The American middle class is shrinking… and not in a good way. Millions of folks are sinking below the poverty line. As this massive socioeconomic shift continues, a shrinking sliver of the population controls an ever-larger portion of the national wealth.
Consider that in 1980, the richest 1% of Americans owned about 30% of all household wealth in the country. At the same time, the bottom 90% owned about 24% of all household wealth.
By 2012, the share of all household financial wealth owned by the top 1% had skyrocketed to more than 60%… and the share owned by the bottom 90% had plummeted below 10%.
Now the top 1% now own more wealth than the bottom 92%, and the 50 wealthiest Americans own more wealth than the bottom half of American society – 165 million people. While millions of Americans have lost their jobs and incomes during the pandemic, over the past year 650 billionaires have seen their wealth increase by $1.3 trillion.
Socialists like Sen. Bernie Sanders pins the blame for income inequality on his usual suspect – capitalism: “the most powerful and well-financed entities in the country, including Wall Street, the health insurance industry, the drug companies, the fossil fuel industry, and the military-industrial complex.” However, the truth is very different.
THE TECHNOCHASM – This term from Eric Fry a highly successful money manager refers to the role that technology plays in our increasingly wealth-divided society.
Year after year – and especially during the last pandemic year – dynamic, upstart companies topple established businesses that seem fairly sturdy and dominant in their markets.
In many cases, these dying businesses employ tens of thousands of workers. But the seeming strength of these businesses often hides their underlying weakness.
Companies that fail to adapt die a slow but certain death. Consider the following:
- In less than seven years, Uber Technologies Inc. (UBER) demolished the “old” taxi industry while making its founders billionaires.
- Around 2007, Netflix Inc. (NFLX) began transitioning into America’s No. 1 movie and television “streaming” service. This innovation crushed traditional brick-and-mortar rental companies like Blockbuster.
- Since early 2009, shares of Amazon.com Inc. (AMZN) soared more than 5,000%. Meanwhile, dozens of old-school brick-and-mortar retailers shuffled slowly into bankruptcy.
- A study of the newspaper industry conducted by the University of North Carolina reported that 1,810 newspapers ceased publication from 2004 to 2018 thanks, in great part, due to vast amounts of cheap – or free – online content.
The destruction of much of the old-school economy wasn’t a concerted effort from Sanders’ usual suspects. It was due to the fact that technology advances so quickly that, thanks to a phenomenon known as the Law of Accelerating Returns, the rate at which these huge disruptions occur keeps speeding up.
Those disruptions will make the wealth gap grow wider every year. Exponential progress – the kind taking place in research labs and tech businesses right now – radically accelerates the pace of change we see in the world… and radically accelerates the wealth gap.
WHAT IS THE SOLUTION TO THIS PROBLEM?
Sen. Sanders’ solution to this problem is predictable.
We must raise the minimum wage from the current starvation wage of $7.25 an hour to a living wage of at least $15 an hour…
We need to make it easier, not harder, for workers to join unions…
We need to create millions of good-paying jobs rebuilding our crumbling infrastructure…
We need to do what virtually every other major country does by guaranteeing healthcare to all people as a human right…
We need to make the wealthiest people and most profitable corporations in America start paying their fair share of taxes.
Some of the senator’s prescriptions might be helpful, at least short term. But they would cost trillions of dollars and the government is already in trillions of dollars of debt that will eventually make the US dollar worthless. I wish I could tell you this situation will be resolved soon. But it won’t. The destruction of industries is accelerating as all technology is changing exponentially and its adoption is also growing exponentially. Consider robotics and its impact on employment, e.g. Amazon warehouses without employees. Companies can now operate with far fewer employees than ever before and this is only going to escalate.
Governments are not up to the challenge as we see more unrest and radical organisations and Critical Race Theory taking hold. Civil unrest is already rampant in the USA and will only escalate and the stage is being set for the Antichrist to come on the scene. The end time scenario prophesied in God’s Word is beginning to play out. Christians that hold to God’s moral values are already being ridiculed and ostracised. Institutional Churches are increasingly compromising with the world’s values (apostasy) exactly as prophesied.
Just before Jesus went to The Cross on our behalf and the disciples were overwhelmed with the events unfolding at the time. Jesus had already told them that He was going to die and be resurrected but this was beyond their comprehension. They wanted to know what was happening and asked Jesus to tell them.
“Tell us, when will these things be, and what will be the sign of your coming and of the end of the age?
“And Jesus answered them, “See that no one leads you astray. For many will come in my name, saying, ‘I am the Christ,’ and they will lead many astray. And you will hear of wars and rumors of wars. See that you are not alarmed, for this must take place, but the end is not yet…. Then they will deliver you up to tribulation and put you to death, and you will be hated by all nations for my name’s sake. And then many will fall away and betray one another and hate one another. And many false prophets will arise and lead many astray. And because lawlessness will be increased, the love of many will grow cold.” Matthew 24:4-6, 9-12
How many churches are preparing their brothers and sisters for the coming tribulation? Sadly, not many.
God is using the tribulation that is already upon us to purify His church. Only those saints that have been born again with the Holy Spirit will be empowered to serve Jesus and live lives that bring glory to God the Father. For those Christians this will be an exciting time as they serve God in the power of the Holy Spirit with all of the ministry gifts of the Spirit being manifested just as they were in the early church as described in the Book of Acts.