
Us vs them: why the rich are destroying our world
McDonald's work should be read alongside another new book, Goliath's Curse by Dr Luke Kemp from Cambridge University. The 'Goliath' in Kemp's study of civilisational collapse is the elite - the rich who have ruled over us since the Bronze Age.
Read More:
His thesis is that societies collapse due to the annexing of wealth by a tiny elite who he calls 'walking versions of the Dark Triad'. The Dark Triad is a psychological term for the worst of humanity's characteristics: narcissism, machiavellianism and psychopathy.
Taken together these books warn: things fall apart when the rich get too rich, and we're living through a moment when the rich have definitely got too rich.
That disparity in wealth - the figure which marks America as unequal as Caesar's Rome - has a technical term: the Gini Coefficient. Not much separates Britain and America on this measure. Among the list of 37 OECD countries, Britain is 30th; America 32nd. Costa Rica comes last.
The wider a society's Gini coefficient, the greater the levels of unhappiness and anger; the higher the risk of crime.
A picture begins to emerge when you put these disparate facts together: of western societies strip-mined by the few to the point of destruction, of billions of working people cannibalised by a rapacious elite whose unobtainable lifestyles are built overwhelmingly on inherited wealth.
We're living through a new 'Gilded Age': the period at the end of the 19th century marked by grotesque material excess, political corruption, and endemic poverty. It didn't end well. Ask the Tsar of Russia and his family.
The Russian Revolution stands as the greatest, most violent, attempt to slough off the previous Gilded Age. Obscene wealth inequality leads to obscene results.
However, reactions around the world at the beginning of the last century to intolerable wealth disparities played their part in the collapse of European monarchies, the first global war and the rise of new political parties like Labour in Britain.
If this is a new Gilded Age, then while the world's billionaires live in gold, the rest of us live in rust. There's a cartoon from around 1900 called 'From the Depths', drawn as a warning to the rich to rein in their greed.
It shows a glittering ballroom filled with dancers in gowns and tailcoats. The dance floor is held up on the backs of the hungry and ragged poor. One desperate man has punched through the floor, his clenched fist rising up. An aristocrat looks down fearfully at this breech into his candlelit world.
The very same mood is growing in the west. A poster has just gone up outside a London hospital. It says 'Know Your Parasites'. First on the list is ticks. The advice reads 'remove with tweezer'. Then there's worms. The advice reads 'remove with medication'.
Next come billionaires. The advice reads 'remove with wealth tax'. It shows the faces of Elon Musk, Jeff Bezos and Mark Zuckerberg. Jeff Bezos (Image: PA)
The old Gilded Age had its rail and steel barons, the new Gilded Age has its tech barons.
One of the most stomach-churning sights of this year was Bezos's Venice wedding. He rented a city to display his riches, while we pressed our noses against the windows of his palace.
Meanwhile, the world burned. Meanwhile, here in Britain, eight-in-ten dentists report treating cases of DIY dentistry. The NHS spends £50billion on the effects of deprivation and child poverty.
One senior NHS employee recently told the Guardian that Britain is experiencing 'medieval' levels of untreated illness in our poorest communities, including folk attending A&E 'with cancerous lumps bursting through their skin'.
Scottish charities tell of mums dropping three dress sizes as they're going hungry to feed their kids. Outside any city centre office you'll see sports cars one moment, and homeless people the next.
Far from fellow citizens reduced to lives of begging, there's the likes of Dame Debbie Crosbie, Nationwide chief executive and darling of the Labour government, with a £7million annual pay package.
Never forget the bankers. That's where the poison lies. They crashed our economy, and instead of being jailed, our governments across the west bailed them out with our money. Bankers rolled in gold, while our lives and countries were shredded by austerity.
The number - and size - of super-yachts being built increases yearly, from 1024 in 2022 to 1203 in 2023. There's a smart slogan doing the rounds these days: Your enemies don't come in small boats, but private jets.
In the feudal past, the rich assaulted and raped the poor. Today, our news is filled with the crimes of multi-millionaire sex offenders like Donald Trump's friend Jeffrey Epstein.
