"In a time of universal deceit telling the truth is a revolutionary act." -George Orwell

Posts Tagged ‘Growth’

A False Choice For The Ages – Capitalism Or The Environment: On A Dying Planet You Can’t Have Both

In Uncategorized on October 8, 2013 at 11:40 am

https://theoldspeakjournal.files.wordpress.com/2013/10/698e1-cap_env.jpgOldspeak: “The capitalist drive to maximize profits explains the externalizing of environmental costs. Capitalism allows small minorities to profit at the expense of others. Private ownership of what are social means of livelihood allows capitalists to make decisions that pass the real costs of industry to communities, workers, future generations and other species… Worse, capitalism requires constant growth because it always needs more profit. Making ever more profit is what motivates people to make investments. But what happens when the environment needs a smaller human footprint? When, at least in wealthier countries, we must learn to live with much less stuff? Supporters of capitalism claim the system is based on freedom and choice, but when it comes to the environment for many people this amounts to the freedom to choose between destroying the planet or having a job…. The business pages are full of stories quoting the captains of the carbon-industrial complex as telling us what amounts to: “You must choose between economic prosperity and what is good for the environment, because you can’t have both.”…some so-called environmentalists look to capitalism for solutions. That’s like asking the fox to fix the hen-house. You can’t be a serious environmentalist and support capitalism. A sustainable economy is incompatible with a system that constantly demands more profit.” –Gary Engler

“How do we free ourselves from the ruthlessly cannibalistic drives of our hyper-violent, destructive and unsustainable economic system & choose the life of our planet, and by extension, us, over the extractive, exploitative, real cost externalizing, computer generated “profit” generating machine that is Capitalism? A fellow blogger over at Cyber Street Soap Co.  has the idea OSJ has been advocating for years- Withdraw your support for it. When they says “…freedom must be built from the inside out, starting with yourself. It cannot be done by sitting in your comfy home “truthing” about our evil rulers. It can’t even be done by standing around with a sign, after which you will probably return to your comfy home feeling all proud of yourself, then go back to your shit corporate job because you “need the money.” Sorry, but this just won’t work….As long as you keep laboring for their corporations to get some of their money, so you can continue buying their products in their fucking stores… nothing will change. Period. If you continue obeying their laws and seeking their permission, nothing will change. But if enough of us stop playing into their system, real things will happen. Not one shot needs to be fired. Not one fist needs to be raised in violence (or even protest) against our leaders. If you stop watering the plant, the plant will wither away. Simple.” -Bradely Durden. We have no choice. We simply cannot continue to support a system that is slowing and surely destroying us and our planet. Planet must trump “profit” and “growth”. We must make the environment and its continued sustainablility the center of our economic system. “we must hardwire the health of the ecosystem directly to the standard measurements of economic health so that the state of the environment is immediately visible in all economic transactions. Global finance, trade and investment must all be conducted within a system that makes the preservation of the climate, rather than profit, the highest priority. One possible approach is the introduction of a global “eco-currency.” The international community would establish an international currency, an “eco-currency,” whose value is linked directly to the state of the climate (both globally and locally) and that currency would serve either as a universal currency within which international transactions take place, or it could be a factor that significantly impacts all the global currencies.” –Emanuel Pastreich. The end of the world as we know it is the only possible outcome if we continue on this omnicidal course. There is no Capitalism on a dead planet.” -OSJ

By Gary Engler @ Dissident Voice:

If all you care about is making more stuff, capitalism may be the best system ever. But if you want to save the planet from environmental catastrophe our current economic system is a dead end.

I remember in my socialist youth often being told: “Your ideas sound good but that’s just not how things work in real life.”

In my socialist sixties these same words seem appropriate as an analysis of mainstream environmentalism today.

Here is the harsh reality:

The capitalist drive to maximize profits explains the externalizing of environmental costs. Capitalism allows small minorities to profit at the expense of others. Private ownership of what are social means of livelihood allows capitalists to make decisions that pass the real costs of industry to communities, workers, future generations and other species.

Worse, capitalism requires constant growth because it always needs more profit. Making ever more profit is what motivates people to make investments. But what happens when the environment needs a smaller human footprint? When, at least in wealthier countries, we must learn to live with much less stuff?

All the evidence shows capitalism is really lousy at dealing with declining markets. Every time the economy shrinks for a sustained period capitalism goes into a crisis. Banks crash, unemployment rises and wars are often necessary to get capitalism out of its crisis.

