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Local News & Opinion
01.26 Local Democrats Invited to Brainstorming Session on Sun., Jan. 31 Ref. : Local Newsbriefs Travel
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Video National Health Care Systems In Other Countries 02.09 States Launch their Own Health Care reforms 02.03 States Face Worsening Recession with Health Care Funds on the Chopping Block 01.18 Drugmaker Got Kickbacks for Nursing Home Patients Media Watching
02.04 Err-America 02.03 The Right Gets Itself 'Wired' Ref. : The Daily Howler Legal Matters
01.25 Thinking About Fictions 01.24 US Democracy's End of the Road 01.22 Editorial: U.S. Supreme Court Nails Down the Coffin of Democracy 01.22 Security Fools US Politics, Policy & Culture
02.09 Palin, Psy-Ops & 'Condescending' Libs 02.09 Growing Hunger in America 02.08 The US Government has Lost its Reason for Being 02.08 Thinking About Oracles 02.06 No Direction Home: Pakistan and the Imperial Principle 02.04 Howard Zinn and the State of the Union 02.04 The US Supreme Court: Vanguard of Friendly American Fascism? 02.04 The New War Against Money 02.04 David Brooks Goes After Greedy Geezers 02.02 Obama's Budget Ducks Pentagon Cuts 02.02 Budgets, War and Blind Ambition: The Limited Minds of the American Elite 02.01 Thinking About Definitives 02.01 Remembering Howard Zinn (1922 - 2010) 01.29 American History 101: We Are Devo 01.29 Obama's Outreach to Americans: Empty Rhetoric, Business As Usual 01.28 The Supreme Court's Partisanship 01.27 Freeze Frame: Flopsweat and Farce in the Hollow Halls of Power 01.25 Granny D on Campaign Finance Reform 01.25 S.C. Republican’s Plan: Starve the Poor So They’ll Stop “Breeding” 01.23 It's Time for Kucinich, Conyers, Feingold and Other `Progressives' in Congress to Take a Stand 01.21 Massachusetts' Message of Stupid 01.21 Terrorism Defined: Bill Clinton Lights Our Way to Truth 01.21 How Obama Lost His Way 01.21 Political Earthquake Rocks Massachusetts 01.20 Obama Cuts Deal that Will Reduce Social Security, Medicare and all Entitlements 01.20 Critical Mass: Dem Agenda Opens Right-Wing Doors 01.19 Outsourcing War: The Rise of Private Military Contractors High Crimes?
01.25 The Silence and the Shield: Depraved Indifference to the Atrocities of Power 01.19 Dark as a Dungeon: A Brutal System Stripped Bare Economics & Business Non/Mis/Malfeasance
02.07 AIG-Gate: The World's Greatest Insurance Heist 02.06 The Free Market Fetish 02.04 The Crisis is Not Over 02.03 States Face Worsening Recession with Health Care Funds on the Chopping Block 02.02 Rule by the Rich 01.29 The Battle of the Titans: JPMorgan vs. Goldman Sachs 01.27 State of the Union: Obama’s “Automatic IRA” Plan Could Make Bush’s Wildest Dreams Come True 01.26 Obama, Read Your Reagan on Capital Gains Taxation 01.24 Funding Public Health Care with a Publicly-Owned Bank: How Canada Did It 01.18 Thinking About Accelerants International
02.08 Aafia Siddiqui: Victimized by American Injustic 02.07 Annals of Liberation: Obama Surge Driving Thousands From Their Homes 02.05 Human Rights Abuses in Israel and Occupied Palestine 02.03 Child Slavery in Haiti 01.30 Blood is His Argument: Tony Blair's Gentle Cuddling at Iraq "Inquiry" 01.28 Obama Ignores Key Afghan Warning 01.27 Haiti's Earthquake: Natural or Engineered 01.26 Helping Haiti’s Elders 01.26 Focus on Israel: Harvesting Haitian Organs 01.25 Focus on Haiti: Washington's Militarized Takeover 01.22 The Lessons of Boycott, Divestment and Sanctions 01.18 Disaster Capitalism Headed to Haiti We are a non-profit Internet-only newspaper publication founded in 1973. Your donation is essential to our survival.
