Tag Archives | Inequality

American Wealth Gap Climbs To New Record

Income inequality in the United States continues to surge, with the wealth of upper-income households rising to nearly seven times that of middle-class ones, reports the Los Angeles Times:

The wealth gap between middle- and upper-income households has widened to the highest level on record, says a new report.

Using the latest Federal Reserve data, the Pew Research Center said Wednesday that the median wealth for high-income families was $639,400 last year — up 7% from three years earlier on an inflation-adjusted basis.

For middle-income families, the median wealth — that is, assets minus debts — stood at $96,500 last year, unchanged from 2010.

The result is that the typical wealth of the nation’s upper-income households last year was nearly seven times that of middle-class ones. By Pew’s calculations, that is the biggest gap in the 30 years that the Fed has been collecting statistics from its Survey of Consumer Finances.

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Poor kids who do everything right don’t do better than rich kids who do everything wrong

Photo: Brookie (CC)

Photo: Brookie (CC)

Following on the heels of its story that sex is only for rich people, the Washington Post now claims that rich kids can do everything wrong and still beat conscientious poor kids:

America is the land of opportunity, just for some more than others.

That’s because, in large part, inequality starts in the crib. Rich parents can afford to spend more time and money on their kids, and that gap has only grown the past few decades. Indeed, economists Greg Duncan and Richard Murnane calculate that, between 1972 and 2006, high-income parents increased their spending on “enrichment activities” for their children by 151 percent in inflation-adjusted terms, compared to 57 percent for low-income parents.

But, of course, it’s not just a matter of dollars and cents. It’s also a matter of letters and words. Affluent parents talk to their kids three more hours a week on average than poor parents, which is critical during a child’s formative early years.

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Zeitgeist’s Peter Joseph on Wealth Illusion, Structural Violence & Hope for Survival

Abby Martin interviews the creator of the Zeitgeist Movement, Peter Joseph, covering everything from the upcoming Zeitgeist Festival in Los Angeles on October 4th to economic and societal solutions to global problems ranging from environmental destruction to mass inequality.
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Inequality in America: The Food Gap Between Rich and Poor

Wealthy people are eating better than ever, while the poor are eating worse, reports James Hamblin for The Atlantic:

Nutritional disparities between America’s rich and poor are growing, despite efforts to provide higher-quality food to people who most need it. So says a large study just released from the Harvard School of Public Health that examined eating habits of 29,124 Americans over the past decade. Diet quality has improved among people of high socioeconomic status but deteriorated among those at the other end of the spectrum. The gap between the two groups doubled between 2000 and 2010. That will be costly for everyone.

Alaska wild berries.jpg

The primary conclusion of the study is interesting, though, in that its focus is diet quality among the population as a whole. Without accounting for socioeconomic status, there has been, the study reads, “steady improvement.” People aren’t eating more vegetables, or less red or processed meat, and their salt intake increased—which the researchers call “disconcerting”—but Americans are eating more good things like whole fruit, whole grains, nuts, legumes, and polyunsaturated fats.

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Inequality and the USA: A Nation in Denial?

Homeless female holding up sign (7617876912).jpg

Photo: Alex Proimos (CC)

Sam Pizzigati of Inequality.org writes at PressTV that “the United States… doesn’t just have the world’s most unequal major developed economy… [it] has the most people in denial about the inequality they live amid”:

Every August, for most of the last four decades, top central bankers from around the world have been making their way to the Wyoming mountain resort of Jackson Hole for an invitation-only blue-ribbon economic symposium.

This year’s Jackson Hole hobnob, once again hosted by the Federal Reserve Bank of Kansas City, last week attracted the usual assortment of central bankers, finance ministers, and influential business journalists. But this year’s gathering also attracted something else: protesters.

For the first time ever, activists converged on Jackson Hole — to let the Fed’s central bankers know, as protest organizers put it, that “it’s not just the rich who are watching them.”

Over 70 groups and unions backed the protest and signed onto an open letter that calls on America’s central bankers to start nurturing an economy that works for workers.

