Really a good academic discussion with reasoning and facts from the Blogging of the President website.
http://www.bopnews.com/archives/000233.html#000233In 1968, the Liberal consensus, which had governed since 1933 began its fall, to some extent its own poor decisions can be blamed, to some extent poor luck, and to some extent a more general failure of a society to understand that while old limits had been superseded, new limits were about to be imposed. The spectre of famine, pandemic and catastrophic failure of economic system had been put aside - many of the long demons of human history seemed beaten, or in retreat.
The new restriction was, paradoxically, a result of American success. American leadership and fiscal discipline had not only overcome the problem of a paper money system - which had plagued political economy for centuries - but a host of other limitations. A society which had beaten famine, pandemic and was on its way to beating poverty, could look forward to defeating war and other great constants of human misery. It was an age where putting a man on the moon was a symbol of liberation from that which had held human behavior in check.
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But, in a zero sum economy, there is an economic logic to forcing people down below the poverty line. An individual who does not own a car, who is at the margins, uses a great deal less of the bottlenecked resources. A person who goes to bad schools cannot get into the best colleges - and therefore is one less competitor for the few golden tickets upward in society. When rising tides lift all boats, such thinking seems regressive - when society is built on waves that only a few people will catch, the fight to be in position to catch the wave becomes life or death.
To put this bluntly: while it might seem that racism is a cultural construct and the result of poor education, its persistence is because of a sound, if ugly, economic logic. As long as there is a zero sum of affluence, there is a strong payoff keeping a large group of people below a critical threshold of affluence. It also changes the nature of political alliances: away from those who want to move up against those who want a rigid and stratified society - that is growth versus stability - and towards "class civil war" with alliances of individuals who are at the same economic level attempting to get ahead of others who are no different - except in how they make their livings. This shows up increasingly in the regionalization of the political parties.
Read the whole thing, (pretty long) but thoughtful. It's all there, oil, money, gold, the Great Society, Vietnam, the story of our times.