PLUTOMONY

This is excerpts of a memo that was written by Citigroup a few years ago. This is the same Citigroup that was recently bailed out to the tune of 45 billion dollars by the Government.
The memo was entitled Plutomony which is really a made up word that means that the majority of the wealth is controlled by an ever-shrinking minority; as such the economic growth of that society becomes dependent on the fortunes of that same wealthy minority.

Here are some of the following excerpts.
`If we are right, that the rich are going to keep getting richer over the coming years Despite being in great shape, we think that global capitalists are going to be getting an even greater share of the wealth pie over the next few years, as capitalists benefit disproportionately from globalization and the productivity boom, at the relative expense of labor. For the poorest in society, high gas and petrol prices are a problem. But while they are many in number, they are few in spending power, and their economic influence is just not important enough to offset the economic confidence, well-being and spending of the rich. We expect the global pool of labor in developing economies to keep wage inflation in check, and profit margins rising – good for the wealth of capitalists, relatively bad for developed market unskilled/outsource-able labor. This bodes well for companies selling to or servicing the rich.

Our whole plutonomy thesis is based on the idea that the rich will keep getting richer. This thesis is not without its risks. For example, a policy error leading to asset deflation, would likely damage plutonomy. Furthermore, the rising wealth gap between the rich and poor will
probably at some point lead to a political backlash. Whilst the rich are getting a greater share of the wealth, and the poor a lesser share, political enfranchisement remains as was – one person, one vote. At some point it is likely that labor will fight back against the rising profit share of the rich and there will be a political backlash against the rising wealth of the rich. This could be felt through higher taxation (on the rich or indirectly though higher corporate taxes/regulation) or through trying to protect indigenous laborers, in a push-back on globalization – either anti-immigration, or protectionism. We don’t see this happening yet, though there are signs of rising political tensions.

As many of you know that there has been a coordinated attack in several states attacking labor and trying to make voting more difficult. As you can see by reading this memo that’s the two things that the wealthy are worried about. Unlike most of us they are not standing by and doing nothing, they are attacking us. If you want your life or your children’s lives to be of a higher quality and more fulfilling than yours maybe you should stop standing around doing nothing and take action.