Why Do People Put Up With Our Economic System?

Income inequality in the United States is well documented.  Looking at the top 1% of the population … whether it’s high-flying corporate CEOs or tech billionaires or financial gurus or even the top worker bees … the disparity between their incomes and the average worker in their firms is staggering.  That people live in poverty, not having enough food on the table or living in substandard housing, while the super rich bank their millions and billions is unconscionable.  

You cannot but help ask yourself that if the system is so unequal, if it is so broken, why do people put up with the system.  Why is there no major protest, either on the streets or at the ballot box?  For clarification, the Tea Party or Trump middle-class supporters, are not protesting the economic system, they are protesting the role of government.  And the progressives who are protesting the system have not attained the critical mass to bring about change; they are still a splinter group.

The answer is that while the income inequality is huge, a large proportion of the population is doing ok; the system works for them at least to some extent.  In 2018, the top 15% of households made $150,000 or more; the top 42% made $75,000 or more.  That means that 40% of the population have a decent standard of living unless they’re living in New York City or San Francisco.

The people who are really impacted by income inequality are those for whom the system just doesn’t work - the 50% of households who make less than $50,000.  And it doesn’t work for them not just because they don’t have enough money to afford what most consider essentials, let alone live as they would like. 

But the added indignity is that the system constantly clobbers them psychologically.  Indeed, it clobbers almost everyone who isn’t in that top 1%.  Why?  Because most people in our society are all about ego.  They identify themselves in comparison to what society and the media tells them the good life is, what people who have “it” do, how people who are successful live.

And most people, certainly not those with household incomes under $50,000, but not even those with incomes of $150,000, are not able to live the life that is posited before them as their goal by our media.  They cannot have the housing, the education, the food, the travel, the clothing … none of the accoutrements of those that are held up as models of success. 

Our society cultivates us to always want more.  That’s what keeps the wheels of consumerism spinning and the economy growing.

That results in most people feeling frustrated, disappointed with their lives.  Whether you’re homeless, working poor, middle class, or lower upper class, people want more and are dissatisfied with their current state.  Indeed, the more they have the more they want.

Why isn’t that a cause for revolt?   Ironically, regardless how frustrated people are, even those who have been beaten down by the system, most still believe in the system; they see themselves as somehow being at fault, or perhaps the government, but not the system, and indeed they want to use the system to get ahead.  That is why rather than disdaining people with money, those are their idols.  That’s who they want to be.

And so instead of people either having a choice to fight to change the system or accept their lot in life and be happy, people in our society mostly have no choice.  They are trapped by the golden handcuffs they wish they had, and so they suffer.  How sad.