This wholesale transfer of risk from elites to the employees is finally becoming substantial as wealth/ income/ security inequality is reaching extremes that are destabilizing society and the economy.
Among the most substantial financial trends of the previous 50 years has been overlooked to the point of invisibility. I’m describing the transfer of threat from the leading tier to the middle and working classes. This transfer of risk has been broad-based, covering the entire financial spectrum:
1. Employment has moved from safe and secure (low risk of unequal/ unforeseeable incomes for employees) to insecure/ precariat (high danger of uneven/ unpredictable incomes). Gig employees are categorized as agreement workers so they get no benefits.
2. Healthcare has been moved to employees/ federal government as corporations game worker hours to prevent paying healthcare; for those with protection, regular monthly co-pays paid by employees are soaring as companies shift expenses to staff members. Health care strategies have likewise shifted expenses and dangers to workers with high deductible strategies, i.e. a simulacrum of health care insurance.
3. Private-sector pensions have moved from defined-benefit pensions (costs and dangers brought by companies) to 401K matching contributions (costs and risks brought by workers)
4. Federal Reserve policies have ruined safe yields on cost savings and money-market accounts, requiring workers to handle the massive dangers of the rigged stock market casino (which is rigged to benefit high-frequency traders, front-running trading homes, and those with asymmetrically distributed information, i.e. insiders).
5. Tax burdens have actually shifted to the working poor (high Social Security/Medicare taxes), high-income employees (high earnings taxes), homeowner (soaring property taxes) and small business while corporations and billionaires evade taxes with unlimited loopholes and subsidies.
6. Worldwide corporations have actually shifted risk to small company via international environmental, regulatory, labor and currency arbitrage. City governments fall all over themselves to offer global corporations tax breaks and generous aids while heaping more scrap charges and taxes on small business owned by common residents.
This wholesale transfer of danger from elites to the workers is finally becoming substantial as wealth/ income/ security inequality is reaching extremes that are destabilizing society and the economy. As Gordon Long and I discuss in our new video, The World Just Got a Lot Riskier crony commercialism has actually transmogrified into predatory industrialism as federal government, finance and the corporatocracy have allied into a seamless (and perfectly corrupt) elite class that has unloaded systemic danger onto the vulnerable class.
As I frequently note, risk can not be extinguished, it can just be transferred. Moving danger to those least able to bear the effects is in effect moving risk to the financial system itself, which is amplifying the risks of a systemic breakdown.
The herd is slumbering, anesthetized by the narcotic of the Federal Reserve’s limitless ethical threat. As soon as threat can no longer be reduced, the herd will awaken and accelerate into a stampede in which every individual will thunder off the cliff to disastrous losses definitely positive that the Fed has my back. So sorry, however the Fed only safeguards banking cronies, predatory capitalists, billionaires, front-running investors and worldwide corporations.
Gordon and I talk about these heightened threats in The World Simply Got a Lot Riskier (36 minutes).
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