Drop Down MenusCSS Drop Down MenuPure CSS Dropdown Menu
Alternative Text Alternative Text Alternative Text Alternative Text
Survivor of US Drone Attack:
Obama Belongs on List of World's Tyrants

Poisoning Black Cities: Corporate Campaign to Ethnically Cleanse US Cities Massive Marches in Poland
Against Authoritarian Threat of Far-Right
Ethiopia’s Invisible Crisis: Land Rights Activists Kidnapped and Tortured

Global Perspectives Now Global Perspectives Now
Showing posts with label income inequality. Show all posts
Showing posts with label income inequality. Show all posts

Americans Have No Idea How Bad Inequality Really Is: The Average Worker Makes $34,000 —While the Average CEO Makes $12 Million

Photo by mSeattle.
Photo by mSeattle.
By Jordan Weissmann
If Michael Norton’s research is to be believed, Americans don’t have the faintest clue how severe economic inequality has become—and if they only knew, they’d be appalled.

Consider the Harvard Business School professor’s new study examining public opinion about executive compensation, co-authored with the Chulalongkorn University in Bangkok’s Sorapop Kiatpongsan. In the 1960s, the typical corporate chieftain in the U.S. earned 20 times as much as the average employee. Today, depending on whose estimate you choose, he makes anywhere from 272 to 354 times as much. According to the AFL-CIO, the average CEO takes home more than $12 million, while the average worker makes about $34,000.

In their study, Norton and Kiatpongsan asked about 55,000 people around the globe, including 1,581 participants in the U.S., how much money they thought corporate CEOs made compared with unskilled factory workers. Then they asked how much more pay they thought CEOs should make. The median American guessed that executives out-earned factory workers roughly 30-to-1—exponentially lower than the highest actual estimate of 354-to-1. They believed the ideal ratio would be about 7-to-1.

“In sum, respondents underestimate actual pay gaps, and their ideal pay gaps are even further from reality than those underestimates,” the authors write.

Read More

The 1% May Be Even Richer Than You Think, Research Shows — Wealth Hidden by Tax Shelters and Non-response to Questionnaires

Percentage of wealth held by top 1%


By Jeanna Smialek
The 1 percent is literally rich beyond measure, depriving nations of billions in tax revenue and obscuring shifts in global inequality.

Research conducted separately by European Central Bank economist Philip Vermeulen and London School of Economics’ Gabriel Zucman show the wealth of the super-affluent -- hidden by tax shelters and nonresponse to questionnaires -- is undercounted. Correcting for similar lapses in income data almost erases progress made from 1988 to 2008 in narrowing the gap between the world’s rich and poor, World Bank research found.

“We always suspected there was some low-balling of the top 1 percent,” said Joseph Stiglitz, a Nobel-prize winning economist and author of “The Price of Inequality. “There’s a growing sense that our system is rigged and unfair.”

Read More

Is There a Connection Between CEOs' Narcissism and Corporate Tax-Dodging?

Over 20 years ago, Fortune 500 CEO Harold McInnes  saw the narcissism coming — into America’s executive  suites
Over 20 years ago, Fortune 500 CEO Harold McInnes
saw the narcissism coming — into America’s executive
suites

By Sam Pizzigati
Narcissists don’t happen to be particularly nice people. They preen. They grab. And they never ever really feel our pain.

Narcissists, some fascinating new business school research reminds us, also don’t make for particularly effective corporate CEOs.

This new research — out of the University of Southern California and the University of Arizona — examines the impact of CEO narcissism on corporate tax policies. That impact turns out to be fairly robust. The corporations that America most narcissistic CEOs run seem to be prone to engaging in highly risky corporate tax-avoidance maneuvers.

How did the authors of this new research, Kari Joseph Olsen and James Stekelberg, identify the narcissists in America’s top CEO suites? They used a variety of yardsticks, everything from the pay gap between CEOs and their fellow execs to the prominence of CEO photos in corporate annual reports.

In the end, the two business school researchers had no problem finding a statistically significant subset of CEO narcissists within the Fortune 500. And that hefty number of narcissist CEOs begs a rather obvious question: Do narcissists just naturally gravitate to America’s corporate pay summit or do the incredibly cushy rewards at that summit turn otherwise normal people into narcissists?

Until fairly recently social scientists left that sort of question to philosophers. But recent years have brought a surge of research into the impact of affluence on behavior. Experiments and field observations have shown that upper-crust life may be breeding, as University of California-Berkeley psychologist Paul Piff puts it, “increased entitlement and narcissism.”

