Newspaper logo  
 
 
Local Stories, Events

Ref. : Civic Events

Ref. : Arts & Education Events

Ref. : Public Service Notices

Books, Films, Arts & Education
Letters

Ref. : Letters to the editor

Health Care & Environment

04.23 To stop global catastrophe, we must believe in humans again

04.23 Melting permafrost in Arctic will have $70tn climate impact – study

04.23 US threatens to veto UN resolution on rape as weapon of war, officials say [“Stupid is as stupid does.” –Forrest Gump]

04.21 Trump and impeachment: where Democrats stand after Mueller

04.21 Dutch engineers build world's biggest sun-seeking solar farm [A replacement for lost Arctic ice?]

04.21 We’re altering the climate so severely that we’ll soon face apocalyptic consequences. Here are 9 last-ditch ways we could hack the planet to reverse that trend.[Hail Mary pass ideas]

04.18 'We Can Be Whatever We Have the Courage to See': New Video From AOC Envisions a #GreenNewDeal Future [7:35 video]

04.18 'Decades of denial': major report finds New Zealand's environment is in serious trouble

04.17 Thawing Permafrost Emitting Higher Levels of Potent Greenhouse Gas Than Previously Thought: Study

04.16 'That Backfired': Watch Bernie Sanders Counter Right-Wing Talking Point, Make Case for Medicare for All on Fox News

04.16 Cause of cancer is written into DNA of tumours, scientists find, creating a 'black box' for origin of disease

04.16 Scientists Unveil World's First Human Heart 3D-Printed From Patients' Own Cells

04.15 What It Was Like to Have a Baby in Sweden

04.14 'Shut the country down': British climate group Extinction Rebellion heads to US

04.13 With Youth Climate Actions Backed by Leading Experts, Latest Round of Protests Highlights Call for Bold and Urgent Action

04.11 Will You Rise Up for Climate Justice Next Week? Don’t Let Fatalism and Cynicism Hold You Back

04.11 300+ Groups to Congress: #GreenNewDeal 'Must Transform Our Food System and Revitalize Rural America'

04.10 Glaciers and arctic ice are vanishing. Time to get radical before it's too late [Willfully ignorant "conservatives" and corporately-bribed liberals diddle self-obsessively while life on earth dies]

04.10 Is there a beautiful, briny solution to the world’s clean water crisis?

04.08 'The perfect storm': hydrogen gains ground on LNG as alternative fuel [Good!]

04.08 Himalayan glaciers on the eve of destruction

04.08 Russia moves to free nearly 100 captive whales after outcry [Good!]

News Media Matters

04.12 DOJ Charging Docs: Julian Assange Committed Journalism

Daily: FAIR Blog
The Daily Howler

US Politics, Policy & 'Culture'

04.23 'A Really Exciting Proposal': Elizabeth Warren's Education Overhaul Would Wipe Out Student Debt, Provide Free Public College

04.23 To Reassert Congressional War Authority, Sanders Demands Vote to Override Trump Veto on Yemen

04.23 BALTIMORE POLICE TRIED TO KILL KEITH DAVIS JR. PROSECUTORS HAVE BEEN TRYING TO CONVICT HIM OF MURDER EVER SINCE.

04.21 Trump's moral squalor, not impeachment, will remove him from power

04.21 Pentagon Spending Set to Hit Near-Record Levels, But 'Establishment Says We Can't Afford' Progressive Policies

04.19 14 Must-Read Moments From the Mueller Report

04.19 No One Listens to the President

04.19 'Whimsical, uninformed': French ambassador's parting verdict on Trump

04.19 Mueller report: press secretary Sarah Sanders admitted to lying to reporters

04.19 Videos appear to show armed militia detaining migrants at US-Mexico border

04.19 Mueller report unable to clear Trump of obstruction of justice [PDF]

04.19 Nadler says Mueller report shows 'disturbing evidence' of obstruction of justice – video [2:41 video]

Justice Matters

04.21 In Ruling on Coal Mining, Federal Judge Issues Latest Rebuke of Trump's Attack on Public Lands

04.19 The Mueller Report Is Clear: Donald Trump Repeatedly Tried to Obstruct Justice

High Crimes

04.17 'Shameful': With Millions on Brink of Famine in Yemen, Trump Vetoes Resolution to End US Complicity

Economics & Corrupt Capitalism

04.23 The “disintegration” of global capitalism could unleash world war 3, warns top EU economist

04.23 The financial sector must be at the heart of tackling climate change [A reversal of their history of bad behavior]

04.21 Progressive Capitalism Is Not an Oxymoron [For the good of the public and healthier economic growth, can we make government and financial markets behave morally?]

04.19 The Pentagon’s Bottomless Money Pit [pdf; Until the Pentagon can pass audits, use their allocated budget to fight causes of global warming]

04.19 The Public Banking Revolution Is Upon Us

International & Futurism

04.23 To stop global catastrophe, we must believe in humans again

04.21 Frustration grows among migrants in Mexico as support fades

04.21 Decrying 'Toxic Alliance' of Macron and Polluters, Climate Campaigners Stage One of France's Largest Ever Acts of Civil Disobedience

04.21 Yellow Vests Demonstrate in Paris as Notre Dame Donations Highlight Wealth Inequality

04.21 The Observer view on the Mueller report: Trump is a disgrace not welcome in Britain

04.21 The Government Is Still Massively Complacent About Climate Change

04.19 Ways to Save the World

We are a non-profit Internet-only newspaper publication founded in 1973. Your donation is essential to our survival.

You can also mail a check to:
Baltimore News Network, Inc.
P.O. Box 42581
Baltimore, MD 21284-2581
Google
This site Web
  Wealth Inequality Destroys US Ideals
Newspaper logo

COMMENTARY:

Wealth Inequality Destroys US Ideals

by Don Monkerud
Originally 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 source of wealth has changed over the past 30 years; corporations have become the engine of inequality in the U.S.," says Sam Pizzigati, associate fellow at the Institute for Policy Studies in Washington D.C. "In the past, wealth came from ownership: Today it comes increasingly from income."

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.

"Over the past 30 years, the income of the top one percent, adjusted for inflation, doubled: the top one-tenth of one percent tripled, and the one-one-hundredth quadrupled," says Pizzigati. "Meanwhile, the average income of the bottom 90 percent has gone down slightly. This is a stunning transformation."

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.

"In the past corporations laid off workers because business was bad," Pizzigati says. "But over the past few decades, downsizing has been a corporate wealth generating strategy. Today, CEOs don't spend their time making, trying to make better products: they maneuver to take over other companies, steal their customers and fire their 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.

"There won't be a restructuring of the economy unless we take on executive compensation," concludes Pizzigati. "Outrageously large rewards give executives an incentive to behave outrageously. If we allow these incentives to continue, we will just see more of the reckless behavior that has driven the global economy into the ditch."


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.

 

Public Service Ads: