All over the world, the rich have been getting ever richer and the gap between the rich and the middle, not just the very poor, is amplifying. This growing gap is one of the factors that are leading many people to feel fed up with mainstream politics.
The mainstream political message for so many years is that there is a conveyor belt to prosperity.
The vision has always been that if you do well by working hard, your children will have a better chance than you did. As the very rich rise out of sight and pull the drawbridge up behind them, many millions begin to feel disillusioned with the social contract and reject mainstream politics.
This is where Donald Trump and other demagogues such as Marine Le Pen come in. Trump is tapping into a resentment of the elites – and the Panama Papers are indicative of the elites squirrelling away their money in fake companies, usually with the explicit aim of avoiding tax. The average guy can’t do that.
At the root of all this is enormous inequality, where scarce resources are hoovered up by a tiny percentage of the population, some of whom feel so entitled that they won’t even pay their dues on these huge fortunes.
Don’t get me wrong, I have yet to meet a person who happily pays more tax than they absolutely have to, but the fact that those at the very top are cheating on their own countries gives yet more legitimacy to would-be politicians who point out that the system is broken. In an election, you don’t actually have to offer any tangible, workable solutions if the system is already broken; you just have to keep saying it.
Inequality is one of the reasons that mainstream politics all over the globe is fractured. Today, when people in Ireland are looking for reasons to explain the gradual erosion of the centre ground in Irish politics, growing inequality has to be one of the obvious reasons.
So how big is the problem?
A few months ago, I presented a programme on RTÉ documenting the great wealth divide in Ireland. One of the most fascinating aspects of inequality in Ireland was the fact that while almost everyone in Ireland knows that the spoils of the society are not divided equally, in our ideal world, the vast majority of us claim that wealth should be distributed more equally.
What the programme highlighted was the difference between what people thought the wealth divide was, and what people thought it ought to be, was wildly out of whack with what it actually is.
One of the recurring themes in all surveys taken on the issue of wealth in Ireland is the fact that most people believe in a fairer society. For the programme, we decided to revisit this conundrum.
We conducted a Red C poll to see what you thought the wealth divide was in Ireland, then, we asked you what you thought it should be, and then we revealed what it actually was.
In an ideal world, you thought that a fairer Ireland – a truly republican Ireland, where all the citizens have a chance – would be one where the top 20pc would have a little bit more than 20pc of the wealth and the poorest 20pc would have a little bit less. This is kind of what you would expect from people who live in a republic but understand that life isn’t always fair. As a result, rich people have more, but not hugely more, and poor people have less, but not dramatically less. That’s your ideal world.
Then we asked you what you thought was the state of play. And you thought, in contrast to your ideal Ireland, that the real picture was one whereby Ireland’s richest 20pc probably had more than half of the country’s wealth and the poorest 20pc had 11pc of the wealth.
Then we showed what the reality is.
The reality in Ireland, according to the latest figures for the CSO, is that the most affluent 20pc in Ireland actually own 73pc of the country’s wealth, while the poorest 20pc don’t own the 11pc you thought they own, but they own just 0.2pc of the country’s wealth.
And as for the top 5pc, their combined wealth is nearly double that of the entire “squeezed middle” – the 60pc of Irish people in the middle. You can see all this clearly in chart 1 here.
Now, if you want to see how wealth is distributed in Ireland, check out the next two charts which go a bit deeper and reveal what the distribution of wealth is like when you break the population down into the top 10pc down to the bottom 10pc. You can see that the concentration of wealth in the top 10pc is extraordinary.
According to the latest publication by the CSO, the top 1pc in Ireland owns 14.8pc of the entire wealth of the country.
This is about the same as the bottom 50pc of the population.
So to put it another way, the top 1pc of the population own the same amount as the bottom half of the population.
These are the latest official figures, published by our government.
These developments in inequality are not unique to Ireland. In fact, all over the OECD, we are seeing similar patterns.
The Panama Papers are yet more evidence of one rule for the hyper rich and one for the average dude.
Against this background, can you blame people for turning their back on the mainstream at the ballot box?