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Federal Reserve President: ‘QE Was A Massive Gift Intended To Boost Wealth’

So sayeth Richard W. Fisher, President and CEO of the Federal Reserve Bank of Dallas, according to Tyler Durnden writing at Zero Hedge:

With Bernanke gone, the remaining Fed members knowing full well they will be crucified, metaphorically of course (if not literally) when it all inevitably comes crashing down, are finally at liberty with their words… and the truth is bleeding out courtesy of the president of the Dallas Fed, via Bloomberg.

FISHER SAYS QE WAS A MASSIVE GIFT INTENDED TO BOOST WEALTH
Which incidentally coincides with Bernanke’s heartfelt “admission” that “my natural inclinations, even if it weren’t for the legal mandate, would be to try to help the average person.” As long as helped to boost the wealth of the non-average billionaire., all is forgiven. “The result was there are still many people after the crisis who still feel that it was unfair that some companies got helped and small banks and small business and average families didn’t get direct help,” Bernanke said.

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The Richest Man in the World Explains How to Save the Planet

BillGates2012Bill Gates really wants to do good things, but there are plenty of people who think he has a hidden and possibly nefarious agenda. He opens up for Rolling Stone, in this segment speaking about income inequality:

RS: Let’s talk about income inequality, which economist Paul Krugman and others have written a lot about. As a person who’s at the very top of the one percent, do you see this as one of the great issues of our time?

BG: Well, now you’re getting into sort of complicated issues. In general, on taxation-type things, you’d think of me as a Democrat. That is, when tax rates are below, say, 50 percent, I believe there often is room for additional taxation. And I’ve been very upfront on the need to increase estate taxes. Particularly given the medical obligations that the state is taking on and the costs that those have over time.

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Why The Rich Are Freaking Out

Dollar symbol goldPolitico‘s Ben White tells us that the 1%, the super wealthy elite, are having a collective meltdown at the prospect of less favorable attitudes and laws targeting them:

The co-founder of one the nation’s oldest venture capital firms fears a possible genocide against the wealthy. Residents of Manhattan’s tony Upper East Side say the progressive mayor didn’t plow their streets as a form of frosty revenge. And the co-founder of Home Depot recently warned the Pope to pipe down about economic inequality.

The nation’s wealthiest, denizens of the loftiest slice of the 1 percent, appear to be having a collective meltdown.

Economists, advisers to the wealthy and the wealthy themselves describe a deep-seated anxiety that the national — and even global — mood is turning against the super-rich in ways that ultimately could prove dangerous and hard to control.

President Barack Obama and the Democrats have pivoted to income inequality ahead of the midterm elections.

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85 Wealthy Elites Have As Much Wealth As Half The World’s Population

rich peopleA group that could easily fit on a single subway car. Via the Guardian:

The extent to which so much global wealth has become corralled by a virtual handful of the so-called ‘global elite’ is exposed in a new report from Oxfam on Monday. It warned that those richest 85 people across the globe share a combined wealth of £1tn, as much as the poorest 3.5 billion of the world’s population.

The development charity fears this concentration of economic resources is threatening political stability and driving up social tensions.

The report found that over the past few decades, the rich have successfully wielded political influence to skew policies in their favor on issues ranging from financial deregulation, tax havens, to lower tax rates on high incomes and cuts in public services for the majority. Since the late 1970s, tax rates for the richest have fallen in 29 out of 30 countries for which data are available, said the report.

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David Simon Speech: ‘There are now two Americas. My country is a horror show’

David Simon at Rising Tide 2011Best known as the creator of seminal TV series The Wire, David Simon gave an impromptu speech about the divide between rich and poor in America at the Festival of Dangerous Ideas in Sydney, and how capitalism has lost sight of its social compact. This is an edited extract via The Guardian:

America is a country that is now utterly divided when it comes to its society, its economy, its politics. There are definitely two Americas. I live in one, on one block in Baltimore that is part of the viable America, the America that is connected to its own economy, where there is a plausible future for the people born into it. About 20 blocks away is another America entirely. It’s astonishing how little we have to do with each other, and yet we are living in such proximity.

There’s no barbed wire around West Baltimore or around East Baltimore, around Pimlico, the areas in my city that have been utterly divorced from the American experience that I know.

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