Tag Archives: Wealth inequality

Study: The wealthiest 1 percent of American households own 40 percent of the country’s wealth

Those GOP plutocrat campaign donors really need their tax cuts (not). Christopher Ingraham reports,  The richest 1 percent now owns more of the country’s wealth than at any time in the past 50 years:

The wealthiest 1 percent of American households own 40 percent of the country’s wealth, according to a new paper by economist Edward N. Wolff. That share is higher than it has been at any point since at least 1962, according to Wolff’s data, which comes from the federal Survey of Consumer Finances.

From 2013, the share of wealth owned by the 1 percent shot up by nearly three percentage points. Wealth owned by the bottom 90 percent, meanwhile, fell over the same period. Today, the top 1 percent of households own more wealth than the bottom 90 percent combined. That gap, between the ultrawealthy and everyone else, has only become wider in the past several decades.

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A lesson from history on the failure of GOP ‘trickle down’ economics

Republicans control the White House, both chambers of Congress, the tilt of the Supreme Court, more state legislative chambers than any time in history, and more governor’s offices than they have held in nearly a century. Republicans Expand Control in a Deeply Divided Nation.

This is the GOP’s high-water mark since 1929 — just before the Great Depression that GOP laissez faire economic policies brought about.

Historian Robert S. McElvaine, the author of “The Great Depression: America, 1929-1941,” warns at the Washington Post, I’m a Depression historian. The GOP tax bill is straight out of 1929.

“There are two ideas of government,” William Jennings Bryan declared in his 1896 “Cross of Gold” speech. “There are those who believe that if you will only legislate to make the well-to-do prosperous their prosperity will leak through on those below. The Democratic idea, however, has been that if you legislate to make the masses prosperous their prosperity will find its way up through every class which rests upon them.”

That was more than three decades before the collapse of the economy in 1929. The crash followed a decade of Republican control of the federal government during which trickle-down policies, including massive tax cuts for the rich, produced the greatest concentration of income in the accounts of the richest 0.01 percent at any time between World War I and 2007 (when trickle-down economics, tax cuts for the hyper-rich, and deregulation again resulted in another economic collapse).

Yet the plain fact that the trickle-down approach has never worked leaves Republicans unfazed. The GOP has been singing from the Market-is-God hymnal for well over a century, telling us that deregulation, tax cuts for the rich, and the concentration of ever more wealth in the bloated accounts of the richest people will result in prosperity for the rest of us. The party is now trying to pass a scam that throws a few crumbs to the middle class (temporarily — millions of middle-class Americans will soon see a tax hike if the bill is enacted) while heaping benefits on the super-rich, multiplying the national debt and endangering the American economy.

As a historian of the Great Depression, I can say: I’ve seen this show before.

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The Festering Wound

Cross-posted from RestoreReason.com.

First, let me be absolutely clear. I will applaud any modicum of success Donald Trump realizes as POTUS. It’s currently hard to envision, but if it does happen, I will give credit where credit is due. My bottom line is that I want our country to succeed and flourish.

Second, although I didn’t vote for him, I don’t believe President Trump is the worst threat to our democracy. He is just the most visible symptom…the metaphorical “pus” that oozes from the infected wound. Yes, part of reason he was elected is that middle America is tired of being ignored and wants change. I get that. I wish our system had offered them better choices. But, he was also propelled to victory because of the “bacteria” of racism and hatred, fed by the “talking heads” and Internet content of questionable veracity. Over time, this bacteria infected the wound, generating the “pus” which indicated a problem. Continue reading

Wealth inequality is distorting how Americans think about the problem

monopolybOne of the right-wing talking points I see pop up with more frequency is the use of “liberal envy” of the wealthy elite Plutocrats who rule over us as the reason for issues like income and wealth inequality.

Liberals are just “envious” of the über-rich top one-percent and that is why they want to tax the rich more, so we are told.

