The gilded age made some robber barons insanely rich (though not as rich as the current American oligarchs)
There was a huge economic crash, called the Great Depression, during which the excesses of the rich were incredibly unpopular and the rich felt in real danger
To get out of the Great Depression, the US Government created all kinds of “socialist” programs to help people get back on their feet, strengthen unions, regulate business, make massive investments in US infrastructure, etc.
Right as the Great Depression was ending, WWII began
For a while the US was “neutral”, and was manufacturing war materiel for the various countries at war, though mostly for the Allied side. This involved huge amounts of government spending.
Then, a few years after WWII began, the US entered the war, and spending ramped up even more.
Virtually every other modern economy in the world had its infrastructure destroyed during the war. Britain was bombed relentlessly, Germany was flattened, Japan was nuked, France was turned into Rubble, the USSR’s factories were destroyed as Germany advanced and partially rebuilt in the middle of nowhere.
The war ended and while every other country was rebuilding their shattered infrastructure, the US infrastructure was running hot and able to supply the world’s needs
American workers were massively in demand because it was almost the only remaining industrialized country with intact factories
American workers still retained the massive worker benefits and union membership that was the result of the New Deal economy
So, take that sequence, and for a brief moment a white, male worker in the US could support a family on a blue-collar salary in a way they hadn’t ever done before that. Once other countries rebuilt their infrastructure, the US lost that edge. Once American businesses pushed for the roll-back of worker protections, blue-collar workers lost that benefit. Bit, by bit, the world returned to the way it has normally been, where the lowest class barely survives and both parents work hard, while the rich benefit.
And since then, productivity exploded. Machines and automation everywhere. We are in the age of overconsumption. And value is created at an always acceleratind pace.
But then things started to slow down. But wealth growth can’t slow down! It has to grow, always, and always faster. So when “produce more” stopped working, they turned to “produce for cheap”.
They started cutting spendings and benefits. But it wasn’t enough. And they told western workers that they were no longer competitive. Yes, that plant they’re shutting down was making money. But it would make MORE money in China and other third world countries.
And while plants were going away, salaries got stagnant. Wealth was growing again!
But then the growth slowed down again. So they bought governments to get huge subsidies they could funnel in their wealth growth again.
And now plants are “optimal”. Wages are low. Govs hand out money. Why is it not working?
Because they impoverished so much the working class that there is no one left to buy the goods they produce.
The problem is obvious to anyone looking: money is needed for the economy to run. If it’s all locked up by oligarchs, then it serves no purpose and the economy suffocates. And there is no remote way a handful of people can manage the world’s economy. “Trickle down economy” has failed everywhere and everytime it was attempted. So they’re terrified. Terrified of the working class, terrified of common good, terrified of common sense.
So to make sure they can keep hoarding whatever is left to get, they turned to fascists and propped them across the world, by controlling medias and flooding social networks.
And here we are: in the age of overproduction and mass poverty combined, with a class of scared oligarchs ready to take the world down with them as long as no one stops their wealth hoarding.
Don’t leave out the part that after this American renaissance, where those returning soldiers became workers who reaped the rewards of that one in a million economic boon, their children started fabricating narratives about ‘hard work’ and ‘grit’ being the reason their inherited wealth was justified.
Then they shoved that narrative down the next three generations’ throats while exclaiming “kids these days are lazy” and “I worked a summer job to pay for college, why can’t you?”. All the while pulling up every ladder that had been constructed to put them in that position.
True enough. The men who had great jobs in the 50s had frequently been soldiers in the 40s. They’d been raised in the 30s during the great depression. They’d been through hardships. It was their kids who grew up in relative luxury. I’m sure some of it was pulling the ladder up after themselves. But, in addition they hadn’t had to fight to establish their union, it was just there when they joined the job. Because of that, they didn’t know how important it was, and so they didn’t know they should be fighting to keep it strong.
And, to be fair, there was some corruption in unions. But, they could have rooted out that corruption and had a union that represented them. Instead they abandoned unions and embraced “rugged individualism”.
Yeah the position of privilege that America occupied globally for the last 75 years minus the last ten or twenty years is not something that’s talked about enough in “they” took the American dream from us
And what that position of privilege cost the rest of the world. For example, Eisenhower was president from '53-'61, is often seen as a great president by Americans, and that decade is seen as a golden age by plenty of Americans (especially boomers).
Outside the US, Eisenhower had Lumumba assassinated in the Democratic Republic of Congo. The replacement they helped install, Mobutu, basically continued the brutal rule and many of the atrocities that had occured in the Congo Free State (death toll as high as 10 million), so that minerals could continue to be extracted. Ultimately this would lead to the first and second congo war and an additional 5 million deaths. Fun fact: a few years ago Tesla/Musk signed a large contract with a company which was formed from a merger of companies including the successor of Compagnie du Katanga. The latter was a concession company that operated in the Congo Free State and is responsible for plenty of the worst atrocities committed during that time. Just in case anyone here thinks colonialism was a long time ago. There’s also stuff like the Guatamalan genocide which was a result of the CIA instigated coup of 1954, the 1953 Iranian coup which would ultimately result in Iran becoming an Islamic theocracy, and his signing a deal with Franco which arguably prolonged his rule.
