Economic inequality

Put A Pitchfork In It

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“In the past 30 years, power elites (including you) drastically increased your share of America’s income by taking income from the middle class and the poor. Did you think we wouldn’t notice?” J Hightower

jimHightowerLloyd Blankfein is very concerned about income inequality. With his face reflecting both worry and perplexity, he recently called inequality “very destabilizing.”

Blankfein’s concern doesn’t come from the perspective of one experiencing inequality from the bottom of the income ladder — he’s certainly not an Occupy Wall Street sort of guy. In fact, he basically is Wall Street.

Having amassed a personal fortune of nearly half-a-billion bucks during his years at Goldman, he’s literally become a gold man. But in a June 13 CBS interview, Blankfein wrinkled his brow and uttered a very un-Wall Street, populist-like thought: “Too much of the (wealth) of the country has gone to too few people,” he said, adding that when that happens, “you’ll have an unstable society.”As the big banana at the financial gambling house Goldman Sachs, Blankfein raked in a stunning $23 million for his wheeling and dealing last year. Under his leadership, the bank grabbed a $13 billion bailout from us taxpayers in 2008. Continue reading →

The Purchase Of Our Republic

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“This massive consolidation of wealth, combined with the removal of any limits on money in campaigns, has allowed for the purchase of our government, or as Dick Durban once stated, “frankly they [the banks in this case] own the place”. If money = free speech, then those with all the money, have all the free speech.”

Americans know that something is wrong, deeply wrong. They see signs of the problem everywhere: income inequality, growing concentration and power of mega corporations, political donations/corruption, the absence of jobs with decent salaries, the explosion of the US prison population, healthcare costs, student loan debt, homelessness, etc. etc.

However, the true causes and benefactors behind these problems are purposely hidden from view. What Americans see is Kabuki Theater of a functioning form of capitalism and democracy, but beyond this veneer our country has devolved into the exact opposite.

Those who benefit from this crony capitalist state go to extreme lengths to paper over the reality and convince Americans that the system works, the American Dream is still a reality and that American democracy is in fact democratic.

Below I hope to begin to outline some of the underlying dynamics and trends that have evolved in recent decades and led us so far from what we once were. As fun as it would be, the answer is not some evil conspiracy by the Illuminati, but rather the unfortunate result of three long term and mutually reinforcing components that have been attacking the fundamental roots of the structure of our Republic.

The first is the increased concentration of corporate and private wealth. Both of which are quickly yelled down in the media as anti-free market and class war hysteria.

WealthInequalityInAmerica1The second is the use of this wealth to capture all three branches of government in order to ensure the continued extraction of capital from the many and to the few.The rich might have climbed the ladder because they earned it, but they have then purchased government to pull up the ladder behind them.

The consequence of the first two components is a democracy in name only that represents the very few.
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Want To Fix Income/Wealth Inequality? Here’s How

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OfTwoMinds  April 30 2014

CharlesHughSmithThere is nothing fancy about these three solutions.

I have covered rising income/wealth inequality for many years in dozens of entries. Since Thomas Piketty’s new book has catapulted the topic into the media spotlight, it’s a good time to list solutions that go deeper than Piketty’s proposed global wealth tax–a proposal he characterizes as utopian.

Every solution is utopian, because the Financial Aristocracy and their central bank cronies have democracy by the throat. There is no legislative way to change the Status Quo when political power is for sale to the highest bidder, and central banks are issuing nearly-free money to the financial oligarchy that owns the political machinery.

But listing solutions is still important, because it reveals just how far from democracy, rule of law and free-market capitalism we have fallen. I have been describing various aspects of widening inequality in recent entries:

I propose three straightforward solutions that will systemically rectify wealth and income inequality.

1. Rather than add taxes to fund more social welfare–in effect, placing a Band-Aid over the tumor–let’s start by removing the source of rising inequality: the Federal Reserve.

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America’s Economic Dark Side

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Steve Lendman October 21 2013

Economic inequality

Former Clinton administration Labor Secretary Robert Reich explained, saying:

“Of all developed nations, the United States has the most unequal distribution of income, and we’re surging towards every greater inequality.”

America’s 400 richest elites have more wealth than half the population. Jacob Kornbluth’s new documentary film “Inequality for All” examines disturbing truths.

US inequality is at historic highs. Since 1970, America’s economy doubled. The top 1% benefitted hugely. They earn more than 20% of national income. It’s triple their 1970 percentage.

The gap between rich and all others keeps widening. Inequality hurts everyone, says Reich. Since economic recovery began in 2009, America’s top 1% got 95% of the gains.

Adjusted for inflation, median household income keeps declining. Where will most people “get the money they need to keep the economy going,” asked Reich?

“We’re the richest economy in the history of the world. For the majority of Americans not to get the benefits of this extraordinarily prosperous economy, you know, there’s something fundamentally wrong.”

America has less upward mobility than any other developed country. If you’re poor, you’ll stay that way.

If you’re lower middle class, “the cards are going to be stacked against you. You will probably never get anywhere,” says Reich.

“Who is actually looking out for the American worker? The answer is nobody.”

The nation is headed toward becoming a “100 percent plutocracy.” Inequality this extreme fuels public anger. It hurts economic growth. Force-fed austerity assures worse ahead.

Continue reading →