The Forces That Once Pushed Us Together

This essay explores the idea that the fragmentation of society and the rise of economic inequality are not the result of forces pulling us apart, but rather the erosion of forces that had been pushing us together. The author argues that the two main forces that created social and economic cohesion in the mid-20th century were war, primarily World War II, and the rise of large corporations.

• World War II had both economic and social effects.
• Economically, the war decreased variation in income, with the US economy being conscripted and wages standardized.
• Socially, the war brought together millions of men and women from diverse backgrounds, forging a sense of unity and shared purpose.

The Rise of Big Corporations and Social Conformity

The author argues that the rise of large, national corporations in the mid-20th century also contributed to social and economic cohesion.

• These corporations offered similar products and services, creating a standardized consumer experience.
• They also established standardized models of how to look and act, leading to a greater degree of social conformity.

The Mid-Century Model: A Time of Cohesion

The author describes the mid-20th century as a time of relative social and economic cohesion, marked by a "Duplo" economy dominated by a few large, vertically integrated companies.

• This period was characterized by a high degree of social conformity, with everyone expected to adhere to similar standards of dress, behavior, and lifestyle.
• Economically, large corporations paid workers above market rates, while limiting executive compensation, resulting in a compressed income distribution.

The Breakup of the Duplo Economy: The Rise of Fragmentation

The author argues that the mid-century model of social and economic cohesion began to break down in the 1970s, due to a combination of factors, including globalization, technological innovation, and deregulation.

• Globalization opened up new markets and increased competition, challenging the dominance of large, national corporations.
• Technological innovation, particularly the rise of computing power, disrupted traditional industries and empowered smaller companies to compete.
• Deregulation reduced barriers to entry and encouraged the emergence of new competitors, breaking up the oligopolies that had characterized the mid-century economy.

The Rise of Startups and the Return of Individualism

The author highlights the rise of startups as a key driver of fragmentation, with ambitious individuals increasingly choosing to create their own businesses rather than climbing the corporate ladder.

• Startups were able to leverage technology to disrupt existing markets and create new industries.
• The rise of startups also led to a more dynamic and competitive labor market, with companies increasingly seeking to attract and retain top talent by offering higher salaries and greater opportunities.

Technology and the Acceleration of Economic Inequality

The author argues that technology is a key driver of economic inequality, amplifying the ability of some individuals to create wealth while leaving others behind.

• Technology has created new opportunities for wealth creation, but it has also contributed to automation and job displacement, leading to widening income disparities.
• The author suggests that technology is a lever that magnifies work and that the rate of this magnification is itself increasing, leading to an acceleration of economic inequality.

The Future of Fragmentation: A Return to the Mean

The author concludes that fragmentation is a natural tendency and that we should accept it as a reality. The forces that drove cohesion in the mid-20th century were temporary anomalies, and we should focus on mitigating the negative consequences of fragmentation rather than trying to reverse it.

• The author argues that we cannot reproduce the mid-century model of cohesion, as it was based on unique circumstances that are unlikely to be repeated.
• Instead, we should focus on addressing the symptoms of fragmentation, such as economic inequality, through policies such as subsidies and progressive taxation.