Supporters of capitalism claim the system is based on freedom and choice, but when it comes to the environment for many people this amounts to the freedom to choose between destroying the planet or having a job. The promoters of tar sands, fracking, coal mining and pipelines are explicit about this and, in fact, go even further. The business pages are full of stories quoting the captains of the carbon-industrial complex as telling us what amounts to: “You must choose between economic prosperity and what is good for the environment, because you can’t have both.”

If we continue with capitalism, they are correct.

Yet some so-called environmentalists look to capitalism for solutions. That’s like asking the fox to fix the hen house. You can’t be a serious environmentalist and support capitalism. A sustainable economy is incompatible with a system that constantly demands more profit.

Now that the human population has passed seven billion, it should be obvious that we inhabit a planet of finite resources. But population growth is not the problem. Human energy remains our most precious and underutilized resource. Once basic material needs for food, clothing, housing and health care have been met, human well-being depends less on consumption than on opportunities for education, employment, social participation and social recognition.

Science leaves little reasonable doubt that the burning of currently known reserves of coal, oil and natural gas will push atmospheric carbon dioxide levels past a tipping point, after which rising global temperatures will irreversibly undermine the conditions on which human life as we know it depends.

Despite the weight of evidence and the urgency of the problem, capitalism rests on the expansion of fossil fuel production and use.

Around the planet trillions of dollars are being spent to develop massive deposits of shale oil and gas. In Canada capitalist investment is focused on expanding oil production from tar sands. The promoters claim that these developments will create jobs. But the funds required to develop and transport that fuel will create far fewer jobs than would be produced if equivalent amounts were spent on the development of solar, wind and geothermal power. Far more jobs could be produced with investments in domestic employment for domestic markets, in the production and distribution of local agriculture, clothing, shoes and communications products. More jobs would be created by investments in child care, elder care, social housing, public transit and other green infrastructure.

But capitalism prefers investments in fossil fuels because corporate profits now largely depend on cheap fuel. Equivalent profits cannot be made meeting actual human needs.

So, we have some important choices to make: Support capitalism or support the environment. Build a different sort of economic system that can prosper in harmony with the environment or fiddle with capitalism as our planet burns.

Gary Engler is an elected union officer and co-author of the just released New Commune-ist Manifesto — Workers of the World It Really is Time to Unite, an updating of the original designed to provoke discussion about the future of unions and the Left. Read other articles by Gary.

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Spinning Out Of Control: Governments, International Banks & Energy Conglomorates Fuelling Climate Change

In Uncategorized on March 15, 2013 at 1:15 pm

https://i1.wp.com/us.123rf.com/400wm/400/400/jcdesign/jcdesign1108/jcdesign110800002/10200011-planet-earth-with-dollar-sign-shaped-continents-and-clouds-over-a-starry-sky-contains-clipping-path-.jpg

Oldspeak: “Here is a very basic question that no one is asking, not politicians, bankers nor economists.  Even those campaigning about environmental destruction and climate change are not asking it.  Why do we have to have growth? Nothing grows forever, even though it may live for a very long time.  Humans, having reached their maximum height, stop growing.  Either that or they collapse.  Their bones cannot support a body too tall or too fat.  It is the same for anything else that grows.  Everything has limits.  Endless growth is not sustainable.  We cannot grow beyond what this planet can supply, nor should we assume that it can, no matter how much we are persuaded to.  So why is it a given that the ‘economy’ has to grow?  Why can’t it drop back to a level where it might be more sustainable, and maintain a steady position instead? –Lesley Docksey. Why indeed. Nathan Gardels, author, editor and Media Fellow of the World Economic Forum had a pretty good answer when he said: “The big rupture came in the 1800s, with the steam engine, the fossil fuel age, the industrial revolution, This was a great rupture from earlier forms and rhythms of life, which were generally regenerative. What happened after the industrial revolution was that nature was converted to a resource and that resource was seen as, essentially, eternally abundant. This led to the idea, and the conception behind progress which is: limitless growth, limitless expansion.”  We hear “Pro-Growth” mantras repeated incessantly. Perpetual growth is incompatible with natural physical laws and objective reality, yet it’s seen as an essential part of our economic system.  It’s led to all sorts of dangerous, toxic, maladaptive behaviors, that constitute a slow motion extinction level event. We’ve been led to believe that our economic system is the preeminent system on this planet, and that all other systems serve to perpetuate it. That it’s perfectly acceptable to see the commons that give us life as “economically exploitable resources” and “private property”. The reality is the modern human economy is a mere subsystem of the largest and evermost important system on this planet. The Ecosystem. The Dow Jones Industrial average may be at record highs, but ecosystem in which it exists is in extreme peril. The “Market” which dictates much of our behavior as a civilization, cannot exist if the ecosystem collapses. It’s a basic fact we need to understand and change our behaviour as a civilization to account for it. This piece by Lesley Docksey makes very clear that this severe thinking disorder, that we are somehow separate from and have dominion over nature, is a global pandemic. A brilliant documentary produced by Leo DiCaprio provides a look at the state of the global environment including visionary and practical solutions for restoring the planet’s ecosystems. Check it out.