Read More

Afro-Uruguay: A Brief History

Representation of a Candombe dance in Montevideo, Uruguay 1921.
Representation of a Candombe dance in Montevideo, Uruguay 1921. (Illustration by Pedro Figari)


Afro-Uruguayans have contributed to the construction of Uruguay as a consequence of enslavement. They have set up important organisations such as Mundo Afro to lobby the national government to recognise its black minority as an equal member of the national community.

By George Reid Andrews, Pambazuka News

“Afro-Uruguayans faced pervasive discrimination and racial prejudice.”

When we think of the great nations of the African diaspora—Brazil, Cuba, Haiti, the United States—the South American republic of Uruguay is not one of the first names to come to mind. To the contrary: the recipient of almost 600,000 European immigrants between 1880 and 1930, Uruguay has long presented itself to the world as one of the two “white republics” of South America (its neighbor Argentina is the other). In the national household survey of 1996, 93 percent of its citizens classified themselves as white, a figure significantly higher than in the United States (where 75 percent of the population classified itself as white in the 2000 census).

Yet in common with other Latin American countries, during the last 25 years Uruguay has experienced a significant upsurge in black civic and political mobilization. Organizations such as Mundo Afro (Afro World), the Asociación Cultural y Social Uruguay Negro, the Centro Cultural por la Paz y la Integración, Africanía, and others have pressed the nation to acknowledge its black past and present and to work toward the full integration of its black and indigenous minorities into national life.

These recent organizations are the latest chapter in a long history of black mobilization that began in the early 1800s with the salas de nación, mutual aid societies organized on the basis of members’ African origins. Uruguay’s capital, Montevideo, was a required port of call for slave ships bringing Africans to the Río de la Plata region. Most of those Africans continued on to Argentina, but during the late 1700s and early 1800s some 20,000 disembarked in Montevideo and remained in Uruguay. By 1800 the national population was an estimated 25 percent African and Afro-Uruguayan.

A list from the 1830s of thirteen salas de nación in Montevideo shows six from West Africa, five from the Congo and Angola, and two from East Africa. The salas bought or rented plots of land outside the city walls, on which they built headquarters to house their religious observances, meetings, and dances. They collected money for emancipation funds to buy the freedom of slave members, lobbied public officials, and provided assistance in disputes and conflicts between slaves and their owners.

“By 1800 the national population was an estimated 25 percent African and Afro-Uruguayan.”

Free and slave Africans and Afro-Uruguayans served in large numbers in the independence wars of the 1810s and 20s and in the civil wars of the 1830s, 1840s, and the second half of the 1800s. Slave military service was rewarded first by the Free Womb law of 1825 (under which children of slave mothers were born free, though obligated to serve their mother’s master until they reached the age of majority) and then the final abolition of slavery in 1842.

Once free, Africans and Afro-Uruguayans demanded the full civic and legal equality guaranteed by the Constitution of 1830. In theory, these rights applied equally to all citizens; but in practice, Afro-Uruguayans faced pervasive discrimination and racial prejudice. In response, Afro-Uruguayans created the most active (on a per capita basis) black press anywhere in Latin America. Between 1870 and 1950 black journalists and intellectuals published at least twenty-five newspapers and magazines in Montevideo and other cities. This compares to between forty and fifty black-oriented periodicals during the same period in Brazil, where the black population is today some 400 times larger than Uruguay’s; and fourteen in Cuba (black population twenty times larger than Uruguay’s).

This flourishing of Afro-Uruguayan journalism was at least in part a reflection of the country’s economic and educational achievements during the late 1800s and early 1900s. Exports of meat and wool formed the basis of one of South America’s most successful national economies. By 1913, Uruguay had the highest per capita GNP and tax receipts, the lowest birth and death rates, and the highest rates of literacy and newspaper readership, anywhere in Latin America. National educational reforms in the 1870s and early 1900s made Uruguay a regional leader in educational achievement; under these conditions, Afro-Uruguayans were far more literate than their counterparts in, for example, Brazil.

“Afro-Uruguayans created the most active (on a per capita basis) black press anywhere in Latin America.”

Relatively high educational achievement in Uruguay provided favorable conditions for an active black press, as well as for Afro-Uruguayan social and civic organizations more generally. Afro-Uruguayans formed social clubs, political clubs, dancing and recreational groups, literary and drama societies, civic organizations, and in 1936 a black political party, the Partido Autóctono Negro (PAN). The PAN was one of three such parties in Latin America, the other two being in Cuba (the Partido Independiente de Color, 1908-12) and Brazil (the Frente Negra Brasileira, 1931-38). The PIC and FNB were both eventually outlawed by their respective national governments; the PAN, by contrast, was permitted to function freely but never succeeded in attracting significant electoral support. During the 1800s and most of the 1900s, Uruguayan politics was dominated by two main parties, the Blancos and Colorados. Afro-Uruguayan voters split their allegiances between those parties, with most favoring the Colorados. Unable to make any inroads into that two-party system, the PAN disbanded in 1944.

