Politics > Spiral of Political Maturation > Plutocratic Pluralism-II > Transition #4

Political Transition #4

Financialization of Society

Financialization occurs as the rationalist phase embeds itself e.g. Closed by 2007, the finance sector in the US was earning over 40% of domestic corporate profits—almost 3x the usual ratio—while not producing social goods and simultaneously unleashing financial disaster domestically and abroad. Read more.

Politicians have little incentive to care about the long-term effect on society, because their interests are served by short-term decisions related to elections.

Centralizing power and wealth becomes a priority. So more and more people become directly employed or indirectly dependent on the State for benefits. Businesses win padded contracts, subsidies and protection; individuals enter public service, get direct payments and receive many services.

ClosedPlutocratic Pluralism is associated with…

ClosedPower flows from Money, and Money flows from Power…

Don't Forget Power

Economic disaster is the pressure for a transition from vested interest control in Plutocratic Pluralism to the Conventionalist mode in politics.

As time passes, society gets ever more complex and government gets ever more elaborate, intrusive and expensive. Money isn't everything: politicians know that. There was always, and there still is the lust for power.

ClosedPoliticians need more and more Power

The drive for power to bolster the security of the political elites leads to increasing efforts to control the populace, resulting in:

Has anyone noticed such things in their society?

The most powerful vested interests end up being:

There is no self-restraint personally or socially within the political-financial class. There will be individuals who might wish to set a limit, but they depart or are pushed aside by others who are less squeamish. The purest political power comes from the manipulation of money within the financial sector to create an illusion of wealth for all and the reality of colossal wealth for the new elites.

Where does this end? It seems as if it can, must, and will end in one way: economic collapse and societal disaster. Most suffering will fall on the middle classes. For more in this vein: see financialization in the US and UK.

Originally posted: July 2009; Last updated: 27 Mar 2014

All posted material is part of a scientific project and should be regarded as provisional. Visitors are encouraged to think through the topics and propositions for themselves. Copyright © Warren Kinston 2009-2016.
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