Related Media:
The 11th Hour

By Lesley Docksey @ Dissident Voice:

Being born ‘with a silver spoon in your mouth’ means that you start with an advantage that others don’t have: parents with money, property, influence, business connections and so on, connections that can last for generations.  A silver spoon that appeared recently was the exceedingly generous compensation paid to British slave owners when the UK abolished slavery in 1833, though not one penny went to the freed slaves.  The ancestors of many well-connected people (including David Cameron) benefited.  One way or another, the silver spoon allows you to inherit the best of old boys’ networks and a guaranteed place at all sorts of top tables. These days you also appear to be born with a revolving door.

As I pointed out in Revolving Wars, the door between retiring senior military personnel or ministerial-level politicians and a well-paid position in companies supplying the military revolves at great speed, although sadly not at a fast enough rate as to fire the users into outer space – nor would they go without a profitable contract in place.  But other such doors exist.  And just as the links between government ministers, senior armed forces personnel and the arms trade make it almost impossible to stop our forces from fighting illegal and unnecessary wars, so the links between the government, banks and fossil fuel companies make it impossible to get politicians to take action to mitigate climate change or achieve realistic funding for renewable energy.

The World Development Movement has just published a briefing, Web of Power: the UK government and the energy-finance complex fuelling climate change, and it makes for disheartening reading.  Of the 125 MPs and Lords that make up the UK government, no less than 32% have links with finance and/or fossil fuel companies, while the top 5 banks give financial backing to fossil fuel companies and politicians (the City funded David Cameron’s campaign for the leadership of the Tory Party), and the fossil fuel companies give financial backing to government while lobbying hard for their industry.  There is a merry-go-round of people serving in government and sitting on the boards of financial institutions and energy companies.  It creates a cosy closed shop resulting in a lack of funding for research into and building the infrastructure for renewable energy.

Even worse, despite the noises made by politicians, any effective action to halt climate change is blocked because that would damage business.  It would ‘harm’ the economy – meaning that they, all of them, would lose money.  But they probably think they are the economy.  And, of course their mantra – that climate change is not caused by human activity and we can therefore go on chasing and making money from every scrap of oil or gas to fuel our modern lives – is funded and publicised by some very rich people indeed, many of them with links to… you’ve guessed it… fossil fuels and high finance.  Anything that might puncture that magic bubble of oil, money and power has to be fought (or bought) off by whatever means.

The thought of losing our comfortable lifestyle is challenging, which is why we are persuaded by their spin machine to see that as more of a threat than the destruction of our climate would be.  Even while we are asked to put up with cuts forced upon us by the government, they are proposing to, despite undertaking not to, subsidise companies like EDF with our money, in the hope that they will build nuclear reactors here.  And don’t even mention fracking and the carrot they hold out about ‘cheap’ gas.  It won’t be.  We are also encouraged to allow the bankers to continue paying themselves too much; otherwise they will all go somewhere else.  And, of course, they’d all far rather we worried about the price we pay to fuel our lives than think about a warming world.  Because business as usual means profits as usual.  And also because, whatever else happens, the economy (by which I mean that we remain poor and live economically while the rich grow in riches) must be encouraged to grow.

And here is a very basic question that no one is asking, not politicians, bankers nor economists.  Even those campaigning about environmental destruction and climate change are not asking it.  Why do we have to have growth?

Nothing grows forever, even though it may live for a very long time.  Humans, having reached their maximum height, stop growing.  Either that or they collapse.  Their bones cannot support a body too tall or too fat.  It is the same for anything else that grows.  Everything has limits.  Endless growth is not sustainable.  We cannot grow beyond what this planet can supply, nor should we assume that it can, no matter how much we are persuaded to.  So why is it a given that the ‘economy’ has to grow?  Why can’t it drop back to a level where it might be more sustainable, and maintain a steady position instead?

What most of us want is stability and security, and we have let ourselves be persuaded that these only come if we have more – more money, more possessions, bigger televisions, faster cars – more, more, more.  Yet the majority of humanity has spent not centuries but millennia successfully existing by having sufficient.  We need enough, not more.  And let’s face it, the growth that is demanded by governments and corporations always has and always will go into the pockets of those who are already rich, already have far more than they need and certainly far more than their fair share.

Years ago manufacturers made things that could be serviced and repaired, things that we went on using until they fell to pieces.  Then what we bought came with ‘built-in obsolescence’.  It wasn’t a question of buying something new when the old had collapsed.  The new was designed to collapse and be replaced.  Then we were treated to ‘the latest model’ and encouraged to throw away anything that was out of date.  But students at Brighton University are now being asked to design a toaster that the buyer would want to keep!  On the Today programme Professor Jonathon Chapman explained: “It’s actually very easy to design and manufacture a toaster that will last 20 years; that can be done. What’s not so easy is to design and manufacture a toaster that someone will want to keep for 20 years, because as people, as consumers, we haven’t been trained to do that.”

No.  We’ve been trained to always think there is something better out there, and that we both want and need it.  And in the same way the people with their revolving doors are doing their best to train us into thinking that, as consumers, our behaviour has absolutely nothing to do with climate change and we can carry on as usual while the government ‘fixes’ the problem, the banks lend our money to companies we wouldn’t give the time of day to, and the energy companies dig up our back gardens while they frack for gas.

Well, you know what?  As a ‘consumer’ I have decided that governments, banks and fossil fuels also have built-in obsolescence.  They have reached the point of collapse and I want to bin the lot.  I don’t want their ‘latest model’ either because it always turns out to be more of the same with a different coat of paint.  I want to try something new – or rather, something both radical and reactionary – radical because the idea would be considered ‘impossible’, and reactionary because I want to turn back the clock.  I want to return to an old way of life that was sustainable and sufficient to our needs.  And, I suspect, far more satisfying than the constant hunger of consumerism.   Whether climate change will allow me to do that I don’t know.  My time may run out before the toaster fails.

As The Plutonomy Powers Ahead, The Realonomy Remains In Recession

In Uncategorized on February 3, 2012 at 4:55 pm

Oldspeak:‘In a Plutonomy “the rich absorb a disproportionate chunk of the economy and have a massive impact on reported aggregate numbers.” In other words, official economic statistics no longer represent the experience of the economy as a whole. More and more, they represent only the experiences of the very rich...the Realonomy has been in recession since 1999. Even at the very top of the Realonomy, people have experienced flat or declining incomes over the past 12 years…The Realonomy won’t start growing again until America addresses its runaway inequality. We need fairer taxes, higher minimum wages, and more – not less – government spending…That may all sound counterintuitive in a recession, but that’s only because we’ve gotten so used to the politics of Plutonomy. Growth isn’t enough.’ –Salvatore Babones. Not only is Growth not enough, it’s unsustainable. Infinite growth in simply IMPOSSIBLE on a planet with finite resources. The current empire in decline, the U.S. of A. one of the biggest debtor nations on the planet has not come to terms with the fact that it is indeed an empire in decline, and is generating more debt than wealth, while drawing down assets faster than they can replenish them, thus accelerating the rate of decline. “The ‘culture of debt’ has become a global issue, and it is not just financial, but defines how every society and economy now interacts with respect to their fundamental economic, human and natural assets.” –Edward B. Barbier We can’t continue down this unsustainable path indefinitely. The music will stop and the party will end. Then what? That’s what we need to be asking ourselves. Then what?

By Salvatore Babones @ Truthout:

America’s longest recession since World War II officially ended in June 2009. Since then, the economy has expanded by almost 6 percent (adjusted for inflation). All of the losses of 2007-2009 have been erased.

American economic output is now at an all-time high. So why doesn’t it feel that way?

Back in October 2005, three Citigroup stock analysts heralded the arrival of a new kind of economic system in the United States. They called it the “Plutonomy,” the economy of the rich.

They explained that in a Plutonomy “the rich absorb a disproportionate chunk of the economy and have a massive impact on reported aggregate numbers.” In other words, official economic statistics no longer represent the experience of the economy as a whole. More and more, they represent only the experiences of the very rich.

Official economic statistics show that US national income per capita grew a cumulative 10 percent between 1999 and 2011 (adjusted for inflation). In aggregate, we generate 10 percent more per person than we did 12 years ago. Where did that 10 percent growth go?

