Since 1970 the value of the dollar has steadily declined. The lower 80% of Americans have lost income and purchasing power, largely due to the exodus of manufacturing by global corporations. As a result, the wealth gap between the global rich and the rest has widened.
From 2007-2016 the net worth of the richest Americans increased by 20% while the lower 80% decreased by the same percentage, widening the wealth gap considerably. The Federal Reserve sparked this change using quantitative easing to boost the sagging stock market. The rich could invest in this wealth explosion but the rest could not as much.
Increasingly wealthy globalists pressured the government and now the top 1% own over half of U.S. wealth while the top quintile owns about 94% of the wealth. The bottom 80% have their wealth tied up in their homes or vehicles and most suffer from chronic debt.
Not only does the Fed-backed stock market favor the super-rich, but the U.S. tax system does too. The average American pays an effective tax rate of 13% while the very rich pay 18%. But when wealth gains are included, the effective tax rate on the very wealthy averages a mere 4.8%.
While the wealth gap concentrates ownership in a small group of people so it does to industry. More and more large corporations dominate most sectors at the expense of small businesses. As small companies suffer and are saddled with increasing regulations, larger corporations benefit from monopoly power, less competition, and the ability to set prices artificially high.
The wider the wealth gap goes, the more our social and political fabric will deteriorate. According to the Great Gatsby Curve, increased inequality will result in less upward advancement from one generation to the next. This is precisely the conditions that exist when a democracy is overtaken by authoritarian rule.
The Triple “I” Curse
The wealth gap is widening faster than ever thanks to Biden’s three-pronged Triple “I” Curse: Inflation, Immigration, and an Inflated stock market.
Inflation: Since 2021, government spending has ballooned. National debt has climbed to $35 trillion, increasing $1 trillion every 100 days, causing incredible inflation and the dollar to lose 23% of its value. The wealthy can withstand inflation to a certain extent, but most households in the lower 80% cannot. Nearly two-thirds of households do not have enough savings to cover three months out.
In a weak attempt to control inflation, the Federal Reserve tried to raise interest rates. This just made purchasing a house prohibitive and forced regional banks to lose value on the Treasury notes they held.
Immigration: The current policy of open borders delivers cheaper labor for globalists and more votes for Democrats. Available jobs are going to foreign-born workers and not American citizens in what is called the ‘displacement theory,’ resulting in even lower wages and purchasing power for many Americans.
Inflated Stock Market: Despite inflation and higher interest rates, the Fed still prints cheap money to boost the stock market and benefit the rich. But job and GDP growth result from massive government spending as company productivity and consumer demand slide. Not only does government spending spur inflation, but increasing government regulation hampers supply, making fewer goods cost more. This combined effect of inflation and lower demand creates stagflation. So why is the stock market soaring? The Fed’s policy of printing cheap dollars. (It might be argued that such market chicanery will eventually lead to a crash, destroying much of the elite’s wealth, but by then the damage will be done.)
The Wealth Gap Lets the Super-Rich Wokize America
Concentration of wealth in both people and industry harms society. For the super-rich it is not as much about money as power. Thus both corporations and the super-wealthy buy influence, especially in education, environmentalism, and politics, all three of which have damaged American society. Education has turned from transmitting knowledge to racist indoctrination. Environmentalism has become a weapon against industrial productivity and prosperity. And politics has become a uniparty of frivolous spenders.
Their contributions have led to the wokization of American culture, society, and institutions. Based largely on racism, wokism is a neo-Marxist narrative that all Western white society is structured to oppress all non-whites. Billionaires, corporations, and their foundations augment government funding of woke activities including Critical Race Theory, transgenderism, Diversity-Equity-Inclusion, drag queens, illegal immigration, climate change, reduction in law enforcement, and more.
$4 billion annually to engineer their Marxist vision of the future. Likewise charitable contributions to higher education exceeded $58 billion in 2023.
The average member of Congress receives 93% of his or her contributions from big, often out-of-state, donors, including dark money from unrevealed sources and PACs. Similarly, billionaire spending to members of Congress increased to over $1 billion in 2022 and will mount much further this year. Add this to the 12,000 Washington lobbyists who spent $4.3 billion in 2023 and understand why the recent $1.2 trillion omnibus bill included millions of dollars of woke earmarks.
Concentration has also hit charities. They used to have many small donors but now rely on a few super-rich who control the media and woke globalist narrative. Over two-fifths of their pledges gets rerouted to foundations they control and not actual charities. Thus billionaires “use philanthropy as a taxpayer-subsidized extension of their private power and influence,” making average U.S. taxpayers subsidize billionaire charity.
What Happens If It All Comes Apart?
The Triple “I” Curse has created an unstable U.S. economy to benefit the super-rich. In just three years, the wealth of the top 1 percent has risen from $30 trillion to nearly $45 trillion.
But what if it were to come crashing down?
Although the stock market is highly inflated, the super-rich must cling to it. Their other main sources of wealth are real estate and private-held businesses. While real-estate values rose slightly, privately held businesses declined, leaving stocks to generate their wealth for the past three years. Biden’s latest brainstorm is to levy a 20% tax on unrealized stock market gains, forcing Americans to pay taxes on their annual gains on all assets, including stocks.
It’s a distinct possibility that government spending and insurmountable national debt will ultimately collapse the dollar. National debt already affects credibility and purchasing power of the dollar. This emboldens the China-led BRICS countries to pursue a gold-backed currency to replace the dollar as the world’s currency. If that happens, the dollar will hyper-inflate, causing a huge dollar crash and devastation to all Americans.
The cumulative effect of expanding the wealth gap through the Biden-globalist Triple “I” Curse is to make the United States a borderless part of a nationless world, which of course countries like China and Russia will never endorse. The curse is a recipe to create a permanent underclass, controlled by an authoritarian cartel of business and government, a key ingredient of the globalist new world order and made possible by an ever-widening wealth gap.
Ironically, by crippling the U.S. economy, the super-rich may capitulate to the China-Russia cabal while arranging their own demise – and taking us all with them.
Image: Emmanuel Wyttenbach
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