Mass Inequality Reason II: Complexity

Its kind of paradoxical that technology and globalization has exponentially increased complexity and hierarchies.

In the early 70’s the vast majority of what we ate and drank came from within 50 miles of us.  Everything from the house to the furniture to the cars to clothes and shoes we wore were made in the US and/or Europe.

Growing complexity uses to be related to the claim “technology will save us”. It involves the use of more advance machinery and workers, as well as bureaucratic hierarchies. As a result businesses and administrations become larger, more hierarchical, less efficient and less productive for added value tasks (not the case for tax extraction obviously).

Growing complexity increases energy consumption as well as wealth disparity. This is because an employer needs to pay high wages to supervisory and skilled workers (which are much more scarce). This leaves fewer funds for the less skilled workers.

Also the huge amount of capital goods required in a complex economy tends to dispropotionally benefit workers who are already highly paid. This happens because of the owners of shares of stock tend to be the best skilled workers.

Low paid workers simply cant afford such purchases. Businesses become larger and more hierarchical. International trade becomes increasingly important and financialization of the ecconomy becomes the norm.