Not only is plutonomy (basing the entire economy on production for the super rich) profoundly immoral (some people pay $22,000 for a fidget spinner whilst others have to visit food banks) it is also economically illiterate. There is a limit to how many luxury goods any one person can consume. The deliberate distortion of the economy since the 1970s, but especially since 2008, has since the exponential growth in the amount of money hidden in tax havens. Whether one is on the left or right it is clear that this money is not being used productively. Henry Ford did not pay his workers $5 a day because he was a nice person (he wasn’t) but because he knew well-paid workers would be able to buy his cars. This is basic stuff – the Keynesian multiplier effect.
We are heading back to a situation akin to that in the late Roman Republic and early Empire. In Ancient Rome, a few people were obscenely wealthy whilst the vast majority of the population were either slaves or lived on the edge of subsistence. The phrase ‘bread and circuses’ comes from the policy of the Roman elite to provide free food and entertainment for the masses. Whilst we haven’t got to the stage of the government handling out a corn dole, what else is reality television but a circus designed as a distraction? Even some of the ‘serious’ newspapers have been reporting the tawdry goings-on from the show ‘Love Island’ as though it were news. I sometimes feel my mind sinking into a bottomless pit of despair and hopelessness.
Karl Marx got his word for the dispossessed working class – the proletariat – from the Roman term proletarii. The proletarii were the poorest citizens who owned little or no property and whose only contribution to society was the ability to produce children for the army. Anyone who has read Yuval Noah Harari’s book Sapiens will be aware of his prediction that a large majority of humans may be rendered economically superfluous by advances in robotics and artificial intelligence. To stay with the Roman theme, the late Republic and Empire saw the super rich live in protected enclaves with their own bodyguards whilst the poor lived in lawless and violent districts. Is this the future of Western society? Or am I guilty of hyperbole? Perhaps I am but the number of violent deaths in Sadiq Khan’s London and the authorities’ refusal to protect young girls from sexual predators in cities across the north of England may suggest otherwise.
Remember this cartoon next time some silver spoon politician opposes an economic policy designed to help the 99% against the interests of the plutocracy.