Plutocrats and the New Soviet Union

One of the joys of reading blogs is that you get to follow writers who are focussed on one particular area, and who, as a result of that almost monastic concentration, are able to produce insights of sudden insight unavailable to otherwise skilled wordsmiths who write more generalist pieces.

Here's one such gem that caught me by surprise as I finally came across it in my overburdened RSS reader:

an extreme concentration of wealth at the center of our market economy has led to a form of central planning. The concentration of wealth is now in so few hands and is so extreme in degree, that the combined liquid financial power of all of those not in this small group is inconsequential to determining the direction of the economy. As a result, we now have the equivalent of centralized planning in global marketplaces. A few thousand extremely wealthy people making decisions on the allocation of our collective wealth. The result was inevitable: gross misallocation across all facets of the private economy.

...

The result of central planning in the US has finally hit the wall. The list of problems is endless. The misallocations range from the dangerous $600 trillion derivatives market to the destruction of the US middle class (by exporting jobs and the substitution of income with debt).

Oh, yes; of course.

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