by Ibon » Sun 06 Apr 2014, 06:00:09
$this->bbcode_second_pass_quote('ralfy', 'U')ltimately, the 1 pct relies on increasing production and consumption of goods, and thus a growing global middle class, as the value of money (which is the main asset of the 1 pct) is maintained only given continuous economic growth. However, that global middle class will continue growing as more people worldwide want basic needs, if not more.
Let's call this relationship between the middle class and the elite a kind of dysfunctional symbiosis. As long as resources allow high consumption rates this symbiosis is not going away as you and many others have pointed out.
When resources constrain enough to slow way down economic growth than where is the fat to be trimmed? With the high consuming middle class.
Thus we will see that the elite, when they see the game is dwindling down on pumping up consumption, will move toward the opposite strategy of hording.
Some of that can be seen already as trillions of dollars of assets are sitting on the sidelines not being pumped back into the economy.
I think we underestimate how quickly this dysfunctional symbiosis can be abandoned.
We talk about how an eventual steady state economic system could be achieved and we often frame this as coming from some enlightened economic policies.
What I am pointing out here is that there is a far easier, more draconian, and probably for the elite a far more tempting path to take once resources are drawn way down. You disenfranchise that segment of the population who previously fed you but now is your competitor.
This rare moment in our species history where affluence was able to trickle down to a broad middle class was only possible due to fossil fuels. To assume that resource constraints will allow this segment of our population to continue is folly.
It will be a hollowed out form of capitalism that will promise much and deliver very little. Don't we see this already happening?
The middle class is screwed. And yes, this will be good for the biosphere and good for the long term goal of reaching sustainability.
Sorry to state the obvious.
Patiently awaiting the pathogens. Our resiliency resembles an invasive weed. We are the Kudzu Ape
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