Friday, November 4, 2011

The Black Hole of Wealth

A comment on the prior posting--"Greece on Stage" on November 1--asks: 

"How about some discussion on the growing gap between the rich and the poor and the loss of influence by the workers?"

The literal answer to the question is -- "Because once you get me started on this it might get to a point where you don't know how to get me to stop."

So the discussion begins here and now.  It might be endless.

Wealth and income in this country are becoming increasingly concentrated in a smaller portion of the population.  That fact is an unfortunate experience for millions of Americans who have too little; for many of them it is downright tragic.  That fact is also tragic for the nation.  If not addressed, it will eventually eat away at our cultural, social, economic, political and governmental foundations.



I am aware that there are many ways to measure the distribution of wealth and income among the population and that these different measurements can tell different stories.  Likewise, it seems evident that our overall lifestyles are better now than they were as recently as 50 years ago.  These things are important and will figure in future discussions on this subject.  There are, after all, two sides to every story.

Of great concern to me is the growing tally of lost opportunities due to the increasing concentration of wealth, and the impacts--current and future--implied by the diminished feelings of ownership and "stake-holding" that are the result of reduced relative wealth and decreasing real income for a growing portion of the population.  The further downstream effects will be a nation of lost economic opportunities and reduced participation in, and influence over, the political and governmental institutions.

Wealth seems to have acquired some of the super-gravitational aspects of a galactic black hole:  as it accumulates at its core, it develops a greater ability to attract additional wealth and ends up by sucking all loose wealth it can reach into its own very small amount of space, to the detriment of everything else in the neighborhood.

Stay tuned for more.

2 comments:

Anonymous said...

The black hole may also lead to the increase of financial entropy with nothing left for most of the universe.

Proletarian said...

Responsible American industries and small businesses take risks, make sacrifices, and work hard to make their companies profitable and should enjoy the success of their efforts. It is the irresponsible companies that maximize profits through the practice of suppressing wages, hiring offshore labor, and reducing the work force to squeeze the last dime from workers that is unfair and unpatriotic.