“Bloodiest Thing the World Has Seen”: David Cay Johnston on Inequality’s Looming Disaster

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http://www.alternet.org/economy/bloodiest-thing-world-has-seen-david-cay-johnston-inequalitys-looming-disaster



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Earlier this week, Salon reached Johnston via telephone to discuss “Divided,” whether American democracy can survive such great economic disparities, and how returning to a more equal society is literally a matter of life and death. Our conversation follows, and has been slightly edited for clarity and length. In addition, Johnston followed up with further thoughts via email.

What inspired you to create this book?

I had done a trilogy on hidden aspects of the American economy, “ Perfectly Legal,” which was about how the rich benefit from taxes, “ Free Lunch,” about all the subsidies people didn’t know about that go to rich people and corporations, and “ The Fine Print,” which was about restraint of trade and monopolies. And in speaking for the last 10 years around the country, one of the things I learned is that people didn’t understand that this isn’t just a function of numbers and whatnot; they didn’t understand there’s a whole structure that affects families, health, healthcare — which are different things — incarceration, opportunity, exposure to environmental hazards, wage theft and so, there was really a need here to give people a broad understanding of, well, “How did this come about, this incredible inequality that we didn’t have in this country until recent years?”

[After the interview, Johnston emailed to add: "My trilogy on the American economy explained many of the little-known, and often deceptive, laws, regulations and official practices. But inequality involves much more than what I had written about in the trilogy. I wanted to provide people with a broad understanding of the issues, ranging from limited opportunity and obstacles to achieving a modicum of prosperity, to the remarkably cruel and thoughtless policies of the Reagan era."]

In your introductory essay, you make a point of arguing that inequality is not natural, that it’s something we created and, by extensions, we can undo. But what would you say to those who, say, have read their Piketty and are thinking this kind of inequality is endemic to capitalism?

Well, Piketty — whose work I relied on for years and who substantiates a lot of things that I’ve written with his research — argues that the concentration of wealth will just continue and continue and continue. As Herbert Stein, Richard Nixon’s chief economic adviser, famously said, a trend will only continue as long as it can. We will either, through peaceful, rational means, go back to a system that does not take from the many to give to the few in all these subtle ways, or we will end up like 18th century France. And if we end up in that awful condition, it will be the bloodiest thing the world has even seen. So I think it’s really important to get a handle on this inequality. After all, since the end of the Great Recession, one-third of all income increases in this country went to just 16,000 households, 95 percent of it went to the top 1 percent, and the bottom 90 percent’s incomes fell, and they fell by 15 percent. So we need to recognize that there is a very, very serious problem here that has to get addressed. But it won’t just go on forever because if you follow that to its logical absurdity, one person ends up with 90 percent of the wealth in the world. And that’s not going to happen.

[Demeter]

1. The Inequality was always there

but lately it's become public knowledge and public policy.

Why?

Because the Rich aren't being subtle or moderate about their greed and now have license to beat vulnerable people (like politicians) over the head with their unearned wealth.

[deutsey]

3. Yes. I always say the fake smiley face of Reaganism

has finally fallen away and the true ugliness it concealed on full display.

[Helen Borg]

8. it looked pretty ugly from the beginning!

[deutsey]

12. To some of us, anyway

[theHandpuppet]

4. Unfortunately, I don't see a rebellion on the horizon

Too many people worship wealth whilst poverty is preached as the result of moral failing. As long as you live in societies that wave that golden ticket under people's noses, with the fantasy that they, too, can become a one percenter, I don't know what it will take for people to finally rebel.

[Tommymac]

6. Hunger.

As the middle class shrinks and poverty increases, reality bites that fantasy in the ass.

Throw in the coming Climate Catastrophe largely caused by the 1%'s greed and avarice, and The French or Russian Revolution's will seem like recess at an elementary school in comparison.

[jwirr]

13. I agree with you. Hunger and other results of poverty - hopelessness - will eventually over come the

idea that everyone has a chance to be rich and then this world will either change peacefully or all hell will break loose.

I am encouraged by the story here on DU yesterday about the conservative magazine with a picture of a guillotine on it. The rich are beginning to wake up to the danger of their actions. And while bundy and his bunch of welfare cowboys are rich they are not the 1%. They are actually trying to start that revolution even if it is not one we would follow. I think we are closer than we think given the fact that food prices are going to skyrocket due to drought, floods, the long cold winter that also touched the southern growing areas and various diseases that are killing animals like the hogs in Iowa. Hunger issues are already effected by cuts in food programs added to the climate induced problems will escalate and tempers are going to fly.

When you cannot feed your children regardless how hard you work - that is when you find someone else to blame.

On another subject - during the French Revolution what was the position of the church and did they get attacked for that position. The Pope is sounding good on the issues today but the rest of the church seems to support the 1%. Curious about what the people will do about the preachers of hate and greed this time around.

[closeupready]

25. The Vatican has ALWAYS worshipped power and wealth.

During the Spanish Civil War, they sided with state authorities. Which is consequently one reason Spain today is one of the least religious states.

[Tommymac]

27. Pope Francis seems different.

I am giving him a chance before I paint him with such a broad brush.

