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(en) NZ, Aotearoa, AWSM: A World of Plenty, Organised for Poverty (ca, de, it, pt, tr)[machine translation]

Date Tue, 13 Jan 2026 08:13:38 +0200


Extreme inequality is no longer a trend that economists cautiously warn about or a distant moral concern for charity campaigns. It is now the defining feature of global capitalism. The latest World Inequality Report, discussed by Michael Roberts in "Extreme Inequality - and what to do about it", confirms what working people have long known from lived experience: wealth is being hoarded at the top at a scale unprecedented in human history, while the majority are expected to accept stagnation, precarity and ecological collapse as the normal price of "economic growth".

Today, the richest ten percent of the world's population take more income than the remaining ninety percent combined. A tiny elite of roughly sixty thousand people controls more wealth than half of humanity. These numbers are so grotesque that they almost lose meaning through repetition, yet they describe a reality that structures everyday life from housing unaffordability and crumbling health systems to climate breakdown and permanent insecurity for workers. Inequality is not an abstract statistic; it is the background condition shaping how we live, work and survive.

What is striking about the current moment is not just how extreme inequality has become, but how openly it is now defended. We are told that billionaires are "job creators", that obscene wealth is the reward for "innovation", and that any attempt to limit accumulation will harm everyone else. This ideological cover has become thinner over time, precisely because the material outcomes are impossible to hide. Productivity rises, profits soar, and yet wages flatline. Wealth multiplies at the top, while public services are stripped back and people are blamed for failing to thrive in an economy rigged against them.

The World Inequality Report makes clear that this concentration of wealth is not accidental. Since the 1980s, the deliberate dismantling of labour protections, the privatisation of public assets, and the globalisation of capital have allowed wealth to flow upwards with remarkable efficiency. Tax systems have been re-engineered to favour capital over labour. Financial markets have been deregulated, enabling speculative profits divorced from any social use. States have become managers of inequality rather than restraints on it, ensuring that the conditions for accumulation remain intact even during crises.

This global picture has local resonance in Aotearoa New Zealand. While politicians still trade on myths of fairness and opportunity, wealth inequality here has steadily deepened since the neoliberal restructuring of the 1980s and 1990s. Housing has become a primary vehicle for accumulation, locking entire generations out of secure shelter while landlords extract rent as a form of unearned income. Maori and Pasifika communities continue to experience disproportionately worse outcomes across health, housing and income, a direct legacy of colonial dispossession compounded by capitalist exploitation. None of this is a policy failure, rather it is the logical outcome of a system designed to concentrate ownership.

One of the most politically useful insights from the inequality data is the way it exposes the connection between wealth concentration and climate destruction. The richest layers of society are not only the primary beneficiaries of capitalist growth, they are also its most destructive agents. The top ten percent are responsible for the vast majority of emissions linked to private consumption and investment, while the poorest half of the world contributes almost nothing to the climate crisis. Yet it is the poor who face the harshest consequences, from rising food prices to displacement and environmental collapse.

This alone should demolish the moral blackmail that frames climate action as a sacrifice demanded of ordinary people. The problem is not that "we all consume too much", it is that capital demands endless expansion, and the wealthy profit from it. Any serious response to climate change must therefore confront inequality at its root. Green capitalism, carbon trading schemes, and market incentives merely repackage the same logic of accumulation under a different aesthetic. They do nothing to challenge who owns, controls and benefits from production.

Michael Roberts is clear that mainstream responses to inequality, while often well-intentioned, fail to address these structural realities. Proposals for wealth taxes, improved public services, and international cooperation on tax avoidance are important, but they remain defensive measures within a system that constantly regenerates inequality. Even where such reforms are implemented, they are fragile and reversible. Capital is mobile, organised and politically powerful; gains made through reform can be undone the moment they threaten profitability.

