by Chris Hedges
Posted October 3, 2018
Instead of creating a middle class, it polarizes everything,it allows the top executives to go completely crazy with their pay packages. They are paid beyond what’s reasonable, beyond what their fellow capitalists receive in other parts of the world. There is a collapse of the ability to buy things. A company that saves all this money through a tax cut from Mr. Trump is not going to spend its money hiring people, buying machines, producing more.
They’re having trouble selling what they already produce. They’re impoverishing the very people they sell to. What do they do with the money? They take it and pay themselves. They give themselves higher pay packages. They buy back their own stock, which they’re legally allowed to do. It pushes the price of the stock up. Their [personal] compensation is connected to how well the price of the stock does. No jobs are created. No growth is created. The price of stock is going up even though the viability of the enterprise—because of the [company’s] collapsing market—is shrinking.
Capitalism is hollowing itself out. The capitalists refuse to face this because they are making money, for a while. That’s the same logic as the monarchs before the French Revolution building the fantastic Versailles without understanding they were digging their own graves in those lovely gardens. More…