Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21
CISCO 2020 Dot com Bubble Stock vs 2021 Bubble Tech Stocks Warning Analysis - 6th Oct 21
Precious Metals Complex Searching for a Bottom - 6th Oct 21
FB, AMZN, NFLX, GOOG, AAPL and FANG+ '5 Waves' Speaks Volumes - 6th Oct 21
Budgies Flying Ability 10 Weeks After wings Clipped, Flight Feathers Cut Grow Back - 6th Oct 21
Why Silver Price Could Crash by 20%! - 5th Oct 21
Will China's Crackdown Send Bitcoin's Price Tumbling? - 5th Oct 21
Natural Gas News: Europe Lacks Supply, So It Turns to Asia - 5th Oct 21
Stock Market Correction: One More Spark to Light the Fire? - 5th Oct 21
Fractal Design Meshify S2, Best PC Case Review, Build Quality, Airflow etc. - 5th Oct 21
Chasing Value with Five More Biotech Stocks for the Long-run - 4th Oct 21
Gold’s Century - While stocks dominated headlines, gold quietly performed - 4th Oct 21
NASDAQ Stock Market Head-n-Shoulders Warns Of Market Weakness – Critical Topping Pattern - 4th Oct 21
US Dollar on plan, attended by the Gold/Silver ratio - 4th Oct 21
Aptorum Group - APM - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 3rd Oct 21
US Close to Hitting the Debt Ceiling: Gold Doesn’t Care - 3rd Oct 21
Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
Original Oculus VR HeadSet Rift Dev Kit v1 Before Facebook Bought Oculus - 3rd Oct 21
Microsoft Stock Valuation 2021 vs 2000 Bubble - Buy Sell or Hold Invest Analysis - 1st Oct 21
How to profit off the Acquisition spree in Fintech Stocks - 1st Oct 21
�� Halloween 2021 TESCO Shopping Before the Next Big Panic Buying! �� - 1st Oct 2
The Guide to Building a Design Portfolio Online - 1st Oct 21
BioDelivery Sciences International - BDSI - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 30th Sep 21
America’s Revolving-Door Politics Behind the Fall of US-Sino Ties - 30th Sep 21
Dovish to Hawkish Fed: Sounds Bearish for Gold - 30th Sep 21
Stock Market Gauntlet to the Fed - 30th Sep 21
Should you include ESG investments in your portfolio? - 30th Sep 21
Takeda - TAK - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 29th Sep 21
Stock Market Wishing Away Inflation - 29th Sep 21
Why Workers Are NOT Returning to Work as Lockdown's End - Wage Slaves Rebellion - 29th Sep 21
UK Fuel PANIC! Fighting at the Petrol Pumps! As Lemmings Create a New Crisis - 29th Sep 21
Gold Could See Tapering as Soon as November! - 29th Sep 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The Gilded Age of Bankers and Income Disparity

Politics / Social Issues Jan 06, 2012 - 10:30 AM GMT

By: Richard_Mills

Politics

Diamond Rated - Best Financial Markets Analysis ArticleAs a general rule, the most successful man in life is the man who has the best information

Between 1865 and 1898 the US economy grew at the fastest rate in its history with real wages, wealth, GDP, and capital formation all increasing rapidly:


  • Wheat production increased by 256%
  • Corn production increased by 222%
  • Coal production increased by 800%
  • Miles of railway track increased by 567% - railroad mileage tripled between 1860 and 1880 and had tripled again by 1920
  • American steel production surpassed the combined total of Britain, Germany, and France

There were several reasons why the US economy grew so fast in the period between the end of the Civil War and the turn of the century, among them were:

  • The opening of the Western frontier
  • The discovery of rich mineral resources
  • The increasing population
  • The ability to attract capital

A modern industrial economy based on a new national transportation and communication network was being created. By the beginning of the 20th century per capita income and industrial production in the United States exceeded that of any other country except Britain.

By 1906 the annual rate of US capital formation was running at $5 billion. This rapid expansion went hand in hand with the creation of enormous industrial and financial monopolies. In 1893 Drexel, Morgan & Company became J.P. Morgan & Company, America’s premier investment bank. By 1904, more than 1,800 companies had been consolidated into 93 corporations, a financial consolidation led by J. Pierpont Morgan.

