Chapter 7: The Pyramid Scheme

For our own good and the good of the billions of people of the earth as well as for the survival of life on earth itself, it is clear that we need to focus on decomissioning the Capitalist socio-economic paradigm once and for all, so we can create a better, more sustainable paradigm. We need systems in its place that will serve and foster the happiness, well-being, freedom, dignity and mutual good of all members of the Human community, not for some at the expense of others.

There are many myths perpetuated in Capitalist societies that very effectively serve to keep the lion’s share of the people focused on acting within the Capitalist paradigm to their own detriment. This dynamic functions similarly to Medieval European paradigms where the vast majority of serfs and peasants were kept compliant through religiously-based myths instructing them to be obedient and subservient in their life on earth in order to earn their place in Heaven.

One such modern myth is that, by studying people who are "making it" in order to learn what they know, their habits and ways, we can make it too by emulating them. This is a trap and an illusion. It is one of the ways we are kept divided, conquered, and playing the game as established by those at the top of the pyramid on their terms, ensuring that they stay in control and continue to get richer and more powerful.

In practice, even if you or I were to find a way to successfully ascend the economic pyramid, (and don't kid yourself, that is about as likely as coming up with the right "system" to beat the casino) the fact is that the Capitalist economic system is a pyramid scheme which cannot function unless the vast majority of people are kept down. It is set up that way. Your or my success would only serve to motivate those left behind to work harder at staying in the system, trying to climb in our footsteps. Sadly, almost none of them would ever be able to do so.

Consider what happened in slavery days when an individual slave was freed or managed to find a benefactor to purchase their freedom. An individual slave getting their freedom within that system did not end slavery. In fact, the freed slave could potentially become a slave owner, or more likely, be returned to slavery because a slave owner conveniently decided to consider their freedom papers a forgery.

It is dangerous to think primarily in terms of finding a way to make the system work for you. That mind-set keeps the system going and keeps you trapped in it. Yes, we do need to survive in the time before the Transition, but that is not enough. We need to plan, think and prepare to move beyond that socio-economic system and decommission it as the broken down polluting jalopy that it is in order to build something significantly more functional in its place that is based on human and environmental well being, sustainability and mutuality. This Capitalist system is inherently oppressive and destructive, with a reach into ordinary lives that the dictators of any era could only have envied. It was not conceived with that end in mind; but it has devolved into ever-escalating destructive cycles, racing in overdrive towards a new Feudal society that could last much longer than the original Medieval darkness did, unless the earth becomes barren and uninhabitable as a result of headlong exploitation and destruction of the biosphere.

Supply and demand sound innocent enough until a huge greedy bully, or rather a gang of huge greedy bullies, get control of the supply and restrict it so demand will be desperate, then set the price as high as possible.

The next step is to create the demand and control the supply. A prime case in point is to be seen in most of the newest cell phones, which are manufactured with the battery buried so deeply inside the phone that it is nearly impossible to replace it without destroying the phone. This is by design because manufacturers and telecom companies would rather force you to buy a new $850 phone when the battery won't hold a charge any more, instead of buying a $30 battery off of Amazon where they make no profit at all. There is absolutely no technological or engineering reason for this kind of design.

The Pyramid in Pictures

Work hours needed to attain a living wage in 2023 USA — lower 47 percentiles; below about the 10th percentile even working every hour of the week does not reach a living wage, and below about the 20th percentile it takes more than 80 hours a week — Figure 8: Work Hours Needed to Attain Living Wage in 2023 USA — Lower 47 Percentiles

Chart comparing the rise in consumer prices with the rise in family income at the 20th, 40th, 60th, 80th and 95th percentiles over 1947–1979, 1965–1979, 1979–2023 and 2000–2023 — from 1947 to 1979 income at every level grew about twice as fast as prices; since 1979 the 20th percentile has barely outpaced prices while the 95th has pulled far ahead — Figure 9b: Changes in Inflation vs. Income at Key Historical Points

Wealth distribution in 2026 illustrated as the Titanic — the top 0.1% holds 15.0% of U.S. wealth, the rest of the top 1% 17.5%, the 90th–99th percentiles 36% and the 50th–89th percentiles 29%; the bottom half has 2.3% and a sliver of the boat, so most tread water, and about 1 household in 12, owing more than it owns, is literally underwater. A line on the sail says the 400 richest Americans alone hold more than the bottom 67 million households combined — The Pyramid Scheme In Action: U.S. Wealth Distribution, 2026

Flow diagram for 2018: output per worker of $132,000 splits into 47% for employers and owners and 53% for all employees; the median employee is paid $46,800, of which $25,719 for the cost of living flows back to the owners, leaving $21,081; the top 1% hold 52% of stock and 30% of all wealth, the bottom 50% hold 0.5% of stock and 1.6% of wealth — The Flow of U.S. Wealth Between the Neo-Feudal Lords and the Neo-Feudal Serfs (2018)

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