martes, 29 de abril de 2014

AMERICA NINE CLASSES THE NEW CLASS HIERARCHY



AMERICA NINE CLASSES   THE NEW CLASS HIERARCHY.

Charles Hugh-Smith  OfTwoMinds blog,


[China creo la pólvora y Smith las 9 clases en America…
He is creative anyway]
Pero yo me quedo con “Wealth, Income, and Power” by G. William Domhoff. http://www2.ucsc.edu/whorulesamerica/power/wealth.html
 
Una nota mas: “Para que una clase pueda ser la clase liberadora por excelencia, es esencial que otra clase sea clara y abiertamente la clase opresora”. La clase opresora es el capital imperialista y la clase que posee la “generosidad de espíritu” para ser clase liberadora es el proletariado. Con este término  Marx designo al pueblo oprimido. En sus palabras, el proletariado no es resultado de “la miseria natural, sino de la miseria artificial producida por el capital; no es la masa del pueblo mecánicamente oprimida por el peso de la sociedad, sino  la masa  que resulta de la desintegración de la sociedad y, sobre todo, de la desintegración de la clase media”.  Ver la selección de los escritos de Marx hecha por T Bottomore  y M Rubel, en “Sociologia y Filosofia Social” de Marx,  Edic 1983 [Hugo Adan. Abril 29, 2014]


There are many ways to slice and dice America's power/wealth hierarchy. The conventional class structure is divided along the lines of income, i.e. the wealthy, upper middle class, middle class, lower middle class and the poor.

I've suggested that a more useful scheme is to view America through the lens not just of income but of political power and state dependency, as a Three-and-a-Half Class Society(  http://www.oftwominds.com/blogoct12/three-classes10-12.html October 22, 2012):

The three-and-a-half class society is comprised of: the "entrenched incumbents" on top (the "half class"), the high-earners who pay most of the taxes (the first class), the working poor who pay Social Security payroll taxes and sales taxes (the second class), and State dependents who pay nothing (the third class).
           
This class structure has political ramifications. In effect, those paying most of the tax are in a pressure cooker: the lid is sealed by the "entrenched incumbents" on top, and the fire beneath is the Central State's insatiable need for more tax revenues to support the entrenched incumbents and its growing army of dependents.

A recent Foreign Policy article on China's New Class Hierarchy: A Guide inspired me to assemble America's nine classes.

1. THE DEEP STATE. Mike Lofgren offered this description of the Deep State in Anatomy of the Deep State:
The Deep State is a hybrid association of elements of government and parts of top-level finance and industry that is effectively able to govern the nation without reference to the consent of the governed as expressed through the formal political process.

I describe the U.S. Deep State as the National Security State which enables a vast Imperial structure that incorporates hard and soft power--military, diplomatic, intelligence, finance, commercial, energy, media, higher education--in a system of global dominance.

The key feature of the Deep State is that it makes decisions behind closed doors that the surface government ratifies and implements.

The number of people in the Deep State class is small: senior Federal officials (NSA, Pentagon, State, Treasury, etc.), Executive Branch officials and key private-sector players.

Membership in the Deep State class is not dependent on wealth so much as on relationships and power.

2. THE OLIGARCHS. Oligarchy is in the news--for example We're Headed for Oligarchy--and a number of descriptors are somewhat interchangeable: corporatocracy, plutocracy, etc. I have used Financial Aristocracy to invoke the neofeudal structure of our economy.

Whatever word you prefer, this small class is more or less the top .01% who owns a majority of the nation's financial wealth. They essentially own the political machinery of the nation, writing the rules of legislation that is supposedly regulating their industries, taxes, etc.

3. NEW NOBILITY. This is the super-wealthy class just below the Oligarchs. They own a singificant percentage of all assets but do not directly manage the political process like the Oligarch class. They hire lobbyists to protect their interests and constitute an influential political-financial class with global connections.