During the 1940s and 1950s Uruguay experienced its most intense period of economic growth and expansion. Exports to the Allies during World War II, to a shattered Europe in the years after the war, and to the US during the Korean War, sustained a boom period remembered today as a golden age, the years of “como Uruguay no hay” (there’s no place like Uruguay), a semi-official slogan at the time. Those years should have provided ideal conditions for black upward mobility; but prejudice and discrimination continued to obstruct black advancement. A celebrated case of discrimination in 1956, in which an Afro-Uruguayan schoolteacher suffered blatant harassment from two principals at schools to which she was assigned, provoked a national debate on racial conditions in the country. A journalist investigating employment conditions in Montevideo at that time found that of 15,000 service workers (hairdressers, waiters, hotel chambermaids, bus drivers, etc.) in the city, only eleven were Afro-Uruguayan—less than one per thousand in a city that was probably 5-6 percent Afro-Uruguayan. The country’s leading university, the publicly funded Universidad de la República, was found to have awarded degrees to only five Afro-Uruguayans between 1900 and 1950.

Conditions had apparently changed little by 1980, when a Uruguayan writer reported that in the downtown commercial districts of Montevideo, “in dozens and dozens of shops, the total number of black employees does not reach ten… There are no black hairdressers… Except for very low-class bars, there are no black waiters, nor in hotels, restaurants, or cafes.” During the 1980s and 90s, however, Uruguay experienced the same wave of black civic mobilization that swept over much of Latin America at that time. In Brazil, Colombia, Panama, Peru, and other countries, Afro-Latin Americans organized to combat racism and discrimination. The most important such group in Uruguay was Mundo Afro, founded in 1988.

“Afro-Uruguayan incomes are on average 60 percent of white earnings.”

Demanding that Uruguay recognize its black minority as an equal member of the national community, Mundo Afro successfully lobbied the national government to gather racial data (for the first time since 1852) in the national household surveys of 1996 and 2006. Those surveys showed Afro-Uruguayans constituting either 6 percent (1996) or 9 percent (2006) of the national population (3.3 million in 2006). And as in Brazil and the United States, where racial data are routinely included in national censuses, the two surveys left no doubt concerning levels of racial inequality in the country. Afro-Uruguayan incomes are on average 60 percent of white earnings; whites are twice as likely as blacks to have a university degree; black poverty rates are double those of whites; black unemployment rates are 50 percent higher; and so on.

In the face of such conclusive data, and in preparation for the 2001 U.N. Conference against Racism, Racial Discrimination, and Xenophobia, held in South Africa, Uruguay’s government committed itself to policies aimed at combating racial discrimination and inequality. In 2003 the municipal government of Montevideo created an advisory Unit for Afro-Descendent Rights; at the national level, President Tabaré Vázquez (2005-10) appointed a presidential advisor for Afro-Uruguayan affairs and created programs for Afro-Uruguayan women and Afro-Uruguayan youth in the Ministry of Social Development.

Paralleling and at times converging with the history of Afro-Uruguayan civic mobilization is the history of Afro-Uruguayans’ role in creating Uruguayan popular culture. To summarize very briefly, one of the principal functions carried out by the African salas de nación in the first half of the 1800s was to hold candombes, public dances for their members. In the 1860s and 1870s, the Africans’ Uruguayan-born children and grandchildren combined African musical elements (particularly the use of African drums and other percussion instruments) with instruments, chords, and rhythms from Europe and the Caribbean (especially Cuba) to create a new musical form called both tango and candombe.

This new, syncopated music proved wildly popular—so popular that young white men wanted to get into the act as well, creating their own tangos and candombes. The vehicle through which they did so were the comparsas: musical groups that paraded in Carnival each February and March, playing music composed especially for those events. Seeking to imitate their black models, the white comparsas paraded in blackface make-up and “African” costumes. The result was a “troubling hall of mirrors,” to quote historian John Chasteen, in which white performers imitated blacks while black performers in turn imitated whites’ imitation of blacks.

“The Day of Candombe (celebrated on December 3) is intended to provide space for a day of reflection on racial conditions in Uruguay.”

By 1900, previously segregated black and white comparsas had fused into racially integrated groups that in most cases were, and are today, majority white in composition. They present themselves to the Montevideo public as sociedades de negros, “black” drummers, singers, and dancers performing the “black” music of candombe. In so doing, they have become the most popular and applauded element of Montevideo’s Carnival. But the images of black life that they present hark back a century or more to racial stereotypes dating from the late 1800s. Blackness is presented in highly sexualized ways and as having a special relationship to primitive powers of rhythm, dance, magic, and sex.

