pc
The more red a county, the more poor people share it with the uber-wealthy. Black represents counties with lots of low income types with few rich to balance them.
Try as I might PC, I don't see how this explains anything. There have been places where the wealthy resided in greater numbers in the US since the beginning of the nation. Something to do with where they work or play...
Income inequality has been increasing in the US since 1979. Essentially the middle class hasn't gained a thing relative to 1979. If it were only about unequal rewards for innovation then other nations in the west would see similar income disparity occurring. They don't.
Inequality, the Middle Class & the Fading American Dream
by Perry L. Weed on February 12, 2011 - 9:52am
Bio: Attorney
and Economist
As inequality increases and the economic lives of middle and working class Americans become less secure, we witness in Washington the spectacle of renewed tax cuts for millionaires and billionaires and, perhaps not coincidentally, the unprecedented flood of new political contributions from the wealthy and agents of financial institutions and transnational corporations. In the mid-term elections, secret donors spent more than $138 million. Any doubts about who controls Washington for the foreseeable future are settled. Prospects for fundamental change and improvement under the Democrats have been all but abandoned. The monied interests reign supreme.
The So-Called Recovery
This recovery is the most painful and least promising our nation has seen since that that followed the Great Depression. Unemployment and foreclosures are increasing. Neither the decline in housing prices –of 30 percent – nor in new construction has bottomed out. Pensions are being reduced. Our industrial base is vanishing. Cities and states are flat broke. Our infrastructure is crumbling. This recovery is not self-sustaining. And yet, in so far as there is a national economic plan for jobs, recovery and growth – Congress and President Obama have outsourced it to the Federal Reserve. The plight of a squeezed middle class has been outsourced by the President to the Vice President. And so it goes. No action required now until the Democratic Party elites crank it up again for the next election and again champion the beleaguered middle class as they did in the 2010 election. Washington is abandoning the middle class and betraying the American dream – the latter at risk of descending into the American nightmare. The United States of America is in danger of becoming a third world nation.
The rhetoric of “the two Americas” is all too real if you examine the U.S. economy over the last 35 years. The high tide of prosperity for the middle class began receding in the mid-1970s and their economic security is now in full retreat. Although the economy is larger by one-half than it was then, the lion’s share of the increase in income and wealth has flowed to a relatively small fraction of Americans. The U.S. has become the most unequal of rich nations. As the social contract continues to unravel, we need only to consider the angry citizens of Europe who have taken to the streets as a foretaste of what could happen here.
Astonishing Facts
In their new book, Winner-Take-All Politics, respected Professors Jacob S. Hacker and Paul Pierson, present astonishing statistics on how Washington has made the rich richer and turned its back on the middle class. Here are some of the figures:
· The top one percent of Americans received 36 percent of all gains in household income from 1979 until 2006, as their average after-tax annual incomes rose from $337,100 in 1979 to more than $1.2 million in 2006 – and increase of nearly 260 percent; during the same period, household incomes at the bottom rose the least – 11 percent.
· The top one percent received 53 percent of total income gains from 2001 to 2006.
· The top 0.1 percent, or roughly 300,000 households, received over 20 percent of all after-tax income gains between 1979 and 2005, compared with the 13.5 percent realized by the bottom 60 percent or roughly 180 million households. For this period, the average after-tax income of one household in every one thousand increased from over $4 million to nearly $24.3 million.
· In 2009 executives at the nation’s 38 largest companies earned a stunning total of $140 billion; Goldman Sachs paid its employees nearly $600,000 per person.
· In 2004 the wealthiest one percent of households had an average net worth of nearly $15 million while the bottom 80 percent had an average net worth of around $82,000; these wealthiest households own 35 percent of the nation’s $55 trillion in total wealth.
The steep and steady rise of the national income captured by the richest Americans is a trend that began around 1980. Few of the benefits of economic growth between 1979 and 2007 have trickled down. Thirty percent of the Bush tax cuts went to the top one percent of Americans. Over the entire period between 1983 and 2004, only 10 percent of all wealth gains went to the bottom 80 percent of Americans. The top five percent own 62 percent of the total wealth of the country.
