The Widening Economic Gulf Between Biden-Voting Counties and Trump Supporters. By David Evans.
First, some data from Brookings:
|Year||Candidate||Counties won||Total votes||Aggregate share of US GDP|
(2020 figures reflect unofficial results from 96% of counties)
USA by GDP. The aea of a county is proportional to its GDP.
The chart [above shows] the roughly 500 counties Biden won and the roughly 2,500 counties Trump won. This might seem like a chart of political polarization, and superficially that’s clear, but the real polarization is economic-financial: there are two economies in America, and there’s very little commonality in the two economies.
70% of America’s economy is generated in fewer than 500 counties; the other 2,500 counties are left with the remaining 30%. The nation’s productive capital is even more concentrated in a few hands and regions, and since income and political power flow to capital, the financial disparity / inequality far exceed the 70/30 split depicted in this political map.
Ownership of capital is concentrated in the hands of the top 10%, as the chart of equity ownership reveals, but the concentration is actually much more limited: the top 0.1% control so much wealth / capital that they “own” virtually all the power.
I hope it’s not a big surprise that America is now a rigidly two-tier society and economy. If you’re an executive at a big Wall Street investment bank, you can rig markets and embezzle billions and you’ll never face any personal legal consequences such as being indicted for fraud and being imprisoned. But try being an employee at a local credit union and embezzle $5,000–a prison sentence is very predictable. …
Debt and financialization are a major cause:
The lower tier of the U.S. economy has been decapitalized: debt has been substituted for capital. Capital only flows into the increasingly centralized top tier, which owns and profits from the rising tide of debt that’s been keeping the second tier afloat for the past 20 years.
The saying follow the money is only half-right — more importantly, follow the capital because income and power flow to capital. As this RAND report documents, $50 trillion has been siphoned from labor and the lower tier of the economy to the top-tier elites who own the vast majority of the capital. …
Globalization and financialization have richly rewarded the top 0.1% and the top 5% technocrat class that serves the elites’ interests. These elites and their capital are concentrated in urban counties, and the feedback loops are self-reinforcing: the capital in the urban counties attracts more capital and talent (skilled labor), bleeding the other 2,500 counties of skilled labor and capital.
America has no plan to reverse this destructive tide. Our leadership’s “plan” is benign neglect: just send a monthly stipend of bread and circuses to all the disempowered, decapitalized households, urban and rural, so they can stay out of trouble and not bother the elites’ continued pillaging of America and the planet.
There’s a lot of big talk about rebuilding infrastructure and the Green New Deal, but our first question must always be: cui bono, to whose benefit?
In the modern money system, money is literally other people’s debt. Money is IOUs. This system took over from gold by degrees between 1912 (with the creation of the US Federal Reserve) and 1971 (when Nixon finally ended convertibility of US dollars to gold). The money system cut the last link to gold in 1971. Without the constraints on money manufacture due to gold, the share of profits in the West earned by the finance industry rose from around 5% in 1971 to today’s 30 – 45%. It’s not a secret, but people in real power generally don’t want you dwelling on these issues. You won’t find it in the media. Heck, hardly anyone nowadays even knows where money comes from and how it is made. (Hint: Brand new money is created whenever a bank makes a loan.)
The great debt build up:
The result was concentrated ownership in the hands of the financial industry and asset shufflers:
This financial stuff might seem esoteric, but it is a (the?) root cause of the great realignment in politics. The party of the rich has now become the big-government left (Biden), while the others and the left-out have to make do with the other party (Trump).
Central banking was started by leftists. It is the biggest big-government program of all, wherein the price of money/credit is set by a committee of bureaucrats instead of the free market.
The best economic predictor of whether someone votes left or non-left nowadays is whether they are in a household that earns more than $100k pa (Biden) or less (Trump). The media would rather not mention this.
Btw, the gold price is rigged, just like the media, academia, the bureaucracy, the polls and apparently even the latest US Presidential election. Since the late 1990s, it’s been rigged to prevent the price of gold from moving up too rapidly, which would make paper currencies look bad. Without that rigging it would probably rise much faster, like Bitcoin — the other non-government currency.
Bitcoin hit US$20k in late 2017, but then the finance industry started rigged its price, driving it down to US$4k over the next year. (They did this by creating a futures market, thereby creating an artificial and controllable supply of Bitcoin. That’s also how the price of gold and uranium are rigged.) They then stopped rigging the Bitcoin price — job done, they thought. (They closed the futures exchange contracts for Bitcoin). The Bitcoin price then started to rise, and is now once again approaching US$20k.
See the ever-popular post WTF Happened In 1971?