Elite Models Hide Plundering Of The Working Class
Mainstream economic models deliberately categorize unavoidable monopoly costs—like banking fees and healthcare hikes—as desirable 'consumer spending' to mask systemic wealth extraction. This structural deceit creates the illusion of a robust economy ('boomcession') while simultaneously fueling deep, targeted political resentment among the working poor.
Policymakers (Fed/BLS) count $600B in financial services overcharges (low deposit rates) as desired 'consumer spending' that shows economic health.
The financial industry lobbies heavily against open banking and competition, claiming such regulation would destabilize markets and reduce service availability.
The contradiction: The system ensures banks extract maximum non-discretionary wealth from the poor, calls it 'growth,' and then argues that regulatory intervention harms the consumer.
Summary
The article argues that traditional economic indicators like GDP, CPI, and wage growth (which look 'good') fundamentally fail to reflect the public's negative sentiment because they miscategorize wealth extraction. Specific examples include the failure of CPI to account for borrowing costs and the counting of implicit banking fees ($600B in lost interest) as 'consumer spending'—which primarily hurts the poor (spending inequality). This structural failure to measure the true, non-discretionary costs imposed by monopolies explains the political disconnect and the feeling of a 'boomcession' among non-elites.
⚡ Key Facts
- Kevin Warsh (Fed nominee) is tied to Wall Street, the Estee Lauder fortune, and was named in the Epstein files.
- Consumer sentiment is currently at historical lows, despite official GDP growth running at 4%+.
- The Bureau of Labor Statistics counts $600 billion in 'Financial services furnished without payment' (implicit banking fees) as discretionary consumer spending.
- Real average hourly wage increases (1.1%) were identical in 2018 (high sentiment) and 2025 (record low sentiment), suggesting metrics are misleading.
- Poorer metropolitan areas experienced food inflation 0.46 percentage points higher than richer ones, demonstrating 'spending inequality'.
Elite Models Hide Plundering Of The Working Class
The system ensures banks extract maximum non-discretionary wealth from the poor, calls it 'growth,' and then argues that regulatory intervention harms the consumer.