Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
Social Mood and Leaders Impact on General Election Forecast 2019 - 9th Dec 19
Long-term Potential for Gold Remains Strong! - 9th Dec 19
Stock and Financial Markets Review - 9th Dec 19
Labour / Tory Manifesto's Impact on UK General Election Seats Forecast 2019 - 9th Dec 19
Tory Seats Forecast 2019 General Election Based on UK House Prices Momentum Analysis - 9th Dec 19
Top Tory Marginal Seats at Risk of Loss to Labour and Lib Dems - Election 2019 - 9th Dec 19
UK House Prices Momentum Tory Seats Forecast General Election 2019 - 8th Dec 19
Why Labour is Set to Lose Sheffield Seats at General Election 2019 - 8th Dec 19
Gold and Silver Opportunity Here Is As Good As It Gets - 8th Dec 19
High Yield Bond and Transports Signal Gold Buy Signal - 8th Dec 19
Gold & Silver Stocks Belie CoT Caution - 8th Dec 19
Will Labour Government Spending Bankrupt Britain? UK Debt and Deficits - 7th Dec 19
Lib Dem Fake Tory Election Leaflets - Sheffield Hallam General Election 2019 - 7th Dec 19
You Should Be Buying Gold Stocks Now - 6th Dec 19
The End of Apple Has Begun - 6th Dec 19
How Much Crude Oil Do You Unknowingly Eat? - 6th Dec 19
Labour vs Tory Manifesto Voter Bribes Impact on UK General Election Forecast - 6th Dec 19
Gold Price Forecast – Has the Recovery Finished? - 6th Dec 19
Precious Metals Ratio Charts - 6th Dec 19
Climate Emergency vs Labour Tree Felling Councils Reality - Sheffield General Election 2019 - 6th Dec 19
What Fake UK Unemployment Statistics Predict for General Election Result 2019 - 6th Dec 19
What UK CPI, RPI and REAL INFLATION Predict for General Election Result 2019 - 5th Dec 19
Supply Crunch Coming as Silver Miners Scale Back - 5th Dec 19
Gold Will Not Surpass Its 1980 Peak - 5th Dec 19
UK House Prices Most Accurate Predictor of UK General Elections - 2019 - 5th Dec 19
7 Year Cycles Can Be Powerful And Gold Just Started One - 5th Dec 19
Lib Dems Winning Election Leaflets War Against Labour - Sheffield Hallam 2019 - 5th Dec 19
Do you like to venture out? Test yourself and see what we propose for you - 5th Dec 19
Great Ways To Make Money Over Time - 5th Dec 19
Calculating Your Personal Cost If Stock, Bond and House Prices Return To Average - 4th Dec 19
Will Labour Government Plant More Tree's than Council's Like Sheffield Fell? - 4th Dec 19
What the UK Economy GDP Growth Rate Predicts for General Election 2019 - 4th Dec 19
Gold, Silver and Stock Market Big Picture: Seat Belts Tightened - 4th Dec 19
Online Presence: What You Need to Know About What Others Know About You - 4th Dec 19
New Company Tip: How To Turn Prospects into Customers with CRM Tech - 4th Dec 19
About To Relive The 2007 US Housing Market Real Estate Crash Again? - 3rd Dec 19
How Far Will Gold Reach Before the Upcoming Reversal? - 3rd Dec 19
Is The Current Stock Market Rally A True Valuation Rally or Euphoria? - 3rd Dec 19
Why Shale Oil Not Viable at $45WTI Anymore, OPEC Can Dictate Price Again - 3rd Dec 19
Lib Dem Election Dodgy Leaflets - Sheffield Hallam Battle General Election 2019 - 3rd Dec 19
Land Rover Discovery Sport Brake Pads Uneven Wear Dash Warning Message at 2mm Mark - 3rd Dec 19
The Rise and Evolution of Bitcoin - 3rd Dec 19
Virtual games and sport, which has one related to the other - 3rd Dec 19
The Narrative About Gold is Changing Again - 2nd Dec 19
Stock Market Liquidity & Volume Diminish – What Next? - 2nd Dec 19
A Complete Guide To Finding The Best CFD Broker - 2nd Dec 19
See You On The Dark Side Of The Moon - 2nd Dec 19
Will Lib Dems Win Sheffield Hallam From Labour? General Election 2019 - 2nd Dec 19
Stock Market Where Are We?  - 1st Dec 19
Will Labour's Insane Manifesto Spending Plans Bankrupt Britain? - 1st Dec 19
Labour vs Tory Manifesto Debt Fuelled Voter Bribes Impact on UK General Election - 30th Nov 19
Growing Inequality Unrest Threatens Mining Industry - 30th Nov 19
Conspiracy Theories Are Killing This Nation - 30th Nov 19
How to Clip a Budgies / Parakeets Wings, Cut / Trim Bird's Flight Feathers - 30th Nov 19
Hidden Failure of SIFI Banks - 29th Nov 19
Use the “Ferrari Pattern” to Predictably Make 431% with IPOs - 29th Nov 19
Tax-Loss Selling Drives Down Gold and Silver Junior Stock Prices - 29th Nov 19
We Are on the Brink of the Second Great Depression - 29th Nov 19
How to Spot REAL Amazon Black Friday Bargains and Avoid FAKE Sales - 29th Nov 19

