Twilight of the Elites

1. The Crisis of Authority: Widespread institutional failure erodes public trust

We are stalked, as a patient with a fever might be, by the maddening sensation that things aren't right.

Institutional failures abound. From the Catholic Church's sex abuse scandal to the 2008 financial crisis, major institutions have betrayed public trust through incompetence, corruption, and self-dealing. The government's mishandling of Hurricane Katrina, the flawed intelligence leading to the Iraq War, and corporate scandals like Enron have further eroded faith in leadership.

This crisis of authority has far-reaching consequences:

• Declining trust in government, media, business, and other pillars of society
• Increased polarization and difficulty reaching consensus on important issues
• Rise of conspiracy theories and rejection of expert knowledge
• Challenges to democratic governance and social cohesion

The result is a pervasive sense that the system is rigged, elites are out of touch, and institutions no longer serve the public good. Rebuilding trust will require major reforms to increase accountability and reduce social distance between leaders and the public.

2. Meritocracy's promise and peril: Equality of opportunity vs. equality of outcome

If you don't concern yourself at all with equality of outcomes, you will, over time, produce a system with horrendous inequality of opportunity.

Meritocracy's contradictions. The meritocratic ideal promises equal opportunity regardless of background, with rewards based on talent and effort. However, in practice, extreme inequality of outcomes undermines equality of opportunity over time.

Key issues with meritocracy:

• Wealthy parents can provide advantages (tutoring, connections, etc.) that perpetuate privilege
• Unequal starting points mean the "race" isn't fair from the beginning
• Focus on individual achievement ignores structural barriers and luck
• Meritocratic winners believe they've earned their status, losing empathy for others

A more balanced approach is needed, combining meritocratic ideals with concern for equality of outcomes. This could involve progressive taxation, investments in education and social services, and efforts to reduce wealth concentration.

3. The Iron Law of Meritocracy: How inequality undermines mobility

Unequal outcomes make equal opportunity impossible.

Meritocracy becomes self-defeating. As inequality grows, those at the top gain more power to rig the system in their favor, pulling up the ladder behind them. This creates a vicious cycle where initial advantages compound over time.

Examples of how this plays out:

• Legacy admissions at elite universities
• Unpaid internships that favor wealthy students
• Social networks that provide inside tracks to top jobs
• Political influence that shapes policy to benefit the wealthy

The result is declining social mobility, with parental income becoming an increasingly strong predictor of children's economic outcomes. To preserve genuine meritocracy and opportunity, society must actively work to limit extreme inequality.

4. Social distance: The growing gap between elites and the rest of society

The distance between those who will be bailed out and those who will not is the ultimate social distance, and it has grown so vast it now strains the bonds of representation that hold the republic and its people together.

Elites lose touch. As inequality grows, decision-makers become increasingly isolated from the consequences of their choices. This social distance leads to poor policy outcomes and further erodes trust.

Manifestations of growing social distance:

• Geographic segregation of wealthy enclaves
• Separate healthcare and education systems for elites
• Lack of military service among political and business leaders
• Wall Street's disconnection from Main Street economic realities

Reducing this distance requires deliberate efforts to create shared experiences and understanding across class lines. This could involve national service programs, mixed-income housing policies, and reforms to make political and corporate leadership more representative.

5. The Cult of Smartness: Intelligence overvalued, empathy undervalued

Intelligence is the core value of the meritocracy, one which stretches back to the early years of standardized testing, when the modern-day SAT descended from early IQ tests. To call a member of the elite "brilliant" is to pay that person the highest compliment.

Narrow view of merit. The meritocracy places outsized value on a particular kind of intelligence, often measured by standardized tests and academic credentials. This neglects other crucial qualities like empathy, wisdom, and ethical judgment.

Problems with the "Cult of Smartness":

• Overconfidence in technical expertise without understanding real-world impacts
• Groupthink among elites with similar backgrounds and thought patterns
• Neglect of emotional intelligence and ability to connect with diverse perspectives
• Justification of extreme inequality based on perceived intellectual superiority

A more holistic view of human potential and value is needed, one that recognizes multiple forms of intelligence and contribution to society.

6. Institutional corruption: When improper dependencies subvert intended purposes

What we're left with is a blurring of the boundaries between what Jane Jacobs described as the Guardian Syndrome on the one hand and the Commercial Syndrome on the other.

Misaligned incentives. Institutions meant to serve the public good often develop "improper dependencies" that lead them to prioritize other interests. This institutional corruption may not involve outright bribery, but it systematically undermines intended purposes.

Examples of institutional corruption:

• Revolving door between regulators and industries they oversee
• Campaign finance system that makes politicians dependent on wealthy donors
• Academic research influenced by corporate funding
• Non-profit hospitals operating like for-profit businesses

Addressing this requires stronger ethical guidelines, conflict of interest policies, and realignment of incentives to match institutional purposes. Greater transparency and accountability are also crucial.

7. Fractal inequality: The widening chasm between the 1% and everyone else

Fractal inequality functions the same way, with the same vast inequality reinscribing itself at every level of analysis.

Extreme concentration of wealth and power. The gap between the top 1% and the rest of society has grown dramatically, but even within the 1%, inequality is extreme. This creates a society of nested elites, with vast differences in power and influence at every level.

Key aspects of fractal inequality:

• Top 0.1% pulling away from merely wealthy
• Winner-take-all markets in many fields (entertainment, finance, etc.)
• Political influence highly concentrated among ultra-wealthy
• Social and professional networks increasingly exclusive at top levels

This extreme stratification undermines social cohesion and democratic ideals. Addressing it requires progressive taxation, campaign finance reform, antitrust enforcement, and other measures to disperse economic and political power.

8. The insurrectionist class: Upper middle class discontent as a force for change

One of the most interesting features of our current political moment is that a significant gulf has opened up between, roughly, the top 40 percent and the top 1 percent, between the middle class, upper middle class, professionals, and the mass affluent and the genuine plutocrats.

Allies for reform. The professional and upper middle classes, while privileged compared to most, increasingly feel squeezed and resentful of those at the very top. This "insurrectionist class" could be a powerful force for change if mobilized effectively.

Characteristics of the insurrectionist class:

• Highly educated but facing stagnant wages and job insecurity
• Angry about perceived rigging of system by ultra-wealthy
• Active in movements like Tea Party and Occupy Wall Street
• Potential bridge between working class and elites

Harnessing this discontent requires framing reforms as restoring genuine meritocracy and fairness, rather than purely redistributive policies. Cross-ideological coalitions may be possible on issues like campaign finance reform and antitrust enforcement.

9. Toward a third era of equality: Combining economic and social progress

We need to bring about a social order that combines the best things about each era of equality, one that shrinks the yawning social distance that now makes elite failure inevitable.

A new egalitarian vision. The post-WWII era saw greater economic equality but persistent social hierarchies. Recent decades have brought social progress on race, gender, and sexuality, but rising economic inequality. A "third era of equality" would combine the best of both.

Elements of a new egalitarian agenda:

• Progressive taxation and stronger social safety net
• Universal access to quality education and healthcare
• Antidiscrimination protections and cultural inclusion
• Democratic reforms to reduce money's influence in politics
• Efforts to reduce social distance between classes

This vision recognizes that economic and social equality are mutually reinforcing. A more economically equal society is likely to be more socially inclusive, while greater social mobility and opportunity can build support for egalitarian economic policies.

Last updated: November 19, 2024