Citigroup Plutonomy Report, 2005, Excerpts
Plutonomies have occurred before in sixteenth century
Spain, in seventeenth century , the Gilded Age and the Roaring Twenties. In the early 20th century, capital income was the big chunk for the top 0.1% of households, since the mid-eighties, mainly from oversized salaries. The rich in the Holland went from coupon-clipping, dividend-receiving rentiers to a Managerial Aristocracy indulged by their shareholders. U.S.
The Managerial Aristocracy commandeers a vast chunk of that rising profit share. We think the trend of cost-cutting-balance-sheet-improving CEOs might just give way to risk-seeking CEOs, re-leveraging, going for growth and expecting disproportionate compensation for it. The earth is being held up by the muscular arms of its entrepreneur-plutocrats, like it, or not.
Globalization is keeping the supply of labor in surplus. On-going globalization is making it easier for companies to either outsource manufacturing from cheap emerging markets like
China and , or “offshore” manufacturing, move production to lower cost countries. Those being undercut are losers in the short term. This tends to lead to calls for protectionism and anti-immigration policies. India