J.P. Morgan created United States Steel in 1901 - the first American corporation with a capitalization exceeding one billion dollars. Morgan was also responsible for General Electric, International Harvester and the reorganization of American Telephone & Telegraph Company (AT&T).

The Mellon brothers - Andrew and Richard - were major stockholders in Gulf Oil Corporation and Aluminum Company of America. With an aggregate wealth exceeding one billion dollars before the stock market crash of 1929 they were the wealthiest bankers of the era.

Moses Taylor made himself a 40 million dollar fortune by building City Bank into New York's largest.

James Stillman built the assets of National City Bank to one billion dollars.

George Fisher Baker became the largest shareholder of First National Bank of New York (today known as Citicorp) and was head of the bank from 1877 until his death in 1930.

August Belmont was one of the most influential Jewish bankers in America and an agent of the Rothschilds.

The Seligmans established J & W Seligman & Company, an international banking house.

Founded by Abraham Kuhn and Solomon Loeb in 1867, Kuhn, Loeb & Co of New York was the largest and most influential of the American Jewish banking houses. Kuhn, Loeb & Company was related to the house of M.M. Warburg of Hamburg, Germany.

Gild - to cover with, or as if with a thin layer of gold, to give an often deceptively attractive or improved appearance to.

Mark Twain called the late nineteenth century the "Gilded Age” - meaning that the period was golden on the surface but underneath the thin veneer was a cesspool of greed and graft, shady business practices, scandal plagued politics and overt displays of upper class consumerism and materialism.

Mrs. Stuyvesant Fish threw a dinner party to honor her dog who wore a $15,000 diamond collar to the event. A lucky dog was sporting diamonds while 11 million of the nation's 12 million families earned less than $1200 per year in 1880 - their average annual income was $380 which was well below the poverty line.

Rural Americans had moved to the cities seeking jobs, new immigrants came into the country by the millions and joined them. Massive and filthy slums teeming with crime were the new home for millions of factory workers.

Government corruption was rampant and extended to the highest levels of government - ie President Ulysses S. Grant and his cabinet were implicated in the Credit Mobilier, the Gold Conspiracy, the Whiskey Ring, and the notorious Salary Grab.

Long hours and hazardous working conditions led many workers to form labor unions. On January 13, 1874 over 7,000 workers gathered in New York’s Tompkins Square Park - the largest demonstration that New York City had ever seen.

Roughly 1600 policemen were stationed in the surrounding area.

Shortly after 10 a.m., police entered the square and dispersed most of the crowd by brutally beating them with clubs. Other police on horseback cleared the surrounding streets.

Matthew Somerville Morgan, Frank Leslie’s Illustrated Newspaper,
 January 31, 1874—American Social History Project

"Mounted police charged the crowd on Eighth Street, riding them down and attacking men, women, and children without discrimination." Samuel Gompers, legendary labor leader

The Tompkins Square riot marked the beginning of an unprecedented era of labor conflict and violence. Workers frequently went on strike using their only bargaining power – their own labor. There were almost ten thousand strikes and lockouts in the 1880s with 700,000 workers striking in 1886 alone.

People feared a second Civil War - not North against South – but government against citizen. Labors unrest was just getting organized, the most violent labor conflicts in the nation's history were still on the horizon and the government was fully prepared to respond with force.

If we stop looking in the rear view mirror right here and fast forward to the future we’re struck by the many similarities to today’s present conditions.

We have at least equaled or exceeded the extremes of inequality achieved by our late 19th century predecessors. The comparisons between Twain’s Gilded Age and our present circumstances are numerous: crony capitalism and government, the mortgage and banking crisis, tax breaks, the creation of complex financial instruments, small factories and workshops closing, unemployment exploding, unemployed workers demonstrating, corruption, ostentatious spending, wage depression, massive urbanization and the use of police, armed force, to break up demonstrations.

But something stands head and shoulders above the rest - income disparity.

"For at least the last 30 years, it has been assumed by almost everyone — economists, politicians, civil servants — that if the finance industry is doing well, that must mean customers (and society more generally) were benefiting." The Civitas think-tank, You’re On Your Own

Unfortunately the United States is the most economically stratified society in the western world. As of 2008 the top .01 percent, or 14,000 American families hold 22.2 percent of the country’s wealth - the bottom 90 percent, or over 133 million families hold just four percent of the nation's wealth - collectively the top 300,000 Americans have almost as much income as the bottom 150 million.

