What the Global Status Quo Optimizes: Protecting Elites and the Clerisy Class That Serves Them   (September 26, 2014)

The incestuous embrace of privilege and power by entrenched, socially isolated Elites characterizes failed states and brittle, doomed regimes throughout history.

Every system is optimized to serve a specific purpose. As noted in my recent essay What Metric Are We Optimizing For?, what the system optimizes is rarely explicitly stated.

Sometimes this results from not understanding the metric that the system is designed to optimize; but in other cases, explicitly describing what the system optimizes would trigger social instability.

The Status Quo around the world--from France to China to the U.S.--is optimized to protect its Elites and the sprawling Upper-Caste of academics, managers, think-tank toadies, technocrats, apparatchiks, functionaries, factotums, lackeys and apologists who serve the Elites, and are well-paid for enforcing the Status Quo on the disenfranchized castes below.

Demographer Joel Kotkin, author of the new book The New Class Conflict, has coined the word Clerisy to describe what I have been calling the Upper Caste: America's new class system.

Oligarchs are assisted in their control by what Kotkin calls the "clerisy" class an amalgam of academics, media and government employees who play the role that medieval clergy once played in legitimizing the powerful, and in implementing their policies while quelling resistance from the masses. The clerisy isn't as rich as the oligarchs, but it does pretty well for itself and is compensated in part by status, its positions allowing even its lower-paid members to feel superior to the hoi polloi.

Because it doesn't have to work in competitive industries, the clerisy favors regulations, land-use rules and environmental restrictions that make things worse for businesses especially the small "yeoman" businesses that traditionally sustained much of the middle class thus further hollowing out the middle of the income distribution. But the lower classes, sustained by government handouts and by rhetoric from the clerisy, provide enough votes to keep the machine running, at least for a while.

This describes the Savior State perfectly: a centrally planned and controlled government that enforces its absolute control via force, legal regulations and the blandishments of complicity: there's billions of dollars in free money social welfare to buy the loyalty (or at least the passivity) of the disenfranchized and marginalized.

I have often written about the stagnation of social mobility and the rise of a neofeudal arrangement of social-economic strata:

America's Nine Classes: The New Class Hierarchy (April 29, 2014)

The Three-and-a-Half Class Society (October 22, 2012)

The New American Divide (January 25, 2012)

Why Reform Won't Work (February 7, 2013)

When Belief in the System Fades (March 12, 2008)

The political, corporate/financial and National Security State Elites represent a vanishingly thin layer of the American economy and society. America today is the nightmare scenario feared by James Madison and other Federalists: a covertly created monarchical (what I term neofeudal) empire much like the Roman Empire--a republic in name but in reality a highly centralized Empire operated for the benefit of tiny Elites who buy complicity of the masses with free bread and circuses.

The "Monarchical Federalists" Madison and Jefferson feared have indeed established a neofeudal, neocolonialist Empire.

In this context, it is interesting to note that fully 20% of all entitlements (tax credits, Medicare, Social Security, etc.) flows to the top 10%, 58% goes to middle-income households and 32% goes to the bottom 20%. The swag of bread and circuses is remarkably well-distributed, buying off every sector of the populace.

Behind the PR facade of democracy and free-market capitalism, a parasitic Aristocracy extracts income and wealth from a financially indentured class of serfs. This Aristocracy is composed of several Elites which are served by the Upper Caste of technocrats. These Elites and the Upper Caste serve each others interests, a social heirarchy that Hilton Root characterized as a "society divided into closed, self-regarding groups." The slow trickle of the "best and brightest" into the Upper Caste via Ivy League university admission is also a propaganda facade, as Ron Unz ably and exhaustively proves in The Myth of American Meritocracy How corrupt are Ivy League admissions?

The trick is enable just enough meritocracy to support the PR facade. The Ivy League has mastered that balancing act.

These Elites have few if any links to the social layers below. Charles Murray spoke to some aspects of this trend of financial/social Elitist isolation from the debt-serfs and worker-bee class below in Coming Apart: The State of White America, 1960-2010, but the key dynamic that is outside Murray's sociological purview is the stark reality that the Elite class is devoid of any real feeling for or interest in the common good or public weal.

That is, not only have the key institutions of American governance and power lost the memory and mechanics of good governance, the Elites running the institutions have become an inbred neofeudal Aristocracy characterized by an unexamined (and thus deeply adolescent) sense of entitlement to the reins of power and control of the national income.

