The Inflection Point

Woke up to an article last Monday and it’s been sticking with me. Jeff Bezos, noted divorcee and MC to perhaps the definition of the modern day success story has evaded his impossibly large taxes the past few years. Yeah that’s right, you or I have probably paid more in taxes than the 2nd richest man alive. Evade is probably a harsh word – you see Mr. Bezos is simply using the U.S. Financial system to his advantage. It’s a tax bracket and system that will benefit the rich to no limit, so kudos to you for playing the Queen of Spades Mr. Bezos.

The Solution? Take out a loan to pay these taxes, and when it comes due, take out another loan to pay that. The cycle continues in perpetuity, but tell me, when the bill comes due, do you think Mr. Bezos will be there to pay it? Or perhaps the hard earning tax payers? Do you think the common worker has the ability to generate and exercise these loans?

It’s a thought upon multiple thoughts I’ve had the past few years. Parlaying an Economic major with a Public Policy minor is a tight rope to walk – the Economic mind making you the rational actor looking out for maximizing yourself, the Public Policy trying to look out for others and the group. I very much favor the privatized idea of wealth and success, but at a certain point, the bill comes due – the wealth and prosperity of many can not go to a few. You’ve probably seen this graph below in some sort of fashion – it details the 21st Century Family Economics better than I could possibly hope to throw into words.

You see – it’s become increasing obvious that we live in a society that doesn’t just benefit the rich, but is inherently FOR the rich. Elon Musk, the world’s richest man according to Forbes in 2024, bought Twitter, renamed it X, and now has significant influence on what the world consumes and apprehends. If you doubt his influence, Mr. 45 Donald Trump (and now Mr. 47) recently described to a crowd how Elon’s backing (a reported $44M) would require him to win this office and help his main man out, adhering to his needs over the common man’s. A true Batman and Robin situation if I’ve ever heard one.

You the average voter? Your needs aren’t cared about. Enjoy whatever algorithm you need to pass the nights and vote wherever you must. Namely I’ve been thinking about another fundamental question born through our early society. As kids we’re taught we could be President one day; boys, girls, black, white, it doesn’t matter. That’s the purpose of freedom right? The pursuit of happiness? That anybody can climb from that stump, find it in their loins to create and demonstrate a higher purpose and succeed. Think about that though: could you be President one day? Could I? Instead, the American dream of the pursuit of happiness belongs to those with enough cash in their pockets to make the pursuit worthwhile. The rest of us? Back of the line please.

Senator Elizabeth Warren said in 2020 “Our government has been bought and paid for by a bunch of billionaires and giant corporations that think they get to dictate the rules that affect everyone.” And thus, we arrive at the post-modernism, late stage capitalism we find ourselves in today. A period marked by unfair growth and inequitable opportunities, far outweighing the “poker theory” of the balance of wealth and individual means in order to make something of oneself. Instead, far beneficial to be born with that silver spoon – or do a little Tik Tok to get the numbers up if not.

Adam Smith never referred to the American system as capitalism, instead describing an American system meant to protect private rights and the overall “commercial society”. His idea at the time, to protect the working man from the few large businesses and the overarching government. An impeccable sentiment, the fundamental formula has changed. Ask yourself – how many major banks are there? how many lesser known? how many phone companies remain? what are your choices for water or power in your city? What was once a plethora of decisions and small businesses have regressed and been bought out 100X over, and what does that remind you of? A market of few options, no competition, and benefiting the .01%?

There are certainly more important and knowledgeable people who will throw their time into figuring this out. Unable to articulate clearly, I ask – where do your hard earned wages go? That 2% yearly increase as the horse to the boss’s cart? Insignificant. Where does capitalism go from here? It’s in it’s fourth quarter. It’s on the back nine. Incidentally, it may be approaching the 18th tee, and it’s important to consider the impacts that may occur once it’s ran its course.