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Local social spending and political dissatisfaction of the economically deprived

freen

Poverty and the enmiseration of the poor is a policy choice.

It’s also short term beneficial for the wealthy, but long term deeply detrimental to all members of society: killing the goose that lays the golden eggs, a large, highly educated, culturally engaged population able to survive opportunity costs of taking economic risk.

A lone multibillionaire in a society of impoverished people has a deeply boring and dangerous life.

The lower your GINI coefficient, the more people can create culture, luxury, and the sorts of things the wealthy enjoy.

https://en.m.wikipedia.org/wiki/Effects_of_economic_inequali...

dfxm12

A lone multibillionaire in a society of impoverished people has a deeply boring and dangerous life.

This is why, among other things, our multibillionaire are buying their way into the highest levels of government and media distribution. In their boredom, they are playing kings and manufacturing consent.

Aromasin

We've seen for centuries what bored oligarchs do - they lead crusades across nations states for one bullshit reason or another with an legion of people who need to work with them for money, entering into indebted servitude agreements. They get bored and go to war. Apparently building and inventing isn't another - I suppose because most of them are incabable of doing that due to a lack of talent. It's not so fulfilling being the moneybank with other people do the hard and interesting work. Probably why billionaires like Gates are midly normal compared to most - he's talented enough to do the building himself if needed. Same can't be same for Musk and Trump.

engineer_22

Trump is ostensibly attempting to end America's favorite ongoing wars. His methods are hotly debated, but his tack is not in alignment with your message.

FirmwareBurner

>A lone multibillionaire in a society of impoverished people has a deeply boring and dangerous life.

1. Multibillionaires don't live amongst impoverished people and aren't in any danger anytime soon. The homeless tents don't affect Zuck, Musk or Bezos, and there's very few resourceful Luigis out there willing to destroy their lives to put billionaires in danger. They're more likely to be hit by lightning than be in any danger from the poor. Not to mention they're always surrounded by private security in public.

2. Any statistics you look at, the median and average american citizen is far from being impoverished even by rich developed country western standards. I recommend people visit some developing countries to get a perspective on what true poverty looks like.

dfxm12

Most Americans don't have enough savings to cover an unexpected $1000 bill [0], and poverty is increasingly becoming criminalized, as evidenced by the recent SCOTUS rulings outlawing sleeping outside. If you aren't already financially stable, the system is already actively working against you.

Having to compare America, one of the richest nations in the world, to a generic developing nation is proof enough that something is very imbalanced. Compare the USA to Switzerland or New Zealand?

0 - https://www.cbsnews.com/news/saving-money-emergency-expenses...

FirmwareBurner

>Most Americans don't have enough savings to cover an unexpected $1000 bill

Do you think the poor in your average western country have a lot more liquidity than Americans? Especially after inflation and increased CoL with stagnating wages.

>Having to compare America, one of the richest nations in the world, to a generic developing nation is proof enough that something is very imbalanced.

Who is making that comparison? I'm telling you to look at statistics. And statistically American citizens are wealthier than most developed nations. And the poor american citizens pose no thereat to the rich American citizens in order to be a problem for them as the OP makes it seem.

immibis

They're only in real danger once the average person is hungry or fails to be distracted - bread and circuses. So far it's still just a small percentage.

renewedrebecca

> 2. Any statistics you look at, the median and average american citizen is far from being impoverished even by rich developed country western standards. I recommend people visit some developing countries to get a perspective on what true poverty looks like.

I understand what you're getting at here, but this misses the point. If people are used to a decent quality of life, and that quality of life declines, they're going to be miserable. It doesn't matter what other countries are like.

It's really in the same vein of "clean your plate because there are people starving who'd love to be in your shoes", which has never been a good argument.

More importantly, if a lot of people are miserable, especially if they think some other group of people is the reason, it's going to cause civil unrest. Right now, the billionaires have been successful at tricking people into thinking it's immigrants or some other group, but that won't always be the case.

