No Longer Capitalism's Den

If you live anywhere in the democratic world, you've probably grown up listening to stories of how the United States is the flag bearer of the free market capitalistic ideology. You've probably also listened to innumerable accounts of some of the purest forms of capitalism in everyday existence. The Gordon Geckos and the Oprahs who were simple people rising to incredible fame, power and wealth with their intelligence and talent. The "Land of Opportunity" brings in hordes of dreamy-eyed immigrants from all over the world in search of this very glory. And you can't help but think that that's the place for you if you're smart, talented and can get by with your wit and charm better than the average person. The hot bed for rags to riches stories in any genre.

Fast forward to 2013. New York, the greatest city on earth, the place where the high powers of the capitalist world rest. And here is where the myth shatters.

Everywhere you look, people are struggling to hold on to their own jobs. Business growths have stuttered to a virtual full stop, leading to cost cutting across the board and fewer promotions. People in multinational companies are stuck in exactly the same place they were at a few years ago. While companies strive to create more value for themselves and the shareholder, they look to developing markets for growths and the developed world for costs. And rightly so. And while they are at it, they've started chipping away at the reputation that built this first world empire.

However, the propaganda stories remain. You will still find innumerable snippets of pop culture fiercely defending this tag for the country and this city. You will still find, as I did, senior executives in companies talking of how the US has VPs and Directors who are 35 here. Not true. The average age of American mid to senior level executives is a lot higher than it is in China and India today. Perhaps less fancier titles, but the same work levels and responsibilities. Of course, they come easier on the pocket for global companies. Or do they? Not for long as most global leaders are benchmarked to Euro or Dollar salaries these days.

There are still stories of how money can elevate your life to dizzying heights. Yes, it can. If you are an entertainer or a sportsperson. Not if you are a white collar worker who needs to tread thru hierarchies to slowly get to the top. Yes, it can for entrepreneurs who come up with great ideas.  Not the ones with good ideas. Because a great idea is worth a lot more in countries where each person buying into your product or service is worth a lot more. But these are people that need to rely on a heavy dose of luck to get there.

If you're a person who believes in cold probability instead, stay where you are. Your idea is worth a great deal there. And you probably can get by with a lot less clutter in whichever industry you choose. And probably get funded a great deal too, while you're at it. Opening a new company in India is nothing out of the ordinary today. Most people either have a plan to, or are already on it. And while the US ideas market gets its funding on Kickstarter for a few thousands of dollars, the ideas market in India is probably fetching upwards of 6 digits in USD. Not to say that the breadth of ideas that do get funded are any less, but there's an underlying current that clearly points to a larger trend.

And with great wealth and fame comes great luxury and comfort, right? If you have above average wealth in a developing country today, you can live in luxury. Real luxury. With help for most household chores and a few bucks thrown around can get you almost any service available, from a government issued card to a person to do your dishes. If you have above average wealth in the US, you could live in a great apartment in a good neighborhood but you probably need to ride the same subway everyone else does and go do your own laundry operated with a keycard in your apartment basement.

You have the same rights to entitlement in any restaurant line, call center queue or an appointment with a hair stylist as another person who probably works a minimum wage job. And that's a choice you're entitled to, if you live elsewhere. With income disparity comes a choice of options that cater specifically to your socio-economic strata. And with that comes comfort. Of course, the egalitarian system suits the 99%. It's when you've left the 1% in another country to get here and realize you're in the 99% that the difference strikes you.

A world built on propaganda and marketing survives only as long as the primary product delivers. And unless a renaissance of sorts reoccurs, this bubble's going to burst sometime really soon.