Stories Below come from our Media Partner 3BL Media - Click their logo or any of the stories for more information
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: firstname.lastname@example.org
Introduction: November 2011
Latest on The Risk of Wealth and Income Gaps
For the first time ever, the 10 highest-paid chief executives in the US received more than $100m in compensation last year, and two took home billion-dollar paychecks, according to a leading annual survey of executive pay.
October 22, 2013 Privatizing Profits, Socializing Losses—A Continuing SagaSource: Larry Checco
Washington DC -- As if we needed another example of how profits are privatized and losses socialized by corporations and top earners in this country. A recent study found that taxpayers are spending nearly US$7 billion a year to...
October 22, 2013 Humans Can Be Irrational, and Other Economic InsightsSource: NY Times
Alan Greenspan, the former Federal Reserve chairman, writes in his new book, “The Map and the Territory,” that he has been thinking about bubbles since the financial crisis of 2008. Specifically, he has been trying to understand...
October 16, 2013 Canada should eliminate its income equality gap, not its unions
Business in Vancouver - Ironically, îsocialî mobility is highest in the more equal countries. It is far easier to afford a university education in Norway than it is in the U.S. Like îthe conference boardî,...
October 16, 2013 Study: Fast-food workers rely on $7 billion in aidSource: SF Gate
The low wages paid to fast-food workers are costing taxpayers $7 billion a year in public assistance, according to a study released Tuesday by the UC Berkeley Labor Center. Full-time workers at such places as McDonald's and...
October 11, 2013 If You Think Wealth Disparity Is Bad Here, Look At RussiaSource: NPR
But while income inequality in this country may be growing, the U.S. has nothing on Russia, according to a new report by investment bank Credit Suisse. Russia, the bank says, has the highest rate of inequality in the world –...
October 10, 2013 Does income inequality stifle creativity?Source: MarketPlace.org
Musician David Byrne is the latest to weigh in on the widening wealth gap in the U.S. The author and frontman of the Talking Heads argued in an editorial for Creative Time Reports this week that New York City's creative spirit is...
October 9, 2013 Simplifying the Wealth GapSource: Colorlines
For the past four decades, wealth inequality has continued to divide Americans into two categories: the haves and have-nots. Race certainly matters—from 2004 to 2010, whites lost 1 percent of their wealth while Latinos lost 25...
October 7, 2013 Growing wealth gap opens gate to unrest: Our viewSource: USA Today
The impact of America's growing income inequality can be seen in protests, ranging from Occupy Wall Street in 2011 to the fast-food worker strikes this summer, and also in the changing political landscape where Democratic...
September 27, 2013 How America’s 401(k) Revolution Rewarded the Rich and Turned the Rest of Us Into Big LosersSource: San Diego Free Press
It was a bad idea from the get-go, but new research shows that America’s 401(k) revolution has left us even worse off than we thought. Here’s a look at how we got into this mess, and where it will take us if we don’t wise up.
The Risk of Wealth and Income Gaps
|HOME | ABOUT THE SITE | REGISTRATION INFORMATION | VOICES: FEATURED COMMENTATORS AND BLOGGERS | SPECIAL SECTIONS|