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Sunday, January 15th 2012

1:09 PM

The new caste economy

This study (linked below) substantiates my claim that not only is capitalism incapable of producing equality in the real sense, no matter how you try to "reform" it, it will reconstitute the class structure, close the class structure (i.e. reduce income mobility) and figure out means to maximize bourgeoisie accumulation with limited redistribution financed through the working classes themselves. The Scandinavian countries long considered the paragons of the "good" capitalism, social democracy and welfare, have a class mobility structure that is similar to the most unequal (and wealthiest) of the industrialized countries, the U.S. The study's results are also implicit evidence of my claim that this redistribution does not come out of bourgeoisie profits but is redistributed out of the working class 'pie' itself in a "zero-sum" manner. If the feudal history of Northern/Western European nations, which (historically) necessitated greater compromise and manipulation of the subordinated classes (by the bourgeoisie) for the bourgeoisie revolution to succeed was missing (as in the U.S.) even the levels of inequality in those countries would mimic that in the U.S.

On p.18, the authors state that higher inequality does not lead to higher mobility as commonly envisioned, implying that regardless of the levels of inequality within capitalism, mobility is reduced to the point of elimination- the class structure successively closes through political manipulation as in a caste system, much like Lenski (1966) had theorized.

Abstract: This paper compares income inequality and income mobility in the Scandinavian countries and the United States during the 1980s. The results demonstrate that inequality is greater in the United states than in the Scandinavian countries and that the ranking of countries with respect to inequality remains unchanged when the accounting period of income is extended from one to 11 years. The pattern of mobility turns out to be remarkably similar despite major differences in labor market and social policies between the Scandinavian countries and the United States.

[Income Inequality and Income Mobility in the Scandinavian Countries Compared to the United States

Rolf Aaberge (rolf.aaberge@ssb.no), Anders Bjorklund (anders.bjorklund@sofi.su.se), Markus Jantti, MÃ¥rten Palme (marten.palme@ne.su.se), Peder Pedersen, Nina Smith (nsmith@econ.au.dk) and Tom Wennemo

http://econpapers.repec.org/paper/hhshastef/0098.htm]


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