Market Oracle FREE Newsletter

UK House prices predicting general election result

America's Great Divide Between Rich and Poor

Politics / Social Issues Jan 23, 2012 - 06:54 AM GMT

By: Stephen_Lendman

Politics

Best Financial Markets Analysis ArticleIn 1962, Michael Harrington's "The Other America" exposed the nation's dark side, saying:

"In morality and in justice, every citizen should be committed to abolishing the other America, for it is intolerable that the richest nation in human history should allow such needless suffering."


"But more than that, if we solve the problem of the other America we will have learned how to solve the problems of all of America."

Jack Kennedy was concerned enough to ask Walter Heller, his Council of Economic Advisor chairman, to examine the problem.

In his January 8, 1964 State of the Union address, poverty levels also got Lyndon Johnson to say his administration "today, here and now, declares unconditional war on poverty in America."

In fact, he barely scratched it. However, he got Congress to enact measures helping America's poor.

Inequality then was severe. Today, it's unprecedented and growing. Wealthy elites are richer than ever. Census data show around half of US households impoverished or bordering on it.

In fact, government data consistently over-estimate good news and understate the bad. As a result, unprecedented numbers of US households are impoverished under protracted Main Street Depression conditions.

Political Washington's austerity harshness causes greater harm. Shocking bipartisan indifference to human need and suffering is criminal.

In the world's richest ever country, poverty is highest among industrialized nations. Homelessness and hunger levels are unprecedented. Over 20% of US families haven't enough money to buy food and need help.

Over half of US children need food stamps to eat. Tens of millions have no health insurance. Those with it pay double the cost in other developed nations. Policies enacted under Obama assure tougher times ahead.

Unemployment approaches record highs. Manipulated government data hide it. Those employed work longer for less. Home foreclosures and bankruptcies affect millions. Adjusted for inflation, median income's no higher than in the 1970s.

In their book titled, "Winner-Take-All Politics: How Washington Made the Rich Richer," Jacob Hacker and Paul Pierson explained how unprecedented wealth transfers to America's rich destroyed middle class households. It also deepened poverty and created a permanent underclass.

Last September, Forbes magazine's annual report on America's richest 400 showed net worth soaring to over $1.5 trillion, up 12% from 2010. At the same time, poverty and human need spiral higher.

Studies Show Shocking US Inequality

Last November, The New York Times headlined, "Middle-Class Areas Shrink as Income Gap Grows, New Report Shows," saying:

A Stanford University study titled, "Growth in the Residential Segregation of Families by Income, 1970 - 2009," said households living in middle income areas declined sharply since 1970. Rising income inequality left once better off ones mostly low-income or poor.

In fact, data through 2007 were examined before today's economic crisis began. Conditions now are much worse. Study author Sean Reardon said income shifts have far-reaching implications for future generations if present trends continue. Children are especially disadvantaged without access to good schools, preschool, child care, and support networks.

Former solid middle class areas are now low-income or poor. Income differences have profound effects. One example shows up on standardized test scores. The differential between rich and poor children is 40% greater than in 1970.

Moreover, the gap between rich and poor college completion (a key predictor of future success) is 50% greater than the 1990s. Over half of children from higher income families finish college compared to less than 10% of those in lower income households.

