The Nile could not be managed by independent satrapies
In his book,
Cannibals and Kings, anthropologist Marvin Harris explains the difference in the development of nation-state governments in the "hydraulic kingdoms" of the Middle East and the "rainfall economies" of northern Europe. In both cases the issue affecting formation of government was water and the creation of wealth. These were agricultural economies, with agricultural production being the foundation of all wealth. In the Middle East, water meant rivers since there was little rainfall, and management of rivers required a strong central-planning agency.
In the case of Egypt's Nile, that led to an all-powerful pharoahite government, a pattern mostly duplicated elsewhere in the ancient Middle East. Therefore, wealth became concentrated in the central government because the rulers controlled the means of production and the water resources production required.
In northern Europe, rivers were hardly necessary to agriculture because of reliable, year-round precipitation. Because wealth creation was therefore dispersed, so was political power. Nowhere in the hydraulic kingdoms was there the equivalent of European systems of kings, dukes, barons, counts or marquis, all of whom did not depend on the king or the king's government to till the land and grow its wealth. They therefore had the means to resist the near-total centralization of power found in the Middle East. When such centralization did occur, it was an aberration and short-lived.
When the means to create wealth is dispersed, political power is dispersed along with it. Wealth gains political power, but political power is not needed just to create wealth. In the Middle East, however, wealth came from political power because there was no means to create wealth of significance apart of political power. So for centuries, nay millennia, the way to become wealthy there was first to gain political power.
This pattern survives to this day. Saddam Hussein, for example, was a nobody of limited material means until he literally murdered his way into power in Iraq in 1979. It was after gaining control of Iraq's government that Saddam became wealthy beyond all avarice.
Now the point of this little history lesson is this: In the United States, the means to create wealth and the exercise of political power in public office are being steadily unified. We are already well along to adopting a Middle East model. Since the Obama administration came into being, the wealthiest counties of America and the most politically-powerful counties of America have for the first time become the one and same - all concentrated in and around Washington, D.C. Through minute regulation of economic activity, America's political class is deliberately suppressing wealth creation over the broad expanse of the country, while funneling tax dollars to favored cronies. Remember, for example, Solyndra?
At the same time, the political figures are using their offices to gain personal wealth. Consider Senator Harry Reid, the majority leader and hence one of the most powerful figures in Washington. He was born into poverty, growing up in a home that had no running hot water or indoor toilet. His first job in D.C. was working the night shift as one of the Capitol Hill Police. Yet after entering national office, his personal wealth has arisen to
as much as $10 million.
But what sent me into writing this post was today's report that the champion rent seekers of all time, Bill and Hillary Clinton, "
turned the State Department into a racket to line their own pockets" while she was secretary of state.
“These documents are a bombshell and show how the Clintons turned the State Department into a racket to line their own pockets,” said Judicial Watch President Tom Fitton. Judicial Watch and the Washington Examiner teamed to seek and publish those documents today. “How the Obama State Department waived hundreds of ethical conflicts that allowed the Clintons and their businesses to accept money from foreign entities and corporations seeking influence boggles the mind,” said Fitton, adding, “That former President Clinton trotted the globe collecting huge speaking fees while his wife presided over U.S. foreign policy is an outrage." The Examiner reported that the former president gave 215 speeches and earned $48 million while Hillary Clinton was at State.
Welcome to the potentate kingdom of the United States.
Update, Dec. 2017: And the beat goes on: "
Census Bureau: 5 Richest Counties Are D.C. Suburbs"
Update, April 2025:
The Trump administration's Department of Government Efficiency has
turned its eyes on just how have so many members of Congress become very or even fabulously wealthy while drawing a salary that is not particularly high, considering D.C.'s cost of living and having to maintain as well a residence in their home states.
Members of Congress may currently purchase and trade stocks and cryptocurrency, provided they report all transactions. The base salary for Senators and Representatives is $174,000 per year. Some exceptions include the Speaker of the House ($223,500), the President pro tempore of the Senate, and the majority and minority leaders in the House and Senate ($193,400).
Yet some members of Congress have net worths that put them in elite standing—well over $100-$200 million.
Consider these charts:
SPY is an S&P 500 index fund, tracking the performance of the S&P 500. The vast majority of equity funds underperform the S&P 500. That is why Warren Buffet has said for many years that ordinary Americans saving for retirement should just buy S&P 500 index funds (there are others than SPY) and that's it. So note how investments of members of Congress have done relative to the S&P 500 in the left chart, released by the investment firm Unusual Whales.
The second chart shows the return comparison of two of Unusual Whales' ETFs. NANC duplicates the investments of Democrat members and GOP that of Republican members. Until the recent market downturns, NANC was doing so well that I invested in it for quite some time. (Just try to imagine why the fund is called NANC.)
Both Democrats and Republicans have long been invested - literally - in the Middle East model, that the way to wealth is gaining political office and using it for self aggrandizement and advantage. And that is the reason DOGE is being so strongly opposed, because it is also exposing how the Ruling Class has used tax dollars to line their own pockets.
Remember: when our politicians denounce "wealth inequality," it means only that ordinary Americans have too much money and the Ruling Class does not have enough.