Many people say the gap between rich and poor people is wider, as the rich become richer, while the poor become poorer, and unfortunately there is indeed truth to their words. Taking a closer look at history and how relevant statistical data has changed over time, this can easily be confirmed.
In 2018, for example, the top-earning 20% of households, contributed more than half of all U.S. income, as shown in the historical graph by Pew Research Center below, based on data from the U.S. Census Bureau. What’s even more worrying in their findings is the ominous downtrend seen in middle and low-income earners, shrinking from 57% cumulative contribution in 1968, down to 48% in 2018.
Burghers Made Serfs
So, what are the causes of this dreadful decline and transformation of the middle class? One would naturally be inclined to take a closer look at the changes in taxes, employed by the federal government to raise revenue. And they would be correct to do so, as these have changed significantly over the last 75 years.
For example, income tax receipts contributed to about 15% of U.S. tax revenue in 1935, however this has changed drastically as of 1945 – up to 40 to 50% of all. In contrast, corporate tax income has shrunk from 35% in 1945, all the way down to 7.2% about a decade ago, while remaining well below 10% for the last 30 years. In other words, what we are seeing is a massive redistribution of wealth, from individuals to corporations, due to tax policies, ever since the end of World War 2.
Speaking of individuals, it is also vital to note the self-employment figures for the time-frame in question. After the war, these values stood firmly, at around 57%, while seeing a significant downtrend over time, plummeting to a mere 7.5% in 2003. This further illustrates the point of wealth distribution from the poor to the rich, in a twisted form of modern-day corporate feudalism.
Symptoms of a Diseased System
The invisible hand of the free market has failed in its quest for balance, as conflicts of interests, lobbying and profits over literally everything and anything have eroded any chances for an economic equilibrium between the classes to flourish on its own accord. This naturally leads to significant societal issues, such as less opportunities for education, increasing reliance on social safety nets, like food stamps and benefits, as well as increasing rates of crime, single-parent households and a decrease in overall health and wellbeing for the general populace.
So, one begs the question, what can be done to resolve such issues that plague modern society? According to an article from Berkeley, some potential solutions might be to increase the minimum wage, expand the earned income tax, build assets for working families, invest in education, redesign the tax code and end residential segregation.
This all sounds like rainbows and roses, however, it is doomed to fall short of achieving its goals eventually, as each individual policy fails to address the pitfalls of a globalist capitalist system. Why? Simple, because mammoth monopolistic corporation have the ability to pivot to more favourable countries, serving as either tax havens, or a manufacturing base, thus evading an increase in potential liabilities.
It is the same predatory corporations that exploit the terms of the H1B visas without remorse, by importing large swathes of cheap foreign labour, thus undercutting the wages of the local workforce. After all, they only stand to gain from doing so, as profit margins rise, thanks to this never-ending twisted race to the bottom.
But wait there’s more… Not only is the foreign labour cheaper, but at the same time brings every corporation’s favourite – diversity and of course there’s a hidden trojan horse in there too. According to leaked internal documents from Whole Foods, a diverse workforce carries a lower risk of unionisation. No unions, no problem, making sure that Amazon’s predatory practices can continue unabated, until everyone is forced to work for pennies, desperately fighting for employment.
From Country to Economic Zone
What can stop this corporate madness? Well, nothing short of a miracle sadly. Perhaps a combination of breaking up monopolies in a massive anti-trust campaign, forcing them to pay taxes in their biggest market, while limiting, or completely stopping the H1B abuse altogether. Will such policies work in the long run? Hard to tell, as there are zero-to-none real-world examples.
The real issue at hand with this is that above all else, society has entered into the uncharted territory of predatory capitalism and with little historical examples to look back to, it is difficult to determine an effective course of action for the long term, to say the least. What is certainly proven, beyond any reasonable doubt is that the world is facing an existential crisis, like never before. One that necessitates a direct intervention, before a plunge into recession and eventual collapse.
What will happen in the future? We can only guess, however one thing is certain – if we do not act now, but just try to ignore that we are living in an economic zone, instead of a real country, the underlying issues plaguing society will continue to manifest in ever grimmer forms, as we set off to face a world of suffering, for years to come.
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