The invaluable Michael Hudson illustrates the political economic consequences of the conversion of the American working class into a rent-servicing one:
“When it comes to analyzing comparative advantage among nations, the key no longer is food or prices for other goods and services. Financial charges and taxes are the key. The typical blue-collar family budget provides the explanation for why the United States is losing its industrial advantage.”
| Housing (rent or home ownership) | 40% | |
| Other bank debt | 10 to 15% | |
| FICA wage withholding | 13% | |
| Other taxes | 15% |
…. The ultimate question to be posed is thus whether the economy really needs Wall Street and the banks to be made whole on credit that has been created largely to inflate asset prices (the Bubble Economy) and to gamble on derivatives and computer programs (Casino Capitalism)”
Once, Again 