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The Risk of Wealth and Income Gaps

The American Income and Wealth Gap

The issues and events represented in the broadening public discussions about “wealth and income disparities” or the “wealth divide” or the “1% and the 99%” are certainly top-of-mind for many people as we created this Hot Topic in October 2011.  These are certainly not new issues, but for many Americans the Great Recession is intensifying some of the troubling aspects of income inequality and certainly the obvious wealth inequality in the USA today.

 The essence of the American Dream has been about the assurance of equal access to quality education, the enjoyment of a good income (“living wages”), access to affordable healthcare, and the means to acquire a home of one’s own.

These have been the traditional pathways to building personal and family wealth at least since years of the Great Depression. In the “Era of Prosperity,” after World War II, the American middle class emerged in great numbers.  Thanks to equal access to credit and capital, steadily increasing wage levels for workers, and reasonably-priced housing and durable goods, attaining higher levels of education, among other things, each generation could expect to be better off than the previous.  Until now. What most Americans believed to be “financial fairness” for a rising middle class has been fading away since the financial sector crisis of 2008-2009, if not in reality, than in the perceptions of many people.

In contrast, the 1947 to 1975 years, as author Robert Reich points out in his book, “Aftershock,” was an era when the benefits of economic growth were more broadly shared.  But since 1975, the economic gains have been steadily concentrated in the upper income and wealth regions of the US economy, and the middle-class and lower income earners have been missing out on the dividends paid by (among other things) the end of the Cold War and the onset of globalization that followed.

Unemployment is stuck at the 9% level; and, many Americans are under-employed, working two jobs, or out of work for so long that they have given up on finding a job.  Which leads to more financial stress on millions of families.

As the former Secretary of Labor writes, “None of us can thrive in a nation divided between small number of people receiving an ever larger share of the nation’s income and wealth and everyone else receiving a declining share…”  We agree.

Real opportunity and access – and not that portrayed today by certain pandering politicos – has been slipping away for millions of Americans. The Capitol Hill rhetoric does not square with the facts on the ground --  the statistics and facts and consumer surveys paint a different picture, first in the facts, and more recently, in the perceptions held by many Americans.

Not About Wealth Re-Distribution

This reality of diminishing economic returns is not about income or wealth re-distribution, or pursuing socialist or left-leaning political ideologies or policies, or schemes to tax the rich.  This is about both the reality and perception of financial fairness and equity, and equal access to economic opportunity, which many middle-class and low-to-moderate income earners now believe is no longer the American Dream for them.  This is a potentially dangerous social condition and one that our policymakers – or the fortunate affluent and wealthy -- should not ignore. 

As this introduction is prepared, the Occupy Wall Street protests are in their third month, with hundreds of other cities and communities seeing demonstrations on their main streets.  The protests so far have been peaceful and civil if not raucous at times. 

The movement has spread to other countries.  Earlier in 2011, citizen protests were staged in the Middle East – in the Arab Spring, young and old protested against repressive government policies and the lack of economic opportunity for the masses in Tunisia, Libya, Egypt, Bahrain, and Syria. A major part of the complaints: lack of jobs, and lack of or unequal opportunity  in terms of income and wealth-building, as well as the desire for more democratic rule.

There is now abundant news & commentary about the income and wealth divide in the United States, as well as a growing gap between rich and poor in many other countries.  We are bringing you the highlights of this issue in this Hot Topic, because we believe that everyone should be tuned in to this critical social issue, which threatens the well-being of the nation, and individuals in all socio-economic categories.  The solutions are not easy, or simple, or something government can prescribe.  All Americans have to address the issues – and some of us will have to give a little to get back on track. 

We cannot afford to lose the Millennial Generation (born 1975-2000) – the young people who seek the opportunities that their parents and grandparents enjoyed.

The editors have been focused on the issues surrounding the income and wealth divide for some time – this Hot Topic is being added to Accountability Central as the issues continue to gain momentum.  We will be offering commentary in a running series, “The Divide – Danger Ahead.”

We welcome your comments – send to: info@accountability-central.com

 

 

Introduction: November 2011

 

 


Latest on The Risk of Wealth and Income Gaps

August 11, 2014 S&P: Wealth gap slowing US recovery

Source: Fort Wayne.com

WASHINGTON – Economists have long argued that a rising wealth gap has complicated the U.S. rebound from the recession. Now, an analysis by the rating agency Standard & Poor's lends its weight to the argument: The widening gap...

August 5, 2014 Rating agency S&P finds wealth gap is contributing to a slower US recovery

Source: Fox News

WASHINGTON – Economists have long argued that a rising wealth gap has complicated the U.S. rebound from the Great Recession. Now, an analysis by the rating agency Standard & Poor's lends its weight to the argument: The widening...

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With traditional pensions becoming rarer in the private sector, and lower-paid workers less likely to have access to an employer-provided retirement plan, there is a growing gulf in the retirement savings of the wealthy and...

July 30, 2014 Sage Foundation: Wealth "Inequality" Will Continue to Worsen

Source: Tge New American

In another so-called research study about wealth inequality, the liberal think-tank Sage Foundation said in June that while the super-rich have fully recovered from the Great Recession, the vast majority of Americans have not....

July 23, 2014 USA: the wealth gap widens

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The gulf between rich and poor is widening in the USA, with inherited wealth concentrated in ever fewer hands. Tax measures are needed to help redress the balance. In a new Pew opinion poll, more than three quarters of...

July 15, 2014 Top 1 Percent Is Even Richer Than Surveys Say, ECB Paper Finds

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The oft-cited line that the top 1 percent of U.S. households lay claim to 30 percent of all wealth is probably an understatement, according to a European Central Bank working paper. Incorporating “missed” data on rich households...

July 14, 2014 This Billionaire Gets It! - text/video

Source: Larry Checco, featured commentator

Billionaire Nick Hanauer makes more sense in a 5-minute TED Talk video—which, BTW, was apparently temporarily banned by TED Talk execs—than any supply-side economist has in decades (see video below). Hanauer earned his money the...[more]

July 2, 2014 Wealth gap solutions put Californians at odds

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California residents don't need to be convinced there's a worrisome income gap between the rich and poor that's getting wider, but there's plenty of argument about whether the government should get involved in trying to close the...

June 27, 2014 Wealth inequality doubles among US households: Study

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Wealth inequality among US households roughly doubled between 2003 and 2013, according to a new analysis by University of Michigan researchers

June 26, 2014 IKEA Is Going to Raise Minimum Wages in All its U.S. Stores

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IKEA, the world’s largest furniture retailer, plans to raise the minimum wage in all of its U.S. stores by using MIT’s Living Wage Calculator, which estimates the base pay needed to survive in a particular city – a move that...

Displaying results 21 to 30 out of 548

The Risk of Wealth and Income Gaps

 
 
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  • On the Last Day, we will be asked about our wealth and how we earned it; so let’s strive to keep our income pure! 19:37
  • On the Last Day, we will be asked about our wealth and how we earned it; so let’s strive to keep our income pure! 19:36
  • On the Last Day, we will be asked about our wealth and how we earned it; so let’s strive to keep our income pure! 19:35
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  • African American wealth and poverty, celebrities and business people http://t.co/kOyciZkQYE 19:35
  • African American wealth and poverty, celebrities and business people http://t.co/SCGYn7l8Bs 19:35
 
 
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