Up in the stratosphere of the American Plutonomy, the IRS reports that incomes among the top 400 American taxpayers increased 107 percent between 1999 and 2007 (adjusted for inflation). Top 400 incomes declined in 2008, but by most accounts they have now bounced back to pre-recession levels.

For people who just make it into the top 1 percent, the gains have been much more modest. Their real incomes have risen about 12 percent since 1999, depending how you count. By some estimates, the increase has been closer to 6 percent. In other words, people at the 99th percentile of the US income distribution – people making upwards of $360,000 per year – have just about kept pace with economic growth in the economy as a whole.

Since 1999, no group below the top 1 percent has even kept pace. They are the “other 99 percent.” They live in the “Realonomy.”

In the Realonomy, people make most of their money from wages, not investments. In the Realonomy, people have to worry about retirement planning and health insurance. In the Realonomy, people can’t afford to lose their jobs.

While the Plutonomy continues to grow by leaps and bounds, the Realonomy has been in recession since 1999. Even at the very top of the Realonomy, people have experienced flat or declining incomes over the past 12 years. For example, families at the 95th percentile of America’s income distribution have experienced, on average, a 1.2 percent decline in real income (income adjusted for inflation) since 1999.

Further down the ladder, the situation gets worse and worse. For families at the 80th percentile, incomes are down 1.3 percent; at the 60th percentile, down 4.4 percent; at the 40th percentile, down 7.1 percent; at the 20th percentile, down 10.5 percent.

Nor does education provide an insurance policy. Among college graduates with full-time, year-round jobs, real incomes are down 3.6 percent over the past 12 years.

On the other hand, those without college degrees or full-time jobs have fared even worse.

The simple fact is that the Realonomy has been stagnant or in recession since 1999. The Realonomy hit bottom in 2009-2010, but it still hasn’t bounced back. Only the Plutonomy is growing, not the Realonomy.

The Realonomy won’t start growing again until America addresses its runaway inequality. We need fairer taxes, higher minimum wages, and more – not less – government spending.

That may all sound counterintuitive in a recession, but that’s only because we’ve gotten so used to the politics of Plutonomy. Growth isn’t enough.

We have growth. The top of the top 1 percent is growing like crazy. It’s government’s job to redirect some of that growth to the other 99 percent.

 

Why The Wealthiest Americans Are the Real ‘Job-Killers’

In Uncategorized on July 20, 2011 at 9:00 pm

Train Chartering & Private Rail Cars

OLDSPEAK: ‘”It’s a beautiful thing, the destruction of words.’ –Syme (1984). Doublethink par excellence. ‘That the wealthy are “job creators,” and therefore have interests that must be defended by the public at large, is a talking-point that, however facile, is so popular it slips effortlessly from the lips of conservatives every day…It’s also complete nonsense; the opposite of the truth. Sure, the wealthy create a few jobs – people who offer exclusive services or sell them high-end goods. But the overwhelming majority of jobs in this country are “created” by ordinary Americans when they spend their paychecks.” -Joshua Holand. What a sad society it is where truth has so little sway in the course of its affairs. In this backward economic system, less consumption is seen as undesirable , even if it’s been established that perpetual ‘growth’ and ever-increasing consumption is unsustainable and life threatening our planet and everything on it. In this reality controlled society America’s bought and paid for ‘public servants’ are allowed to so brazenly propagate their overseer’s baseless propaganda and pass laws that benefit the few, with no challenge from its corporate consolidated and controlled journalists and news outlets. “Freedom is Slavery”

By Joshua Holand @ AlterNet:

That the wealthy are “job creators,” and therefore have interests that must be defended by the public at large, is a talking-point that, however facile, is so popular it slips effortlessly from the lips of conservatives every day.

It can be deployed for any purpose – not only in calling for more tax breaks for the rich, but also when opposing public interest regulation, consumer litigation and worker protections. Rep. Michele Bachmann, R-Minnesota, even used it to deflect attention from the “gay rehabilitation” services her clinic allegedly offers. When asked about it by ABC News, Bachmann merely acknowledged, “we do have a business that deals with job creation.” When pressed, she stuck with it: “As I said, again, we’re very proud of our business and we’re proud of all job creators in the United States.”

It’s also complete nonsense; the opposite of the truth. Sure, the wealthy create a few jobs – people who offer exclusive services or sell them high-end goods. But the overwhelming majority of jobs in this country are “created” by ordinary Americans when they spend their paychecks.

