Plutonomy is a term that Citigroup analysts have used for economies “where economic growth In three reports for super-rich Citigroup clients published in and , a team of Citigroup analysts elaborated on their thesis that the share. a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report . Reports Letter to Shareholders. Reports. Annual Report (full web version) · Annual Report (pdf) · Proxy Statement. Letter to Shareholders.
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On the History of the U. The Occupy movement has been an extremely exciting development. The fact that the Occupy movement is unprecedented is quite appropriate. For centuries, since the country began, it had been a developing society, and not always in very pretty ways.
There was a pretty constant expectation that it was going to go on like this. That was true even in very dark times. After the first few years, by the mids — although the situation was objectively much harsher than it is today — nevertheless, the spirit was quite different.
It was getting to the point of sit-down strikes, which are frightening to the business world — you could see it in the business press at the time — because a sit-down strike is just a step before taking over the factory and running it yourself.
Citigroup’s Shocking ‘Plutonomy’ Reports — h/t Michael Moore
The idea of worker takeovers is something which is, incidentally, very much on the agenda today, and we should keep it in mind. Also New Deal legislation was beginning to come in as a result of popular pressure. And it has an objective basis. In the s, unemployed working people could anticipate that their jobs would teport back. The change took place in the s.
There are a lot of reasons for it. One of the underlying factors, discussed mainly by economic historian Robert Brenner, was the falling rate of profit ccitibank manufacturing. There were other factors. It led to major changes in the economy — a reversal of several hundred years of progress towards industrialization and development that turned into a process of de-industrialization and de-development.
Along with that came a significant shift of pluotnomy economy from productive enterprise — producing things people need or could use — to financial manipulation. The financialization of the economy really took off at that time. Before the s, banks were banks. They did what banks were supposed to do in a state capitalist economy: That changed dramatically in the s.
Until then, there had been no financial crises since the Great Depression. The s and s had plutonom a period of enormous growth, the highest in American history, maybe in economic history.
And it was egalitarian. The lowest quintile did about as well as the highest quintile. And the s accelerated it. The activism of those years, plutnomy a pretty dismal decade, really civilized the country in lots of ways that are permanent. When the s came along, there were sudden and sharp changes: I should repoet that, in the s and s, there was also the development of what several decades later became the high-tech economy: The developments that took place during the s set off a vicious cycle.
It led to the concentration of wealth increasingly in the plutonony of the financial sector. Concentration of wealth yields concentration of rpeort power. And concentration of political power gives rise to legislation that increases and accelerates the cycle. The legislation, essentially bipartisan, drives new fiscal policies and tax changes, as well as the rules of corporate governance and deregulation. Alongside this began a sharp rise in the costs of elections, which drove the political parties even deeper into the pockets of the corporate sector.
The parties dissolved in many ways. It used to be that if a person in Congress hoped for a position such as a committee chair, he or she got it mainly through plutonpmy and service. Within a couple of years, they started having to put citibano into the party coffers in order to get ahead, a topic studied mainly by Tom Ferguson.
That just drove the whole system even deeper into the pockets of the corporate sector increasingly the financial sector. This cycle resulted in a tremendous concentration of wealth, mainly in the top tenth of one percent of the population. Meanwhile, it opened a period of stagnation or even decline plugonomy the majority of the population.
People got by, but by artificial means such as longer working hours, high rates of borrowing and debt, and reliance on asset inflation like the recent housing bubble. Pretty soon those working hours were much higher in the United States than in other industrial countries like Japan and plutonoym places in Europe. So there was a period of stagnation and decline for the majority alongside a period of sharp concentration of wealth.
The political system began to dissolve. There has always been a gap between public policy and public will, but it just grew astronomically. You can see it right now, in fact. Take a look at the big topic in Washington that everyone concentrates on: For the public, correctly, the deficit is not regarded as much of an issue.
The issue is joblessness. As far as the deficit is concerned, the public has opinions. Take a look at the polls. The public overwhelmingly supports higher taxes on the wealthy, which have declined sharply in this period of stagnation and decline, and the preservation of limited social benefits. The outcome of the deficit commission is probably going to be the opposite. The Occupy movements could provide a mass base for trying to avert what amounts to a dagger pointed at the heart of the country.
This could be a period of irreversible decline. They are richer than ever, more powerful than ever, controlling the political system, disregarding the public. Take, for example, Citigroup. For decades, Citigroup has been one of the most corrupt of the major investment banking corporations, repeatedly bailed out by the taxpayer, starting in the early Reagan years and now once again. Buying Luxury, Explaining Global Imbalances.
They claimed that their plutonomy index was way outperforming the stock market. As for the rest, we set them adrift. They have to be around to provide a powerful state, which will protect us and bail us out when we get into trouble, but other than that they essentially have no function.
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And this is repoort a good thing. And he was highly praised for this, greatly admired. Not literal numbers, but the right picture. Now, the plutonomy is where the action is and it could continue like this.
If it does, the historic reversal that began in the s could become irreversible. And the Occupy movement is the first real, major, popular reaction that could avert this. You have to form the structures that will be sustained, that will go on through hard times and can win major victories.
And there are a lot of things that can be done. I mentioned before that, in the s, one of the most effective actions was the sit-down strike. And the reason is simple: Through the s, as the decline was setting in, there were some important events that took place. Steel decided to close one of its major facilities in Youngstown, Ohio. Instead of just walking away, the workforce and the community decided to get together and buy it from the company, hand it over to the work force, and turn it into a worker-run, worker-managed facility.
But with enough popular support, they could have won. It was a partial victory because, even though they lost, it set off other efforts.
In one of the suburbs of Boston, about a year ago, something similar happened. A multinational decided to close down a profitable, functioning facility carrying out some high-tech manufacturing. The workforce and the union offered to buy it, take it over, and run it themselves. The multinational decided to close it down instead, probably for reasons of class-consciousness. If there had been enough popular support, if repogt had been something like the Occupy movement that could have gotten involved, they might have succeeded.
And there are other things going on like that. In fact, some of them are major. Not long citinank, President Barack Obama took over the auto industry, which was basically owned by the public. And there were a number of things that could have been done. One was what was done: It took pluyonomy hours.
They citibani the capacity to do it, the skilled work force. It would have taken a little popular support, but it could have made a major change in the economy. Just to make it more surreal, while this option was being avoided, the Obama administration was sending its transportation secretary to Spain to get contracts for developing high-speed rail for the United States, which could have been done right in the rust belt, which is being closed down.
These are class reasons, and reflect the lack of popular political mobilization.
Things like this continue. There are, for the pluutonomy time in human history, real threats to the decent survival of the species. One has been hanging around since The other, of course, is environmental catastrophe.
Practically every country in the world is taking at least halting steps towards trying to do something about it.