citigroup equity strategy 2005 concludes: the world is dividing into two blocs - the plutonomy and the rest

the reports made for to the rich could be the most objective or most ridiculous ones.

on reddit i found this citigroup 2005 report made for their richest clients.

here are some gems:

– the usa, uk, and canada are the plutonomies – economies powered by the wealthy. (italy is also added to this list, but as a non anglo-saxon plutonomy.)

– in a plutonomy there is no such animal as “the us consumer” or “the uk consumer”, or indeed the “russian consumer”. there are rich consumers, few in number, but disproportionate in the gigantic slice of income and consumption they take. there are the rest, the “non-rich”, the multitudinous many, but only accounting for surprisingly small bites of the national pie.

– outsourcing, offshoring or insourcing of cheap labor is done to undercut current labor costs.

– …the invisible hand stops working. Perhaps one reason that societies allow plutonomy, is because enough of the electorate believe they have a chance of becoming a plutoparticipant. why kill it off, if you can join it? in a sense this is the embodiment of the “american dream”.

hope you like it.