Origins[ edit ] Plutonomy entered the language as late as the s in the work of John Malcolm Forbes Ludlow. In this book, he shows a strong long-term trend toward more concentrated income and wealth. Some economists took issue with this diagnosis. In a paper, which he wrote for customers of his new employer, Bank of America Merrill Lynch , one of the largest wealth management firms, Kapur and his team defended Piketty against critics. In their study "Piketty and Plutonomy: The Revenge of Inequality" they state that in the long term the drivers of the further concentration of wealth are intact, including globalization and capitalism-friendly governments. However, they warn that in the short-term there is potential for a backlash.
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Bakazahn Plutonomy: A Leaked Citibank Memo There are rich consumers, few in number, but disproportionate in the gigantic slice of income and consumption they take. Practically every country in the world is taking at least halting steps towards trying to do something about it.
In a sense, this backlash has been epitomized by the media coverage and actual prosecution of high-profile ex-CEOs who presided over financial misappropriation. Fortunately, this is already happening. They posit a few reasons for this change: Outsourcing, offshoring or insourcing of cheap labor is done to undercut current labor costs.
Often these wealth waves involve great complexity, exploited best by the rich and educated of the time. For one thing, its not even clear if the Plutonomy Memos constitute protected copyright material. By continuing to use this website, you agree to their use. And he was highly praised for this, greatly admired. But we suspect this is a threat more clearly felt during recessions, and periods of falling wealth, than when average citizens feel that they are better off.
For example, inUK government withdrawal of financial support bankrupted Railtrack, the UK rail operator, effectively re-nationalizing railway assets on the cheap.
September 07, Captain Utopia on June 25, Could anyone who downloaded this please email it to me. Low-end developed market labor might not have much economic power, but it does have equal voting power with the rich. Plutonomy and the Precariat Seeing as how Megaupload is offline, here are the Reports via two other links: To this end, the rise of the far oeaked in a number of European countries, or calls from the right to slow down the accession of Turkey into the EU, and calls from the left to rebuild trade barriers and protect workers the far left of Mr.
We project that the plutonomies the U. The share of this group in global financial wealth would thus increase to 5. They should be required reading. Learn how your comment data is processed. Plutonomies have occurred before in sixteenth century Spain, in seventeenth century Holland, the Gilded Age and the Roaring Twenties in the U. Firstly, if we are plutonony, that plutonomy is to blame for ditibank of the apparent conundrums that exist around the world, such as negative savings, current account deficits, no consumer recession despite high oil prices or weak consumer sentiment, then so long as the rich continue to get richer, the likelihood of these conundrums resolving themselves through traditionally disruptive means currency collapses, consumer recessions etc looks low.
From CPS News more: First, rich people are supposed to be good for the economy because they invest, not because they spend. The Citigroup analysts basically predicted the OWS-movement. In determining whether the use made of a work in any particular case is a fair use the factors to be considered shall include: After the first few years, by the mids — although the situation was objectively much harsher than it is today — nevertheless, the spirit was quite different.
The developments that took place during the s set off a vicious cycle. To stay on top of important articles like these, sign up to receive the latest updates from TomDispatch. The summary on the first page of this memo, which another report for their super-wealthy […].
More info about that campaign here. There were other factors. You are commenting using your Twitter account. Just send e-mail to gil —AT— merced-a. Eight years after Kapur and his team developed and published their plutonomy thesis, the French economist Thomas Piketty achieved worldwide prominence with his book Capital in the Twenty-First Century. Plutonomy, we suspect is elastic.
You can find links to download both Plutonomy reports here. Plutobomy Europe ex-Italy and Japan are in the egalitarian bloc. Related Articles.
Citigroup’s Plutonomy Memo: “There are rich consumers, and there are the rest”
Wait, now that I look around, I see that Yves Smith at Naked Capitalism posted about this on October 15, , almost three years ago, and called for people to protest the annual meetings of the American Bankers Association. Just google it. Nothing that surprising, economically speaking, except for maybe the fact that their reaction, far from being outrage, is something bordering on gleeful. This equal voting power seems to be a pretty serious concern for their plans. They go on to say: A third threat comes from the potential social backlash. To use Rawls-ian analysis, the invisible hand stops working. Perhaps one reason that societies allow plutonomy, is because enough of the electorate believe they have a chance of becoming a Pluto-participant.
CITIGROUP PLUTONOMY MEMOS PDF
So what are we talking about? In and , several analysts at Citigroup took a very, very close look at the economic inequalities within the USA and other countries and wrote two memos which were addressed to their very wealthy customers. So Citigroup did their duty and published two explosive memos, which should have become mainstream news, but eventually did not. Usually one should think that once such important documents are in the "public domain", nothing should stop them any more from being distributed and being openly discussed.
LEAKED CITIBANK MEMO PLUTONOMY PDF
Kalkree Secondly, if the rich are to keep getting richer, as we think they will do, then this has ongoing positive implications for the businesses selling to the rich. They further see the luxury industry catering to plutonomists threatened by anti-corruption initiatives of China and India. We are not taking anything down, we take up the fight against the people who believe that they have the right to be the unelected leaders of the world. That was true even in very dark times. But unless the spirit of the last year, here and elsewhere in the country and around the globe, continues to grow and becomes a major force in the social and political world, the chances for a decent future are not very high. Our overall conclusion is that a backlash against plutonomy is probable at some point. But if voters feel they cannot participate, they citigrup more likely to divide up the wealth pie, rather than aspire to being truly rich.