Here comes the spoils society

The fewer the gains, the more people will fight over existing income and wealth, because — as has been said — that’s where the money is. The United States’ annual income (gross domestic product) now exceeds $16 trillion; the value of all fixed assets owned by businesses and individuals is roughly $50 trillion. Diverting even a small sliver of these sums can be hugely enriching. Distributional battles involve attacking and defending bastions of wealth and income. Consider three examples:

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— The oil giant BP and plaintiff lawyers are fighting over how it provides compensation for damages from the 2010 Deepwater Horizon oil spill. The process has been so perverted, says BP, that it’s paying “hundreds of millions of dollars — soon likely to be billions — for fictitious and inflated losses.” Naturally, the plaintiffs’ lawyers disagree.

— “Patent trolls” are firms that amass huge patent portfolios and then harass and sue high-tech companies for alleged infringements. Companies often pay up rather than face a threat to their products. Extortion, they say. A legitimate return, retort the patent companies.

— CEOs are routinely accused of padding their pay by using friendly compensation consultants. Naturally, CEOs contend they’re being rewarded for performance, not plundering their own companies.

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