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COMMENTARY:Wealth Inequality Destroys US IdealsOriginally published on 4 JuLY 2009 Editorial Note by Bob Parry: Since the national rise of Ronald Reagan three decades ago, the United States has been on a deadly course for a Republic, with wealth rapidly concentrating at the top and average Americans sinking or struggling to stay afloat.
On the 233rd anniversary of American independence – a war fought for the equality of all mankind – writer Don Monkerud examines how these gross economic imbalances threaten that vision:
In June 2009, the U.S. economy saw its second steepest decline in 27 years. New jobless claims increased, business inventories fell and exports plunged as bad economic news persisted. Will the once high-flying American wealth machine continue to produce the vast inequalities of the past? Only two years ago, Steve Forbes, CEO of Forbes magazine, declared 2007 "the richest year ever in human history." During eight years of the Bush Administration, the 400 richest Americans, who now own more than the bottom 150 million Americans, increased their net worth by $700 billion. In 2005, the top one percent claimed 22 percent of the national income, while the top ten percent took half of the total income, the largest share since 1928. In June 2009, the Merrill Lynch Global Wealth Report estimated the number of the world's wealthiest people declined by 15 percent, the steepest decline in the report's 13-year history. The number of millionaires in the U.S. fell by 19 percent to 2.5 million people. Analysts tell us the economy is being restructured, but how will the disparities in wealth between the rich and the poor play out?
The highest incomes come from executive pay at top corporations. In 2007, the ratio of CEO pay to the average paycheck was 344 to one, lower than the record 525 to one ratio set in 2001, but substantial. This year's ratio is estimated to decrease to 317 to one. In the 60s, 70s and 80s, the average ratio fluctuated between 30 and 40 to one. Over 40 percent of GNP comes from Fortune 500 companies. According to the World Institute for Development Economics Research, the 500 largest conglomerates in the U.S. "control over two-thirds of the business resources, employ two-thirds of the industrial workers, account for 60 percent of the sales, and collect over 70 percent of the profits." Corporations systematically created a wealth gap over the last 30 years. In 1955, IRS records indicated the 400 richest people in the country were worth an average $12.6 million, adjusted for inflation. In 2006, the 400 richest increased their average to $263 million, representing an epochal shift of wealth upward in the U.S. In 1955, the richest tier paid an average 51.2 percent of their income in taxes under a progressive federal income tax that included loopholes. By 2006, the richest paid only 17.2 percent of their income in taxes. In 1955, the proportion of federal income from corporate taxes was 33 percent; by 2003, it decreased to 7.4 percent. Today, the top taxpayers pay the same percentage of their incomes in taxes as those making $50,000 to $75,000, although they doubled their share of total U.S. income.
Meanwhile, wages for most Americans didn't improve from 1979 to 1998, and the median male wage in 2000 was below the 1979 level, despite productivity increases of 44.5 percent. Between 2002 and 2004, inflation-adjusted median household income declined $1669 a year. To make up for lost income, credit card debt soared 315 percent between 1989 and 2006, representing 138 percent of disposable income in 2007. According to Pizzigati, the wealth disparity is the result of corporations squeezing more profits from workers.
Progressive taxation used to prevent the rich from capturing a disproportionate share of national compensation, and the labor movement, which represented 35 percent of private sector employees and today represents 8 percent, once served as a political force to limit excessive executive pay. The Reagan backlash cut the top income tax rates, and saw the creation of right-wing think tanks that spent $30 billion over the past 30 years, propagandizing for deregulation, privatization, and wealth worship. Bubble economies over the past 30 years helped CEOs pump up their income, and efforts to corral their pay are weak and ineffective. CEO pay may fall during these economic hard times, but disparity isn't going away. Without a strong movement for change, the wealth gap will only increase in this downturn.
Don Monkerud is a California-based writer who follows cultural, social and political issues. Copyright 2009. This article is republished in the Baltimore Chronicle with permission of the author. Copyright © 2009 The Baltimore News Network. All rights reserved. Republication or redistribution of Baltimore Chronicle content is expressly prohibited without their prior written consent. Baltimore News Network, Inc., sponsor of this web site, is a nonprofit organization and does not make political endorsements. The opinions expressed in stories posted on this web site are the authors' own. This story was published on July 6, 2009. |
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