In his film Capitalism: A Love Story, Michael Moore squares off with the free-market system for its role in leveraging the United States’s wealth into the hands of a few.
But in one clip cut from the documentary — which Moore provided exclusively to RAW STORY — he interviews Pulitzer Prize-winning New York Times reporter Chris Hedges, who explains how capitalism is actually contributing to the very downfall of the human race and the “degradation of the planet.”
Read full article and watch video here.
In the above article, you’ll also find a link to a leaked document from Citibank dating 2005. It makes interesting reading.
In short, the authors claim that the US, UK and Canada – and a few other countries – are plutonomies. A plutonomy is defined by investopedia..com:
Economic growth that is powered and consumed by the wealthiest upper class of society. Plutonomy refers to a society where 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.
In their analysis, they explain that there was no such thing as the US consumer but rather rich US consumers and poor US Consumers, the same for UK and other plutonomies. They conclude that investing in certain equities, namely the ones that cater to the needs of the rich top 1%, was a sure winner and a no worries approach as an investment strategy. The rich will get richer and will always have enough money to consume stuff.
What they are writing sounds about right. However, before you start buying the shares they have in their basket, and a few others not on the list but certainly in this category as well, keep in mind that the top 1% of the population – or even less – control the world’s stocks (equities) as well.
What does that mean? It means that they could not make any additional money if only they themselves invested in these companies that they buy their products from. That would be a zero sum game.
Since this is Capitalism and Capitalism is a (or rather the ultimate) Ponzi scheme, they must make new participants come in to pay off the previous ones. So make to make more money, they need to find fools outside of their class who “invest” in those companies. Putting out such research reports and “leak” them would do this job nicely.
It isn’t surprising that a plutonomy exists. It lies in the logic of capitalism and is an entirely predictable result. Indeed it has been predicted by Karl Marx and others that capital would accumulate in ever fewer hands.
This economic system called capitalism works for the benefit of a few and to the detriment of all others, even to the detriment of nature. Capitalism destroys the basis on which the very existence of mankind depends.
Do they care? No.