Blame Rich, Overeducated Elites as Society Frays - Bloomberg View

Blame Rich, Overeducated Elites as Society Frays - Bloomberg View

Elite overproduction generally leads to more intra-elite competition that gradually undermines the spirit of cooperation, which is followed by ideological polarization and fragmentation of the political class. This happens because the more contenders there are, the more of them end up on the losing side. A large class of disgruntled elite-wannabes, often well-educated and highly capable, has been denied access to elite positions.



Consider the antebellum U.S.

From 1830 to 1860 the number of New Yorkers and Bostonians with fortunes of at least $100,000 (they would be multimillionaires today) increased fivefold. Many of these new rich (or their sons) had political ambitions. But the government, especially the presidency, Senate and Supreme Court, was dominated by the Southern elites. As many Northerners became frustrated and embittered, the Southerners also felt the pressure and became increasingly defensive.



...During the 1850s, however, intra-elite cooperation unraveled. On several occasions Congress was on the brink of a general shootout. (As one senator noted about his “armed and dangerous” colleagues, “The only persons who do not have a revolver and a knife are those who have two revolvers.”)...



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peaking in the 2020s. And because complex societies are much more fragile than we assume, there is a chance of a catastrophic failure of some kind, with a default on U.S. government bonds being among the less frightening possibilities.