Wealth and Democracy: A Political History of the American Rich

In this large book Kevin Phillips takes the reader on a lesson of economics and politics. Much of the history in WEALTH AND DEMOCRACY is of the American variety. He does, however, examine Spain, Holland,and Britain and the commonality these past governments have with the current American political and economic scene. The biggest common thread is the shrinking of the middle class a/k/a stratification of wealth.One of Mr. Phillips observations is that in the 1990s transnational corporations posted record earnings while hiring few Americans. Sometimes slashing employment to boost the bottom line.Along that line he quotes Peter Cepelli, a professor at Wharton School of Business- "Today, a CEO would be embarrassed to admit he sacrificed profits to protect employees or a community."He also describes the shifting of the tax burden from corporations to low and middle income individuals through FICA taxes.His quote on page 242 sums up American politics of the 1890s- "For two or three decades, then, democracy was corrupted at its constitutional core. Control of the Senate secured not just that chamber but the federal courts, the U.S.Supreme Court, and the U.S. Army to the service of American industry and finance."He demonstrates in this book that wealth has been a factor in the politics of the United States from the very start. Finance (banking) has had it's proponents like Hamilton and some presidents through time while it has also had it's opponents; most notably Thomas Jefferson and Andrew Jackson.The author takes a look at the worth of some former Cabinet members, Warren Harding's especially, although he wasn't the only president to tap the wealthy for his service.Another interesting point that Mr. Phillips makes is that globalization can be, and has been in the past, reversed.One of the curious inclusions in this book is found on page 71. It's an excerpt of a letter from FDR to Col. Edmund Mandell House. (House is a rather controversial, mysterious figure in American political history and the subject of conspiracy theories. He was a close adviser to Woodrow Wilson during his presidency). "The real truth... is, as you and I know, that a financial element in the larger centers has owned the government ever since the days of Andrew Jackson- and I am not wholly excepting the Administration of W.W. The country is going through a repetition of Jackson's fight with the Bank of the United Sates- only on a bigger and broader basis."The author also quotes such figures as John Kenneth Galbraith and Thorstein VeblenThe moral of WEALTH AND DEMOCRACY as I take it, is that our economic ills now are nothing more than a recurring pattern that has been experienced by various powerful governments in their heydays. Part of the problem is hubris or the belief that it can't happen again.This is a large book and some sections are laborious to read, but the message of the book is comprehensible and detailed very well. It may just be the most detailed book on the subject of wealth and it's adverse affect on government, especially a democratic form of government.

A detailed and scholarly work that chronicles the skewing of our system in favor of those with money, however they obtained it, from the beginning through recent history.

This book has been controversial since it was first published in 2002. The reason lies in its subject, wealth and income distribution, that makes everyone thinks that it is a leftist subject by definition. Liberals would love it and conservatives would despise it, a priori.Phillips does not provide a solution but tries to analyses trends through historical developments of wealth and income distribution in the United States in more than 200 years. The main theses in the book are simple to summarize.1) The wealth distribution has been highly concentrated and that concentration has increased over time. Living standards have remarkably improved for all classes but inequality has increased substantially. In the last 30 years families' living standards have recorded a setback partially concealed by the fact that more time is spent at work, while in the rest of the world less time is spent at work with improved social services (public schools, vacation time, health plans, pension benefits and so on).2) The historical wealthiest families had accumulated the first riches through slavery, privateer, piracy, and government procurements during wars thanks to the right connections. The heritage of that past bears its influences still today.3) Contrary to the common rhetoric, upward social and economic mobility was and is more limited than you might think, according to Phillips' book. You have two extremes in how the wealth is distributed. On one extreme, a society whose wealth is equally distributed, but were incentives to work more are curtailed leaving a smaller cake to share for all. On the other extreme, a society where all wealth is concentrated in one family, in which even aristocrats would complain. Phillips shows data that the latter case is dangerously close to reality.4) Democracy and wealth are so intertwined that "one dollar one vote" is a better description than "one head one vote". Therefore the top 1% of the wealthiest families (or the top 10%) tend to use their money to keep things as they are, or improve their privileged position. Investing in legislation through lobbyists makes a better rate of return than any other investment.Phillips provides a great deal of information, but that is not well organized, and often repetitive, leaving the reader with a sense of confusion. First, because the myth of the self-made man or the hope of upward mobility is put in question and it is less common than usually thought, generating a sort of "cognitive dissonance" in the reader (some would call it provocative or eye-opening). Secondly, the author does not provide any solution or policy prescription (of course, for those who think that there is something wrong to fix). It certainly is food for thought, but still raw that the reader should cook it by herself.Taken for granted the above warnings, it is a recommended book for those who want a first exposure to the hot subject of wealth and democracy, now and then.

This is a wonderful read for understanding some of the history and background of our politics and mindset of some politicians.

I can't add much to what's already been said. However once you read this book you will understand only too well how the Rich get rich and how they get richer. You will have a new perspective on the American Revolution and how and why the new "government" was formed. You'll know too why it is just so easy to get a war going. The shenanigans of Wall Street and Washington D.C. won't seem so mysterious.You will see in stark detail why the rich hate taxes and wages that are too high! They are really cra**y citizens and hate giving up ANYTHING!That being said are we in store for another "Gilded Age" or a very hard landing? Either way if you punch a clock for a living you are in a world of hurt!This is a really good book. Plow through it's statistical style and get a real insight into American culture. Get a copy while you still can. This is the story of Human Nature and GREED writ large.This is why I have stopped voting. On the plus side there is nothing preventing YOU from doing something that makes you rich except figuring out what you'll do and getting government to help you!