The Sand Beneath Us - 911 Was Small But the Tea Party Has a Point!
On Sept. 11, 2001 the world changed course for most of us, though you could argue it was "just" a
rude awakening. But cast your mind back to that day if you can and try and recover the shock and dismay as all the rock-solid beliefs that we all shared were ground to dust and rubble. If you have trouble going back you might let Alan Jackson set the stage - in fact to make my point please do: Where Were You When the World Stopped Turning? It's not clear we're entirely back on our feet even yet but we've made a lot of progress. But on Sept. 28, 2008 there was a bigger change in the world when Lehman collapsed and almost took the entire world economy with it. Why do we say that? Because the world we thought we lived in was a world where not everybody was going to be a millionaire, indeed far from it. But it was a world where we all thought the rock-solid bedrock of America was that everybody would have a chance to better themselves and build a better life for their children. That world got blown up that day. More correctly we all found out that what we thought was bedrock was actually sand, actually quicksand, and we'd been slowly sinking into it for almost three decades. That shock was the earthquake that told us that our most fundamental assumptions about America needed re-examination.
PBS recently covered the history and long-term implications in an interview with The Atlantic reporter who did an excellent story on the future of the middle class, and it's not good on current course and speed. That was the day it was made clear that the "world had stopped turning" for everybody, and the last two years have driven it home. But this time it wasn't a single act of violence but recognition of a fundamental breech in the American Social Contract, the glue that holds us all together.
The Degradation of the Social Contract
What do we mean by that? Well we've talked several times about the long-term outlook for the economy, how weak the recovery will be and what it means for employment and how long it'll take to get back to anything like where we were at. What we haven't really talked about it is what it means for society, nor how far and deep the roots of the problem run back. To see what we mean take a look at this chart - it may appear to be dry statistics and charts but if you can translate it into its human dimension it's a measure of the quicksand. 
You may have heard that the average household income is about $46K/year? Well it's not as if we're evenly distributed around that average - just the opposite as a matter of fact. Income distribution has a very long tail but 98% of us make less than $250K/year. From about 1944 to about 1984, or so, income grew for all the different groups evenly, like a picket fence. But beginning about that time it became harder and harder for anybody but the special few (remember that long, thin tail) to keep with the Riches. Instead, along with the rest of the Jones they watched their incomes sink. In fact beginning around the early 80s and continuing, even accelerating, to this day the proportion of income going to the upper 0.1% has increased at an accelrating rate to the point where it's doubled. And it's not entirely inherited wealth either. A lot of it has to do with advantages of job, education, class and position.
Think super-stars, athletes, executives and hedge fund managers. But in fact a lot of that increase has gone to folks who were in a position to exploit the explosion in financial engineering or positions of corporate influence to disproportionately reward themselves. Almost 40 years ago Peter Drucker pointed out that when the average CEO made 80X what the average worker did we were headed for trouble. Now (to the best of my faulty memory) that figure is more like 300X. It's not clear that so much extra value has been created to justify that astounding gap in rewards. In fact given how well the economy has performed, it turns out, and how fairly the proceeds have been shared it would appear that little new value was created and what there was went to a minority.
The Stratified Society: the Real 911 Wakeup Call
When we say stratified does that mean anything to you? One of the basic American values, at least IOHO, is that every person is the equal of any other. Different people have different roles, responsibilities and contributions for which they should be fairly and appropriately rewarded. And given the respect due their role and contributions. But not treated as something special. That's an inheritance from the Scots-Irish who were such an influential part of our history. The Clan Chieftain was accorded all due respect but he HAD to earn it by being responsible for the welfare of the Clan, not by taking advantage of things to further his own advantage. Beyond that every clansman expected to be treated with respect and with due acknowledgment of his rights.
In a stratified society your position determines your outlook and you accorded the forced respect accorded the aristocracy. Think it could never happen here? Well go back and listen very carefully to that PBS interview, or more importantly, skim the excerpt in the readings. Better yet, read the whole article. That's the direction we've been headed in for almost three decades and over the next decade the pressures are likely to continue and worsen with the aftershocks of the economic crisis. It will take a lot to dig ourselves back out of that problem. And think again - in a way it's already happened thru the "Laws of Unintended Consequences". Take a look at this graphic and think about the permanent underclass we may have already created in our inner cities. Thru a combination of well-meaning but very poorly thought thru policy choices on wage controls, rent controls, drug laws, etc. etc. we drove productive business away from our older cities and very likely created a permanent underclass, particularly among Black Americans. So much so that endemic gang warfare is now a gimme given on most TV shows.
Circle back to the long-term analysis of income distribution and think back on the PBS interview as well as multiple postings we've put up on the state of the economy, the long-term outlook and the long-term history of the economy. On a macro-scale what we're really looking at is the Unintended Consequences of believing you can get something for nothing, ignoring major challenges in Healthcare, Education, Energy and Innovation. And in general pursuing debt-fueled immediate gratification at the expense of savings, investment and productivity. We may be headed for migrating much of the middle class into a stagnant backwater similar to what we've managed to do in our inner cities. Worse yet we've done it to ourselves AND we've been enabled by partisan political warfare where ideologies have been substituted for analysis.
Time to Listen to the Real Wake-Up Call?
There may actually be some good news in all this. If the problems have been slowly accumulating for decades, if possible solutions have been discussed and if all that's been ignored it's been because of the classic set of problems. Not my job, let somebody else handle or we'll worry about when it gets here. Well it's not quite here. In fact we could probably muddle thru for another ten years by being clever and adroit but then things would start sliding over the edge of the abyss. The two keys to whether or not we do something will be, first, whether or not we're finally willing to face the truth (why does Col. Nicolson's face flash in front of my eyes). But most importantly whether or not we decide to pull together or degenerate separately (apologies to Ben).
It's not an accident that we woke up to headlines about an irate member of the increasingly disadvantaged classes having shot two Pentagon policemen, nor that a few weeks ago a software entrepreneur and rock guitarist flew his private plane into a Texas IRS building, or that the Tea Party has exploded across the national political scene with populist outrage. This has happened before and, after creating a lot of sturm und drang, it blows over. What's really sad is the way a lot of this anger is being exploited for partisan political advantage, often and usually by the same folks who's ideology, political shibboleths and narrow choices contributed to and accelerated the problems they are angry about.
A few weeks ago PBS had a segment on a great Black poet who wrote some of the most touching reflections on 911 we've ever heard. Yet when she spoke of 911 she spoke to deeper truths.
Tuesday, 9/11:
Thunder and lightning and our world is another place.
No day will ever be the same, no blood untouched.
They know this storm in otherwheres, Israel, Ireland, Palestine, but God has blessed America, we sing.
And God has blessed America to learn that no one is exempt.
The world is one.
All fear is one, all life, all death all one.
Now do we listen? More importantly do we hear?
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It is one thing to read about the horrors of a stupid war and lament the wastages and might-have-beens. It is almost entirely another thing to grasp the emotional impacts and consequences. What it did to the survivors and what it meant for their societies and civilizations. The first time that truly began to sink in for me was R.F. Delderfield's great novel (