> Trump is tapping into a resentment of the elites
I cannot for the life of me understand why this is making him so seemingly popular. He IS one of the elites. He is Red Riding Hoods wolf dressed as your grandmother.
David, painfully a lot of these recent articles seem to be commentary only. They discuss what is, rather than any measures to improve. And also painfully this is the state we are in right now, the Chickens (choices) of 2009-2010 are coming home to roost and there is nothing that can be done now, the time of action is long past. I enjoyed your documentary, in the same way one might enjoy watching a horror movie. Looking around Ireland for the past 2 years it is like watching a fire-sale and if you have the money there are bargains to… Read more »
And all of this happens under the supposed Nation State constructs of ‘The Republic Of Ireland’, ‘The United Kingdom’, ‘The United States of America’ and all the rest of the pseudo-Nations that make up the ‘false flag’ construct that is Europa. It’s all a plot by the 1% to use their fluffers and enablers in the 10% of legal/accountant tax whores (who congregate around Wall Street, the City of London, Frankfurt, the IFSC, etc) to move their wealth offshore. All ex-nation states are now tax whore haves of the offshore 1%, their venal political and media classes conspiring to maintain… Read more »
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People in the usa are kept poor in order that they will join the military. The min wage is a woeful $ 7.25 an hr.
Wouldn’t it be very interesting to get a breakdown of where the 35% or so of the electorate who didn’t vote in the last election are from? Demographics play a huge part in the way we continue to elect wealthy gombeen men. Watching the current Kenny/Martin dance is so cringeworthy that it would be funny, if it weren’t for the fact that we’re allowing the same cretins to keep on swilling from their trough…
There are still no solutions given by you to resolve your tail of Woe, David. You point blank refuse to analyse the central banking system. You still refuse to look at the debt based money system. Everything else is a waste of time unless you solve the reason for the discrepancies you mention. The world is manipulated by the power to produce unlimited amounts of fiat currency. Those that enable the system are enriched while all else are plundered. The control is with the one thousandth of the one percent. Those exposed by the Panama Papers are not the elite… Read more »
The Elephant in the room is Technology – BMW is producing one thousand cars every day, seven days a week, in an automated plant in Munich – the owners are raking it in. Then coming down the road is Artificial Intelligence with sensory powers greater than that of human’s. There is massive research into this area at present and this will pose a real threat to workers in every area.
Some new model of ownership and distribution will have to be devised otherwise our social systems will collapse.
A national income will probably be the first step.
Yes David Inequality is at the centre of problems, but that space is equally occupied by inertia, illegality, inconsistency and lazy, self centered public representation, with a great smattering of disconnected, narrow minded, egotistical gombeenism. I simply don’t understand how society is getting away with watching the demise of Ireland from the sidelines as if it was a spectator sport we are all disconnected from. If the Health Service is broke it must be fixed. If housing is broken it must be fixed. Talking about it, commentating on it and blood boiling politicians endlessly explaining what we obviously all know… Read more »
“Don’t get me wrong, I have yet to meet a person who happily pays more tax than they absolutely have to” it’s not your fault your are after all a product of your environment, those hang with
“The mainstream political message for so many years is that there is a conveyor belt to prosperity. The vision has always been that if you do well by working hard, your children will have a better chance than you did. ” This was a broken system, a scam, a cruel joke, a Ponzi economy based on the exploitation of the poor and weak – particularly those in the Third World – and the ravaging of the environment. This was blatantly obvious long before recent events revealed to the naive the extent of the wealth and power divide. Prosperity is usually… Read more »
