in print about his role in the new North America Free Trade Agreement negotiations in 2018, and as part of Trump’s “strategic and policy forum” during the 2017 administration.
Seems like a good time to remind people of this excellent (enraging) visualization:
https://mkorostoff.github.io/1-pixel-wealth/there are obvious, accessible solutions.
I love that the headline says An excess of billionaires is” implying excess is the collective noun for billionaires. And I think that is perfect. An excess of billionaires.
Kind of like a murder of crows, but with greed.
Oh is this a thing that academics predicted? Welcome to the 1840s, Guardian
The problem isn’t billionaires per se, the problem is not taxing people at higher income levels enough. People with higher incomes will do the rational thing and work towards self-preservation. It’s up to governments to work towards social stability, which is the point of civilization. It’s up to people to hold their governments accountable via democratic action. This model works in a lot of instances, but maligned processes can make it fail.
You sweet summer child. You think billionaires don’t control things?
I am not saying that. I am saying that if you take a really rich person and and really poor person, and switch their places, then there’s no guarantee that anything effectively changes about society because innate self preservation tendencies enables us to make similar rational decisions. Systems need to counteract these self preservation tendencies because often times these tendencies can be ruinous to the system they benefit from. Look at everything happening now, for example
I appreciate you not escalating in response to my snarky comment with more snark or sarcasm.
On the subject: I agree that the system needs to motivate certain behaviors and disincentives others. But from the current point onwards in our cursed reality… I see no way this transition to such a system does not involve a violent revolution/uprising. I don’t see how we can even maintain such a system in the future without threat of violence towards those that put profits before everything else. I believe this because it took violence to take back 40 hour work weeks and paid vacations. Those seem trivial compared to a system overhaul from the current starting point.
All these billionaires are making me hungry.
[Sharpens guillotine with revolutionary intent]
I truly believe the world would be a much better place if there was a clear cutoff for wealth. But of course, there would still be weasles out there circumventing such measures. Greed is such an incredibly harmful thing.
Not a single redeeming thing about billionaires. Not a single one. Their “philanthropy” would be entirely unneeded, if they simply paid their fair share back to society, without which they wouldn’t have what they have in the first place.
Philanthropy is just bullshit at their level. My grandma giving to unicef is not the same as what they do. They want you to believe this. But they have the power to shape policies and society in their favour. It’s always about money and power. Whether it’s for tax, or anything else they can shape through philanthropy.
If you play android netrunner, there is an asset card used by Corporation called NGO front, and when I hear about billionaires philanthropy, I think of the small quote on this card “Who new non-profit could be so profitable.”
Their “philanthropy” would be entirely unneeded, if they simply paid their fair share back to society
The entirety of the net worth of all billionaires in the US (~$5 trillion), assuming a magic wand could magically convert the figure 1:1 into cash (big assumption being made in favor of your argument), would foot the bill of total US government’s welfare spending ($1.03 trillion: https://www.budget.senate.gov/imo/media/doc/CRS Report - Welfare Spending The Largest Item In The Federal Budget.pdf ) for five measly years.
So even if your definition of “fair share” for them is literally 100% of what they have, the quoted statement is extremely obviously untrue.
Not to mention that’s also assuming that that $1 trillion the government spends is enough to make philanthropy redundant, which it demonstrably isn’t.
So instead of using our magic want to just take it all and convert it to cash we convert 1/4th to cash and keep the rest invested how it was with just the ownership changing to a public trust, that could fund welfare indefinitely based off just the interest and dividend payments that would otherwise just go to the former billionaire doubling their net worth every 5 years.
And what do you do about the fact that this magic wand doesn’t actually exist, and that net worth is just a price tag, not an amount of actual money? The supermarket doesn’t accept stocks as payment.
Also, the vast majority of billionaires’ investments don’t even pay dividends at all, they’re re-invested back into the business for further growth.
I wish people who knew nothing about economics didn’t pretend to have any idea what they’re talking about.
I wish people who claim to know about economics understood what a hypothetical is.
So I’m talking about “if we had a magic wand” and here you go changing the rules and taking it away.
I’m sure there are places for economics professors such as yourself to discuss these things seriously, but this ain’t it.
Now taking back my magic wand, I’m also casting a spell to take advantage of the fact that stocks can be used as collateral for loans, and since my first cast was to move the funds to a public trust I’m now directing said trust to take out loans and give everyone housing, they’ll be paid back over time by a combination of gradually selling off the remaining stocks at a pace that doesnt shock the market…
But I swear if you take my wand away again when I get it back I’m just going to crash the stock market out of spite.
if we’re imagining a better place why not go further? private ownership over collective production is the only way such gross amounts of wealth are possible.
A 100% tax bracket is fine and all, but why don’t we reimagine the economy so that individuals aren’t controlling so much of it? We built the infrastructure, we built the factories, we invented the machines and algorithms.
When money gives a handful of individuals more power than the rest of society, what could possibly go wrong?
turn of the century
2010
😭
Almost a quarter way through this century
This just in: Bathroom breaks cost 200 million dollars a year in lost productivity.
The thesis also elicited that elite overproduction tends to favor political change in the dispossessed elite’s favor
It posits most revolutions, including communist revolutions, were pushed by elites who weren’t given the station they were promised.
That’s what will happen to the Trumpublican Party when its figurehead is gone. They’ll spend years clawing each other to pieces to fill the yuge void.
s/An\ excess/The\ existence/Never thought I’d see communist regex getting downvoted on lemmy
I warned you about the tendency for wealth to accumulate under capitalism bro!!!
I told you dawg!
It keeps hapening!
Theres this dazzling student of Hegel that has a few novel ideas about just that. You may have heard of him . . .
