This phenomenon isn’t limited to Greece, or even to capitalistic societies. Dissident Soviet-era thinker Milovan Djilas coined the term “the New Class” to describe the people who actually ran the Soviet Union: Not workers or capitalists or proletarians, but managers, bureaucrats, technocrats, and assorted hangers-on. This group, Djilas wrote, had assumed the power that mattered in the “workers’ paradise,” and transformed itself into a new kind of aristocracy, even while pretending, ever less convincingly, to do so in the name of the workers. Capitalists own capital, workers own their labor, but what the New Class owned was political control over other people’s capital and labor. Those Greek bureaucrats’ power didn’t come from making things. It came from being able to make people — like our pastry chef — jump through hoops before they could make things.
In the Soviet Union, the situation was even worse. The problem was that what was good for the New Class — rules, programs, and ever-expanding bureaucracy — wasn’t good for the workers, who mostly wanted enough meat, and maybe someday a new washing machine that worked. But despite the system’s formal dedication to equality, the resources, prestige and a variety of legal privileges flowed to the New Class, not to those the New Class was supposedly intended to help. But sadly the New Class isn’t limited to the Soviet Union or Greece.
Here in the United States, a lot of programs officially aimed at the poor look suspiciously like subsidies to the New Class, too. Among “means-tested” programs, Food Stamps, now officially called SNAP, cover about 46 million people up to 125% of the poverty line (set at about $16,000 for a single mother and child). Other programs, such as the Earned Income Tax credit, cover people at slightly higher incomes, up to 200% of the poverty line. When federal spending on the dozens of programs are added up and state and local contributions included, the budget for assistance is about $1 trillion.
Join the conversation as a VIP Member