4. UPPER CASTE. I use this term to describe the technocrat/professional class that manages the Status Quo for the upper classes. They serve in both government and the private sector.

5. STATE NOMENKLATURA. In the Soviet Union, the Nomenklatura were the key administrators in all sectors. In the U.S., the Nomenklatura are well-paid government administrators with security and power. Collectively, they administer their own share of the swag, gaming the system to maximize their pensions, benefits, etc.

Together, the Upper Caste and the Nomenklatura comprise about 9% of the 121 million households in the U.S.: roughly 8.7 million households who earn between $145,000 and $250,000 annually. This class is the bulk of the top 7%, i.e. the top 90% to 97%.Household income in the United States.

The top level of the Upper Caste (2.8 million households) earns more than $250,000 annually. The Nomenklatura and Upper Caste number in total about 11.5 million households.

6. THE MIDDLE CLASS. While others attempt to define the middle class by income alone (many see a household income of around $50,000 as qualifying), I define the middle class not by income alone but by purchasing power, benefits and assets owned. What Does It Take To Be Middle Class? (December 5, 2013).

By this definition, the middle class is the cohort between 70% and 90%--households earning $80,000 or more. Even this is problematic, because in high-cost cities $80,000 is not enough to sustain middle-class conventions (owning a home, two vehicles, etc.) while it may be ample in lower-cost regions.
This 20% comprises about 24 million households.

The lower middle class--what I define as having some but not all of the attributes of full middle class membership--is the cohort between 50% and 70%--households earning more than $55,000 annually.
This class also comprises about 20% (24 million) of all households.

If you think this is too restrictive, please read my above analysis of middle class membership. It may change your view of what constitutes middle-class.

7. THE WORKING POOR. Roughly 38 million households have earned income but it is not sufficient to secure the basics of middle class life. Many qualify for social welfare programs such as food stamps and Medicaid.
This class is about 30% of all households.


8. STATE DEPENDENTS. Though often labeled "poor," those with minimal legal employment may be living better than the working poor, due to generous social welfare benefits such as Section 8 (housing), Medicaid (healthcare), child care, food stamps, disability, etc., and black-market sources of cash income. This class is comprised of the bottom 20% of households.

9. MOBILE CREATIVES. This is an emerging class that ranges across many income classifications and thus cannot be described by income alone. Some earn Upper Caste incomes, others are Working Poor. This class is self-employed, free-lance, entrepreneural, sole proprietors with adaptive skills. They may collaborate with other Creatives rather than have employees, and may have part-time jobs.

There are roughly 5.5 million incorporated self-employed people in the U.S.; these tend to be professionals such as attorneys, engineers and physicians. These self-employed are generally members of the Upper Caste.

The Mobile Creatives (which include small farmers, craftspeople, independent programmers, etc.) number around 10 million, or 8% of the workforce. I use the word mobile here not to suggest mobility between physical places (though that is one factor in this class's flexibility) but mobility between sectors and ways of earning income.

Members of this class might take a short-term paying gig if the pay and circumstance is attractive, and then return to self-employment. They tend to foster multiple income streams and in general operate by the principle trust the network, not the corporation or the state.

Some members of this class joined the cohort involuntarily, as the result of layoffs; others pursue this livelihood for its freedom, flexibility (important to parents of young children or those caring for elderly parents) and potential for self-expression.

This is the "wild card" class that falls outside all conventional class/income hierarchies. It includes those seeking outlier wealth and those who have chosen voluntary poverty.

Though this class wields little conventional financial or political power, it has a potentially large leadership role in social and technical innovations. This is the 4% Pareto Distribution that can exert outsized influence on the 64%.

The other eight classes are hidebound by conventions, neofeudal and neocolonial arrangements and a variety of false choices and illusions of choice, including democracy itself.

I will end this examination of the Nine Classes of America with this question: which class is having more fun? Your answer may say more about your aspirations and worldview than the class hierarchy itself.

