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 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.
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.
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!
- Hercule PoirotLv 49 years agoFavorite Answer
Yes. Rich getting richer.
And the GOP is responsible. The republiscums are puppets of the rich.
- TicToc....Lv 79 years ago
You are right about the tax rates under Reagan going from 70 to 28 percent, but as the rich got richer so did the middle class and the poor. Everyone was doing much better, even the government that set new tax collection records nearly doubling their take under much lower taxes.
So my point is that there is a dependent relationship on people getting richer. If the rich get richer everyone gets richer, however, if you distribute the money with increased taxes than the offset of producing a sluggish economy results in only the upper elite class benefiting and no one else.
- 9 years ago
The best way to keep the rich from becoming much richer than the poor is to adopt an economy like North Korea's and force poverty on everyone. That is what will happen if the United States government pretends it can charge higher taxes on an economy that many investors are already weary of due to anemic growth.
Everything you need to now about the gap between rich and poor can be found here:
- Anonymous9 years ago
Don't know about the accuracy of your graphs, but I do know that prior to 1970, the middle class could not afford multiple televisions, boats, motorhomes, 2 cars, or air travel. Seems to me like they're doing better as well.
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- gcbtradingLv 79 years ago
To look at charts and stats is to say you are going to float and see where the currents take you. You alone are responsible for your own prosperity. Stop sitting at the table waiting to be served, get up and get on with your repsonsibility.
- Anonymous9 years ago
The rich always have the means to defend against bad economic times.
As long as Obama is dragging us down, he's only ultimately hurting the poor.
- EntropyLv 79 years ago
TL;DR. The fact that the gap between rich and poor grows in capitalism is documented. This actually happens in every economic arrangement, but for some reason critics only like to point it out in capitalism.
What is often overlooked is that capitalism is the only system in which the wealth of the poor and middle class grows also...just not as quickly as that of the rich. In other economic arrangements ONLY the rich get richer.
So ask yourself which you would rather have, a system where everyone gets richer over time, but some get richer faster than you, or a system where your wealth stagnates or declines but the rich still get richer...only they get richer slower. Is it more important to you that your wealth grows, or that the rich's wealth grows less? How important is class jealousy to you?
- Anonymous9 years ago
We were warned long ago
"I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. . . . corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until all wealth is aggregated in a few hands and the Republic is destroyed. God grant my suspicions prove groundless"
- 9 years ago
"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."
Yeah, that makes sense. Make sacrifices. Give up productivity. Thats sure to make peoples lives better, right?
God you're dumb.
- sandplant16Lv 79 years ago
You answered your own question.
And to think that even in this environment the right refuses to even consider closing tax loopholes that benefit the wealthy, and are all in favor of lowering minimum wage, cutting medicare and SS.
It's incredible that they can get so many followers, such as the Tea Party middle class folk, who are practically begging for policies that hurt only themselves. "Please reduce my wages and my benefits, do not allow me to join a union and fight for higher pay, just take care of my heroes, the super rich!"