What makes today so different, though, to times long gone when the poor rose up to defend themselves is that the rich have managed to divide us as never before.
Most media - dominated by the billionaire class - manufactures culture wars pitting ordinary citizens against each other. Better to have us at our own throats, than at theirs.
If we cleared the smoke from our eyes, we'd realise we can change what's happening before it's too late. For change must come. This can't continue. And far better for peaceable than violent change.
I began with a statistic of sheer despair: the matched inequality of America and slaving-owning Rome.
Here's another statistic. It comes from Oxfam. The wealth of the world's richest increased by $34trillion since 2015. If we took that money - not their entire wealth, just the interest on their wealth over ten years - we'd end global poverty 22 times over.
There is hope. You just have to want it.
Neil Mackay is the Herald's Writer-at-Large. He's a multi-award winning investigative journalist, author of both fiction and non-fiction, and a filmmaker and broadcaster. He specialises in intelligence, security, crime, social affairs, cultural commentary, and foreign and domestic politics
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Herald Scotland
4 days ago
- The Herald Scotland
Will 2025 prove to be the 'year of misinterpretation'?
Even as these evidently profound events have come to pass, the catastrophic consequences once predicted have not followed. The Trump administration's initial tariff threats sent markets into a downward spiral, but they have since rocketed back, undeterred by tariffs imposed since. So far, companies have primarily absorbed the cost of tariffs, avoiding a large impact on consumers. Meanwhile, the threat of war between Israel and Iran, the spectre of which has animated decades of diplomacy, failed to generate more than mild short-term jitters in oil prices. Ultimately, oil markets fell back following a ceasefire agreement and traders shrugged off what could have precipitated regime change. The global economy marches onwards. In short, even as these risks have all materialised, none of these threats seem to have really moved the risk dials of investors and markets. As market observers, we must ask whether this was because those risks were overestimated, or if their true consequences simply have not yet been revealed. One camp might posit that 2025, so far, has proved the 'year of misinterpretation'. Ten years from now, will 2025 be seen as a minor blip in the global economy's pursuit of growth? Or, will it be perceived as the beginning of a fundamental shift in international trade and the forebearer of sustained economic decline? Depending on which path we take, the investment choices that we make today will be profoundly different. At Julius Baer, our diagnosis falls somewhere in the middle. We see a new era dawning of heightened uncertainty, limited globalisation, and fragile peace in the world's most incendiary regions. The end of the free trade consensus, the fracturing of decades-long alliances, the impact of climate change, and more, will inevitably lead to a more volatile world. That volatility has already arrived in-force this year, however, the world's largest companies have shown resilience, particularly after coming out of one of their most profitable years ever in 2024. As fundamental changes happen on a global scale, companies have so far successfully stayed nimble, adapting with the times and showing their ability to play a changing game is astonishingly robust. Read more: Of course, a discussion of the global economy cannot be separated from the American economy – after all, fears of recession have grown exponentially since Trump's re-election to the White House. Similar to the rest of the world, the US economy has slowed but ultimately pushed ahead into 2025, with the OECD predicting that it will experience GDP growth of 1.6% this year, compared to Europe's 1.0%. This 'American exceptionalism' is due in part to the strength of US companies – particularly in the tech sector, where confidence remains as to their ability to produce cash at a rate hitherto unseen in history. These enormous profits mean leading companies have not only been able to withstand the tariff storm, but have also temporarily limited the extent to which consumers have become victim. The US's corporate strength is complemented by its consumer base, which is forecast to increase its nominal spending levels by 3.7% in 2025 despite economic uncertainty. The President's One Big Beautiful Bill Act, controversial as it may be, will likely further boost spending, as the people to whom it gives the greatest benefit – the wealthiest 20% of American households – are responsible for 60% of the country's consumption. More broadly, the Act signals that the Trump administration will continue deficit spending to boost the US economy, moving away from Elon Musk's DOGE-driven cost-cutting overtures from earlier