In an economic downturn, rich people lose a little value. Poor people lose their homes. When was the last time a solidly wealthy person was ruined by an economic collapse? 1929?
The safeguards put in place as a result of the Great Depression have been an enormous blessing to the middle and working class, whose savings evaporated as a result of irresponsible investing by bankers in the late 1920s. Never again, said the government. So we got safety nets.
The nets protect your savings if you have any. This is an important detail. If you're too poor even to have savings, the FDIC means little to you.
The nets also protect the trapeze-swinging investment adventurers, partly because they were coupled with regulations to beef up the trapezes themselves and limit the ambition of the stunts, but also by allowing the aerialists to plunge, bounce, pull a stylish backflip and land on the solid earth with a flourish before clambering up to try again. This has ultimately led to such things as a US President who has come back from six bankruptcies with a reputation as a keen businessman, and a financial sector that fucks around constantly and never seems to find out for more than a brief interlude of minor shame. It's still better than when the trapeze accidents would pull down the whole goddam tent, but it has made recession into another tool, rather than an unquestionable mistake.
I'm not the only one to have pointed out that savvy investors exploit economic fluctuations by buying the dip. If they have the funds -- and they have powerful incentive to dig them up -- they can buy low. Later, they can sell high.
It's risky business to push the whole economy down on purpose. The plutocrats probably haven't been so bold as to try to pull it off. Then again, recessions serve their power in more ways than setting up a quick little killing on whatever market has dropped.
Grass roots organizing has been a considerable annoyance to the entities who believe that the wealthy really are much better than the rest of us and deserve to rule without question. The best way to control grass roots organizing is to kill the grass. The right wing machine is lavishly funded by plutocrats flooding every information channel with their version of why life is so tough for the numerous regular folks who do the initial voting in this country. We vote -- or should -- to elect our representatives who will be our champions in this government of the people, by the people. Controlling that decision is crucial to the wealthy maintaining their image as the best of us.
It helps the rich when times are tough because they can direct the fear and anger of the voters at targets the wealthy choose, who are anyone other than themselves.
Organizations opposing that corporate consolidation of power depend on small donations. Anyone with an email account and a scrap of conscience and empathy receives dozens of fundraising appeals a day, sometimes dozens an hour in times of crisis. And we've been in crisis for almost ten years now. The grass is thin and dry, on packed, trampled soil.
Voices on the progressive side have been saying for months that anyone who opposes the authoritarian rule of the party currently in power needs to drop everything and devote all attention to protesting, organizing, and witnessing to their neighbors about the dangers of the current crisis and the dire need to get out and vote in massive numbers to oust them in 2026 and 2028. Go door to door! Talk to people on the street!
Yeah, about that: raise your hand if you, too, will shut off all the lights and lie on the floor so that a religious proselytizer on your doorstep will think that no one is home and go away. Canvassers swear that it's effective, but it takes a special kind of person, which I am not. Raise your other hand if you've ever crossed a street to avoid someone handing out leaflets.
Many of us on the progressive side are further hampered by the fact that we're not interested in wealth for its own sake. I started asking years ago, "Who is enslaved on my behalf? What person or country's poverty is indispensable to our prosperity?"
The poor aren't a uniformly virtuous, big-eyed bunch of noble souls. There are dirtbags and screwups, and failed start-up villains who didn't manage to crack the code to become commercially viable. But people of conscience are on average going to be much less wealthy in money than the people who set few or no limits on how much they will take, and from what sources. Being a shit is way more lucrative than being a decent person.
Take this opportunity to point out your favorite example of someone who sort of accidentally became super rich. Should this happen to you, know that there are simple, immediate steps you can take to start redirecting those funds to a wide array of worthy recipients. Back before JK Rowling revealed her hysterical aversion to trans women, she was a fantastic example of the accidental billionaire taking immediate steps to deflect the bulk of it into helpful endeavors. And she made a point of not bitching about her taxes. It was a beautiful, brief time.
I understand the temptation to settle in on easy street, especially if you hadn't had an exceptionally easy life beforehand. In 1996 I became an unexpected thousandaire after the death of my grandparents. The bequest was in the form of stocks, which I was tempted to liquidate immediately, but didn't. I thought I would try the supposed smart thing to do, and remain invested. Every year I would get the ballots for corporate meetings. After a couple of rounds I noticed that the altruistic shareholder proposals to make the companies more socially responsible always failed, and that the statement from the board of directors was always the same boilerplate about remaining competitive in the business environment as it exists, not hobbling the company in a way that would surely cut off those dividends to shareholders. I divested gradually for a while, as crises in my poor people life called for infusions of funds, and liquidated the last of it in 2011 to invest in a music school. Support the arts if it kills you!
On a much larger scale, a retired professor in the Bronx made a big splash when she donated a billion dollars to Albert Einstein College of Medicine, to subsidize tuition for all future students there. A billion dollars is a lot of money, and quite admirable. However, she still has seventy-five percent of the fortune she inherited from her late husband, who racked it up in the financial sector. Not to put too fine a point on it, but financial sector fortunes are all blood money. Money made on money and money changing hands has nothing to do with productivity and the general quality of life for the majority of people. Again, I totally understand the temptation to keep the big chunk. The idea that the rich don't sleep well is complete bullshit. Their bedrooms are cushioned and soundproofed with bales of cash that most of us never see. The only thing the rich lose sleep over is the fact that they aren't doing better at getting even more wealth. That and the fear that the poor will finally rise up in sufficient numbers to overwhelm their private security forces and drag them out into the street. But we're actually too nice to do that, and too many of us can imagine how nice it would be to have that kind of wealth ourselves. We'd be one of the cool ones.
Billionaires are a sign of a sick economy. Multibillionaires are a massive symptom of a sick economy. They're a natural consequence of unregulated capitalism. Your free market proponents say that they're self limiting because they could lose it all on a bad gamble, but that assumes that a large percentage of them will make these bad gambles, and that the fragments of their fortunes will scatter out to the rest of us rather than being sucked up by the remaining billionaires. Guess what really happens. All you have to do is look at who owns the whole federal government right now: a whole bunch of rich people who suck.
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