What's happening to the distribution of wealth in America? Rich getting richer?

You can see it on this graph below. The Median income, 50 percentile has stayed relatively constant from 1970 until now, and this means in real dollars adjusting for inflation, the median income has gone DOWNHILL since 1970. The richest 1% have gotten richer, much richer. A lot of this change in the... show more You can see it on this graph below. The Median income, 50 percentile has stayed relatively constant from 1970 until now, and this means in real dollars adjusting for inflation, the median income has gone DOWNHILL since 1970.

The richest 1% have gotten richer, much richer. A lot of this change in the distribution of wealth has been a result of Reaganomics and Bush Sr. Economics of reducing the highest income tax bracket to just 28% from like 70%.

This has resulted in the mass corporatization of American industry, away from family-sized to Larger and larger corporates. In the name of large corporations doing everything for you, a HUGE slice of American jobs went away.
Then in the 90s to make things worse, the new seized power of this large corporate elite, with more control over US economic output, in hands of fewer people, outsourced allll the jobs in a lump sum to Chinese labor.

Then George W. Bush complicated things even more with the taxcuts and the war.

Obama's action haven't helped reshape the distribution of wealth because all that has been done is borrowed money has been handed out to people.... and taxes have remained low on the wealthy same as during Bush. The end result is we are in trouble..

What needs to happen is we need to make some sacrifices as a country. We need to give up some of what the stock market reports as productivity if it means restoring the balance of power back to working families. Because the value of the stock market right now is not reflective of American economy, but foreign labor supporting elites in US Corporations. With this said, we need to look at real American indicators of our economy and not focus on what the stock market will do.... if we bring jobs back home and get our working people working again.

http://www.google.com/imgres?q=distribution+of+wealth+graph+america&um=1&hl=en&sa=N&tbm=isch&tbnid=1PxzpZaYag1azM:&imgrefurl=http://visualizingeconomics.com/2007/06/15/nytimes-calculating-americas-wealth/&docid=ol2FvzPLAHcVXM&w=712&h=514&ei=YlEsTtPoL6Pv0gHDornkDg&zoom=1&iact=hc&vpx=154&vpy=145&dur=6724&hovh=191&hovw=264&tx=158&ty=155&page=1&tbnh=151&tbnw=207&start=0&ndsp=8&ved=1t:429,r:4,s:0&biw=1088&bih=457
Update: We also need to consider reforming NAFTA and World Trade Organization terms because if we are truly a soverign nation, these things can't waive our rights to choose how we want to price our imports.
Update 2: Edit to Entropy: 1) It is NOT a capitalist notion that large corporations buy out small businesses. There is macro-economic policy to correct certain flaws in unfair game play, and we saw this with anti-monopoly laws in the early 20th century very quickly following the industrial revolution. This does lead to... show more Edit to Entropy:

1) It is NOT a capitalist notion that large corporations buy out small businesses. There is macro-economic policy to correct certain flaws in unfair game play, and we saw this with anti-monopoly laws in the early 20th century very quickly following the industrial revolution. This does lead to rich getting richer faster.... and poor actually getting POORER, not richer at all! Many modern-day Conservatives are ignorant of this.

2) The poor getting richer as the rich get richer faster only holds true when the top producing companies invest in 1) Their own people and 2) Technological innovation. When outsourcing is the name of the game, then that incremental wealth you speak of that the poor get when the rich get richer faster... is the wealth going to the Chinese, not to Americans at home!

22 answers 22