Ajay Kapur, global strategist at Citigroup, and his research team came up with the term “Plutonomy” in to describe a country that is defined. The full report is available here MarPlutonomy-Report-Leaked-Citigroup-Memo-Part1. Maybe I’m the last person who’s hearing about the Citigroup “plutonomy memos”, but they’re blowning me away. Wait, now that I look around.
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Corporate tax rates could rise, choking off returns to the private sector, and personal taxation rates could rise — dividend, capital-gains, and inheritance tax rises would hurt the plutonomy. These are class reasons, and reflect the lack of popular political mobilization.
The GFC resulted in massive transfers of plutoomy from ordinary taxpayers to the wealthy via the bail-outs when the big financial institutions momentarily embraced socialism. The Managerial Aristocracy, like in the Gilded Age, the Roaring Twenties, and the thriving nineties, needs to commandeer a vast chunk of that rising profit share, either through capital income, or simply paying itself a lot.
It seems inevitable therefore, that plutonomists and their agents have gone to great lengths to suppress these documents. And this is considered a good thing. There are, for the first time in human history, real threats to the decent survival of the species. Practically every country in the world is taking at least halting steps towards trying to do something about it. Not long ago, President Barack Obama took over the auto industry, which was basically owned by the public. I just learned of these reports from another WordPress blogger.
So it’s interesting when we catch citgroup agreeing with me when they give private advice to the investor class. But as yet, there seems little political fight being born out on this battleground.
You have to form the structures that will be sustained, that will go on through hard times and can win major victories.
Still true, as per evidence by Thomas Piketty and others. Ever since they were leaked to the internet a few years back, Citigroup has been trying desperately to hide these memos from the plutknomy.
Some economists took issue with this diagnosis. According to Kapur and team, “the balance sheets of the plutonomists have been an important transmission channel of monetary policy. Both reports were leaked and made available on the WEB. Reader Comments 1 Searching for the Citigroup reports?
They posit a few reasons for this change: Within a couple of years, they started having to put money into the party coffers in order to get ahead, a topic studied mainly by Tom Ferguson.
So long as economies continue to grow, and enough of the electorates feel that they are benefiting and getting rich in absolute terms, even if they are less well off in relative terms, there is little threat to Plutonomy in the U.
One of the key forces helping plutonomists over the last 20 years has been the rise in the profit share — the flip side of the fall in the wage share in GDP. The multinational decided to close it down instead, probably for reasons of class-consciousness.
Update on Tuesday, April 30, at These economies have seen the rich take an increasing share of income and wealth over the last 20 years, to the extent that the rich now dominate income, wealth and spending in these countries.
Citigroup’s Plutonomy Memo: “There are rich consumers, and there are the rest” – Elpidio Valdes
Continental Europe ex-Italy and Japan are in the egalitarian bloc. It took two hours. They are attracted by the facets that facilitated the re-emergence of plutonomies in the U.
After the first few years, by the mids — although the situation was objectively much harsher than it is today — nevertheless, the spirit was quite different.
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The answer is of course yes. Eight years after Kapur and his team developed and published their plutonomy thesis, the French economist Thomas Piketty achieved worldwide prominence with his book Capital in the Twenty-First Century. Email Article to Friend.
Could the plutonomies die because the dream is dead, because enough of society does not believe they can participate? The legislation, essentially bipartisan, drives new fiscal policies and tax changes, as well as the rules of corporate governance and deregulation.
Notify me of new comments via email. Do you have information you want to share with HuffPost? Writing the hagiography of the plutocrats has always been an unfortunate role.
To use Rawls-ian analysis, the invisible hand stops working. Perhaps one reason that societies allow plutonomy, is because enough of the electorate believe they have a chance of becoming a Plutoparticipant.
You can see it right now, in fact. You got to admire the cluelessness of people who deny the down and praise the up as if gravity had nothing to do with it. Leave a Reply Cancel reply Enter your comment here It was a partial victory because, even though they lost, it set off other efforts.
It used to be that if a person in Congress hoped for a position such as a committee chair, he or she got it mainly through seniority and service. Download a copy of these memos. In and Citigroup issued two now notorious but highly significant reports for the exclusive use of its richest clients.
But as yet, there seems little political fight being born out on this battleground. Edward Fullbrook has posted some new locations for the Plutonomy Memos. Just to make it more surreal, while this option was being avoided, the Obama administration was sending its transportation secretary to Spain to get contracts for developing high-speed rail for the United States, which could have been done right in the rust belt, which is being closed down.
There are rich consumers, and there are the rest. Of course, Naomi Klein, being a journalist rather than an investment banker, spent time with the victims of all these policies and thus was pretty pissed off about them.