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Labor Rising: Will Class Identity Finally Matter Again? May 1, 2024
That this level of incendiary outrage has seeped into the mainstream media tells us that
the bill for America's gluttony of inequality is long overdue.
Two primary trends may be reversing: wage earners--labor--may be finally starting to regain some of the share of Gross Domestic Income (GDI) lost to capital over the past 54 years, and economic class identity that collapsed in favor of individual identity--enabling the siphoning of $149 trillion in GDI from labor to capital since 1970--may be reviving. The two trends are intertwined: the cultural dominance of identity politics came at the expense of economic class identity, which effectively blinded us as a nation to the multi-decade transfer of wealth from wage earners to owners / managers of capital. If we are wondering how the bottom 90% have lost ground, we can start with the social-cultural blindness to the collapse of class identity which enabled the dominance of capital politically, economically and socially, as manifested in the rise of globalization and financialization, the tools used to transfer income from labor to capital. Capital's increasing share of domestic income was not pre-ordained; it was the result of specific policy decisions, starting with globalization's downward pressure on domestic wages. The fancy term for forcing American workers to compete with other workers around the world whose cost of living is a fraction of ours is global wage arbitrage: capital shifted jobs to low-wage regions at will to increase profits at the expense of domestic wages. This is the fundamental advantage capital has over labor: capital is globally mobile, labor is grounded in a particular place. Yes, workers can move around the world, too, but there are restrictions, both legal and in cost / sacrifice, as the effort and expense required to move from one country to another are significant. Capital doesn't care about a place or community; that's up to the residents. If capital shifts overseas to lower costs / increase profits, well folks, make do with what's left. Financialization amplified capital's dominance of the economy, for capital gained tremendous power as credit and leverage expanded capital's scale and reach at the expense of domestic workers and communities. It's equally important to note that the corporate dominance generated by globalization and financialization also gutted small business and the local enterprises that provide the bulk of the jobs and cohesion in communities. The RAND study Trends in Income From 1975 to 2018 concluded that capital skimmed $50 trillion from labor from 1975 to 2018. Using data from the Federal Reserve's FRED database (series A4102E1A156NBEA), correspondent Alain M. calculated the actual sum for the period 1970 to 2022 (2022 being the most recent data available) was a staggering $149 trillion: his spreadsheet is available here as a PDF: Employees Share of Gross Domestic Income 1970-2022. If wage earners' share of Gross Domestic Income had remained at 51% instead of declining to 43%, wage earners would have received an additional $149 trillion over those 52 years. That's roughly $3 trillion a year, which works out to an additional $22,000 annually for America's 134 million full-time workers or an additional $18,000 annually for the nation's entire work force (full-time, part-time, self-employed, gig workers) of 163 million. No wonder the purchasing power of a day's work has declined to the point many cannot afford to buy a home or start a family or rent an apartment. Time magazine published a gloves-off summary of the RAND study in September 2020: The Top 1% of Americans Have Taken $50 Trillion From the Bottom 90% -- And That's Made the U.S. Less Secure. Consider these excerpts from the article: "There are some who blame the current plight of working Americans on structural changes in the underlying economy--on automation, and especially on globalization. According to this popular narrative, the lower wages of the past 40 years were the unfortunate but necessary price of keeping American businesses competitive in an increasingly cutthroat global market. But in fact, the $50 trillion transfer of wealth the RAND report documents has occurred entirely within the American economy, not between it and its trading partners. No, this upward redistribution of income, wealth, and power wasn't inevitable; it was a choice--a direct result of the trickle-down policies we chose to implement since 1975. We chose to cut taxes on billionaires and to deregulate the financial industry. We chose to allow CEOs to manipulate share prices through stock buybacks, and to lavishly reward themselves with the proceeds. We chose to permit giant corporations, through mergers and acquisitions, to accumulate the vast monopoly power necessary to dictate both prices charged and wages paid. We chose to erode the minimum wage and the overtime threshold and the bargaining power of labor. For four decades, we chose to elect political leaders who put the material interests of the rich and powerful above those of the American people." That this level of incendiary outrage has seeped into the mainstream media tells us that the bill for America's gluttony of inequality is long overdue. The pendulum reached an extreme and is now starting to swing back, as evidenced by previously anti-union work forces (VW auto workers, for example) starting to vote in favor of unionization. Trillion-dollar cartels / monopolies--the golden children of capital--are finally facing some pushback from their work forces and anti-trust agencies. Here is the Federal Reserve chart of wage earners' share of Gross Domestic Income: 
