The Divide

The Divide: American Injustice in the Age of the Wealth Gap is a work of nonfiction by Matt Taibbi. Published in April 2014, it examines the rising poverty rate in America and how fraud by the rich is contributing to the ever-growing gap. The book was nominated for the 2014 Goodreads Choice Award for Nonfiction and is widely praised for its sharp insights and examination of the American judiciary system. Taibbi is an American journalist who writes frequently in the fields of global politics and finance.

Taibbi presents his main finding, which is the “Divide,” or “seam,” running through modern-day America. It’s this dividing line that causes Americans to either have basic rights or suffer injustice. Americans are firmly separated by whether they are poor or wealthy—there is no in-between. Taibbi then goes on to look at individual stories to support his thesis and explain why we need to address the gap before it grows any bigger.

The Divide begins with Taibbi’s analysis of the 2008 financial crisis, which begins in the United States. This crisis went on to affect the entire world; it can be blamed on revoking post-Depression laws combined with poor regulatory oversight. Taibbi considers the biggest failing of all to be the loss of the Glass-Steagall Act, which prohibited banks from doing whatever they wanted to make money. With the Act gone, insufficient control is exercised over financial institutions. This causes chaos, of which we’re now feeling the effects.



Taibbi then goes on to look at the injustices committed by the wealthy, and those who benefit from this lack of control. In 2013, Taibbi attends a trial, which is one of the first of its kind—the prosecution of a bank. However, it’s not one of the sprawling financial institutions on trial, but a very small local bank. It’s taken to task—as far as Taibbi’s concerned—for the crimes of all banks like it.

What stands out about this trial is not only the size of the bank but those who run it. They’re mainly Chinese immigrants, and they’re treated poorly, particularly in front of the press. It seems they’re to bear the brunt of public anger over many things, but especially concerning the financial collapse. They’re made scapegoats, and it’s one of the clearest examples of penalizing the poor and depriving them of dignity when the mega-rich walk free and unscathed.

Essentially, by having trials like this, Taibbi says everyone in positions of power gets what he wants. The government can say it’s tackling crime, as can law enforcement, and the journalists can get their big news story. What’s missing from all of this is a common sense of decency towards those who can’t defend themselves—this is only one such story from Taibbi’s work.



The Divide shows how the American justice system focuses on “easy targets,” or those with no means to speak up or pay for expensive lawyers; for example, grabbing and arresting rough sleepers and charging them for the smallest of offenses, while ignoring what’s really going on inside American elite circles.

What’s startling is how, before 2008, many of the crimes committed on Wall Street were not technically crimes at the time. Although reprehensible, there’s no law being breached. It’s only after the collapse that laws come into play, but these aren’t retrospective so earlier crimes can’t be punished by them. The regulators responsible for policing these financial heavyweights don’t—instead, they turn a blind eye to keep investors and other financiers happy.

What’s especially alarming is how this culture of non-punishment for certain groups means they continue to do as they please because they know no harm comes to them. Even if they do end up in court, all they do is pay fines, which are effectively paid for by all the shareholders, anyway. They tell the press and regulators that they can’t afford to account for all their crimes because too many people then lose their jobs—which is effectively manipulating the state.



Ordinary citizens, on the other hand, particularly from marginalized backgrounds, pay the price and are held to account for even minor offenses. They struggle to receive healthcare and welfare, and they are made to feel terrible for even trying. They’re made to feel they’re to blame for the financial crisis because they keep “taking.”

All of this goes to show that there are two justice systems in play, and how you’re treated depends on which one you can look to for help. At its core, The Divide shows that money has reshaped America and turned it into something that stands against its founding ideals. Taibbi doesn’t make suggestions, as such, for how to resolve this—rather, he wants us to understand just how deep-rooted the problem is and start challenging it.