From an anarcho-communist perspective, this limitation is fundamental. Redistribution after the fact does not change the underlying relations of power. As long as a small minority owns the means of production - land, housing, infrastructure, factories, finance - inequality will reassert itself. The state, no matter how progressive its rhetoric, exists to manage these relations, not abolish them. This is why decades of social democratic compromise have failed to halt the upward transfer of wealth.

The deeper question, then, is not how to make capitalism fairer, but why we continue to accept a system that requires inequality to function. Capital accumulation depends on exploitation. Profit is extracted from labour by paying workers less than the value they create. This surplus is then reinvested to generate more profit, concentrating wealth and power in fewer hands over time. No amount of moral appeal or technocratic adjustment can change this basic mechanism.

Anarcho-communism begins from a different premise: that the resources and productive capacity of society should be held in common and democratically controlled by those who use them. This is not an abstract utopia but a practical alternative rooted in cooperation, mutual aid and collective self-management. Rather than redistributing wealth after it has been hoarded, anarcho-communism aims to prevent hoarding altogether by abolishing private ownership of productive assets.

Under such a system, production would be organised around human need rather than profit. Housing would exist to shelter people, not to generate rent. Food would be grown to feed communities, not to maximise export returns. Energy systems would be designed for sustainability and collective benefit, not shareholder dividends. The obscene accumulation of wealth that defines our current reality would simply be impossible.

Critics often respond that this vision is unrealistic, yet what could be more unrealistic than a system that concentrates vast wealth in the hands of a few while pushing the planet toward ecological collapse? Capitalism presents itself as inevitable only because alternatives have been systematically marginalised or violently suppressed. History is full of examples of cooperative production, commons-based resource management and non-hierarchical organisation. These practices persist today, often invisibly, wherever people organise to meet their needs outside the market.

The challenge, of course, is scale and power. Capitalism is not merely an economic system but a social order enforced by law, police and military force. Dismantling it requires organised collective resistance. This is where the struggle against inequality becomes inseparable from class struggle. Workers withholding labour, tenants organising against landlords, communities defending land and water from extraction - these are not isolated issues but interconnected fronts in the same conflict.

In Aotearoa, this also means confronting the ongoing reality of colonial capitalism. The theft of Maori land was not a historical aberration but a foundational act of accumulation. Any genuine movement against inequality must therefore be anti-colonial, supporting tino rangatiratanga and recognising that capitalism and settler colonialism are deeply intertwined. Re-indigenisation is not an optional add-on to class struggle; it is central to dismantling the structures that produce inequality here.

What, then, is to be done? Not in the sense of policy recommendations, but in terms of building power. The answer is not to wait for better leaders or kinder governments, but to organise where we are. Strengthening unions, supporting strikes, building tenant and community organisations, creating networks of mutual aid. These are not symbolic gestures but concrete steps toward a different social order. They challenge capital directly by asserting collective control over labour and resources.

Internationally, solidarity matters more than ever. Capital moves freely across borders, exploiting differences in wages, regulation and political stability. Resistance must be equally internationalist, rejecting nationalist narratives that pit workers against each other. Global inequality is not caused by migrants or foreign workers, but by a system that extracts wealth from the Global South and concentrates it in imperial centres. An anarcho-communist politics insists on solidarity across borders, recognising shared interests against a common enemy.

The data on extreme inequality should not lead us to despair, but to clarity. The problem is not that we lack wealth or productive capacity; it is that wealth is controlled by a class whose interests are fundamentally opposed to human flourishing. Ending extreme inequality is not a matter of better distribution within capitalism, but of abolishing the system that creates it.

The choice before us is stark. Either we accept a future of deepening inequality, ecological collapse and permanent insecurity, or we organise to build something different. Capitalism will not collapse on its own, nor will it reform itself into justice. It must be confronted, resisted and replaced.

There is no technocratic fix for a system built on exploitation. There is only struggle, solidarity and the collective creation of a world where no one hoards while others go without. Extreme inequality is not an unfortunate outcome, it is capitalism working exactly as intended. Our task is to make it unworkable.

https://awsm.nz/a-world-of-plenty-organised-for-poverty/
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