Income Inequality

"American inequality didn't just happen. It was created." Joseph E. Stiglitz

"Income inequality in America really is about oligarchs versus everyone else. When the Occupy Wall Street people talk about the 99 percent, they're actrually aiming too low." Paul Krugman

You can have wealth concentrated in the hands of a few, or democracy, but you cannot have both." - Louis Brandeis

The distributiion of wealth is not determined by nature. It is determined by public policy. Eric Schneiderman, New York State Attorney General

"Concentration of resources in the hands of the top one per cent depresses economic activity and makes life harder for everyone else - particularly those at the bottom of the economic ladder. Jeremy Hobbs, Executive Director of Oxfam

"on average middle class incomes have grown about three times as fast under Democratic Presidents, working poor incomes ten times as fast." Larry Bartels: The Partisan Political Economy.

"Throughout my twelve years in Congress, alarming figures about the economic stagnation of middle and lower income Americans were readily available. The figures are worse today. From 1979 to 2005 the top 1 percent of American earners received more than one-third of all gains in national income, and the top one-tenth of 1 percent recieved over one-fifth of all after-tax income gains during that period. By contrast, the bottom 60 percent received only 13.5 percent of all gains in national income. As Hacker and Pierson point ou in their Winner-Take-All Politics." Tom Allen: Dangerous Convictions.

"The richest 1 percent of Americans now take home almost 24 percent of income, up from almost 9 percent in 1976.  As Timothy Noah of slate noted in an excellent series on inequality, the United States now arguably has a more unequal distribution of wealth than traditional banana republics like Nicaragua, Venezuela, and Guyana. " Nicholas D. Kristof, New York Times 11/7/2010

Economists who say we should relegate questions about inequality to philosophers often advocate policies, like tax cuts for the wealthy, that increase inequality substantially. That greater inequality causes real harm is beyond doubt. Robert H. Frank, New York Times, 10/17/2010

"... high levels of inequality strain the bonds that hold us together as a society. There has been a long-term downward trend in the extent to which Americans trust either the government or one another. In the sixties, most Americans agreed with the proposition that “most people can be trusted”; today most disagree.’ In the sixties, most Americans believed that the government is run “for the benefit of all”; today, most believe that it’s run for “a few big interests.” And there’s convincing evidence that growing inequality is behind our growing cynicism, which is making the United States seem increasingly like a Latin American country. As the political scientists Eric Uslaner and Mitchell Brown point out (and support with extensive data), “In a world of haves and have-nots, those at either end of the economic spectrum have little reason to believe that ‘most people can be trusted’ . ..social trust rests on a foundation of economic equality.” Paul Krugman, The Conscience of a Liberal pg 251

Question to Stump Republicans

Piketty's New Class (7/1/2014)

The wealthiest get 20 more years of life in good health than the most deprived (3/14/2014)

A Note on Economic Growth (11/20/2013)

Inequality is a choice: Stiglitz (10/13/2013)

Ralph Nader on Income Inequality and the Minimum Wage (3/25/2013) C-SPAN video (43:)

The United States of Inequality (Bill Moyers 4/12/2013)

The Price of Inequality: Joseph Stiglitz (6/20/2012) See his Video (about an hour)

Free Market Outcomes are Not Fair and Not Free (12/2012)

Why The Economy can't get out of first gear: The Rich have sucked it dry : Reich (6/13/2012)

The American Dream is a myth: Stiglitz (6/5/2012)

Plutonomy and the Precariat

Inequality and Democratic Responsiveness

Oxfam Report


Concentration of wealth is a major cause of our difficulties and as it increased, which it undoubtedly has, we become less able to deal with our problems: Demand weakens, social mobility disappears, market volatility increases,  large amounts of money game the system, government becomes dysfunctional because it is hooked on campaign money. Democracy withers away. Plutocracy rules.

Large disparities in income are bad for democracy, bad for the general welfare, bad for the economy. They lead to social pathologies, inequity in the Courts, destroy domestic tranquility, suppress economic activity, and because we have ignored it, we are experiencing yet another economic collapse.

The US Congress creates the environment that breeds oligarchs, and is now run by oligarchs. Media moguls control pretty much everything broadcast. Bankers get unlimited amounts of taxpayer money without strings. The Congress often gets it wrong because it is money driven. Democracy withers when income disparities are extreme. We have a strong-man Presidency, but, thanks to the Supreme Court, Corporations rule, not the people.

Republicans ignore this problem because they are on the wealthy side of the class struggle. Their religious hypocrisy is on full display with their harsh policies for the poor. (See the Ryan budget.) The end result of relentless concentration is extreme inequality followed by financial collapse, in which everyone is a loser.

There is evidence that high levels of income inequality, as in the US, are highly correlated with corruption. (1, 2)Romney Hood

Republicans brought on the financial crisis with deregulation that allowed markets to go out of control, privatization that removed the public from the process, tax cuts that in effect directed massive public debt into deep private pockets (banana republic), civil service destruction and cronyism placed incompetents in public office;  regressive, anti-labor policies led to a general decline in consumption; a determination to build an empire for world domination requires unlimited budget for the military; a contempt for international law covered up illegal activities including torture, renditions, secret prisons;  Congress did no oversight during the Bush years; regulatory agencies were captives of the industries they were supposed to regulate; industry migrated to low wage countries and not much was done to mitigate the damage; but there was war enough for everyone. War is profitable, and in its chaos pallet loads of shrink wrapped money just disappeared. Civil liberties here in the good old US of A were cut down to size by chicken hawks who built the profitable national security state. PayGo left.

