Wealthy Pessimists

Thomas B. Edsall writing in the NY Times about a Northwestern University economists research paper that looks at the future trends from an economic perspective (via Bill Moyer’s blog.)  Robert Gordon who wrote this paper talks of 3 industrial revolutions: steam and railroads (1750-1830); electricity (1870-1900) and computers (1960 to the present). He does not see a fourth.

All of this has to do with the economic imbalance of money in our society. Edsall believes that the wealthy are very pessimistic about the future and are working hard just to protect the wealth.

He says: “Affluent Republicans – the donor and policy base of the conservative movement — are on red alert. They want to protect and enhance their position in a future of diminished resources. What really provokes the ferocity with which the right currently fights for regressive tax and spending policies is a deeply pessimistic vision premised on a future of hard times. This vision has prompted the Republican Party to adopt a preemptive strategy that anticipates the end of growth and the onset of sustained austerity – a strategy to make sure that the size of their slice of the pie doesn’t get smaller as the pie shrinks.

It is an interesting premise that explains why the wealthy are so resistant to building up the middle class and creating real economic growth ~ as seen in the positions of Romney and Obama.

Now contrast this to a video on YouTube video by Nick Hanauer, a capitalist who understands that only consumers create jobs rather than capitalists. His video is well worth watching and stands in sharp opposition to the views of the affluent Republicans Edsalls mentions. Please take a look. http://youtu.be/bBx2Y5HhplI

Here’s to optimism over pessimism. In my view it is more realistic and pragmatic.