Consumer demand accounts for around 70 percent of our economic output. And with so much wealth having been redistributed upward through a 40-year class-war from above, American consumers are too tapped out to spend as they once did. This remains the core issue in this sluggish, largely jobless recovery. The wealthy, in their voracious appetite for a bigger piece of the national pie, are the real job-killers in this economic climate.

Don’t take my word for it. The Wall Street Journal reported this week that “the main reason U.S. companies are reluctant to step up hiring is scant demand, rather than uncertainty over government policies, according to a majority of economists” the paper surveyed. That jibes with what business owners themselves are saying. Last week, the National Federation of Independent Businesses released a survey of small businessmen and women that found widespread “pessimism about future business conditions and expected real sales gains.”

New York Times reporter David Leonhardt wrote this week that “We are living through a tremendous bust. It isn’t simply a housing bust. It’s a fizzling of the great consumer bubble that was decades in the making.”

The auto industry is on pace to sell 28 percent fewer new vehicles this year than it did 10 years ago — and 10 years ago was 2001, when the country was in recession. Sales of ovens and stoves are on pace to be at their lowest level since 1992. Home sales over the past year have fallen back to their lowest point since the crisis began. And big-ticket items are hardly the only problem.

Leonhardt cites worse-than-expected retail sales and a study conducted by the New York Federal Reserve Bank that found “discretionary service spending” – which excludes housing, food and health care – to have dropped 7 percent, more than twice the decline we saw during previous recessions.

“If you’re looking for one overarching explanation for the still-terrible job market,” Leonhardt concludes, “it is this great consumer bust. Business executives are only rational to hold back on hiring if they do not know when their customers will fully return. Consumers, for their part, are coping with a sharp loss of wealth and an uncertain future (and many have discovered that they don’t need to buy a new car or stove every few years).”

Average American households’ economic malaise started long before the current downturn, as those at the top started grabbing an ever-increasing share of the pie in the 1970s. These graphs, courtesy of Mother Jones, tell the tale:

(click for larger version)Discounting those in the top 20 percent of the pile – according to economists Emanuel Saez and Thomas Picketty it’s actually the top 10 percent – Americans haven’t seen their real incomes rise in the past 30 years.

Paul Buchheit, a professor with City Colleges of Chicago, crunched some numbers using IRS data and found that “if middle- and upper-middle-class families had maintained the same share of American productivity that they held in 1980, they would be making an average of $12,500 more per year.” In other words, because the share of income going to the top has increased so dramatically, ordinary people have $12,500 less in their wallets today. Studies have shown that when wealthy people grab more post-tax income they’re more likely to bank it than to spend it, so much of that $12,500 also represents lost demand, and hence less jobs. Wealthy Americans’ avarice is a job-killer.

American households compensated for their flat incomes first by sending millions of women into the workforce – the single-earner household is largely a relic of the past – and then by running up lots of debt. In the 1970s, Americans socked away between 8-12 percent in case hard times hit, but the national savings rate declined precipitously as the top earners started grabbing an outsized share of the nation’s income.

As a result, we were among the least prepared citizens in the developed world to handle the crash – we didn’t have a rainy-day fund put away.

 

 

(click for larger version)

Then came the Great Recession. The federal Reserve did a study in 2009 in which it went back and surveyed the same households that had been examined in a 2007 snapshot of consumer finances to see how they were faring during the recession. The study found that between 2007 and 2009, median family net worth fell 23 percent, from $125,400 to only $96,000.

Like income, that continued a longer trend that began as those at the top of the pile began grabbing an ever-greater share of the nation’s wealth. As Edward Wolff, an economist at NYU, noted, between 1983 and 2007, only those in the top 5 percent of the income distribution added to their households’ net worth (PDF). The rest of us tread water. Economists talk about a “wealth effect,” which simply means that when you have more wealth you tend to spend more freely. So, this concentration of wealth has also impacted demand.

None of this is particularly complex. In 1978, the top 1 percent of the ladder took in just under 9 percent of the nation’s income, leaving a bit more than 91 percent for the rest of us. In 2007, the year before the crash, they took in 23.5 percent, leaving just 76.5 percent for the rest of the population to split up.

They banked most of that income, whereas we would have spent it. The fact that we’re broke means that businesses are facing less demand for their goods and services than they otherwise would, and have less need to hire a bunch of employees. And that dynamic explains why it’s the wealthiest Americans who are the real “job killers.”