David writes that at the root of the resentment that inequality is at the root of all the resentment of the elites Mr Trump and Madame Le Pen are tapping into. He correctly points out that not only the gap between the rich and the very poor is amplifying, but also the gap between the rich and the middle; what he does not, in my opinion, take into account is that most people would accept even the growing inequality if they saw a fair and realistic way, either for them or their kids, of joining the elite. Nothing exemplifies this… Read more »
I agree that many people are apathetic or even hopeless in their attitude towards the political system. And while many are moving away from the arena except simply to participate in voting, there is nonetheless an emerging movement and growth in community activism with some recent notable results. As regards solutions – in my opinion it stems from the realisation that belief in Government being able to manage a nation and by that means individuals, families, communities etc. will prosper, is a false one. What we need is to organise ourselves and our institutions the other way around. A house… Read more »
From a man who was a leading candidate to be Prezzie of U.S.A., & is a very influential political commentator today ; PAT BUCHANAN Ref. http://www.wikipedia.org Paleoconservative[1] political commentator, author, syndicated columnist, politician and broadcaster. Buchanan was a senior advisor to U.S.A. Presidents Richard Nixon, Gerald Ford and Ronald Reagan, and was an original host on CNN’s Crossfire. He sought the Republican presidential nomination in 1992 and 1996. He ran on the Reform Party ticket in the 2000 presidential election. What Trump Has Wrought BY PAT BUCHANAN APRIL 5, 2016 As Wisconsinites head for the polls, our Beltway elites are… Read more »
We have the “Poverty Line” We have the “Average Industrial Wage” Both of which are movable feast. At a guess if you appled a poverty line from the 60s (adjusted for inflation) to today’s poor then nobody would be poor. Just one example when I was a kid I got hand me downs from not just my brother but from my cousins. THIS was a common practice. What is or could be regarded as the “Rich Line” Rich is subjective. It smacks of begrudgery. To have a realistic debate on the whole issue of wealth redistribution we need to have… Read more »
And, this is what http://www.aanirfan.blogspot.com has to say about “The Panama Papers” ;
ROTHSCHILD, SOROS AND CIA LINK TO PANAMA PAPERS PSY-OP
http://www.aanirfan.blogspot.com/2016/04/elites-financial-secrets-exposed-by.html
@ Adam Byrne.
Re Suicide suicide – Bertie’s favourite music!
Socialist controls lead to destruction of society.
https://mail.google.com/mail/u/0/#inbox/153f598b007605eb
Panama Papers—Another false flag put out by the elitists to create the atmosphere that allows the exercise of greater surveillance and control.
http://www.thedailybell.com/news-analysis/transparency-international-plots-to-strip-global-privacy-with-public-registry-of-ownership/
When interest rates drop to negative it is because the market says that there are not enough people able to repay even a free loan. All fiat money is issued as a loan. people are not borrowing and so the incentive to borrow is to lower the interest rate. It is now negative. If you are an insurance company or re-insurer a lot of cash is held in a bank. This now is a liability rather than an asset as it costs to own the cash. It pays to remove the cash form the bank and keep your own stash.… Read more »
http://campaign.r20.constantcontact.com/render?m=1101357242253&ca=49ecd849-ceb8-4602-9cec-9278db16b31f#hoffman
“Trust me, if major institutions like Munich Re – one of the world’s largest re-insurance companies – are buying physical metal and announcing it publicly, there are countless others doing so secretly”
“Irrespective, the writing is on the wall – that the END GAME has commenced, for the Cartel and all manipulation operations; but particularly in the ultra-tight physical gold, silver, and platinum markets, where no manipulation can manufacture actual metal. Frankly, if you are not considering protecting yourself from what’s coming NOW, I don’t know what you can possibly be waiting for!”
http://www.theguardian.com/world/2016/apr/08/nuit-debout-protesters-occupy-french-cities-in-a-revolutionary-call-for-change
Is the French revolutionary spirit stirring again?
http://www.nytimes.com/2016/04/07/business/dealbook/puerto-rico-passes-bill-allowing-halt-to-debt-payments.html
One busted state.