Being middle class once meant working hard, getting ahead, achieving financial and retirement security and expecting one’s children to do as well or even better. Now, after three decades of flat or falling real wages for most Americans, more than 60 percent of us think things will be worse for our children and future generations. Eighty-seven percent are worried about the direction of the nation’s economy in the next year.
Average hourly wages and salaries of production and non-supervisory workers have steadily fallen since the 1970s. Adjusted for inflation, the earnings of most Americans – assuming they have a job – are lower than they were in 1973. At the same time, the top fifth of American households received more than half the nation’s income last year, with the lion’s share now concentrated in the top five percent.
Since the 1970s, the cavernous gap between wealthy Americans and those further down the economic ladder has continued to widen. The gap in wealth is wider than in any other advanced country. All the hoopla over the democratization of the stock market is simply empty rhetoric. Workers have been thrust into the market through the 401K plans that replaced pensions and the median holding for those households that do own stock is less than $30,000. Two-thirds of total stock market wealth is held by only five percent of American stockholders. So much for the “ownership society”!
The Middle Class – Its Rise & Decline
After World War II, American became the world’s first truly middle class nation. In the 30 years following the war, the real income of all American families, including the poor and near poor, doubled. The nation, by every economic measure, was becoming more equal. All that has changed.
For the past 30 years, the trend toward economic inequality has rolled back the post-World War II progress which had moved the nation toward a more equitable distribution of income and wealth. In the past ten years, the inflation-adjusted income of the median household fell 4.8 percent, the worst drop in at least half a century. And for many there is no income – more than 70 percent of Americans know someone who has lost a job. College graduates can’t find jobs. Americans are losing purchasing power and their net worth is falling. The value of their homes is shrinking. Their retirement security has eroded. Medical and educational costs are rising faster than the cost of living index. In 2009, 16.7 percent of the American population – 50.7 million people – was without health insurance, the highest since this record has been kept. One in four homes is now under water and over 4.2 million home loans are in or near foreclosure. Last year, there was an 11.6 percent increase in families consolidating and moving in together.
In contrast, the wealthiest ten percent of countrymen hold over 60 percent of total family assets. America’s richest one percent now hold more wealth than America’s entire bottom 90 percent. The last 20 years have witnessed the most colossal amassing of huge fortunes in U.S. history. The nation now boasts more than 400 of billionaires.
Washington Rigged the Economy
Since 1946, the effective federal tax for the richest Americans has fallen by 60 percent. Those benefiting the most from our economy in income and wealth are simply not paying in, in proportion to what they are taking out. Nevertheless, the top priority of Republicans in Washington has been tax cuts for the wealthy and for corporate and financial entities. Their Herculean efforts to restore the Bush income tax cuts for the wealthiest Americans and to repeal an estate tax affecting only the wealthiest two percent underscore the intensity of the ongoing class warfare and linkage between political polarization and economic inequality.
We seem to have degenerated into a form of social Darwinism. The prevailing national economic strategy of Washington has been to make business more profitable and less accountable and to reward the owners, investors and other wealthier Americans, at the expense of the great majority of workers and U.S. households. Workers have fewer countervailing protections. Their representation in Washington has been sold out. Organized labor’s economic clout to win higher wages and benefits is withering away. Businesses and wealthy individuals contribute billions to influence elections, outspending labor unions many times over.
The soaring compensation of senior corporate executives, the increasing number of American millionaires and billionaires, the material excesses of our public and private elites – taken together – have very few precedents in American history. It is reminiscent of the last stages of other great empires. Many of the nation’s elites, including its elected leaders, are unwilling to broach the subjects of inequality and class warfare – the very real struggle for a piece of the American pie. They appear to be asleep to – or purposely ignoring – these realities.
The absence of effective social and economic countervailing forces to address the ominous rise in inequality is increasingly a cause for alarm. Washington can no longer ignore the challenge to spread more equitably the benefits of economic growth – now enjoyed by those at the top – without undermining the economy that supports it. But where is the national debate? How do we hammer out new policies to alleviate the growing economic imbalances in our republic and thereby stem the social unrest that threatens the public landscape? The need is grave and immediate that we re-establish the economic opportunity and prospects for upward mobility that have for 200 years sustained the American dream and served as the bedrock for a stable democratic nation.