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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

October 29, 2014 The rich also worry about the wealth gap

Source: CBS News

Two-thirds of millionaires are concerned about the level of economic inequality in America, according to a survey from PNC Wealth Management. The issue has increasingly set off alarm bells among economists and many in the middle...

October 24, 2014 Income Inequality Got You Down? Do Something About It!

Source: Huff Post

The wealthy continue to see significant income and wealth gains while the majority of people are experiencing stagnant living standards. Income inequality is one of the most significant financial stories right now, and there's no...

October 23, 2014 The Fed’s (Not So) New Role: Champion of the Working Class

Source: The Fiscal Times

Last week, Federal Reserve Chair Janet Yellen publicly picked up the income inequality banner that President Obama’s administration has largely dropped in the face of multiple global crises, including the situation in Ukraine,...

October 1, 2014 Education spending by affluent is widening wealth gap

Source: SF Gate

Wealthier parents have been stepping up education spending so aggressively that they’re widening the nation’s wealth gap. When the Great Recession struck in late 2007 and squeezed most family budgets, the top 10 percent of...

September 30, 2014 Forbes: World’s biggest billionaires have more billions than ever before

Source: Washington Post

The price of entry to The Forbes 400 this year is $1.55 billion, the highest it’s been since Forbes started tracking American wealth in 1982. Last year it took $1.3 billion to score a spot. Because the bar is so high, 113 U.S....

September 24, 2014 Age, not gender, leads new income gap

labour-reporter.com - According to a report â The Bucks Stop Here â released today by îthe Conference Boardî of Canada, income inequality between ... older workers that could threaten future economic...

September 19, 2014 Yellen says poor Americans live in ‘sobering’ conditions

Source: MarketWatch

WASHINGTON— The condition of lower-income families in America is “sobering” even as the economy recovers, Federal Reserve Chairwoman Janet Yellen said Thursday. “We have come far from the worst moments of the crisis and the...

September 18, 2014 Gap Between Manhattan’s Rich and Poor Is Greatest in U.S., Census Finds

Source: NY Times

Manhattan is becoming an island of extremes. The mean income of the top 5 percent of households in Manhattan soared 9 percent in 2013 over 2012, giving Manhattan the biggest dollar income gap of any county in the country,...

September 17, 2014 Poverty in U.S. falls for first time since before recession

Source: News Telegram

The U.S. poverty rate eased to 14.5 percent in 2013 from 15 percent in the prior year, the first decline since 2006, the year before the last recession began, according to Census Bureau data released Tuesday. The decrease came as...

September 15, 2014 US Wealth Gap Putting the Squeeze on State Revenue

Source: ABC News

Income inequality is taking a toll on state governments. The widening gap between the wealthiest Americans and everyone else has been matched by a slowdown in state tax revenue, according to a report being released Monday by...

Displaying results 41 to 50 out of 585

The Risk of Wealth and Income Gaps

 
 
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  • "But isn’t it income from all sources taxable including ill-gotten wealth and bribed money? If that’s… https://t.co/prNl4mn7I8 18:39
  • RT @capetownbrown: In 'Requiem for the American Dream,' Noam Chomsky brilliantly lays out 10 Principles of Concentration of Wealth and Powe… 18:37
    Jeanie Hebe
  • RT @capetownbrown: In 'Requiem for the American Dream,' Noam Chomsky brilliantly lays out 10 Principles of Concentration of Wealth and Powe… 18:35
    Sailor Muna⚓️
  • 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! 18:30
    الحساب محذوف
  • In 'Requiem for the American Dream,' Noam Chomsky brilliantly lays out 10 Principles of Concentration of Wealth and Power. 18:18
 
 
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