The Rise of the New Global Super-Rich and the Fall of Everyone Else

The Factors Contributing to Economic Disparity

The book’s work by Chrystia Freeland offers a fresh perspective on how to evaluate the economic disparity in the contemporary world. She not only outlines the current state of income disparity but also identifies significant underlying causes that contributed to it. Thus, it becomes clear that politics, economic market forces, and behavioral traits of the wealthy all play a role in the income inequality and economic dwarfism experienced by the typical person and those who lack resources. Indeed, compared to the average counterparts, her analysis of socioeconomic inequality is more correct because it concentrates on the top 0.1% highest earners. (Freeland, 2012). Therefore, this paper discusses Chrystia Freeland’s book in the light of the three factors of economic market forces, political environments and good will, and the unsympathetic behavior of the top wealthy as the core argument that leads to the observed social inequality.

The Influence of Economic Market Forces

According to Freeland, economic market forces are some of the underlying causes of the high-income inequality in modern societies. As a former financial editor, the author tries not to blame the top 0.1% income earners entirely for the situation of high economic inequality between them and the normal counterparts. For instance, she claims that the factors of demand and supply favor the top wealthy through surplus capital that enables them to produce and provide limitlessly (Freeland, 2012). Then, she connects this supply to the dire need among the average and the have-nots for the services rendered by the top wealthy such as jobs and consumer products. In this light, therefore, the blame shifts from the top rich to the economic forces in the societies today. In fact, Freeland (2012) argues that those top rich individual appear to have a high level of good will for the rest of the society thereby they strive to improve their lives as much as they can. An example of how they try to achieve this some in the form of their charities’ contributions. As a result, the incredibly rich wish for a favorable market environment such a reduction of corporate taxes and other related charges. In their view, these are the obstacles that prevent them from realizing their full potential in reducing the income gap between them and the average or the poor.

The Role of Political Environments

Nevertheless, the author finds that the political environments also play out differently to disfavor the average and poor earners in the society. Although the top rich appearing determined to positively change the lives of the average and the poor, the political climate that faces them also hinders this achievement. For instance, the government policies that favor the poor and the average all work out against the top rich. Also, income tax reliefs always support the low-income earners as their tax brackets are the slimmest. Nevertheless, the ability to help the average earners by all possible means qualifies these government steps. Interestingly, Freeland (2012) points out a conflict of interests in the matter and capitalizes on it as the underlying reason for the increasing poverty level as the top rich improves their net worth steadily. She notes that politicians use their positions to side with the top rich due to their undue influence on the economies and market forces. For this reason, the proper will by the politician and the application of their politics in the effort to alleviate suffering among the average and the poor remains questionable (Freeland, 2012). The author, therefore, provides the upper economic class to regroup and serve their interests at the expense of the low-income citizens. As a result, the economic inequality widens over time.

The Impact of Unsypathetic Behavior

The situation becomes even worse because of what the author terms the unsympathetic trait of the top rich. Plainly put, many of the extremely wealthy individuals engage in luxurious lifestyles, such as the use of private planes, colorful houses, and amass additional assets when the counterparts languish in abject poverty or struggle to rise to the upper class. This extravagant lifestyle does not match the suffering of the poor and the middle class (Freeland, 2012). As a result, the state of lower income earners worsens with time as the rich continue to enjoy as much as they can by spending and living big. Since they control the economy and the market focuses discussed earlier, the disadvantaged middle class and the low-income earners have little ability achieve their dreams (Freeland, 2012). Therefore, the author argues that socio-economic equality is only possible when the top rich moderates their lifestyles and turn their attention to helping the lower income earner to improve. However, Freeland is pessimistic that this situation can occur given the observed unsympathetic behaviors of the top rich in any society. For instances, the lower income earners are the primary consumers of product and services supplied by the top rich. In fact, they offer cheap labor to the wealthy counterparts thereby improving their economic statuses. A solution is, therefore, hardly possible.

Conclusion

In conclusion, Freeland examines the underlying factors for the extreme income inequalities between the rich top 0.1% and the rest in the society. According to her, politics, economic market forces, and lack of good will among the rich contribute to the sorry situation of the lower income earners. Both the political environment and the market forces impede socio-economical equality. Therefore, she dwells on the microeconomic indicators that favor the top rich as one of the main rationales for the condition. The situation worsens as the top rich who regroup to increase their net worth. The top rich behaves as though they are the rulers and the lower income earners are the servant. Therefore, they strive to keep them in poverty to continue amassing more wealth at their expenses. Ultimately, the author indicates that the problem is unending.

Reference

Freeland, C (2012), Plutocrats: The Rise of the New Global Super-Rich and the Fall of Everyone Else, London, UK: Penguin Books.