Why Capitalism is Dead and Its Heir is Neo-feudalism

🌈 Abstract

The article discusses the concept of "neo-feudalism" - a new social and economic order where society is stratified into three tiers: the elite 1% who control everything, the middle class who pay for everything, and the poor who are the unfortunate residue. It explores the historical evolution of capitalism, the rise of American economic dominance after WWII, and the current state of affairs where powerful corporations and institutions have replaced the nobles, forming a web that binds the non-elites to a life of struggle. The article also touches on the loss of freedom, upward mobility, and the burden of debt faced by the younger generation, as well as the potential paths forward - either towards further neo-feudalism or a more fair and equitable society.

🙋 Q&A

[01] What is neo-feudalism?

• Neo-feudalism is the new social economy where society is stratified into three tiers: the elite 1% who control everything, the middle class who pay for everything, and the poor who are the unfortunate residue.
• The parallels to feudalism include the nobles/churchmen, the members of guilds, and the peasants.
• In the new order, the younger generation is poorer than their parents, everyone is trapped in debt, and upward mobility is gone.
• The elites want all the power and money without any responsibility, unlike the reciprocal social contract between the lord and serfs in feudalism.

[02] How did capitalism evolve?

• Capitalism evolved through the ruthless exploitation of workers during the industrial revolution.
• The Protestant work ethic, moral philosophy, and pseudo-science were used to justify the exploitation of workers and the colonization of natives.
• The transition from feudalism to capitalism involved the enclosure of the commons, where the wealthy fenced off the land that the peasants used to personally farm.
• The value of labor became the value of time, as the factory owner owned the worker's time and could exploit it as they saw fit.

[03] How did America take over the world economy after WWII?

• After WWII, the US lent Europe and Japan enormous amounts of money to rebuild, and an American empire was in place with American money and American control everywhere.
• The bureaucracy that ran WWII production now ran the world economy aided by junior partners everywhere, creating an "enormous spider web with strands covering the world, centered in Washington, DC."

[04] What are the characteristics of the neo-feudal baronies?

• The neo-feudal baronies have replaced the nobles with powerful corporations and institutions, forming a web that binds the non-elites to a life of struggle.
• The legislatures pass laws that let banks saddle people with debt, the barons take away freedom of choice by enforcing religious doctrine, and the media generate entertainment that keeps everyone glued in place.

[05] How is society stratifying under neo-feudalism?

• Analogous to the middle ages, society under neo-feudalism is stratifying into four classes with very limited upward mobility:
  • The poor (those who need government aid for basic needs)
  • The majority (who do all the work and pay most of the taxes)
  • The 1% (who have 30% of the wealth in America, more than 11 times the wealth of the bottom 50%)
  • The overclass (those with a master's, PhD, or professional graduate degree, about 15% of the over 25 population)

[06] What are the two potential paths forward?

• The road of neo-feudalism, favored by CEOs, conservative politicians, media honchos, and the less educated who are marginally successful but favor security over freedom. This road leads to economic stagnation, class stratification, and the loss of wealth to the 1%.
• The other road is towards a more fair society, where the basic human needs are provided free or at low cost, such as food, shelter, education, healthcare, and transportation. This requires action from Congress and the DOJ to fix America's downward slide.