So far he has talked the talk and walked the walk against the greedy and corrupt.

He may just be the FDR type we are looking for - a good man who emerges unexpectedly from the belly of the beast to fight the good fight. (I wish I could feel the same about a certain politician we all know, sigh).

[Tommymac]

26. I like this Pope.

Even though I am a spiritual agnostic.

My fear is that he will not be around this world very long. The greedy and hateful have too much access to deadly force. If they acted in a violent manner they would make a martyr for the fight against inequality and climate change denier's; but I think an active voice is much more needed at this time.

[closeupready]

24. Yes. That is the one thing that predictably sets revolutions off.

And with Republicans seeking to cut back on food stamps, we may not be far away from such developments.

[Ferretherder]

9. "... that they, too, can become a one percenter"...

...and if you ask me, therein lies the problem with modern American society.

Why does one have to believe that they will become RICH, even FABULOUSLY WEALTHY, to want to try and do and contribute to the greater good? Why not just say, ' I will do all I can to further the well being of all in our society, and the reward will, hopefully, be a comfortable life for not just me, but all within that society'.

Really, why?.......and the answer is............

...'cause this here's 'Murka, goddammit, 'n that there kinda' commie talk don't fly, Jack! Gitcha fuckin' hippie ass back in tha commune, ya damn socialist nazi, we don't cotton ta' that kinda shit 'round here!

And another great empire sinks under its own ignorance and prejudice. America will NOT escape the fate of all of those other great powers that faded into the history books..........sorry.

[Javaman]

19. while many people worship wealth...

many in middle class of diminishing returns have been brainwashed into believing, while things are getting tougher, that life is same as it ever was.

the house is on fire and the occupants "solve the problem" but turning up the A/C.

[theHandpuppet]

20. You remember the fable about the frog and the boiling water?

If you place a frog in a pot of boiling water it will, naturally, immediately hop out. The myth was that if you put a frog into a pot of cold water and slowly raised the temp to boiling, the frog wouldn't notice as it slowly cooked to death. To me that's analogous to what's happened to the middle class.

[Javaman]

23. exactly. nt

[Anansi1171]

28. I think these last six years have changed alot of minds!-nt

[ladjf]

14. "The inequality was always there" but, the wideness of

the gap has increased exponentially. That rate of growing disparity is the crises producing factor.

[deutsey]

2. "logical absurdity"

That pretty much captures the essence of these times.

[Laelth]

5. k&r for the truth, however depressing it may be. n/t

-Laelth

[smallcat88]

7. 99% rallies were a precursor

And the 99% were largely ridiculed or ignored by the 1%. It won't happen overnight and could take a generation or more but that attitude from the 1% will only feed the fire. Add to that the continuing bigotry from the right against anyone who isn't a white, male landowner at a time when their numbers are decreasing and you have a recipe for disaster.

[Enthusiast]

10. It might be a matter of

what they can get away with. They got away with Bush v Gore. They got away with 911. They got away with the Iraq War. They got away with torture. And they got away with the mortgage fraud gravy train.

Looks to me like they can get away with anything. Who are they? And why are they intentionally ruining our nation?

[jwirr]

16. There are a few professions I would not want to be when that comes to a head. Politician, bankster,

anyone working in a corporate headquarters or Wall Street and a policeman who would have to intervene.

In fact I am surprised that the banksters and corporate big wigs have not been targeted already.

[fasttense]

11. Ancient Egypt had this great a divide between Pharaohs and peasants.

Today's inequality does not even compare to the roaring twenties, it is much greater than that. Such a great divide hasn't been seen in over 2 centuries. There were NO Democracies in any of the times when wealth was so unequal as it is today.

The uber rich are a destabilizing force to a peaceful society. They scheme and con in order to obtain as much control over citizens as they can in order to keep their wealth. They are a danger to a stable society and should be outlawed or taxed to death. Allowing the the uber rich to accumulate such vasts amounts of wealth is just as dangerous to a society as drought and famine.

[freshwest]

22. K&R. Yes, it is dangerous to society and the planet. Thanks for that. n/t

[mountain grammy]

15. It's a great article, but just one thing. He mentions extremism on the left and right.

From the article:
"Number one, we’ve got to change the makeup of Congress. The Democrats got 1.4 million more votes than the Republicans [in 2010] but they have a minority [in Congress] because of gerrymandering. So we need to have state legislatures — and we may need a constitutional amendment to make districts evenly divided between the parties — that will get us more centrist candidates rather than extremists on both left and right."

While I completely agree with this sentiment, I honestly can't remember if an extremist candidate from the left ever even existed in my lifetime. Ralph Nader? maybe. I guess, it might depend on your definition of "extremist."

[jwirr]

17. You are correct. When a politicain from the left is called an extremist it is usually a right winger

who is calling him/her that. Huey Long comes to mind when I think extremist but not in a bad way. He was merely a man for the people.

[raouldukelives]

18. No, I've never seen that candidate. It is a mythical creature.

The only left that is allowed to be acknowledged anymore is the right.

[FailureToCommunicate]

21. Paging Madame Defarge...