There is a relatively simple way damp down obscene compensation, to pay our bills (which we are not), to reduce inequality and to keep up our infrastructure, and that is to re-implement a stiff graduated income tax. Continue the estate tax to be sure that we do not create an aristocracy, and to break up extreme concentrations of wealth with a renewal of anti-trust oversight. Anti-trust should preserve competition.

The Constitution has an inherent warning about concentrated power, but it has little to say about private power. Anti-trust efforts faded away. We are seeing media that is too concentrated, banks that should be broken up, insurance companies that can kill health care reforms, oil companies that successfully deny climate change. We have allowed the military to become too large and it now threatens our civil liberties. You no longer have fourth or sixth amendment rights. When corporations run government, that is the very definition of fascism. Do we not have that ?

In 1929 inequality reached new heights, the market crashed, and there was widespread misery. It has happened again and we have not yet recovered. Worse, those banks that were too big to fail got bailed out by taxpayers. As Larry Lessig pointed out, this is the stupidest form of socialism ever invented.

Wide income inequality leads to market volatility, lack of demand, little competition among big corporations, widespread misery, anti-social behavior, environment devastating, corporate behavior.

Concentrated wealth becomes aristocracy when there is low social mobility. Wages go down, necessities become more expensive, education out of reach for most, and wealthy build gated communities to protect themselves from growing chaos.  Republican policy is hastening the process.

Many of the social pathologies are identified in The Spirit Level, Why Greater Equality Makes Societies Stronger:  Richard Wilkinson and Kate Pickett.

Through history, economic cycles are strongly correlated with levels of concentrated wealth. Economic turmoil can easily produce a fascist state as the Germans learned. The Bush family helped finance the Nazis. At the extreme, like Rome, we become an empire. We then need a standing military that is the direct cause of the loss of civil liberties, and ultimately results in a dictatorship...because representative government cannot deal with an empire. Since empire is ruinously expensive, people's standard of living must necessarily fall. Official activity must be carried out in secret. Media cannot reveal the truth.

In history, every empire collapses.

Why Greater Equality Makes Us Stronger

Residential Income Segregation in America (11/16/2011)

Ten Reasons to Care About Economic Inequality (10/24/2011)

New Study of Income Inequality (10/2011)

The More Inequality, the Less the Sustained Growth (9/16/2011)

Inequality Has Wrecked The Economy (9/5/2011)

Plutocracy Now

Look Out, Are You About to Join the White Underclass?
By Joe Bageant, JoeBageant.com
"We're starting to hear a little discussion about the white underclass... Mainly because so many middle class folks are terrified of falling into it." Read more »


“The American oligarchy spares no pains in promoting the belief that it does not exist, but the success of its disappearing act depends on equally strenuous efforts on the part of an American public anxious to believe in egalitarian fictions and unwilling to see what is hidden in plain sight.” — Michael Lind, To Have and to Have Not

What to do about inequality

Economic Recovery for the Few (8/1/2010)

Origins of the overclass

The Impact of Income Inequality

Too Much: A Commentary on Excess and Inequality

We are not in this together (4/11/2009)

This Is What the Class War Looks Like (3/24/2009)

Distributing Our Technological Inheritance: Gar Alperovitz

The Evidence

UN: Financial Inequality Rapidly Grows in US

A United Nations report has revealed major US cities, including New York, Washington, Atlanta and New Orleans, have levels of economic inequality that rival cities in Africa. The report found that the United States had the highest inequality and poverty after Mexico and Turkey, and the gap has increased rapidly since 2000. The life expectancy of African Americans in the United States is about the same as that of people living in China and some states of India. http://www.democracynow.org/2008/10/27/headlines#16

Steve Kangas on inequality in the Reagan Years

Video

Inequality for All

Joseph Stiglitz: The Price of Inequality (video ) 2012

The End of Poverty ? 2008. 105 minutes narrated by Martin Sheen. View it on-line.

Bibliography

"There are many other ways in which the government structures the market to redistribute income upward. Read my non-copyright protected book, The Conservative Nanny State: How the Wealthy Use the Government to Stay Rich and Get Richer to get more of the picture." Dean Baker (read it on line.)

The Price of Paradise: David Trout

Divided, the Perils of our Growing Inequality: Edited by David Cay Johnson

Winner Take All Politics: Jacob Hacker and Paul Pierson (!)

The divide : American injustice in the age of the wealth gap / Matt Taibbi

Divided: The Perils of Our New Inequality: David Cay Johnston

The Price of Inequality: Joseph E.Stiglitz

The Cost of Inequality: Stewart Lansley

The Great Divergence: Timothy Noah

99 to 1: Chuck Collins

Uneqal Democracy, the Political Economy of the New Gilded Age: Larry Bartels

The Spirit Level, Why Greater Equality Makes Societies Stronger: Richard Wilkinson and Kate Pickett

With Liberty and Justice for Some: Glenn Greenwald

Pinched: Don Peck

Ill Fares the Land: Tony Judt

Deer Hunting With Jesus: Dispatches From America's Class War: Joe Bageant (an excerpt)

Nickel and Dimed: On (Not) Getting By in America: Barbara Ehrenreich

THE WORKING CLASS MAJORITY America's Best Kept Secret: Michael Zweig

Unjust Deserts: Gar Alperovitz and Lew Daly

Retirement Insecurity: Edward N. Wolff

Politics of Rich and Poor: Kevin Phillips

Winner Take All Society: Robert Frank and Philip Cook

The Cost of Talent: Derek Bok

Boiling Point, Democrats, Republicans and the Decline of Middle Class Prosperity: Kevin Phillips

Obamanomics, How Bottom-Up Economic Prosperity Will Replace Trickle-Down Economics: John R. Talbott

A People's History of the United States: Howard Zinn

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