in the year. While the sustainability of this in the long-term remains in sharp focus, debt-powered cash infusions from the federal government will certainly promote US growth in the near term. So, what does all of this mean for the UK? Thus far, UK economic progress has proved uninspiring if resilient, with optimistic analysts projecting 1.2% GDP growth this year. The UK Government has been either lucky, skilful, or both to secure a trade deal with the US and avoid large-scale tariffs. But the reality is that the UK's economic destiny is largely out of the Government's control. Even as the IMF calls for the Bank of England to cut rates twice more this year, its ability to do so will be contingent both on how tariffs are rolled out and the strength of the UK labour market. Without guaranteed rate cuts or fiscal stimulus – an option equally unlikely given the Government's financial constraints – the UK will need a wave of global growth to see meaningful near-term change. Such growth will have to happen in a world that has doubtlessly become more volatile and will likely get worse. However, this does not mean that there are not plentiful attractive opportunities for investment and capital. As politics become more polarising and posturing more dramatic, it is the investor's job to look beyond the immediate uncertainty, to invest patiently, and to make decisions based off long-term trends, not short-term hysteria. Just as always, the calm, rational, long-view investor will win. Nick Lawson is an associate director at Julius Baer


Fashion United
5 days ago
- Fashion United
US fashion industry faces historic price surge following reciprocal tariffs
The retail landscape in the United States underwent a dramatic shift on August 7 as the most comprehensive tariff increases since the 1930s took effect. Thursday saw the reciprocal tariffs come into effect under the Trump administration after months of delays, with most imports into the country being hit with a baseline 10 percent duty. But with higher tariffs on key US trading partners critical to fashion brands' and retailers' supply chains, including including India (50 percent), Brazil (50 percent), Bangladesh (20 percent), China (30 percent), Sri Lanka (20 percent), Cambodia (19 percent), Malaysia (19 percent), and Thailand (19 percent), the average effective tariff rate jumped to 17.3 percent, a level not seen since the Great Depression era of 1935, according to recent data from nonpartisan Yale Budget Lab think tank. Tariffs consumer impact: $2,400 average household loss Consumers across the nation will feel the brunt of this shift, as the price level from all 2025 tariffs increased by 1.8 percent in the short run, equal to an average loss of 2,4000 USD per household for 2025, according to the Yale Budget Lab. Last month, the US Commerce Department reported that apparel and footwear prices were experiencing particular upward pressure due to tariffs and other external factors. Retail prices jumped 2.6 percent in June, up from 2.4 percent in May, with the cost of furniture, toys, and other imported goods increasing. With the reciprocal tariffs 'disproportionately' affecting the apparel, footwear, and textiles sectors, consumers are expected to face a 40 percent price increase in footwear and a 38 percent jump in clothing prices in the short run. The Yale Budget Lab estimates that these price increases will moderate to 19 percent and 17 percent increases for both categories in the long run, respectively. Apparel & footwear prices could increase as much as 40 percent Which makes sense, as tariffs were cited as the most significant factor driving sourcing costs increase for US fashion companies in 2025, according to the 2025 Fashion Industry Benchmarking Study from the United States Fashion Industry Association. Although many fashion businesses chose to swallow the additional taxes during the early days of the Trump administration's trade war, data indicates that brands and retailers are hitting a wall as profit margins tighten and their capacity to maintain price stability diminishes. 'We have no interest in running a lower-margin business, particularly due to tariffs,' said Richard Westenberger, the chief financial officer of children's apparel producer Carter's, during a call with analysts on July 25. 'And if this is something that's going to be a permanent increase to our cost structure, we have to find a way to cover it.' Carter's is not alone, as brands from Adidas to Levi Strauss have announced strategies to counter the impact of tariffs. On July 30, Adidas warned that it would most likely have to increase its prices in the United States, noting that US tariffs would add around 231 million USD in costs to the year's second half. 'We will try to keep the prices on known models (stable) as long as we can, and then do new pricing on products that haven't existed before,' said Bjorn Gulden, CEO of Adidas, during a call with analysts. During the call, Gulden also voiced concerns regarding consumer demand and inflation. 