FirmwareBurner

>Right now, the billionaires have been successful at tricking people into thinking it's immigrants or some other group, but that won't always be the case.

False. It was always the case and it will always be the case. People as a whole, as a collective mob, are incredibly stupid and easy to manipulate against their own interests. Just see elections. Since the super rich own the media both the legacy media and the online social media, it's easier than ever to manipulate them. And people aren't getting any smarter, on the contrary, just look at the education system and IQ numbers, meaning they're getting easier to manipulate not harder.

> it's going to cause civil unrest.

People claiming that civil unrest will unleash against the super wealthy any time now, have constantly been wrong. All the civil unrest from the poor is only affecting the average middle-class people.

And how do you expect poor people will find where the likes of Musk and Bezos live and what do you expect will happen to them once they try to go after the super rich? Exactly what happend to Luigi. Law enforcement will allocate 100% resources to go after you and throw the book at you. The rich and powerful are untouchable, so the only ones who will suffer the wrath of the poor will be the middle class.

Those who think the super rich will somehow be even remotely affected by some hypothetical revolution of the poor that will somehow turn the tides in their favor, have read too much fiction and are deluding themselves with the highest concentration of copium in the world. If the poor were to have the power to threaten the rich with violence you're gonna see a missive reduction in your rights an a massive increase in state oppression.

So a poor vs rich revolution in the US is not gonna happen. The closest thing was Occupy Wallstreet but that fizzled out pretty quickly once they introduced identity politics to divide the people and have them fight against themselves on gender and race.

blitzar

If you average Musk, Bezos, me and 997 other people, we are all billionaires with 0.004 private jets each.

FirmwareBurner

Look at medians then. Both income and wealth. Only ones richer would be Swiss, Norwegians, Luxembourgians.

debacle

Source seems dead. Is there a mirror?

MrMcCall

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alephnerd

> Europe's taxes are so high because Hitler preyed on the uncared-for poor to rise to power and begin his reign of terror.

That's a complete misreading of the history of the welfare state in Europe.

Welfarism was always popular in Europe because Bismarck and other conservative European politicians in the late 19th century wanted to co-opt the Labor movement [0]

Staatssozialismus (and it's equivalents across Western Europe) were always fairly popular.

The Catholic Church (a major player in conservative politics at the time) also supported this welfare model as well [1] as they were aligned with the Christian Democracy and Integralism [2] movement.

[0] - https://en.m.wikipedia.org/wiki/State_Socialism_(Germany)

[1] - https://en.m.wikipedia.org/wiki/Rerum_novarum

[2] - https://en.m.wikipedia.org/wiki/Integralism

clcaev

How does this framing explain/handle widening wealth inequality?

https://news.ycombinator.com/item?id=43191284&goto=item%3Fid...

^ links to FRED

https://fred.stlouisfed.org/series/WFRBSN40188 # Share of Total Net Worth Held by the 50th to 90th Wealth Percentiles

https://fred.stlouisfed.org/series/WFRBST01134 # Share of Total Net Worth Held by the Top 1% (99th to 100th Wealth Percentiles)

https://fred.stlouisfed.org/series/SIPOVGINIUSA # GINI Index for the United States

alephnerd

What does this have to do with my response? OP posted that the European welfare state started as a reaction to Hitler's reign.

I'm pointing out how this is patently wrong, as Welfarism in Europe was already mainstream well before Hitler became Chancellor.

morkalork

>Europe's taxes are so high because Hitler preyed on the uncared-for poor to rise to power and begin his reign of terror

I feel like my north american centric education is showing here because I've never seen it framed like this before. It's always been portrayed as "Europe so enlightened" and "guilletine goes brr" but that last one never explained the other countries. Also seems like it's losing effectiveness. The far right is rising in Europe and no amount of vacation days or social safety net is stopping it.

TheOtherHobbes

Because there's been significant neoliberal policy capture which has reduced worker wealth and security.

Meanwhile anti-immigration narratives are being heavily propagandised by mainstream and social media as a wedge issue.