According to Harvard sociologist William Julius Wilson:

"Rising inequality" produces a "two-tiered society....in which the more affluent citizens live lives fundamentally different from middle and lower-income groups. This divide decreases a sense of community."

In October 2011, the Congressional Budget Office (CBO) published after-tax income data from 1979 - 2007, saying it grew:

275% for the top 1%;

65% for the next 19%;

less than 40% for next 60%; and

just 18% for the bottom 20%.

Data were adjusted for household size differentials. However, inflation adjusted measures weren't provided. They show far greater differences between rich and poor. According to Professor Paul Buchheit, America's top 1% tripled their after-tax income from 1980 - 2006, while the bottom 90% saw theirs drop over 20%.

"(O)ur economy," he said, "allows a tiny percentage of us to take an inordinate amount of money from society, at an increasing rate."

According to economists Emmanuel Saez and Thomas Piketty, America's income inequality was the highest in recorded history in 2007 before the current crisis began, and Census data way understate it.

One Dollar for Life/economics public school teacher Robert Freeman said "(b)etween 2002 and 2006, (an) astounding three-quarters of the economy's growth was captured by the top 1%."

In his January 2010 Common Dreams article, he said it had "70% of all financial assets," a record high. Moreover, the bottom 40% own nothing and have a combined zero net worth.

In December 2011, the Congressional Research Service (CRS) reported on income differentials from 1996 - 2006, saying inflation adjusted it grew 25%. However, averages obscure variations. America's poorest 20% saw income levels fall 6%, and if measured since 1979, it would have been much greater.

In contrast, top 1% earners saw incomes double from 1996 - 2006. Middle income ones experienced a 10% increase. In addition, income inequality as measured by the Gini coefficient increased 9% before taxes and 11% after-tax.

Capital gains and dividends most advantage richer Americans. Overall taxes in 2006 were less progressive than in 1996. Today, extremes are greater.

A 2011 Michael Norton/Dan Ariely study titled, "Building a Better America - One Wealth Quintile at a Time," showed most Americans vastly underestimate today's wealth disparities.

They believe the richest 20% control about 59% of the nation's wealth. It's about 84%, say the study authors. It fact, it's over 90%, perhaps well over.

A January 2012 Indiana University/School of Public and Environmental Affairs study titled, "At Risk: America's Poor During and After the Great Recession" discussed enormous growing problems facing the nation's least advantaged.

Protracted economic weakness "inflicted long-lasting damage to individuals, families, and communities," it said. It created a "near poor" and "new poor" underclass.

Long-term unemployment contributes greatly. Over four million Americans say they've been out of work over a year, the largest number since data collection began in 1948.

From 2006 - 2010, impoverished households increased 27% and keep rising. Young people and minorities between 18 and 34 have been hardest hit. Safety net protections are inadequate and eroding. Hard times getting harder affect greater numbers of people.

A Final Comment

Wrongheaded policies assure growing misery while America's rich never had it so good.

That's the dilemma voters face in an election year when neither party offers solutions. Instead, they assure growing wealth disparity, greater poverty, and human misery.

Only grassroots activism can change things. OWS protests show promise. Nothing will happen easily or quickly.

The mother of all social justice struggles continues. It better because growing inequality and human need are too intolerable to accept.

Organized people power works. Using it can beat organized money. If that's not incentive enough, what is?

By Stephen Lendman
http://sjlendman.blogspot.com

Stephen Lendman is a Research Associate of the Centre for Research on Globalization. He lives in Chicago and can be reached in Chicago at lendmanstephen@sbcglobal.net.

Also visit his blog site at sjlendman.blogspot.com and listen to The Global Research News Hour on RepublicBroadcasting.org Monday through Friday at 10AM US Central time for cutting-edge discussions with distinguished guests on world and national topics. All programs are archived for easy listening.

© 2012 Copyright Stephen Lendman - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


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


Comments

Virginia
29 Jan 12, 08:20
Income Inequality
As you correctly notice in the article, it is true that the difference in the financial structure of society becomes higher. Reason behind the steady increase in the income inequality can be paradoxically found in the fiscal measures intended to heal economy (and improve quality of our life, as often politicians explain). Yet, the regulations along with other public policies most often favor the wealthy. Together with the households being motivated to spend more, the incomes are only more and more divided, resulting to the further income imbalance.

Post Comment

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

6 Critical Money Making Rules