Note the basic structure of lower highs and lower lows: labor's share of GDI recovers a bit of ground in "good times"--speculative bubbles and massive federal stimulus--and then reverts to trend once the bubbles pop. The substitution of identity politics for economic class identity has been catastrophic for the bottom 90% of the American work force and the bottom 90% of American households. Capital can buy political influence to obtain policies that favor capital; the work force has no power other than the cohesion generated by shared identity manifested in cooperative action in pursuit of economic shared interests. Corporate apologists and PR flacks like to demonize labor organizations as "Marxist" to misdirect us from the reality that labor organizations are necessary counterweights to corporate dominance. Once the counterweights have been stripped out, the system decays to what we have today: a hyper-globalized, hyper-financialized corporatocracy with zero interest in anything beyond maximizing private gains by whatever means are available (cough, doing God's work, Pelosi portfolio, cough). The net result is a failed state geared to serve the interests of the few at the expense of the many. A pendulum can only reach so far before it reverses and proceeds to the opposite extreme (minus a bit due to friction). Labor, capital and class identity are all starting to swing away from 50+ year extremes that decimated the financial security and share of domestic income of the bottom 90%. Thank you, Alain M., for generously sharing your analysis of wages share of GDI 1970 - 2022. My recent books: Disclosure: As an Amazon Associate I earn from qualifying purchases originated via links to Amazon products on this site. Self-Reliance in the 21st Century print $18, (Kindle $8.95, audiobook $13.08 (96 pages, 2022) Read the first chapter for free (PDF) The Asian Heroine Who Seduced Me (Novel) print $10.95, Kindle $6.95 Read an excerpt for free (PDF) When You Can't Go On: Burnout, Reckoning and Renewal $18 print, $8.95 Kindle ebook; audiobook Read the first section for free (PDF) Global Crisis, National Renewal: A (Revolutionary) Grand Strategy for the United States (Kindle $9.95, print $24, audiobook) Read Chapter One for free (PDF). A Hacker's Teleology: Sharing the Wealth of Our Shrinking Planet (Kindle $8.95, print $20, audiobook $17.46) Read the first section for free (PDF). Will You Be Richer or Poorer?: Profit, Power, and AI in a Traumatized World (Kindle $5, print $10, audiobook) Read the first section for free (PDF). The Adventures of the Consulting Philosopher: The Disappearance of Drake (Novel) $4.95 Kindle, $10.95 print); read the first chapters for free (PDF) Money and Work Unchained $6.95 Kindle, $15 print) Read the first section for free Become a $3/month patron of my work via patreon.com. Subscribe to my Substack for free Self-Reliance in the 21st Century print $18, (Kindle $8.95, audiobook $13.08 (96 pages, 2022) Read the first chapter for free (PDF) 
When Ralph Waldo Emerson wrote his famous essay Self-Reliance in 1841, the economy was localized and households supplied many of their own essentials. In our hyper-globalized economy, we re dependent on distant sources for our essentials.
Emerson defined self-reliance as being our best selves thinking for ourselves rather than following the conventional path. Self-reliance in the 21st century means reducing our dependency on fragile supply chains and becoming producers as well as consumers. Self-reliance is often confused with self-sufficiency--the equivalent of Thoreau s a cabin on Walden Pond. But self-reliance in the 21st century isn t about piling up money or a cabin in the woods; it s about humanity's most successful innovation: cooperating with trustworthy others in productive networks. The book details the essential mindset of self-reliance and 18 nuts and bolts principles of self-reliance in the 21st century.
Podcast with Richard Bonugli: Self Reliance in the 21st Century (43 min)
When You Can't Go On: Burnout, Reckoning and Renewal ( $18 print, $8.95 Kindle ebook; audiobook) 
When I burned out, what I wanted but could not find was a practical guide by someone who had experienced burnout
themselves. None of the material I found spoke to what I was experiencing or to my sense that our
economy is now optimized to burn people out.
I decided to write the guide I wanted but could not find. This is my experience of burnout, reckoning and renewal. This book is my account of what helped me. The intended audience is other burnouts and those who want to better understand the experience of burnout. Burnout is a life-changing experience in a good way, as absurd as that may sound to those in the depths of burnout. To paraphrase Samuel Beckett: I can't go on but I must go on. There is a way forward. Read the first section for free (PDF). The Introduction
The Epidemic Nobody Talks About: Burnout
Global Crisis, National Renewal: A (Revolutionary) Grand Strategy for the United States ( $22.50 print, $9.95 Kindle ebook, audiobook) 
Nations that embrace Degrowth and social cohesion will survive. Those that cling to "waste is growth" economies
and destabilizing extremes of inequality will perish.