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SCHIFF: 2/3 OF AMERICA TO LOSE EVERYTHING BECAUSE OF THIS CRISIS



SCHIFF: 2/3 OF AMERICA TO LOSE EVERYTHING BECAUSE OF THIS CRISIS

By MONEY MORNING STAFF REPORTS

A record breaking stock market is distorting a frightening reality: The U.S. is being eaten alive by a horrific cancer that will ultimately destroy the economy and impoverish the vast majority of its citizens. That's according to Peter Schiff, the best-selling author and CEO of Euro Pacific Capital, who delivered his harsh warning to investors in a recent interview on Fox Business.

"I think we are heading for a worse economic crisis than we had in 2007," Schiff said. "You're going to have a collapse in the dollar...a huge spike in interest rates... and our whole economy, which is built on the foundation of cheap money, is going to topple when you pull the rug out from under it."

Schiff says that, despite "phony" signs of an economic recovery, the cancer destroying America stems from a lethal concoction of our $17.2 trillion federal debt and the Fed's never ending money printing.

Currently, Yellen and The Fed are buying $65 billion per month of Treasury and mortgage bonds and will increase or decrease this number as they see fit. According to Schiff, this "exit strategy" is not credible and will unravel.

Eventually interest rates will rise... and when they do, Schiff says, stocks will tank and bonds dip to nothing. Massive new tax hikes will be imposed and programs and entitlements will be cut to the bone.

"The crisis is imminent," Schiff said.  "I don't think Obama is going to finish his second term without the bottom dropping out. And stock market investors are oblivious to the problems."
"We're broke, Schiff added.  "We owe trillions. Look at our budget deficit; look at the debt to GDP ratio, the unfunded liabilities. If we were in the Eurozone, they would kick us out."

Schiff points out that the market gains experienced recently, with the Dow first topping 17,000 on its way to setting record highs, are giving investors a false sense of security.

"It's not that the stock market is gaining value... it's that our money is losing value. And so if you have a debased currency... a devalued currency, the price of everything goes up. Stocks are no exception," he said.
"The Fed knows that the U.S. economy is not recovering," he noted. "It simply is being kept from collapse by artificially low interest rates and quantitative easing. As that support goes, the economy will implode."

A noted economist, Schiff has been a fierce critic of the Fed and its policies for years. And his warnings have proven to be prophetic.

In August 2006, when the Dow was hitting new highs nearly every day, Schiff said in an interview: "The United States is like the Titanic, and I'm here with the lifeboat trying to get people to leave the ship... I see a real financial crisis coming for the United States."

Just over a year later, the meltdown that became the Great Recession began, just as Schiff predicted. He also predicted the subprime mortgage bubble burst, nearly a year before the real estate market fully crashed.

His recent warnings, however, have been even more alarming.  Will they also prove to be true?

In his most recent book, "The Real Crash" How to Save Yourself and Your Country", Schiff writes that when the "real crash" comes," it will be worse than the Great Depression.

Unemployment will skyrocket, credit will dry up, and worse, the dollar will collapse completely, "wiping out all savings and sending consumer prices into the stratosphere." Schiff estimates this "cancer" could consume a trillion dollars from consumers this year.

"Today we're the world's greatest debtor nation. Companies, homeowners and banks are so highly leveraged, rising interest rates will be devastating."

According to polls, the average American is indeed sensing danger. A recent survey found that 61% of Americans believe a catastrophe is looming - yet only 15% feel prepared for such a deeply troubling event.

Is Devastation The Ultimate Cure?

Despite its bleak outlook, Schiff's book has become a real wake-up call for millions of readers.While Schiff's predictions can be grim, he also offers step-by-step solutions that average Americans can follow to protect their wealth, investments and savings.

According to Schiff, "the crash and what follows" can be beneficial. But only for those who understand beforehand what is happening and have time to prepare for the devastation.

"All we can do now is prepare for the crash," Schiff said. "If we brace ourselves properly and control the impact, we will survive it."

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