"It's dangerously unstable when 5 percent of American earners account for 35 percent of all consumer spending. History makes it clear that when economies mutate into plutonomies they become dangerously volatile. Just as a ship with a broad base is more stable than a top-heavy boat, so an economy in which well-paid workers create mass consumer markets for the goods and services they provide is more stable than a top-heavy plutonomy."
"It's dangerously unstable when 5 percent of American earners account for 35 percent of all consumer spending. History makes it clear that when economies mutate into plutonomies they become dangerously volatile. Just as a ship with a broad base is more stable than a top-heavy boat, so an economy in which well-paid workers create mass consumer markets for the goods and services they provide is more stable than a top-heavy plutonomy." Salon
5 Comments
Another interesting article, albeit not directly related to architecture.
The danger in the Cliff's Notes version of this article would be that the government should see to it that wealth is distributed as evenly as possible to keep markets from becoming unstable.
In comparing the Great Depression to the current recession there is no mention of the entitlement programs, taxes and lack of consumer accountability that have evolved since the 30's in the US which have made our economy volatile before any stock speculation.
Our fiscal problems start in our wallets, and people think the government owes them something since they bought a house they couldn't afford, ran up credit cards like their jobs would always be stable, and saved very little since the "live-for-the-moment" narcissism took control in the 80's.
I would love to be able to blame the rich for my problems and have the government give me a big chunk of their money so I could go buy things and bring stability to our market, but maybe I should start saving my own hard-earned money and consume within a reasonable level so that I can have pride in myself and stand on my own two feet without looking for ways to claim myself as a victim.
But there I go sounding all American (read, capitalist) when the trend is to say things with a slightly more European (read, socialist) accent.
I disagree. Respectfully.
I think this is relevant to architecture since increasingly architecture is a luxury good and we are working solely for that 5% of the population that has the majority of the money. That article was about the people we build second homes and museums for.
If you are going to attack entitlement programs, go after the biggest one-the insanely bloated defense budget. We could slash that and still have the largest most powerful and effective military the world has ever known by far. But instead we go after the mythical welfare queen.
And as far as savings, I agree that there needs to be more rational thinking and people need to be more responsible and realistic about their finances. but...wages have declined in the past decade and the cost of living, just basic living, has increased. That combination, along with government sanctioned incentives to spend, makes it harder and less attractive in the short term, to save what little money people are taking home with them.
Also, up until the 1980's and Reagan fueled deregulation, jobs *were* more stable and people could count on them, thus making spending more reasonable and sustainable.
And why all this bashing of the consumer? What about criticism of the banks' behavior after deregulation? There is a lot of blame to go around and you seem fixated on some vulgar poor person who didn't know his place and acted too big for his britches. No offense, but your comment read like some garden variety GOP talking point.
And it's not a binary capitalism vs. socialism battle. They have both been discredited in the past couple of decades. I think capitalism within limits-ala the Eisenhower era- is the way to go and hopefully we will get back there. I'm not holding my breath.
Here is some interesting, and directly relevant to newspost, debate going on capitalism vs. new communism with Slavoj Zizek and his opponents. It is 50 minutes long but well worth it and engaging, if you are interested (if anything, great set design format with streaming media and it is in english after few seconds.)
Living in the End Times
You can disagree but please don't be a psychopath like the poster before, whose, again, personal profanities I had to delete..
Uh...I don't think I cursed you out at all...
@ broken,
it wasn't you. the poster deleted was called "2steps". a known troll type who thinks he can 'fuck you' me on an impulse and as often as he pleases even for posting a news link for an economics related article from salon.com or writing about spatiality he does not get.
i am going to see to it, he never posts response to my articles or banned from the site altogether. that goes for everyone who resorts to similar language directed at me.
no more trying to reason with trolls and ignoring animosity. one strike and you are out!
i don't care you agree with my opinion or not, but you have no right to use profanities against me and there is no excuse.
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