'What I'm mostly worried about, to be honest, is not only the cost, but it's what is going to be the consumer reaction in the market with all these price increases that I think will come not only in our sector, but in general in the US. Should we get mega inflation in the US, things will happen on the demand side, then of course volumes will go down.' Supply chain scramble as geographic diversification accelerates To help drive its costs down and mitigate the impact of tariffs, Adidas, Ralph Lauren, and other fashion companies have been exploring various options, including supply chain diversification. Two of Adidas's largest sourcing hubs in 2024 were Vietnam and Indonesia, with Vietnam producing 27 percent and Indonesia 19 percent of the sportswear brand's total product for 2024. However, with the US introducing a 20 percent tariff on Vietnamese exports and a 19 percent tariff on Indonesian imports, Adidas will likely shift the bulk of its production elsewhere. The sportswear brand is not alone in this strategy. Over 80 percent of respondents from the 2025 Fashion Industry Benchmarking Study stated they are diversifying their sourcing geographically by sourcing from more countries and regions to mitigate the impact of increasing tariffs and policy uncertainty. A further 72 percent said they plan to ramp up duty-free sourcing from countries covered by US free trade agreements and trade preference schemes. Overall, the reciprocal tariffs have disrupted fashion supply chains substantially, with close to 70 percent of respondents noting they have canceled or delayed select sourcing orders due to the tariff increases. Most Spring 2026 orders placed in late 2025 will likely operate under fundamentally different cost structures than those placed just months earlier, requiring retailers to make rapid adjustments to price points, margin expectations, and market positioning strategies. However, this transition may not be as straightforward as it seems, as around 40 percent of respondents added they had reduced investments in crucial areas, such as sustainability and product innovation, due to financial strain from the tariff hikes. The reallocation of resources highlights a troubling secondary effect: while brands scramble to maintain profitability in the face of higher input costs, they're simultaneously sacrificing the very initiatives that could differentiate them in an increasingly competitive market and meet growing consumer demands for responsible business practices. With fashion companies set to grapple with the highest trade barriers since the Great Depression, the ultimate test will be whether they can maintain consumer loyalty while passing along unavoidable cost increases.


Reuters
5 days ago
- Reuters
Romania proposes pension reforms as it moves to join OECD
BUCHAREST, Aug 8 (Reuters) - Romanians will be limited to withdrawing a quarter of their private pension funds upon retirement and will receive the rest in monthly payments under a draft reform of the system unveiled on Friday that aims to boost the country's OECD candidacy. The EU member state overhauled its communist-era pension system in 2008, making it compulsory for working Romanians under 35 to contribute to a so-called "second pillar" of private pension schemes in addition to their state pension. Under the scheme, more than 8 million Romanians contribute to seven private pension funds, which have become the largest institutional investors on the Bucharest Stock Exchange. Those funds held assets worth 166.2 billion lei ($38 billion) at the end of May, up 19% on the year, data from Romania's financial supervision authority ASF showed. Romanians are currently allowed to withdraw the entirety of their private pension assets as a lump sum when they reach the retirement age of 65. ASF president Alexandru Petrescu said the draft payments bill released by the government would ensure the stability of the system, giving fund managers more predictability. The payment bill is also a requirement under Romania's accession path to the Organisation for Economic Co-operation and Development. Romania became an OECD accession country in 2022 and hopes to join the club of wealthy nations in early 2026. The OECD will assess Romania's private pension system next month. The draft bill will allow Romanians to choose scheduled withdrawals for up to 10 years or lifelong monthly installments. It will now be submitted for public consultations before approval by the government and a final vote in parliament on its implementation. Romanians will increasingly rely on private pensions, particularly after 2030 when just under 2 million people - a 10th of the population - born under a communist-era abortion ban will reach retirement age, increasing the burden on the pay-as-you-go state pension system. The seven pension funds have so far made payments worth 3.8 billion lei to some 238,000 people but will begin to face larger withdrawals from 2030. ($1 = 4.3554 lei)