So the take away from what you’re saying is, we need to fast track WWIII, and sit out of it. Let the world nuke each other while we sit back and eat popcorn while we sell them even MORE bombs to blow each other up!
…oh my god. I was being dramatic, but that sounds exactly like Bidens plan with Ukraine. Sell them weapons, but not enough to end the war. Just prolong it. I am baffled that trump hasn’t gone the opposite route and sold russia nukes. I was fully expecting that.
And to make that happen:
So, take that sequence, and for a brief moment a white, male worker in the US could support a family on a blue-collar salary in a way they hadn’t ever done before that. Once other countries rebuilt their infrastructure, the US lost that edge. Once American businesses pushed for the roll-back of worker protections, blue-collar workers lost that benefit. Bit, by bit, the world returned to the way it has normally been, where the lowest class barely survives and both parents work hard, while the rich benefit.
And since then, productivity exploded. Machines and automation everywhere. We are in the age of overconsumption. And value is created at an always acceleratind pace.
But then things started to slow down. But wealth growth can’t slow down! It has to grow, always, and always faster. So when “produce more” stopped working, they turned to “produce for cheap”.
They started cutting spendings and benefits. But it wasn’t enough. And they told western workers that they were no longer competitive. Yes, that plant they’re shutting down was making money. But it would make MORE money in China and other third world countries.
And while plants were going away, salaries got stagnant. Wealth was growing again!
But then the growth slowed down again. So they bought governments to get huge subsidies they could funnel in their wealth growth again.
And now plants are “optimal”. Wages are low. Govs hand out money. Why is it not working?
Because they impoverished so much the working class that there is no one left to buy the goods they produce.
The problem is obvious to anyone looking: money is needed for the economy to run. If it’s all locked up by oligarchs, then it serves no purpose and the economy suffocates. And there is no remote way a handful of people can manage the world’s economy. “Trickle down economy” has failed everywhere and everytime it was attempted. So they’re terrified. Terrified of the working class, terrified of common good, terrified of common sense.
So to make sure they can keep hoarding whatever is left to get, they turned to fascists and propped them across the world, by controlling medias and flooding social networks.
And here we are: in the age of overproduction and mass poverty combined, with a class of scared oligarchs ready to take the world down with them as long as no one stops their wealth hoarding.
Nice breakdown.
Don’t leave out the part that after this American renaissance, where those returning soldiers became workers who reaped the rewards of that one in a million economic boon, their children started fabricating narratives about ‘hard work’ and ‘grit’ being the reason their inherited wealth was justified.
Then they shoved that narrative down the next three generations’ throats while exclaiming “kids these days are lazy” and “I worked a summer job to pay for college, why can’t you?”. All the while pulling up every ladder that had been constructed to put them in that position.
True enough. The men who had great jobs in the 50s had frequently been soldiers in the 40s. They’d been raised in the 30s during the great depression. They’d been through hardships. It was their kids who grew up in relative luxury. I’m sure some of it was pulling the ladder up after themselves. But, in addition they hadn’t had to fight to establish their union, it was just there when they joined the job. Because of that, they didn’t know how important it was, and so they didn’t know they should be fighting to keep it strong.
Yeah they just saw money coming out of their check for union dues and propaganda about how union reps were corrupt
And, to be fair, there was some corruption in unions. But, they could have rooted out that corruption and had a union that represented them. Instead they abandoned unions and embraced “rugged individualism”.
Yeah the position of privilege that America occupied globally for the last 75 years minus the last ten or twenty years is not something that’s talked about enough in “they” took the American dream from us
And what that position of privilege cost the rest of the world. For example, Eisenhower was president from '53-'61, is often seen as a great president by Americans, and that decade is seen as a golden age by plenty of Americans (especially boomers).
Outside the US, Eisenhower had Lumumba assassinated in the Democratic Republic of Congo. The replacement they helped install, Mobutu, basically continued the brutal rule and many of the atrocities that had occured in the Congo Free State (death toll as high as 10 million), so that minerals could continue to be extracted. Ultimately this would lead to the first and second congo war and an additional 5 million deaths. Fun fact: a few years ago Tesla/Musk signed a large contract with a company which was formed from a merger of companies including the successor of Compagnie du Katanga. The latter was a concession company that operated in the Congo Free State and is responsible for plenty of the worst atrocities committed during that time. Just in case anyone here thinks colonialism was a long time ago. There’s also stuff like the Guatamalan genocide which was a result of the CIA instigated coup of 1954, the 1953 Iranian coup which would ultimately result in Iran becoming an Islamic theocracy, and his signing a deal with Franco which arguably prolonged his rule.
So the take away from what you’re saying is, we need to fast track WWIII, and sit out of it. Let the world nuke each other while we sit back and eat popcorn while we sell them even MORE bombs to blow each other up!
…oh my god. I was being dramatic, but that sounds exactly like Bidens plan with Ukraine. Sell them weapons, but not enough to end the war. Just prolong it. I am baffled that trump hasn’t gone the opposite route and sold russia nukes. I was fully expecting that.
Neat history that mostly erases billionaire actions.
You’re really great at underhanded billionaire propaganda. How much do they pay you?
Are you Malcolm gladwell?