Over the past half-century, the numbers showing the wealth accumulation disparity between the “haves” and the “have-nots” have become indisputably alarming. In December of 2021, in the midst of the global pandemic, the World Economic Forum generated a “World Inequality Report” indicating that the Covid crisis exacerbated many of these pre-existing inequalities. Was the “supply-chain shock”—which has undeniably resulted in greatly increased pricing structures across the world over the past few years–simply a dark conspiracy propagated by billionaire CEOs in an effort to boost their numbers and enrich their own respective “bottom lines?” Or, is this dynamic merely a catalyst for what many economists as of late anyway had already described as “end stage capitalism?”
Before one casts aside the ensuing discussion to be simply a nefarious attempt to validate Marxist theory, permit us to delve into the specifics of this disparity. According to the Forum–and these global numbers emanating from 2021–individuals from the top 10% of the wealth accumulation bracket own 76% of the world’s resources, while the poorest half own just 2%.
The year 2020 marked the steepest increase in the global billionaires’ share of wealth on record. As can be seen from the graphic, which actually covers the period 1995-2021, their accumulation has become exponential.
Thomas Piketty delved into the history of global economic inequality in his 2013 landmark work, Capital in the 21st Century, and followed up seven years later with Capital and Ideology. Both of these publications provide comprehensive, objective analyses of the history and institutional reinforcement, along with the prognosis and remediation for what today constitutes most of the world’s economic system.
Pinketty argues that a highly capital-centric socioeconomic paradigm is by nature incompatible with an ever-changing, purportedly meritocratic, innovative society–and that because dominion over this capital provides much greater benefits than the labor used to produce it–a capitalist system in which the vast majority are laboring for the benefit of the few provides diminishing incentives for the former to maintain such motivation.
In essence, the four major indicators of the death knell of capitalism comprise: growing wealth inequality, the commodification of life, environmental degradation, and corporatization of politics. Each will be briefly discussed.
It is clear that the concepts and the reality of growing wealth inequality need no introduction. It has become more marked in the U.S. than in Europe, the latter of which still tends as a whole to respect the concept and practice of a social safety net across at least most of the continent. However, as populist, ultra-nationalist, and far-right-wing political factions have made successful inroads in demonizing the non-native-born population and those not “like” themselves–much like in the U.S.—retrograde law codes which encourage wanton environmental destruction and provide tax breaks to the uber-wealthy and to corporations have indeed served to increase the wealth gap. Note also that all four of these indicators are intertwined.
Because capitalism places so much importance on market value of literally everything in this world, it undeniably contributes to the commodification—or commercialization—of material goods, experiences, and even emotions. Take for instance Ronaldo–who has literally “branded” himself—and who can earn in 10 seconds of professional play the amount of income that would necessitate an entire lifetime for a Bangladeshi factory worker to generate, and you would have the full description of this commodification in a nutshell.
Obviously, the tragedy of environmental degradation needs neither explanation nor illustration. In Switzerland, a recent beacon of hope has actually transpired, though. A group of 2,000 females have so far successfully litigated against the Swiss government, as the European Court of Human Rights ruled against it purportedly for its negligence in adequately combating climate change, thus leading to an infringement on human rights, a type of “class action lawsuit,” if you will. However, a similar such case proceeding through the courts in the U.S.–initiated by the most vulnerable demographic elements of Generation Z–was just squashed by the Biden Justice Department.
Of course, the corporatization of politics needs no elaboration, either. It is abundantly clear that the reason why politicians are held in such low regard across the world is the propensity for the overwhelming majority of them to simply be “bought” by corporate interests. “Big Pharma,” “Big Tobacco,” and “Detroit;” are called “Big” for an obvious reason. In fact, by exerting their lobbying influence, the “Big Three” U.S. automakers are directly responsible for local zoning ordinances which actually ban green energy start-ups utilizing solar and wind power, simply because these ecologically responsible and sustainable endeavors threaten their “bottom line.” Hence, the nebulously and nefariously aforementioned intertwinement between and among all four of these precursors are leading to the demise of capitalism.
Interestingly, it seems to have taken the occasion of the current atrocities transpiring in Gaza for the pushback and rage against this “one percent” to really pick up speed. Indeed, the world–or at least the objective, non-exclusively-self-serving world–is now rightly linking a system that has always been a political oppressor to that of one that has always served to keep “the other 99%” in their “place,” economically speaking. The two are indeed inextricably linked, and inroads are being made as we speak with protests and boycotts. Could we be at the very cusp of concluding that this type of pushback is indeed effective change–and positive change, at that–for those aforementioned ninety-nine percenters? Time will indeed tell.
For now, permit us to delve into some numbers–which will likely concern even the most ardent proponents of laissez-faire capitalism–with a focus on Morocco and on geographical locations which a bit over three decades ago were dominated by communism. A cogent analysis would lead the reasonable person to conclude that a head-on collision is imminent between the “haves” and the “have-nots” in many developing nations, in addition to those in the West.
In Russia, Ukraine, and Morocco, the end-age economy has emerged as a defining feature of their socioeconomic landscapes, reshaping the dynamics of wealth distribution and exacerbating social disparities. This phenomenon, influenced by demographic shifts, economic transitions, and political challenges, presents complex and multifaceted issues that impact the livelihoods of millions.
Economic transitions, while essential for progress, often leave certain segments of society behind. Outdated industrial structures persist in many regions, hindering adaptation to modern economic realities and perpetuating inequalities between urban and rural areas. While emerging sectors offer promise, their benefits often fail to reach all corners of society, widening the gap between the affluent and the marginalized.
In the tumultuous landscape of post-Soviet Russia and Ukraine, the journey toward capitalism has been rife with complexities, contradictions, and evolving sentiments. From the initial fervor of embracing free market principles to the current discourse on the perceived “end-stage” of capitalism, Russian attitudes toward economic systems have traversed a dynamic spectrum.
The collapse of the Soviet Union in 1991 heralded a new era of economic experimentation in Russia and Ukraine. With the dismantling of centralized planning came a wave of enthusiasm for capitalism and the promise of prosperity. This sentiment was intertwined with aspirations for political freedoms and economic opportunities. However, the reality of the transition proved to be far more challenging.
The 1990s were marked by a whirlwind of economic reforms, privatization, and liberalization policies. While some segments of society reaped the benefits of this transition, others faced economic instability, job insecurity, and widening inequality. The rise of oligarchs, a small cadre of individuals who amassed immense wealth and influence, underscored the darker side of capitalism in Russia and Ukraine.
As the years unfolded, disillusionment grew among certain sectors of the population. The perception that capitalism had led to profound social inequality and concentrated wealth in the hands of a privileged few gained traction. Economic hardship, coupled with a sense of injustice in the distribution of wealth, has now fueled skepticism toward the free market model.
Despite efforts to diversify economies, the growth of emerging sectors such as technology and services often fails to reach all segments of society, widening the gap between the affluent and the marginalized. Russia and Ukraine’s economies are based on either natural resources (gas, fossil fuels, timber, etc.) or on agriculture (livestock, wheat, potatoes, etc.).
Moreover, the mishandling of the transition to capitalism–accompanied by rampant corruption–have exacerbated these negative perceptions. Many Russians came to view capitalism not as a panacea for progress but as a system that perpetuated injustice and favored the elite. The “end-stage” discourse, which critiques capitalism’s alleged stagnation, inequality, and contradictions, resonates deeply in this context.
Vladimir Petrov, from St. Petersburg, Russia, told Barlaman Today of the diminishing prospects for upward mobility and the sense of stagnation gripping the middle class, admitting that, for him, the Soviet era was better than what he lives in now, and that the government was more strict but at least life was more affordable. It was easier to save money and buy a house, as the public services were of better quality.
Natalia Kovalenko, based in Kyiv, Ukraine, emphasizes the role of oligarchs and political instability in perpetuating inequality and in hindering progress.
Additionally, the fact that younger generations in Ukraine–whether due to post-pandemic effects or to armed conflict against Russia–often seek opportunities abroad due to limited prospects at home, further impacts workforce dynamics and exacerbates the demographic imbalance.
Whether this journey leads to a reevaluation of economic systems or to a reaffirmation of existing paradigms remains to be seen. However, what is clear is that Russian attitudes toward capitalism reflect a complex interplay of history, ideology, and lived experiences, shaping the contours of the nation’s economic future.
Olga Ivanova, a resident of Moscow, Russia, highlights the stark wealth gap and the influence of corruption and cronyism on economic opportunities. The rich people are becoming richer, and the poor ones are getting poorer.
Corruption and governance challenges further complicate the situation. In Russia, Ukraine, and Morocco, corruption remains a persistent issue, undermining trust in institutions and impeding equitable development. Political instability and external pressures exacerbate these problems, leading to a sense of disillusionment and frustration among citizens.
The Covid-19 pandemic has further spotlighted existing socioeconomic disparities all over the world. Lockdown measures and economic restrictions disproportionately affected the most vulnerable segments, exacerbating already-existing inequalities. The realization that the wealthy elite have benefited–while ordinary citizens have struggled mightily—has underscored existing grievances and fueled calls for systemic change.
Ahmed El Mansouri, residing in Casablanca, Morocco, sheds light on the disparities between conditions in urban and rural areas and the challenges faced by marginalized communities in accessing basic services and opportunities.
The current economic situation in Morocco–with the high fuel prices and the dry climate which adversely affect the country’s agriculture–contributes to keeping inflation high, which makes saving almost impossible and skews the opportunity to advance in favor of those who have already benefited from the system.
In mid-April of this year, Henley Global Wealth (African Wealth Report 2023) indicated that its author anticipates that the number of millionaires in Morocco–as well those in several other countries in Africa–to increase by more than 80% by the year 2033. Yet, the same week, Morocco’s Statistics & Forecasts Office (HCP) published a report projecting that fewer than 1 in 10 Moroccans will be able to add to their pre-existing savings accounts during the remainder of calendar year 2024.
In addition, domestic statistics from the first week in May of this year show that unemployment and underemployment within the Kingdom have been on the rise as of late. The Henley Report certainly seems to beg the question as to where these millionaires will be coming from over the next decade.
“Money doesn’t grow on trees,” as the adage goes; in other words, national treasuries cannot simply print paper money without the backing of something of value reinforcing it.
More specifically, in order for all of this wealth to be generated, there needs to be an exponential rise in innovative commodities, an intellectual and distributive revolution, if you will. The proliferation of thousand-dollar Taylor Swift concert tickets is not going to accomplish that; therefore, “something’s got to give.”
The end-age economy presents formidable challenges for Russia, Ukraine, Morocco, the West, and the entire world. By addressing systemic inequalities and fostering inclusive development, these nations can build more resilient and equitable societies for future generations. However, it will require sustained effort and collaboration to overcome the complex issues at hand and ensure a brighter future for all.
Make no mistake, we are in the midst of some type of socioeconomic transformation as we speak, exacerbated and perhaps even epitomized by the Gaza travesty. Just how quickly this transformation takes place and precisely how far it goes will be defined by the level of outrage expressed by the social justice warriors in contemporary society.