Income Gap Widening (wages, Reagan, health care, Clinton)

[bily4]

This is a recent article highlighting the two tier society we are becoming and some of the social and political ramifications. It would suggest that perhaps some of the tax cut benefits enjoyed by the ultra rich should be reexamined. Love to hear some feedback.


The top 10 percent, roughly those earning more than $100,000, also reached a level of income share not seen since before the Depression.

While total reported income in the United States increased almost 9 percent in 2005, the most recent year for which such data is available, average incomes for those in the bottom 90 percent dipped slightly compared with the year before, dropping $172, or 0.6 percent.

The gains went largely to the top 1 percent, whose incomes rose to an average of more than $1.1 million each, an increase of more than $139,000, or about 14 percent.

The new data also shows that the top 300,000 Americans collectively enjoyed almost as much income as the bottom 150 million Americans. Per person, the top group received 440 times as much as the average person in the bottom half earned, nearly doubling the gap from 1980.

“If the economy is growing but only a few are enjoying the benefits, it goes to our sense of fairness,” Professor Saez said. “It can have important political consequences.”

He said that in addition to rising incomes and reduced taxes, the equation should take into account cuts in fringe benefits to workers and in government services that middle-class and poor Americans rely on more than the affluent. These include health care, child care and education spending.

“The nation faces some very tough choices in coming years,” he said. “That such a large share of the income gains are going to the very top, at a minimum, raises serious questions about continuing to provide tax cuts averaging over $150,000 a year to people making more than a million dollars a year, while saying we do not have enough money” to provide health insurance to 47 million Americans and cutting education benefits.

Income Gap Is Widening, Data Shows - New York Times

[katzenfreund]

The CEO wages are going up and up... the workers wages are barely, if at all, keeping up with inflation. Health care, energy costs etc. are going up at a bigger rate than inflation, if you figure that in, you have less money leftover after your bills are paid than you did 10 or 5 years ago. This will only get worse. So many people don't have money in a savings account and live paycheck to paycheck and a lot of people live above their means (new cars on credit, big houses they can barely pay for). I think a lot of people are going to fall on hard times in the near future.
I predict things will get worse....
and it doesn't mean poor people are lazy. Some are, but lots just work hard, but don't have the money to invest, because they are just getting by. Starting your own business isn't an option for those without savings, because most businesses need time to become profitable... more than half of businesses fail. No easy answers.

[skytrekker]

Yes the income gap has been widening for about 30 years

Since Reagan and Bush and Clinton and Bush
Its the conservative philosophy -likely to get worse -'Waiting for the big hush'