It's very hard to compare like for like with taxation. For example health care costs in the US are effectively privatised taxation. So are the wildly inflated utility prices that the UK has developed.

Newspaper articles debate proposed tax changes worth a couple of hundred pounds a year, while electricity costs have gone up by thousands.

engineer_22

>It's very hard to compare like for like with taxation. For example health care costs in the US are effectively privatised taxation. So are the wildly inflated utility prices that the UK has developed.

I'll quibble with you here. I think you're correctly identifying a problem, but I would argue inflated utility or healthcare costs are the effect of bloated monopolies. In the USA in the early 20th century certain monopolies were successfully combatted with federal legal power. The time may come again that abusive or inefficient industries in Western countries are significantly restructured. Unfortunately (fortunately?) the wheels of government turn slowly.

alephnerd

> I've never seen it framed like this before

Because it's wrong.

Welfarism has always had strong support from the right and the left in Europe.

Bismarck himself co-opted the term "Socialism" to build the German welfare state while undermining his political opponents, and the Catholic Church supported Christian Democracy movement was always a major proponent for welfare support.

MrMcCall

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Aurornis

> It's always been portrayed as "Europe so enlightened" and "guilletine goes brr"

There is a deeply sad irony in watching someone mock the left for historically inaccurate takes while simultaneously falling hook, line, and sinker for a very historically incorrect alt-right talking point about Hitler.

I don’t think you realize that you have become the very thing you mock, just on the other side of the political spectrum: Someone who accepts edgy, historically inaccurate propaganda as ground truth as long as it reinforces what you want to believe.

engineer_22

As someone with an American education, I can attest that European social safety net is not attributed as a reaction to Hitler. I can understand how that line gets drawn, but that's not what is taught to our young people.

tpm

In a bit more nuanced view, the pre-war (WW1) and inter-war (WW1 to WW2) both liberal and conservative parties didn't really care about either social or nationalist stuff and because of that got nearly wiped out by nationalist and socialist parties. To survive, they had to heavily borrow from both. Which they duly did after WW2 in the spectre of Hitler and Stalin.

In an even more nuanced view, Hitler was also supported by many rich people and high taxes and nationalisations served to cut their power. And in most countries, the means of propaganda was also nationalized and/or heavily regulated. So it was about much more than just the poor masses.

MrMcCall

> no amount of vacation days or social safety net is stopping it

Yeah, there's only one way to deal with people who want to violently oppress others, no matter their ilk (religious, political, ethnic, ...).

> Europe so enlightened

Yeah, if you talked with my GOP-aligned family, your appraisal of Europe would reach new dizzying heights. They're so stupid I feel bad for the word "stupid", as it's clearly inadequate as a description.

engineer_22

Please remember, when your limbic system is activated, you're probably being manipulated.

matthewmacleod

I agree those shallow analysis are pointless. We can observe that the far right is also rising in the US, which isn’t too hot on vacation days or a social safety net!

I guess I’d just say that people don’t like when everything is shitty and you keep telling them it’s great, and when that happens they turn to the person who says “everything is shitty and I’ll make it great again” even though they won’t - because what have you got to lose, really?

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pjc50

The welfare state works when there is a clearly defined "us".

When people think of "European welfare state", they tend to mean one of Germany, France, the UK, or the Nordic states. At the time of peak support for the welfare state, immediately after the war, these were pretty much mono-ethnic states.

The modern erosion of social cohesion is because there's enough non-white people around to be visible, and this makes some people really mad. As it does in America.

> The far right is rising in Europe and no amount of vacation days or social safety net is stopping it.

Same reason as last time: people want to do some ethnic cleansing.

The missing link between material conditions and overt racism is probably housing. It consumes a huge fraction of income in places where the good jobs are, which makes people feel very in competition with those getting social housing for free.

(the meaning of "welfare state" varies a lot depending where you are: old age pensions were usually the first part to be implemented, from Bismarck onwards. Health benefit systems vary and usually include some elements of insurance and co-pays, the UK single monolithic free-at-point-of-use provider is actually very unusual)

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