It's not just the institutions that have lost any conception of good governance-- the Aristocracy ruling the nation has lost all interest or recognition of the common good. This is of course not unique to America; the same disregard for the common good is at the root of all developed-world and developing-world failed states.

The incestuous embrace of privilege and power by entrenched, socially isolated Elites characterizes failed states and brittle, doomed regimes throughout history. This is what the Status Quo everywhere is optimized for: protecting those who have secured the wealth, perquisites and power by strangling competition, democracy and social mobility.

If you want to pinpoint the one dynamic pushing the global economy into not just a prolonged recession but a parallel period of massive social instability, look no farther than the social and financial stagnation that results from optimizing the system to benefit the Elites and the entrenched incumbents who protect them from competition and the dispossessed debt-serf classes below.







Get a Job, Build a Real Career and Defy a Bewildering Economy (Kindle, $9.95)(print, $20)
go to Kindle edition
Are you like me?
Ever since my first summer job decades ago, I've been chasing financial security. Not win-the-lottery, Bill Gates riches (although it would be nice!), but simply a feeling of financial control. I want my financial worries to if not disappear at least be manageable and comprehensible.

And like most of you, the way I've moved toward my goal has always hinged not just on having a job but a career.

You don't have to be a financial blogger to know that "having a job" and "having a career" do not mean the same thing today as they did when I first started swinging a hammer for a paycheck.

Even the basic concept "getting a job" has changed so radically that jobs--getting and keeping them, and the perceived lack of them--is the number one financial topic among friends, family and for that matter, complete strangers.

So I sat down and wrote this book: Get a Job, Build a Real Career and Defy a Bewildering Economy.

It details everything I've verified about employment and the economy, and lays out an action plan to get you employed.

I am proud of this book. It is the culmination of both my practical work experiences and my financial analysis, and it is a useful, practical, and clarifying read.

Test drive the first section and see for yourself.     Kindle, $9.95     print, $20

"I want to thank you for creating your book Get a Job, Build a Real Career and Defy a Bewildering Economy. It is rare to find a person with a mind like yours, who can take a holistic systems view of things without being captured by specific perspectives or agendas. Your contribution to humanity is much appreciated."
Laura Y.

Gordon Long and I discuss The New Nature of Work: Jobs, Occupations & Careers (25 minutes, YouTube)



NOTE: Contributions/subscriptions are acknowledged in the order received. Your name and email remain confidential and will not be given to any other individual, company or agency.

  Thank you, Gregory M. ($50), for your astonishingly generous contribution to this site-- I am greatly honored by your support and readership.  


"This guy is THE leading visionary on reality. He routinely discusses things which no one else has talked about, yet, turn out to be quite relevant months later."
--Walt Howard, commenting about CHS on another blog.

"You shine a bright and piercing light out into an ever-darkening world."
Jeremy Beck


Contributors and subscribers enable Of Two Minds to post 275+ free essays annually. It is for this reason they are Heroes and Heroines of New Media. Without your financial support, the free content would disappear for the simple reason that I cannot keep body and soul together on my meager book sales alone.

Or send coins, stamps or quatloos via mail--please request P.O. Box address.

Subscribers ($5/mo) and those who have contributed $50 or more annually (or made multiple contributions totalling $50 or more) receive weekly exclusive Musings Reports via email ($50/year is about 96 cents a week).

Each weekly Musings Report offers six features:
1. Exclusive essay on a diverse range of topics
2. Summary of the blog this week
3. Best thing that happened to me this week
4. Market Musings--commentary on the economy & global markets
5. Cultcha/Culture: selected links to the arts, performances, music, etc.
6. From Left Field (a limited selection of interesting links)

At readers' request, there is also a $10/month option.

What subscribers are saying about the Musings (Musings samples here):

The "unsubscribe" link is for when you find the usual drivel here insufferable.

 
 
Dwolla members can subscribe to the Musings Reports with a one-time $50 payment; please email me if you use Dwolla, as Dwolla does not provide me with your email.



The Heroes & Heroines of New Media:
oftwominds.com contributors and subscribers



All content, HTML coding, format design, design elements and images copyright © 2014 Charles Hugh Smith, All global rights reserved in all media, unless otherwise credited or noted.

I am honored if you link to this essay, or print a copy for your own use.

Terms of Service:
All content on this blog is provided by Trewe LLC for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owner will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information. These terms and conditions of use are subject to change at anytime and without notice.


                                                                         
blog     My Books     Archives     Books/Films     home


 

Add oftwominds.com
to your reader:



Making your Amazon purchases through this Search Box helps support oftwominds.com at no cost to you:



search my site: