I’m so bored with the USA: Redistribution, Revolution, and the Ancien Regime 

“And as I walk her to the gas chamber
I’m out there laughing” 

Putting wars and invasions to one side, empires tend to fall because the rulers and the immediate coterie lose the support of the masses. 

As an example, some basic research suggests that the fall of the Roman Empire was caused by a combination of internal weaknesses and external pressures, including political corruption and instability, severe economic problems such as inflation and overspending, all leading to increasing inequality.  

These same issues could be used to highlight why there were revolutions in France and Russia, alongside others. And, they are little different to either the UK or US today. 

Last week, Gustav Klimts’ Portrait of Elisabeth Lederer sold for $236.4m (£180m), making it the second most expensive artwork ever sold at auction and the most expensive work of modern art. Six bidders battled for 20 minutes to buy the painting! 

Elsewhere, C. 700 million people, 8.5% of the global population, live in extreme poverty – on less than $2.15 per day.  

Closer to home, research by the Joseph Rowntree Foundation found that C.14.3m people,21% of the UK population,  were living in poverty in 2022/23. This total includes 8.1 million working-age adults, 4.3 million children, and 1.9 million pensioners. 

As I have written so many times before, capitalism in its current form is failing, it no longer serves the people, benefitting only a small percentage at the very top. 

Over breakfast this morning, I was treated to the thoughts of ex-Tory leader, John Redwood. Without realising it, John made two interesting points. 

He wittered on about oil and gas extraction and the need to preserve it on order to save jobs, conveniently forgetting that it was Thatcherism that hollowed-out British in1dustry, creating post-industrial wastelands. 

He then ventured forth on a wealth tax, arguing that those most at risk would simply hop on their private jets and take their wealth elsewhere. 

Unfortunately, he isn’t wrong, but, by being right he has demonstrated everything that was wrong with today’s society. 

‘by being right he has demonstrated everything that was wrong with today’s society’

As with ancient Rome, 18th century France, and 20th century Russia, we have seen the creation of an uber class, who are above governments, above tax rules, and possibly above the law too. Whilst the majority have to play by the rules, the uber class sets the rules! 

Within their rules is control of the media, because, as Jim Morrison is reputed to have said, “ “whoever controls the media, controls the mind.” 

Even if they don’t achieve quite that much control, their ownership of the media gives them the ability to set the narrative and play-down criticism. 

The US is the best (or worst example, depending on how you view it) example of this, with the majority of the worlds wealthiest individuals, a number of which own or control media outlets. 

When Trump returned to power, he promised voters who were concerned about inflation that, if elected, he would slash energy and electricity costs and “rapidly drive prices down and make America affordable again.”  

Instead, the cost of living has risen since he took office, with inflation currently running at 3%  up from 2.9% in 2024.  

In October, the Budget Lab at Yale projected that Trump’s tariffs this year – currently a baseline tax of 10% on imports from all countries, with additional levies on many trading partners – would drive up food prices 1.9% in the short run. 

The impact would be significant, given that US grocery prices historically have been relatively stable, rising an average of only 2% a year between 2013 and 2021. 

Unsurprisingly, this disenchantment with the administration is reflected in the polls; A CBS News/YouGov poll showed that: 

• 64%s of those surveyed disapproved of his handling of the economy, 

• 68% disapproved of his handling of inflation. 

• 60% thought he makes prices and inflation sound better than they really are. 

Singling out Republicans, 40% say he is making affordability sound better than it actually is, 25% disapprove of how he is handling inflation and 29% say that prices have increased. 

Trump, of course, dismissed this saying: “We don’t have any inflation”. Also: “Our prices are coming down very substantially on groceries and things.”  

Despite all his positivity, few believed him and, as a result he has had to come up with some policies to deal with inflation, and is removing tariffs on some items, such as coffee, spices and tropical fruit like bananas, for which US production is negligible or non-existent. 

For those kinds of goods, economists and businesses said the move would help bring down prices – and relatively quickly. 

