The world is witnessing a break down of the ruling-class legitimacy. The immense structural inequalities in the world can no longer be maintained through social control. People are taking out their anger on the streets about rising unemployment, the high costs of living, and the political injustices done to them by their own governments. The established order can no longer maintain itself where the wealthy profited off the systems periphery. Many factors comes into play and most importantly it is because of the relationship between “Debt” and “Credit” that the world is at the brink of economic collapse.
The Atlantic magazine came out with a news article about the Rise of the New Global Elites. The decline of the West started with the rise of the developing world. A US-based CEO of one of the world’s largest hedge fund told a writer for the Atlantic that the hollowing out of the American middle class didn’t really matter, if the transformation of the world economy lifts people out of poverty into the middle class. On a very serious note, it’s harder to argue that an American is inherently more important than someone from the developing world.
In a Plutonomy there is no such animal as “the U.S. consumer” or “the UK consumer”, or indeed the “Russian consumer”. There are rich consumers, few in number, but disproportionate in the gigantic slice of income and consumption they take. There are the rest, the “non-rich”, the multitudinous many, but only accounting for surprisingly small bites of the national pie.
Theory of “pump priming” was born. The massive growth continued ever since the Great Depression. “Instead of the problem of too little money, we are faced with the problem of too much money. People came to believe that free market capitalism has failed.” But it is a failure of government, ever since the government has been fine tuning the economy.