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Americans concerned about rising economic inequality

posted 12 years ago by inner_recesses
3 replies | jump to latest

Average inflation-adjusted, after-tax incomes of the richest 1% of U.S. households ballooned 275% from 1979 to 2007, according to an October report by the nonpartisan Congressional Budget Office. That was more than four times the 65% growth for the rest of the top 20%.

The middle-income tier, the next 60% of wage earners, had a far more modest 40% rise in household income, while the poorest one-fifth of the population averaged an 18% gain.

Those numbers have the public's attention.

Almost two-thirds of Americans believe the income gap is widening, and 57% said that's negative for society, according to the Pew Research Center poll. Nearly the same percentage, 58%, said the wealthy pay too little in taxes.

Opinion among experts was split about the causes of the income gap.

Some said corporate and political policies have fostered runaway executive pay and a tax code with low capital-gains rates that favor the wealthy. Others said the inescapable forces of globalization and the high-tech economy have permanently erased lower-skill jobs.

The focus on the income gap has shined a light on a related issue: the ability of people in the lower and middle classes to climb the economic ladder.

Economic mobility — the ability to improve one's lot in life, say, from lower income to middle income, through talent and hard work — is central to the American Dream.

Yet some studies have painted disturbing pictures of economic mobility, particularly the difficulty of advancement for lower-income people.

Almost all Americans are better off than their parents in inflation-adjusted dollar terms — with higher take-home pay and ubiquitous amenities, such as pay television that would have been unrecognizable to earlier generations inured to constant fidgeting with rabbit ears.

Compared to society as a whole, however, children of lower-income parents typically grow up to be low-income themselves, according to a study by a related Pew entity, the Pew Charitable Trusts.

The study found that 43% of people who were born into the bottom one-fifth of society remain there as adults. Just 4% reach the top rung.

The upshot: Though their overall income is higher than that of their parents, they haven't improved their relative position in society because the financial standing of the people above them has improved at far greater rates.

"When we look at relative mobility, it gives us pause," said Erin Currier, a Pew researcher. "It challenges our notions of equality of opportunity."

http://www.latimes.com/business/la-fi-wealth-romney-20120901,0,2471957 .story

[–] ztlfire 12 years ago

There hasn't been 'equality and opportunity' within America - only struggle, class warfare, radical groups, and witch hunts. How this is just hitting people now is an indication of the level of complacency within the social classes of the US. Deregulation of the banks was only the final nail on the coffin, but things have been getting worse and worse since Reagan; it is only now that the real result of that particular administration is being felt. Bush jr kept a lot of things ' off the books ' but that wasn't going keep the economy from collapsing despite the surplus Clinton left - the derivatives Clinton installed made that whole surplus redundant. He won't admit to that failing but then again this is the same man who shut down the government just to make a political point. Bush on the other hand was a kid in the candy store and had America foot the bill, but again it takes a decade or so for the real damage of policies from past administrations to take hold. The real question now that needs to be addressed is; what do we do with the multinational corporations that influence our politics? Every policy is determined whether minor or major by the lobbiests in Washington. There has never not been influence because of money since the banks first began to seize power from the people; and if we really do want equality and opportunity in the US again, the oligarchy and hierarchy that is running Washington needs to be put out of business. That can't happen without a major shift within the unions ( which are in a sorry state to put it modestly) and people basically hold the banks and their sheeple accountable.

The next crash will happen and when it does there will be no stimulus that can even cushion the drop. Those that will feel it the most will be you and me.

I am a chick and this is my sig

[–] gd5150 12 years ago

Yep it's all Reagan's fault lol! And Bush jr. Lol!!!!!!!!!! Clinton made everything fair and wonderful. Moron. Say something new ad intelligent.

The 1% making all the money for doing none of the work is the problem. The 1% is the corporate CEOs and the politicians from BOTH parties. Wake up!

[–] gd5150 12 years ago

The socalled Clonton surplus was a joke and a lie like everything else he didnt do. It was a projected surplus over 20 years that never existed. It started at 3 trillion in June of 2000, by August they'd up't it to 5 trillion because no one in the media questioned anything Clinton said. It's never existed. The budget that was balanced in the late 90s was due to a Republican congress forcing it on Clinton despite his veto threats.

Credit to Clinton, at least he had budgets. Obama still hasn't had one since he was elected. Lol!!!!