The ministration have blamed food prices as being part of the mess they inherited from the Biden administration, and warned it will take time to correct this. 

What hasn’t taken or required time is Trump’s self-enrichment. According to Forbes, since returning to the Oval Office his wealth has increased to a record $7.3 billion, up from $4.3 billion just before the 2024 election. Critics accuse Trump of turning the presidency into a cash cow and of erasing the line between the business of the nation and his own private businesses. “When it comes to using his public office to amass personal profits, Trump is a unicorn—no one else even comes close,” said Fred Wertheimer, a longtime Washington watchdog.  

“When it comes to using his public office to amass personal profits, Trump is a unicorn—no one else even comes close,”

The uber rich, Trump included, have made out like bandits post the GFC, due not just to their entrepreneurial skills, but also to zero-interest, and QE providing a rentiers paradise.  

However, for the vast majority the post-GFC-yrs have been grim. There has been a stealthy recession, which, as it technically didn’t happen, doesn’t overcome the practical implications for the many who are no better -off today than they were in 2008. 

A recent report which considered the performance of England’s councils in providing public services prior to austerity by the Institute for Government summed-up the past 15-yrs perfectly, “When [labor] last left office, in 2010,local authorities provided many services beyond their statutory duties that supported people to live better lives. Authorities ran more Sure Start centres and operated many more libraries. Youth clubs, and youth services, were a common feature of neighborhoods up and down the country.” 

Post-austerity, the statutory provision of adult social care account for more than two-thirds of council budgets. According to the County Councils Network, 59 councils would be immediately obliged to declare themselves bankrupt, were it not for a “statutory override” that allows them to keep “Send” debt off their main books. 

Today, local authorities are little more than “adult social care factories”. This issue creates far-reaching problems that weren’t necessarily considered. For example, the governments’ target of building 1.5m homes in the next three years looks increasingly unlikely as budget cuts are leading to an exodus of the public sector planners needed to overseeing the process. 

As a result, councils have, what might be described, as a hand-to-mouth existence, raising money where they can; one recent survey found that 60% are planning to sell off assets, with many having already tapped deep into financial reserves.  Social clubs and sports centres are unaffordable luxuries to be disposed of.  

All of this adds to the overwhelming sense of decline, of nothing working, and adds to the sense of political disillusionment with the mainstream parties who are deemed to have failed us. 

This brings me, rather neatly, to yesterday’s budget, and the inevitable question of does it address the problems. 

Other than scrapping the two-child benefit cap, the overall answer is no. It was little more than papering over the cracks, the can was kicked down the road until 2028, when, I assume, it will be given another kick. 

‘the can was kicked down the road until 2028, when, I assume, it will be given another kick’

I especially enjoyed the howls of Tory fury when Reeves announced scrapping the benefit cap. I can picture all those former-Tory, now Reform voters choking on their dinner as they think of all those scroungers, who could be immigrants too, leaping into bed and procreating furiously as they have babies-on-benefits. Alas, research shows there is little evidence that making benefits more available impacts the birth rate.  

Chancellor Reeves was somewhat undone by her speech being leaked ahead of time, but it was so bland there was little to worry about. The big news was the Gilts markets liked it, so all that tosh about the country going bankrupt can be put away for another edition of the Tory media. 

Kemi worked herself up into a stew over the speech, but then, when doesn’t she?? 

I rarely get animated over budgets, I just expect to be a bit worse off than before, and move on. Obviously, an honourable exception was the Truss debacle, which, if you like gallows humor, was thoroughly enjoyable. 

For more impartial and analytical reporting on the budget there is the Institute for Fiscal Studies briefing. Helen Miller summed it up as having some bits that were good, others less so.  

Her main issue was that no party had a firm grasp of how to manage tax reform, as they always deferred to politics. Much like some of our politicians the budget was an exercise in fantasy, as there is the overhanging question of just how much of this budget would actually happen, given the fact that the tax rises and spending cuts are timed to kick in just before the next election. 

