Column: Skewed Wealth Threatens To Overturn Political System – Southern Pines Pilot

George Orwell told us in Animal Farm that after the animals took over the farm, their governing leader, a pig named Napoleon, posted this immutable rule: All animals are equal. The farm would now be run by democratic processes where leaders were answerable to all animals.

But over time, Benjamin the donkey, sole literate among those governed, thought he noticed a change in the rule. He suspected something was wrong but didnt quite have the smarts to figure out what. So Napoleon patiently explained that the rule really was the same as always. All animals were still equal, but some were more equal than others.

Orwells Animal Farm was a parody of particular governments. What about America? Are all men still created equal? Is our government still of the people, by the people, and for the people?

Theres unsettling evidence that the answers are no and no. In American Values, Bobby Kennedys son Robert wrote, It can credibly be argued that America is now, officially, a plutocracy controlled by wealthy politicians.

Today, half of all members of Congress are millionaires, two-thirds of senators are, and no president since Truman has had a sub-million-dollar net worth. Only nine of 46 presidents have had less than a million.

Washingtons wealth equaled $325 million today. Jefferson, no pauper he, weighed in at $212 million.

So, in some ways, things really havent changed. The golden rule remains the gold rules. Yet today as never before, Americas leaders answer to the super-rich and their lobbyists.

The Center for Responsive Politics says that in the first quarter of 2020, the amount spent on lobbying about $938 million was the highest on record. The four largest lobbying groups represented pharmaceutical and health interests ($156 million), then electronics, insurance, and oil and gas. The four largest recipients of lobbyists contributions were Biden ($772,834), then U.S. Sens. Kelly Loeffler, Ga.; Thom Tillis, of North Carolina; and Kentuckys Mitch McConnell.

Our Supreme Court, of which eight of nine members are millionaires, has greased the process for others of their moneyed set to further rig the system to their advantage. In 2010, the court loosened limits on political contributions, and hundreds of millions of dollars have since flowed to political action committees. And heres the thing, 80 percent came from fewer than 200 rich folks.

Larry Bartels book Unequal Democracy: The Political Economy of the New Gilded Age, analyzed Senate votes and demonstrated that senators votes are influenced by the preferences of their rich citizens but not by poor ones. As money plays an ever-bigger role in politics, the clout of the ultra-wealthy grows, particularly to block things they dont like.

In 2014 a Princeton University study of Americas political system concluded that American democracy is now illusory. The people do not govern. Politicians respond almost exclusively to the desires of special interests and the wealthiest citizens. The data show that politicians cater to rich people and groups organized to advance their own narrow interests.

One standout example of that is the progressive tax system America once had the more you earned, the more tax you paid. All that has been recalibrated at the behest of the elite. Now they pay less tax on income, less on gains in the value of stocks, most of which they own, and more important, less estate taxes, or money passed to their heirs.

Thus, ultra-rich dynasties are created. The Institute for Policy Studies says the top determinative for extreme wealth is now not hard work or intelligence, its the family youre born into.

America presently has 400 billionaires, five of which are centi-billionaires (they cross the $100 billion line), thanks largely to politicians. The super-rich know theyve rigged the system. Theyre also aware that Americas glaring economic disparity is unsustainable.

Former New York banker Morris Pearl chairs Patriotic Millionaires, a super-rich group that actually backs higher taxes on the wealthy. Pearl laments, The whole system is so fundamentally unfair. One of the worlds richest, Warren Buffett, a member of Pearls group, says his 16 percent federal income tax rate is lower than his secretarys.

And billionaire Nick Hanauer warns that if something is not done to rebalance the scales, there will be open rebellion.

And so I have a message for my fellow filthy rich, for all of us who live in our gated bubble worlds: Wake up, people. It wont last. If inequality keeps rising as it has been, eventually it (revolution) will happen. We will not be able to predict when, and it will be terrible for everybody. But especially for us.

In 2018, Robert F. Kennedy, Jr. wrote that in 1784, America was the first democracy in modern history. Earlier, Jefferson wrote, all men are created equal. So relax, nothings changed, right? America is still a democracy and all are still born equal, right?

And some are more equal than others.

Michael Smith is a Southern Pines writer.

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Column: Skewed Wealth Threatens To Overturn Political System - Southern Pines Pilot