I normally post notes like this at the bottom of the piece.  But, today, these thoughts are foremost in my mind.  Today is the 31th anniversary of the Tiananmen Square revolt.  And, the beginning of the end for a free-ish Hong Kong.  We- that’s you and me- as well as our political leaders- revere(d) these events as a people trying to stop autocratic leaders in their attempts to subjugate the citizenry.  Yet, too many of us are not looking at the national- and now international- response against a minority of our police (who, because the majority of our folks in Blue stifles their reprehension at the criminal element among them) who kill, maim, and otherwise subjugate the ‘other’ among us.  Where too many of us don’t recognize that TheDonald is just that sort of criminal, as well.  Who, along with Attorney General Barr, abrogate our Constitution, send MILITARY police- along with any other lackeys (such as the now embarrassed Secretary of Defense and military Chief of Staff) they can muster to forcibly remove PEACEFUL demonstrators who still had 46 minutes before a hastily called curfew would come into effect- using rubber bullets and tear gas. For no other reason than a most awkward photo op for TheDonald, who clutched someone else’s bible upside down- and not mention a thing about it.  Just like North Korean leader Kim does on Mount Paektu.  Yes, there has been looting and property damage- primarily by White folks (who may actually be aligned with Bill Koch)- but these were  the same situations that we were willing to absolve in China and Hong Kong, with the majority attempting to effect peaceful change.  Why don’t we recognize the enemy is us?  And, while we are at it- with a now 20% unemployment rate (because TheDonald failed to properly act while repeatedly warned by his security apparatus that we could be doomed by the impending pandemic)- but a 50% unemployment rate among the Blacks who too many police find convenient targets for their killing and subjugation- the financial situation that obtains.IAnd, now, back to our regularly scheduled blog.  A prologue to a new series that will unfold over the next days.

Did you ever wonder why folks left the farm and moved to cities?

My religion always had a bias against those who left the farm.  It considers those who follow the agricultural life more likely to be “better Jews”.  There always a fear that when we moved to cities, we were more likely to be corruptible- from the fact that we would see what our non-Jewish neighbors did and from having more time-pressed activities, as the least of the problems.

But, economists know there’s something called the agglomeration affect.  That when we move to cities- and live closer to other humans- there are significant economic benefits.  Yes, in the past, it also meant we were more likely to succumb to cholera, dysentery, and the black plague.  Kind of like what’s happening right now during the COVID-19 pandemic.

But, it’s different, too. Because this recession-depression is vastly different from our other economic setbacks.   Sure, in the past, we lost jobs, companies filed for Chapter 11, and the like.  But, we could still band together and help one another.  Not like now, when we know we must be socially distant to avoid our own demise.

And, a slew of people are going to say that even if we lose a significant portion of our economy, we’ll be OK.  NOT.

Sure, the per capita GDP (gross domestic product) at the advent of 2020 was nearly $ 59,000.  But, that doesn’t reflect the gross distortion in income that provided that average.  Where the top 1% of earners exceeded the total income of the bottom 50%.  Why the middle class (the strata that earn between 40 and 60% of the national average) no longer controls a significant portion of the overall income.

 

We all know (but many won’t publicly recognize) about the wealth inequality.  Where the richest 1% control 40% of the wealth in the US.  The middle class now owns almost 49.6% of the wealth, down from 60% as it was two decades ago.  Yet, the middle class is the great stabilizer in a democracy.  (It also tends to be the big supporter of autocracies- because if they are relatively secure, they back the despot, regardless of their own purported (a/im)moral philosophies.)

But, current income is just as skewed.  The top 1% earn 23.8% of all the income generated in the US. (Since we also know the top 20% earners earn 52%, by difference it means those in the 1% to 20% earner strata keep more than 28% of the income of the US.)  And, ½ (OK, 52%- down from 62%) of Americans are in the middle class that is now defined as those earning between 2/3 and 200% of the median income (which means between $39,000 and $ 118,000)- and they earn just above 40% of all the income (even though they comprise 52% of the population).  You do realize that means the lower class earns less than 10% of the total income.

And, all those numbers are not quite current- they are from 2019.  Because when the quarantines hit, 40% of all those making $40,000 or less (the lower class) and 19% of the middle class lost their jobs.   Those statistics date to  when only 36 million folks were out of a job.  (It’s now slightly less than 43 million!)

That’s not actually surprising, since working from home does not work for the hospitality industry (which is a good portion of the lower income strata’s employer).  Only 20% of those with a high school degree (or less) were able to work from home.   While 63% of those who are college graduates could so work.

It’s going to get worse.  Because many of our shops/businesses that employ folks in the lower and middle classes won’t be around.

And, since most of our businesses are going to be transformed by this pandemic- letting folks work from home, probably having us only come to the office a few days (or even one) a week, it will mean folks will probably be leaving the cities to which they once adhered.

We will be facing a brave new world.  Or, one in revolution as the middle class no longer has the economic strength to provide the stabilizing order.   Which makes my header comments even more on point.

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