The Elephant in the Room

Abstract

This chapter discusses the building up of social and economic gaps following the breakdown of social cohesion. It argues that it took over twenty years for the process to be seen not as a coincidence but as a major social and economic change. In this process, globalism turned from an instrument of the state to its rival. The chapter illustrates how the process of globalization led to unexpected consequences. In the West, the new class of the educated poor keeps growing; even when employed, they hold part-time jobs or jobs that do not suit their qualifications. The opposite process is taking place in Asian countries, where the middle classes are growing at a quicker pace than ever. The economy has moved from relying on unskilled cheap labor to focusing on highly skilled professional industries. The chapter presents the “Elephant Chart,” which shows the distribution of global income growth between 1988 and 2008. It also elaborates the social immobility, “gap preserving policies,” and how social alienation turned into anger, resentment, and animosity.