Hi Adam, Just to recap for u & other contributers, & passive readers about the vulnerability of Bitcoin ; Suggested to me from a friend who has invested in Bitcoin to note for my research about Bitcoin ; http://www.coindesk.com/gallery-fire-destroys-thai-bitcoin-mining-facility/ Gallery: Fire Destroys Thai Bitcoin Mining Facility Nermin Hajdarbegovic | Published on November 6, 2014 at 20:45 BST UPDATE (10th November 12:04 GMT): A source from Cowboyminers has now clarified the date and time of the fire: 14th October at 04:30am local time. UPDATE (10th November 10:40 GMT): A previous version of this article stated that the bitcoin hash rate dropped… Read more »
At least when the Romans burned the 2nd Temple they were able to retrieve the best alternative to Currency Fiat only ; Non-Gold Paper [ Regardless if it is an I.O.U. for payment of stated amount of Gold to the Bearer of I.O.U. ], vis. Gold. i.e. They were able to retrieve the melted Gold. Yes, the Romans were experienced in burning complete cities down to the ground completely if only to retrieve all the hidden gold that was above ground level. And, the men gyrating at a certain Wall & they thought of as wailing are in fact copulating… Read more »
http://nondollarreport.com/2016/04/the-war-on-cash-enlists-convenience/?src=email Major European countries restrict the use of cash. Before long the advocates will have their way and ban the use of cash in the name of security and convenience but what is really wanted is control. Soon one magnetic card will do it all for you. It will contain all your personal information, your licenses to operate a vehicle, your passport, your allowances for pensions, your shopping habits, your bank accounts and your debit and credit facilities. One step out of line and you will be cut off from all services. Health care, money, food, housing etc will be… Read more »
Amidst gloom, doom and growing seeds of destruction, the Polish Embassy in Dublin (actually, I have been there only twice since 2003!) is on a secret mission:
https://www.youtube.com/watch?v=6ksyHNHPUxE
while Mr Kenny seeks for recovery via Ireland’s first colonial mission ;-):
http://www.irishexaminer.com/farming/news/abp-food-group-to-expand-its-presence-in-poland-391625.html
“The graduate programme at ABP Food Group” – learning Polish? Taoiseach (whoever you are), can I help? ;-)
Memo to TDs:capitalism is the greatest destroyer of poverty ever devised.
Article by David Quinn.
Irish Indo Friday 8th.
I cant paste link.
Douglaskastle, Truthist, redriversix, Austin and All. The 1% bollix is a great topic for Irish Economists that fail to see that the domestic economy should revolve around the median incomes of Irish families which is 45,000 euro. Shelter needs of median income families can only be serviced by 1000 max monthly payments. No point in failed politicians blaming the constitution for their own choices and decisions. The 31st Dail were protectors of the Irish public sector unconstitutional golden pension society. I heard Michael D on the radio one day about two months ago making International representation on behalf of the… Read more »
Here’s an article on the same topic from David’s favourite fellow journalist, George Monbiot:
“The 1% are the very best destroyers of wealth the world has ever seen”
http://www.theguardian.com/commentisfree/2011/nov/07/one-per-cent-wealth-destroyers
Good article Adam. From truthists I like ” Production comes before consumption. Who owns the orchard is more essential than who eats the apples. ” I heard a guy say recently talk about people before profit ” If there is no profit – then there are no jobs for the people ” I was never into witch hunting our failed bankers or stooge politicians. Solutions for stressed families and the next generation are a priority though. Enough is Enough. In 2015 the European Court of Justice ruled that the EU national courts are obliged to examine the issue of unfairness… Read more »
An interesting piece form Yves Smith about Ireland’s recovery:
http://www.nakedcapitalism.com/2016/04/ireland-a-recovery-built-on-sand.html
Truthist ” Central Bank governor Philip Lane said on variable-rate mortgages, he could not could interfere in contracts between banks and their customers. ” Is Philip Lane saying that “ALL ” failed bankers( the same guys that ignored the basic principles of banking from 2003 to 2010 ) contracts are so perfect that he will turn a blind eye and look the other way? Just because something is a legal contract does not mean that it is right. ” Not all legal contracts are right.” The BACKROUND to legal contracts cannot be dismissed . 1. Unfair bargaining power by a… Read more »
Here we go lads, more about the 1%.
“The 1% hide their money offshore – then use it to corrupt our democracy”
http://www.theguardian.com/news/commentisfree/2016/apr/10/money-offshore-corrupt-democracy-political-influence
Make sure you pay your taxes though, little people!
Keep these c***ts in the lifestyles they have become accustomed to through their raping and pillaging of entire continents for the past 2,000 years.