Wealth Gap 2020: The destruction of the American dream

Is feudalism our future?

By Larry Fedewa, Ph.D.

(Washington DC, September 12, 2020) The closer the 2020 election comes, the more urgent the necessity for understanding the wealth gap which underlies the entire debate.

The fundamental issue at stake in this election is how America will deal with the fact that the American Dream we all pursue has in fact become unattainable for many Americans. With most national politicians in their 70’s – or even older – the reality is that they simply do not understand that too many Americans today face a gloomy future. They are at a loss to explain why the nightly riots and violence can happen at all let alone why the public officials at least tacitly, and some openly, support such chaos.

What they don’t understand is that there is a great deal of anger in our land, that the traditional mantras of the American ethic just don’t work anymore for a segment of the American population. “Work hard, keep your nose clean, and you too can live the American dream” just isn’t true for these folks, and hasn’t been for a long time.

Who are these people? And why are they so desperate for change?

One of the oldest questions in the American lexicon is, “What happens to the manual workers when the American quest for labor-saving technologies finally succeeds and the need for human labor ends?”

Now we know the answer to that question: The many American workers who have lost their jobs to technology are still there. But now they have nothing – not even their pride.

There is, of course, another segment of our society which has done somewhat better financially through these years. They are the so-called “upper middle class” who have adapted to the technological society, although they are concentrated now in the service industries, since manufacturing has all but disappeared.

Even their children, however, have been affected by their estrangement from two work-alcoholic parents, whose closeness to their children is questionable as is their loyalty to each other. Many of the protesters are white, middle class youths, whose sympathies lie closer to their African American comrades than to their befuddled parents.

It is well known that a coalition opposing this President exists, consisting of the Democrat Party, the Deep State bureaucracy, and the Press, as well as the dedicated Far Left organizers and followers, who have coalesced around the  issues of class and race so prominently featured in the violent summer of 2020.

It is clear that while these players have picked by various names the wealth gap as the key issue in this campaign, their timing of the current crisis was not dependent on their discovery of this issue. They have simply taken advantage of the uproar as it occurred.

 

So, what did happen?

What happened was the transfer of the asset wealth of the American population from the middle class (approximately 50% of the population) to the super rich (1% of the population). (The term, “assets”, is used instead of “income” because income can go up and down while assets tend to be more stable.)

How did this happen? Many factors came together and finally created one of the worst nightmares Americans have ever faced. The most obvious of these factors are three:

  1. Inflation: between 1971 (when Nixon ended the gold standard) and 2015, the value of the US dollar declined nearly 600%, causing the buying power of wages to become stagnant.
  2. Expansion of the workforce:
  • between 1960 and 2020 the American workforce nearly doubled as women entered the labor market;
  • the globalization beginning in the 1990’s expanded the American labor market to the third world
  1. American foreign policy which allowed, even encouraged, American firms to move production overseas.

The result of this movement on the US working man was catastrophic. As the factories left American soil, the skilled workers were left behind with no job, no marketable skill, and eventually no hope.

The principle victims of this exodus were American men. Whereas their place in society and the family had always been respected and secure, they lost that place in both as they sought and were forced to take lower paying jobs or welfare.

Their self esteem followed their decline. Divorce rates soared along with family abuse, alcoholism, drug addiction, desertion, homelessness, and suicide and the decline of our cities left social services rare and bankruptcy all too common.

Through all this, the latch-key children bounced around helplessly, caught up in the whirlwind that their life had become. As they grew older, they asked “Work hard?” –“At what?” “College?” — “OK” and then no jobs available. “American dream?” — “What a crock!”

What they want is change. The old system isn’t working for them. Why is socialism suddenly becoming so popular? After all, it has been around since the 1930’s. Franklin Roosevelt’s Vice President, Norman Thomas, was an avowed socialist. Few believed in socialism as long as we had the American dream. People believe in socialism now because for them the American dream is gone. And socialists are the only ones listening to the cries of our suffering youth.

What now?

First, we must all recognize the underlying problem: it is the transfer of wealth! Prosperity for all tends to reduce all social tensions, as the Trump economy was beginning to show before COVID.

Secondly, if we do not want to watch our beloved country go the way of Venezuela, we had better face the realities of our situation and find a solution.

Finally, while some our people were caught in a vortex of tribulation, others were developing a new way, a new path to the American dream.

A third way: Luckily, many of these pioneers of a new capitalism have been not only inventing a new type of business process, but also organizing a potentially vast new movement to what will become, in my estimation, a new America, open to all races, genders and religions.

The most advanced of these renewed American businesses seem to be the Conscious Capitalist organization, currently with 16,000 member companies, representing 3 million workers.

It aspires to become a new kind of business, one which is driven by its service to the community – whether that be a local factory, a retailer, or a worldwide marketplace.

The idealism of this brand of business is appealing to the young, who may not know socialism from a community swimming pool, but who do know that they are Americans who value their personal freedom and the room to grow into a happy future without a government telling them what they can and cannot do.

The dilemma facing this country is that conscious capitalists see politics, as do most Americans, in the light of partisanship. As a result, they want to be apolitical so that all sides feel welcome.

Nevertheless, in today’s America, you are either a socialist or a capitalist, either in favor of big government controlling the transfer of wealth from the 1% or in favor of devising a solution which is voluntary and based on merit rather than welfare.

Unfortunately, there are no candidates running for national office who present new alternatives to the socialist programs of the Democrats. The Republican alternative stands for continuing to implement Reagan economics, believing that the wealth gap will solve itself in time.

It seems clear that this is a better alternative than the opposition. At least a victory here would buy us time. By 2024 perhaps a “third way” capitalist will come forward.

As Alexander Pope wrote in 1734, “Hope springs eternal in the human breast.”

 

2020 © Richfield Press. All rights reserved.


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