As a result you wonder what the point was? Other than its budget time so we are obliged to have one! 

After Kemi’s latest hissy fit, the right-wing media laid in with their criticisms. I gave-up reading them, concluding that whatever Reeves had said would have been wrong, and if, by any chance they found something to like, it would have either been stolen Tory policy, or delivered too late! 

After reading their thoughts, and listening to disgruntled, mainly older people, dismayed by the ending of the two-child benefit cap, I have concluded that the majority of the UK population have a split-personality, now officially known as dissociative identity disorder (DID).  

‘It feels like we are living in a pressure cooker, and the lid must ultimately explode’

As soon as we have to pay for something people immediately say its unfair. They expect public serves to be there when they need them, but don’t want to pay for them. This, I believe, stems from the fact that the majority of us can only remember governments from Thatcher onwards. As a result, there is a belief that any tax is too much tax, and if, we are to have taxes they are there to be cut.     

As is regularly written, we are a country beset by divisions, young-old, north-south; I will add  to that list, “care-don’t care”. 

In the “care” camp we have the progressives; anti-racism, anti-misogyny, LBGT tolerant, pro-climate change, inclusive thinking. The “don’t care” are the polar opposite, having been nurtured through the years on mean-minded Toryism.  

A shining example of this is this columns old friend, Nigel Farage. 

Now Nige has been having a bit of a difficult time as his schooldays come back to haunt him.  

There seems to be little doubt that he did say what is claimed, with his defense being that he didn’t mean them. However, it stretches my imagination to believe that he didn’t think, or know they were hurtful. Reports show he was 14+ at the time, if you don’t know right from wrong by then, you never will! 

As the situation unwinds more ex-pupils are coming forward, and it represent a “me too” situation. 

Ultimately, I suspect the story will just fade away. The majority of the media are ignoring it, it doesn’t suit their agenda, they probably just don’t care. Some may even sympathise with him. 

All in all, a very sorry state of affairs. But, unfortunately, it rather sums up where we as a country are at. Spiteful nasty, self-entitled; just plain “don’t care”.  

Many have been driven to this by hardship, and inequality, others are just plain nasty. It feels like we are living in a pressure cooker, and the lid must ultimately explode.  

“I got no emotions for anybody else
You better understand
I’m in love with myself, myself
My beautiful self” 

‘This week was budget week, which really was a “so what” event.

Much of it is deferred, and, as such, may never happen. Which really sums up the situation, you just find yourself wondering, what’s the point?

There was much tinkering around the edges, income tax increases that were described as not being increased. Clearly, they think we are stupid, if, as a result of the budget, you pay more tax, then tax has gone up?

The two-child benefit cap was something that should never have happened, but it does serve as an example of how mean-spirited many people have become. I would comment more, but I’m rushing off to create some more babies now the state is paying!

The real crux of this piece is inequality, and how the uber rich have managed to become above almost everything.

America leads the way in this, as with Trump’s self-enrichment it looks increasingly like a banana republic.

History tell us that empires often end in revolution because the majority reach a breaking point. I can’t help but feel that is looking closer with every passing day.

Inequality aside, there is an increasing meanness, and nastiness about many people. Perhaps this is just frustration, but it leads to bad decisions.

The fact that the majority of the media have just turned a blind eye to Farage’s schoolboy behavior shows just how nasty we have allowed ourselves to become.

Lyrically, this week we go hardcore. We start with Zyklon B Zombie by Throbbing Gristle, dedicated to Nige’s schoolboy humor, hiiiisss! We end with “No Feelings” by the Sex Pistols, which, if we continue down our slippery slope, could be a candidate for a new national anthem!

Enjoy, procreation is now on the state!

Philip.’

@coldwarsteve

Philip Gilbert is a city-based corporate financier, and former investment banker.

Philip is a great believer in meritocracy, and in the belief that if you want something enough you can make it happen. These beliefs were formed in his formative years, of the late 1970s and 80s

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