{"id":42606,"date":"2019-01-11T19:33:24","date_gmt":"2019-01-12T00:33:24","guid":{"rendered":"https:\/\/olduvai.ca\/?p=42606"},"modified":"2019-01-11T19:33:24","modified_gmt":"2019-01-12T00:33:24","slug":"where-will-you-be-seated-at-the-banquet-of-consequences","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=42606","title":{"rendered":"Where Will You Be Seated at the Banquet of Consequences?"},"content":{"rendered":"<div id=\"nav-above\" class=\"navigation\">\n<h3 class=\"nav-next\"><a href=\"https:\/\/washingtonsblog.com\/2019\/01\/where-will-you-be-seated-at-the-banquet-of-consequences.html\"><span style=\"color: #222222;\">Where Will You Be Seated at the Banquet of Consequences?<\/span><\/a><\/h3>\n<\/div>\n<div id=\"post-73314\" class=\"post-73314 post type-post status-publish format-standard hentry category-general tag-banquet-of-consequences tag-capital tag-neofeudal-asymmetry\">\n<div class=\"entry-content\">\n<p><b>The Banquet of Consequences is being laid out, and so the question is: where will you be seated?<\/b>\u00a0The answer depends on two dynamics I\u2019ve mentioned many times:\u00a0<i>what types of capital you own<\/i>\u00a0and the\u00a0<i>asymmetries of our economy<\/i>.<\/p>\n<p><b>One set of asymmetries is the result of\u00a0<i>the system isn\u2019t broken, it\u2019s fixed<\/i>, i.e. rigged to favor the few at the expense of the many.<\/b>\u00a0There are many manifestations of neofeudal asymmetry that divides neatly into two classes and two systems, the nobility and the serfs.<\/p>\n<p>A rich kid caught with drugs gets a wrist-slap, a poor kid gets a tenner in the Drug Gulag.<\/p>\n<p>Upper-middle class households are tax-donkeys, paying high taxes and getting few deductions, while mega-wealthy corporations and financiers enjoy offshore tax shelters of the kind exposed by the Panama Papers.<\/p>\n<p>The stock market operators use high-frequency trading to front-run the market and generate profits that are inaccessible to serfs with retail trading accounts.<\/p>\n<p><b>And so on.<\/b>\u00a0Given that the nobility control the machinery of governance (so-called democracy), there\u2019s no way for commoners to influence the neofeudal cartel-state asymmetries short of shutting down the entire system.<\/p>\n<p><b>Which leaves the asymmetries created by the dynamics of the 4th Industrial Revolution<\/b>\u00a0in which new technologies and business models are destabilizing every sector of the old economy.<\/p>\n<p><b>The core dynamic here is\u00a0<i>value flows to what\u2019s scarce and in demand<\/i>.<\/b>\u00a0The asymmetric returns on capital and labor are the direct result of what\u2019s scarce and what\u2019s not scarce and what\u2019s in demand and what\u2019s not in demand.<\/p>\n<p><b>Ordinary labor and college diplomas are not scarce and therefore command very little premium.<\/b>\u00a0Ordinary capital is also not scarce, and hence the low yield on ordinary capital.<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Where Will You Be Seated at the Banquet of Consequences? The Banquet of Consequences is being laid out, and so the question is: where will you be seated?\u00a0The answer depends on two dynamics I\u2019ve mentioned many times:\u00a0what types of capital you own\u00a0and the\u00a0asymmetries of our economy. One set of asymmetries is the result of\u00a0the system [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[23880,23878,109,127,23879,13259,5510],"class_list":["post-42606","post","type-post","status-publish","format-standard","hentry","category-economics","tag-4th-industrial-revolution","tag-banquet-of-consequences","tag-capital","tag-charles-hugh-smith","tag-economic-asymmetries","tag-panama-papers","tag-washingtons-blog"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42606","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=42606"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42606\/revisions"}],"predecessor-version":[{"id":42607,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42606\/revisions\/42607"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=42606"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=42606"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=42606"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}