The threats to the republic are unprecedented, and conventional responses are an accelerant of collapse: the status quo is now the problem rather than the solution. We have an opportunity to redraw America s Grand Strategy from the ground up. Should we fail to do so, the United States will fail, along with all the other nation-states that are incapable of grasping degrowth and social unity as solutions. This revolutionary Grand Strategy will be the deciding factor between nation-states that fail and the few (if any) that will not just survive but actually thrive. Read Chapter One for free (PDF). Read the Introduction Podcast discussing the book: A Grand Strategy to Address the Global Crisis (54 min., with Richard Bonugli)
Recent entries: China and the U.S.: What Matters That's Overlooked April 29, 2024 The Ghetto-ization of American Life April 25, 2024 Cities' "Doom Loops" Are Even Worse Than You Imagined April 24, 2024 Is the 'Housing Shortage' the Result of Housing-Hoarding by the Wealthy? April 22, 2024 Living on Uneasy Street April 19, 2024 The Spear in AI's Back April 17, 2024 Financial Forecast 2025-2032: Please Don't Be Naive April 15, 2024 Sound Money Vs. Fiat Currency: Trade and Credit Are the Wild Cards April 11, 2024 Could US Treasuries Become the Trade of the Decade? April 9, 2024 Staving Off Revolution April 8, 2024 What Orwell and Huxley Got Wrong and Kafka Got Right April 3, 2024 YOLO Spending, Inflation and the Wisdom/Madness of Crowds April 2, 2024
Fed to Offer Every Household $1 Million from its New Discount Window
April 1, 2024
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"There is no security on this earth; there is only opportunity." (Douglas MacArthur) "We are what we repeatedly do." (Aristotle) "Do the thing and you shall have the power." (Ralph Waldo Emerson) "Any intelligent fool can make things bigger, more complex, and more violent. It takes a touch of genius and a lot of courage to move in the opposite direction." (E.F. Schumacher, via Tom R.) "He who will not risk cannot win." (John Paul Jones) "When we drink coffee, ideas march in like the army." (Honore de Balzac) "Progress is not possible without deviation." (Frank Zappa, via Richard Metzger) "Victory favors those who take pains." (amat victoria curam) "The man who has a garden and a library has everything." (Cicero, via Lee Bentley) "A healthy homecooked family meal and a home garden are revolutionary acts." (CHS) "Do you know what amazes me more than anything else? The impotence of force to organize anything." (Napoleon Bonaparte) "The way of the Tao is reversal" Or "Reversal is the movement of Tao." (Lao Tzu) "Chance favours the prepared mind." (Louis Pasteur) "Success consists of going from failure to failure without loss of enthusiasm." (Winston Churchill) "Where there is ruin, there is hope for treasures." (Rumi) "The realm of gratitude is boundless." (CHS, 11/25/15) "History doesn't have a reverse gear." (CHS, 12/22/15) Smith's Law of Conservation of Risk: Every sustained action has more than one consequence. Some consequences will appear positive for a time before revealing their destructive nature. Some consequences will be intended, some will not. Some will be foreseeable, some will not. Some will be controllable, some will not. Those that are unforeseen and uncontrollable will trigger waves of other unforeseen and uncontrollable consequences. (July 8, 2014)(thanks to Lew G. for retitling the idea.) Smith's Neofeudalism Principle #1: If the citizenry cannot replace a kleptocratic authoritarian government and/or limit the power of the financial Aristocracy at the ballot box, the nation is a democracy in name only. The Smith Corollary to Metcalfe's Law (The Network Effect): the value of the network is created not just by the number of connected devices/users but by the value of the information and knowledge shared by users in sub-networks and in the entire network. (CHS, 4/6/16) My Credo of Liberation: I no longer care if the power centers of our society--the distant, fortified castles of our financial feudal system--are changed by my actions, for I am liberated by the act of resistance. I am no longer complicit in perpetuating fraudulent feudalism and the pathology of concentrated power. I no longer covet signifiers of membership in the Upper Caste that serves the plutocracy. I am liberated from self-destructive consumerist-State financialization and the delusion that debt servitude and obedience to sociopathological Elites serve my self-interests. (Thank you, Klaus-Peter L., for reminding me) "We've become a culture of excuses rather than solutions: solutions always require sustained effort and discipline." (CHS 4/9/16) "Fraud as a way of life caters an extravagant banquet of consequences." (CHS 4/14/16) "Creativity = problem solving = value creation." (CHS 6/4/16) "Truth is powerful because it is the core dynamic of solving problems." (CHS 7/21/17) "We live in a system of human emotions that masquerades as a science (economics)." (CHS 1/1/18) "Always remember, your focus determines your reality." (George Lucas) "Diversity is for poor people. Sameness is for the successful." (GFB) "When power dissipates suddenly, it dissipates completely." (CHS 7/14/19) "Disobedience is the true foundation of liberty. The obedient must be slaves." (Henry David Thoreau) "Markets cannot price in the value of non-monetized natural assets such as diverse ecosystems." (CHS 7/14/19) "Magical thinking isn't optimism, it is folly." CHS 1/3/22) "Tune in (to self-reliance), drop out (of hyper-consumerism and debt-serfdom) and turn on (to relocalizing capital and agency)." (CHS 1/5/22) "The path to everything you desire starts here: like yourself as you are right now." (CHS 11/20/22) "There are only two signals: how many essentials you produce and share and if you're consuming less with better results. Everything else is noise." (CHS 12/17/22) "Liberation is no longer needing any confirmation or feedback from others or the world for one's sense of self. Wealth, fame, recognition, admiration, praise, prestige, approval, sainthood, martyrdom, success: none are needed, none are desired." (CHS 12/26/22) "When fame, wealth, prestige, status and glory are out of reach, you're free to pursue other more valuable things." (CHS 2/6/22) "It is the sacred duty of every activist who seeks to better their community to grow and share as much life-giving food as is humanly possible." (CHS 6/15/23) "Being anonymous, gray and unknown is the ideal state of freedom." (CHS 3/15/24) click here for more Extra-Special Bonus Aphorisms. |
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