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Local News & Opinion
Ref. : Local Newsbriefs Travel
Letters
Ref. : Letters to the editor Open Letters:
03.05 Open Letter to Congressman Bart Stupak Health & Environment
Video National Health Care Systems In Other Countries 03.12 Slick Barry and the $100-Billion Medicaid/Medicare Fraud Claim 03.09 Kill Bill: Death to Obamacare! 03.09 Obama’s Rhetoric May Be “Fiery,” But His Health Care Reform Is Still Lukewarm 02.24 Obama’s New Plan 02.21 Time to Pass the Health Insurance Industry Antitrust Enforcement Act of 2009 Media Watching
03.12 Cud and Complicity: Burying the Alternatives to Empire's Dominion 03.11 NYT and the ACORN Hoax 03.05 Sorry, Rove, Bush Did Lie About Iraq 03.03 It's Snow News 03.03 The Woeful Washington Post 02.28 The NYT Veers Neocon 02.18 US Media Replays Iraq Fiasco on Iran Ref. : The Daily Howler Legal Matters
02.26 America's Supremes: Court Over Constitution US Politics, Policy & Culture
03.11 Power Rangers: Policing the System With the "Fightin' Progressives" 03.09 Thinking About Countings 03.07 Unnatural Acts: Breaking the Fever of Militarism 02.25 Future Shock: A Better World Beyond the Imperium 02.24 The Last Flight of Joe Stack 02.22 Thinking About Sadie 02.18 All Systems Go: No Dysfunction in Profitable Afghan Enterprise High Crimes?
03.16 America's Secret Prisons 03.13 Palestinian Dispossession in East Jerusalem 03.12 Israeli Settlement Expansions Continue 03.11 Brutalizing Palestinian Children 03.08 The Russell Tribunal on Palestine: Barcelona Session 03.05 Targeting Israeli Apartheid 03.01 America's Permanent War Agenda 02.25 Global Sweatshop Wage Slavery 02.23 Israeli Unaccountability and Denial: Suppressing the Practice of Torture 02.22 American Genocides: is Haiti Next? 02.18 Israeli Abusive Administrative Detentions 02.16 MK-ULTRA: The CIA's Mind Control Program Economics & Business Non/Mis/Malfeasance
03.14 The Crisis in America's Telecommunications Network 03.09 The Business of Water: Privatizing An Essential Resource 03.05 Is the Recovery Real? 03.04 IMF-Style Austerity Measures come to America: What “Fiscal Responsibility” Means To You 03.04 Barry C. Lynn's "Cornered: The New Monopoly Capitalism and Economics of Destruction" 03.01 Thinking About Fees 02.22 Campaigning for State-Owned Banks 02.22 Social Security Will Fall To Obama Before The Taliban Do 02.19 Obama’s Stealth Entitlement Commission 02.19 Selling Out America to Wall Street International
03.15 Peace Process Hypocrisy: Stillborn from Inception 03.03 Muslim Disunity 03.02 Funding Israeli Militarism, Belligerence and Occupation 02.26 Iran Captures a 'Good' Terrorist 02.24 The Dubai Hit 02.22 Holland Has Had Enough: Killing of Innocent Civilians Goes On Apace in Afghanistan 02.19 The Placeman Cometh: New IAEA Chief Stokes Iran War Fever for the Bush-Obama Regime 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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