The average pay per employee - which takes in secretaries, clerks, tellers and janitors - at the five biggest American banks last year was $336,000.

Below is the total compensation, for 2007, for some top bank executives whose banks received the first government aid monies given out through TARP.

Bank of America Kenneth D. Lewis Chairman and CEO $24.8 million

Citigroup Gary Crittenden Chief Financial Officer $19.4 million
Citigroup Charles Prince Former Chairman and CEO $15.1 million
 
Goldman Sachs Lloyd C. Blankfein Chairman and CEO $70.3 million
Goldman Sachs Gary D. Cohn President and Chief Operating Officer $72.5m
Goldman Sachs Jon Winkelried President and Chief Operating Officer $71.5m
Goldman Sachs David A. Viniar Chief Financial Officer $58.5 million
Goldman Sachs Edward C. Forst Chief Administrative Officer $49.1 million

JP Morgan Chase James Dimon Chairman and CEO $27.8 million
JP Morgan Chase Steven D. Black Co-CEO Investment Bank $20.9 million
JP Morgan Chase James E. Staley CEO Asset Management $16.7 million
JP Morgan Chase William T. Winters Co-CEO Investment Bank $21.2 million

Merrill Lynch John A. Thain Chief Executive Officer $17.3 million
Merrill Lynch Gregory J. Fleming President & Chief Operating Officer $27.4m
Merrill Lynch E. Stanley O’Neal Former Chief Executive Officer $24.3m
Merrill Lynch Dow Kim Former Executive Vice President  $14.5 million

Morgan Stanley Colm Kelleher Chief Financial Officer  $21 million
Morgan Stanley David H. Sidwell Former Chief Financial Officer $14.6 million
Morgan Stanley Robert W. Scully Co-President $15.2 million
Morgan Stanley Gary G. Lynch Chief Legal Officer $11.9 million

New York Mellon Bank Robert P. Kelly  Chief Executive Officer $20.1 million 
New York Mellon Bank Thomas A. Renyi  Executive Chairman  $22.2 million 
New York Mellon Bank Gerald L. Hassell President  $11.8 million 
New York Mellon Bank Steven G. Elliott  Senior Vice Chairman $19.7 million
New York Mellon Bank Ronald P. O'Hanley Vice Chairman $11.5 million

State Street Corp. Ronald E. Logue Chief Executive Officer $28.3 million
State Street Corp. Joseph L. Hooley Vice Chairman $10.3 million

Wells Fargo Richard M. Kovacevich Chairman $22.9 million
Wells Fargo John G. Stumpf President & Chief Executive Officer $12.6 million

aflcio.org

In 2010, the top 20% of Americans earned 49.4% of the nation’s income.

According to a AFL-CIO analysis of 299 companies in the S&P 500 Index CEOs of the largest companies received, on average, $11.4 million in total compensation for 2010. CEOs of the 299 companies in the AFL-CIO Executive PayWatch database received a combined total of $3.4 billion in pay in 2010, enough to support 102,325 jobs paying the median wages for all workers.

 aflcio.org

"Americans have the highest income inequality in the rich world and over the past 20–30 years Americans have also experienced the greatest increase in income inequality among rich nations. The more detailed the data we can use to observe this change, the more skewed the change appears to be ... the majority of large gains are indeed at the top of the distribution." Economist Timothy Smeeding, Social Science Quarterly

Income disparity, and Tompkins Square, should be on every ones radar screen, while history might not repeat exactly it certainly does rhyme. Are these issues on your radar screen?

If not, maybe it should be.

By Richard (Rick) Mills

www.aheadoftheherd.com

rick@aheadoftheherd.com

If you're interested in learning more about specific lithium juniors and the junior resource market in general please come and visit us at www.aheadoftheherd.com. Membership is free, no credit card or personal information is asked for.

Copyright © 2012 Richard (Rick) Mills - All Rights Reserved

Legal Notice / Disclaimer: This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Richard Mills has based this document on information obtained from sources he believes to be reliable but which has not been independently verified; Richard Mills makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Richard Mills only and are subject to change without notice. Richard Mills assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, I, Richard Mills, assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in