This talking point only makes sense if one is a member of the privileged one percent. It’s a safe bet that most, if not all of you, are not.

Neil Irwin, who was a Washington Post columnist and the economics editor of its “Wonkblog” before moving over to The New York Times as a senior economic correspondent and writing for “The Upshot” column a year ago, recently wrote Why Americans Don’t Want to Soak the Rich:

With rising income inequality in the United States, you might expect more and more people to conclude that it’s time to soak the rich. Here’s a puzzle, though: Over the last several decades, close to the opposite has happened.

Since the 1970s, middle-class incomes have been stagnant in inflation-adjusted terms, while the wealthy have done very well; inequality of wealth and income has risen.

Over that same period, though, Americans’ views on whether the government should work to redistribute income — to tax the rich, for example, and funnel the proceeds to the poor and working class — have, depending on which survey answers you look at, either been little changed, or shifted toward greater skepticism about redistribution.

In other words, Americans’ desire to soak the rich has diminished even as the rich have more wealth available that could, theoretically, be soaked.

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President Obama to call on Congress to raise taxes on the wealthiest taxpayers and the largest financial firms

In his State of the Union Address on Tuesday night, President Obama Will Seek to Raise Taxes on Wealthy to Finance Cuts for Middle Class:

monopolybPresident Obama will use his State of the Union address to call on Congress to raise taxes and fees on the wealthiest taxpayers and the largest financial firms to finance an array of tax cuts for the middle class, pressing to reshape the tax code to help working families, administration officials said on Saturday.

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The president’s plan would raise $320 billion over the next decade, while adding new provisions cutting taxes by $175 billion over the same period. The revenue generated would also cover an initiative Mr. Obama announced this month, offering some students two years of tuition-free community college, which the White House has said would cost $60 billion over 10 years.

The centerpiece of the plan, described by administration officials on the condition of anonymity ahead of the president’s speech, would eliminate what Mr. Obama’s advisers call the “trust-fund loophole,” a provision governing inherited assets that shields hundreds of billions of dollars from taxation each year. The plan would also increase the top capital-gains tax rate, to 28 percent from 23.8 percent, for couples with incomes above $500,000 annually.

Those changes and a new fee on banks with assets over $50 billion would be used to finance a set of tax breaks for middle-income earners, including a $500 credit for families in which both spouses work; increased child care and education credits; and incentives to save for retirement.

Here is the White House Fact Sheet (.pdf) released on Saturday.

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The richest 1% will own more than 50% of the world’s wealth by 2016

The combined wealth of the richest 1 percent will overtake that of the other 99 percent of people by 2016 according to a report issued by the Oxfam Foundation today. Richest 1% will own more than all the rest by 2016:

The combined wealth of the richest 1 percent will overtake that of the other 99 percent of people next year unless the current trend of rising inequality is checked, Oxfam warned today ahead of the annual World Economic Forum meeting in Davos.

The international agency, whose executive director Winnie Byanyima will co-chair the Davos event, warned that the explosion in inequality is holding back the fight against global poverty at a time when 1 in 9 people do not have enough to eat and more than a billion people still live on less than $1.25-a-day.

Byanyima will use her position at Davos to call for urgent action to stem this rising tide of inequality, starting with a crackdown on tax dodging by corporations, and to push for progress towards a global deal on climate change.

top-1-percentWealth: Having It All and Wanting More, a research paper published today by Oxfam, shows that the richest 1 percent have seen their share of global wealth increase from 44 percent in 2009 to 48 percent in 2014 and at this rate will be more than 50 percent in 2016. Members of this global elite had an average wealth of $2.7 million per adult in 2014.

Of the remaining 52 percent of global wealth, almost all (46 percent) is owned by the rest of the richest fifth of the world’s population. The other 80 percent share just 5.5 percent and had an average wealth of $3,851 per adult – that’s 1/700th of the average wealth of the 1 percent.

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