Fuel shortage in the engine room of the Protestant work ethic

In a speech given on October 11th in Pennsylvania, Obama more clearly than ever sounded the unsettling battle call to the proletariat. In a campaign theoretically designed to cut across political boundaries, he has gone out of his way to define and reinforce the walls of class boundaries. This would not be so unsettling if these class boundaries were not being drawn in such a way as to demonize the upper middle-class (200K-250K/year). The fact that these earners are being labeled as affluent creates a fervent proletariat unity while creating a divisive us-versus-them class structure.

What's the end goal of all of this?

You can be sure that the reason Obama drew enthusiastic cheers when he asked who earned less than 250K/yr was not because the crowd felt that a new generation of opportunity was about to befall them; rather it was because Obama was going to allow them to dip their hands into the pockets of those who, in practical terms, earn marginally more. Who doesn't want free money?

Let's consider what effect Obama's definition of wealth and the associated system of wealth distribution could mean for the average US citizen....

People are successful for one of three reasons: 1) they are great people that will be successful regardless of the environment 2) they are average people who are provided an environment designed to motivate them to pursue success 3) they are lucky

Obama's plan for wealth distribution takes direct aim at the benefits of success for the overwhelming majority of economic agents, people of type 2. One can imagine this leading to a world where the dominant strategy for success is to strive for mediocrity. As a mediocre performer you put yourself on the sweet side of the wealth re-distribution and taxation curves, you maximize your income and life-style without having to give too much up. This would eventually lead to a gradual decline in the average quality of life as the wealthy class atrophies leaving less and less money to subsidize the bloated mediocre class.

One of the great side-effects of capitalism was the avoidance of this outcome. But the engine that legitimized capitalism post WWII is running out of fuel. The work-ethic that drove US capitalism was founded on religion and thus was perceived to be righteous, the pursuit of wealth and success was the fulfillment of God's will. The idea of a divine grand scheme helped to keep the dark side of capitalism in check and made the average citizen admire success and wealth, not despise it. A healthy equilibrium was achieved, the successful could be proud of their wealth and the poor could righteously pursue wealth.

As the Protestant work-ethic runs out of steam in the US this equilibrium is upset. Obama is tapping into the sentiment that the pursuit of wealth is no longer God's will, but an act of unscrupulous selfishness; an act that should be punished through the seizing of assets and subsequent re-distribution to the proletariat.

John McCain's plan to use tax dollars to reset the value of failed mortgages acheives the exact same goal as Obama's...perhaps we'll discuss that next time.