
Michael:
Leaving aside the bottom ~20%, it is the next big group up (the lower/middle and middle segment of income earners/spenders in the US) who determine which jobs stay in the US and which don’t; it is not the “elite” (unless “elite” means this big group - which is a reasonable use of the term if it is meant to relate to those who do not care enough about the lower 20% to help them).
John:
I would like to refine these definitions a little bit. Now, I like using the folks over at DQYDJ as they have some pretty spiffy statistics and graphs to allow a better set of definitions and allow us to better pigeonhole things as a beginning step for analysis. I do propose that we split the populace into three groups as follows:
GeeWe’reFucked: (income ≤$30,000) bottom quartile
TheFifty: (Income $30,001 to $110,000) middle two quartiles
Elite: (Income > 110,001) top quartile
I feel more comfortable with this from my vantage point of living in a urban area. It also matches up pretty much with the Hoi Polloi that I deal with in the day to day. Here in Portlandia, it appears to me that struggle primarily of failures below 30K.
So, if we use these three groups, the folks >110K have it pretty sweet, the folks below 30K have it pretty shitty. The majority group in between is the swing group. This is the group that we want to discuss.
MICHAEL:
With regards to American jobs staying or leaving, the job given to a CEO of say GM, is to determine what this big group of people want them to do; not what the “elites” want them to do. I suspect that most liberals would scoff at this claim and consider it naïve. The reason why this explanation is not naïve, is because the actual elites (those very wealthy via capitalism) want the same decisions made as the middle class does.
This is where I start to diverge from Michael’s thoughts. I don’t think that the CEO of GM cares not one iota about what TheFifty think. In my honest opinion corporations in today’s America do more to create the image and the thoughts of TheFifty than they spend time listening. Bernays and his ilk have reduced the relationship of the corporation to the consumer to a strictly manipulated affair, with the corporation being the subject and the consumer being the object. The power structure of this relationship is asymmetrical and the power of the corporation’s just keeps growing with the media and the shameless manipulation of the internet contributing to the rise.
Now, oddly enough, this probably causes the hypothetical CEO a bit of internal mental issues because of the contradictions that come next. TheFifty are starting to catch onto the manipulation and are starting to push back. This is causing the CEO to actually pay more attention to consumer thought so that he can better manipulate.
The Elite (of whom the CEO is a card-carrying member) could give a rat-fuck about what TheFifty think. The Elite want three things and three things only:
Return on investment
Return on investment
Return on investment
Because, simply put, the CEO serves as an extension of the elites and is there to provide the rents that constitute the ROI described above. If the CEO does not provide them the ROI, the CEO won’t be one for much longer.
Now, in the mythology spread out like organic fertilizer on this rich land, the Elite will explain the concept as being a boon to all, where the middle and lower class will retire with pleasure and golf due to the can-do American Capitalist system. But the numbers don’t play out.
Here in America, we have shifted the debate to emphasizing the concept of “Income”. I have always felt that this was probably the single most elegant move by the oligarchs that truly run this country. They managed to isolate a minor component of the overall economy and put it to the fore while placing the real money and power off limits. I have taken some of the data from over at DQYDJ (Don’t Quit Your Day Job) and pulled together some tables to illustrate the income variation.


So that really doesn’t show too much. Essentially the top 25% has more income than the bottom 75%. I suppose that I could live with that, but it still isn’t good.
Now, lets look at Net Worth

Now that kinda changes things a little, doesn’t it? The 85% of the net worth in America that calls the tunes for out poor beleaguered CEO cares dick-all what the FiftyPercent think. The 85% of stock wants their ROI.
NOTE: I will get cracking on the next two paragraphs and post when completed, Thursday at the latest.