The American people have split into two nations, one going up, the other down. It’s the first time this has happened since the age of the robber barons and the same thing is happening all around the world. It’s not an exaggeration to say that this is the single biggest threat to our democracy and lives because history tends to resolve this kind of civic crack up with revolutions, dictatorships and ultimately world war. Unfortunately our politicians and media don’t understand or care very much about what is at stake. The purpose of this video is to explain the wedge that is driving America apart and to present the straightforward solution that is right in front of us that can make us one big happy country with everyone caught up for the first time in our history and all of us moving in the same direction once again. The two nations I’m talking about are the top 10 percent and the bottom ninety percent of income earners. For the past 40 years the top 10% have basically been throwing one big party for themselves. Their incomes and wealth have skyrocketed. Their access to healthcare leisure and travel have increased. Their neighborhoods are safe. Their schools are great, and their jobs are interesting, high-paying or both. These are the 30 million people who make up the top 10 percent of income earners in America. In the other America, of the bottom 90%, wages have fallen back to their 1964 levels. People must fight for access to decent housing, health care and education, and it’s a fight that most of them lose. Lifespans have been shortening for the bottom 90% for several years, and now even the likelihood of an American woman dying in childbirth is going up, something that is only true in a handful of other countries like Somalia and Syria. Many other things divide Americans but income is the one that drives a wedge in between two groups where one is moving forward and the other is moving backward, and this is important because when groups of people move backwards they tend to freak out. For a long time, people in the bottom 90 believe the setbacks were temporary or were only happening to them as individuals. But in 2016 the bottom 90% woke up. And they are now on the warpath looking for a political movement that will represent them. You might be wondering which group you’re in? The top 10% of households earn about $160,000 per year or more with the average income much higher than that. If you are in the top 10% Please do not feel targeted by this video. This is not about class war.
The top 10% did not conspire to orchestrate the downfall of the bottom 90, but it was not a conspiracy. It was just a 50-year fit of stupidity and laziness by our politicians, our politicians of both parties who created and fed a system that relentlessly chased away good high wage jobs and replaced them only with bad low-wage jobs. Liberals and progressives tend to want to blame corporations and rich people instead of politicians and in future videos I do want to tell the story of how there was a huge and amazingly effective movement by business leaders to persuade the public and politicians to embark on this road to corporate serfdom. But those were private citizens looking out for their private interests. Our elected officials are the ones who have taken on the responsibility to represent the whole American people, and it is ultimately them, and we the people who must take full responsibility Unfortunately, we will have to pull off this political revolution without any help from the mainstream media or political parties because they and the rest of the 10% have mostly self segregated into just 650 elite zip codes out of 40,000 total. They don’t see the struggles that the 90% are facing outside of their gated suburban communities or gentrified urban enclaves This is why the 2016 election came
as such a shock to most of the top 10%.
They simply couldn’t understand what people were so angry about. Both the mainstream media and nearly all of the candidates except for Bernie Sanders and Donald Trump refused to acknowledge the reality of economic crisis among the bottom 90%. Bernie talked a lot about income inequality, and it almost won him the democratic nomination even though he was too old and too socialist to have a shot in any normal times. But it was Donald Trump alone, thanks to speech writers like Steve Bannon who talked about the destruction of America’s means of making a living. Our politicians took away from the people their means of making a living and supporting their families. And despite all the thousand reasons he gave America to fear his presidency, this was enough to let The Donald squeak into the White House. Trump advisors like Bannon knew that the bottom 90% knows that prosperity does not come from taking money out of rich people’s bank accounts, but comes from work, work that we do in factories, work sites, and companies that provide all the goods and services that we and our trading partners actually use in our everyday lives. Trump came to power with the alt-right cheering on Reddit and YouTube but without an organized or powerful populist movement, and Steve Banon has now been pushed aside at least until the 2020 re-election campaign and Trump’s Goldman Sachs White House administration is not even pretending to fulfill any of the populist promises that he made to the bottom 90%. This means that there is still a wide open winning spot in American politics just waiting to be filled by a populist movement that promises credibly to create not thousands but tens of millions of high-paying jobs for all Americans. But I know what you’re thinking because it’s been drilled into all of our heads for half a century – jobs must leave and wages must fall because low-wage countries like China pay their workers so little
and have hardly any labor or environmental standards. This story has been taught as though it is scientific fact – unchallengeable and inevitable. This is the story that we’ve been told to secure our passivity as we’ve watched Wall Street pirates sell off our steel industry for parts, or watched automakers ship production overseas, or outsource it to minimum wage sweatshops down the street, or as we’ve watched as Republican and Democratic presidents refused to use world trade organization provisions that were available to them to put the brakes on cheap imports from China that destroyed entire industries all across the country. But this story is not science. It is not un-challengeable or inevitable, and it is not true. This tired old story was resurrected from medieval economics in the 1950’s as part of an effort as I’ve already mentioned by business owners who were trying to win back some bargaining power over labor unions and pro-labor politicians. Funded by billionaires including the Koch brothers, the Dupont family, and many others, activist businessmen set up think tanks, funded economics departments and business schools, distributed millions of pamphlets and books, and even started radio and TV networks that still today reach more 100 million Americans. While we Americans let this story psych us out of millions of good jobs and trillions in national income most of the rest of the world’s countries have been striving in exactly the opposite direction. They have been investing as many resources as they can possibly gather to strengthen and grow as they can possibly gather to strengthen and grow their existing high wage industries and also to build new high wage industries. Since World War II it has been countries like Germany and Japan who have done a great job of intentionally building up high wage industries and their high wage industrial bases have allowed them to weather global slowdowns, national recessions, and even the 2008 Meltdown of the World Economy without hurting the standard of living or security of their middle and working classes. Today Japan and Germany both have lower unemployment than the United States and have kept wages for workers relatively high. Take the example of the auto industry in the U.S. and Germany. The U.S. still has 1 million auto workers despite trying to get rid of them about as fast as possible. Germany has almost the same number despite having only one quarter of our total population. But listen closely, German Auto workers make twice the number of cars as their U.S. counterparts and get paid twice the wage – an average of $130,000 per year. We could go on with stories like this from different industries and countries all around the world who are all kicking America’s ass economically for the simple reason that we surrendered because we believed the story that some third-rate rent-a-professor economists told us. There is no reason we can’t do the same thing that other countries are doing and invest in our own existing and new high wage industries.
And there’s no reason to focus only on manufacturing. We could also invest in fields like software development where currently we are expected to lose 8% of software jobs over the next 10 years. America’s current political crisis is here because the bottom 90% are falling and increasingly willing to vote for any anti-establishment character no matter how incompetent or even unhinged they may be. Unless a political movement rises up to get the 90% into the great jobs they’ve come to expect over the decades, then America will elect future leaders who are even worse and who will give the people the radical change they are demanding in the form of mass deportations and increasingly dangerous confrontations with other major powers until
World War III starts. And I realize that that may sound overly dramatic, but the fact is that in human history World War among major powers has been the only force capable of destroying the wedge that is being driven through so many of our societies today. We have a mountain of ideological garbage to dig ourselves out from under and I would really like to make some more videos like these and dispel the misinformation that we’ve all grown up with in America regarding the economy – wages, manufacturing, debt, money, free markets and much more. To help make this possible, please consider supporting me. Thank you, and I hope to see you again