The worlds of politics and candombe have often intersected. Some of the best-known comparsas have been closely tied to the Colorado party; in the 1960s groups of candombe drummers appeared with Afro-Uruguayan Senator Alba Roballo in her electoral campaigns. In 2006, Afro-Uruguayan Congressman Edgardo Ortuño proposed the creation of a national holiday, the Day of Candombe, Afro-Uruguayan Culture, and Racial Equality. Conceived as a Uruguayan version of similar commemorations in the United States (Martin Luther King Day) and Brazil (Black Consciousness Day), the Day of Candombe (celebrated on December 3) is intended to provide space for a day of reflection on racial conditions in Uruguay and the road remaining to be traveled to achieve true racial equality. Whether the holiday will serve that purpose remains to be seen; but certainly it provides clear evidence, if any were needed, of the centrality of candombe and Afro-Uruguayan culture in Uruguayan national life.

__________________
George Reid Andrews is author of ‘Blackness in the White Nation: A History of Afro-Uruguay’ (University of North Carolina Press, 2010) and Afro-Latin America, 1800-2000 (Oxford University Press, 2004).

This piece was printed in: http://www.blackpast.org/perspectives/afro-uruguay-brief-history#sthash.mPxK9Vf4.dpuf


Reprinted with permission from
Pambazuka News.

These Eight Charts Show Why Racial Equality Is a Myth in America


Percentage of higher-rate mortgages given to borrowers with good credit, by race



These Eight Charts Show Why Racial Equality Is a Myth in America (via Moyers & Company)
Ta-Nehisi Coates’ cover story at The Atlantic, “The Case for Reparations,” published last night — and the subject of this week’s Moyers & Company interview — shows how dramatically the legacy of slavery and centuries of legalized and institutionalized…

America’s Gap Between the Rich and the Rest Might be Worse Than We Ever Knew

Occupy Wall Street protesters at Zuccotti Park, NYC - Sept, 2012. Turns out, these
guys didn't know the half of it. (Photo by Ronald David Jackson)
By
Economists Emmanuel Saez, of the University of California–Berkeley, and Gabriel Zucman, of the London School of Economics, are out with a new set of findings on American wealth inequality, and their numbers are startling. Wealth, for reference, is the value of what you own—assets like housing, stocks, and bonds, minus your debts. And while it certainly comes up from time to time, it has tended to play second fiddle to income in conversations about America’s widening class divide. In part, that’s because it’s a trickier conversation subject. Wealth has always been far more concentrated than income in the United States. Plus, research suggested that the top 1 percent of households had actually lost some of its share since the 1980s.

That might not really have been the case.

Forget the 1 percent. The winners of this race, according to Zucman and Saez, have been the 0.1 percent. Since the 1960s, the richest one-thousandth of U.S. households, with a minimum net worth today above $20 million, have more than doubled their share of U.S. wealth, from around 10 percent to more than 20 percent. Take a moment to process that. One-thousandth of the country owns one-fifth of the wealth. By comparison, the entire top 1 percent of households takes in about 22 percent of U.S. income, counting capital gains.

Read More

Reducing the Gap Between Africa's Rich and Poor

The second most expensive yacht in the world, belonging to the son of Teodoro
Obiang Nguema Mbasogo, President of Equitorial Guinea (Public domain)

By Rakotomalala, Translated By Chris Ensor
Thousands of people are demonstrating on the streets to protest against low salaries, the high cost of living and an insufficient state safety net.

A reaction to austerity measures in Greece? Or a follow-up to the Arab Spring? No, these are protests for greater equality in Sub-Saharan Africa, most recently in Burkina Faso.

The widening gap between rich and poor is as troubling in Africa as in the rest of the world. In fact, many Africans believe that inequalities are becoming more marked: A tiny minority is getting richer while the lines of poor people grow out the door. The contrast is all the more striking in Africa since the poverty level has been at a consistently high level for decades, despite the continent's significant average GDP growth.

A columnist from the independent daily L'Observateur Paalga in Burkin Faso explains the general feeling of discontent [fr]:
Les uns prennent l’avion pour aller soigner un rhume des foins pendant que les autres bouffent les pissenlits par la racine parce qu’ils n’ont pas l’argent pour aller traiter un simple palu.
Some take a plane to get treated for hay fever, while others are pushing up daisies because they can’t afford basic malaria treatment.
However, growth in Africa is expected – the World Bank paints an optimistic picture of African potential, but warns against persistently high inequalities:
Economic growth in Sub-Saharan Africa (SSA) remains strong with growth forecasted to be 4.9% in 2013. Almost a third of countries in the region are growing at 6% and more, and African countries are now routinely among the fastest-growing countries in the world [...] [however the report] notes that poverty and inequality remain “unacceptably high and the pace of reduction unacceptably slow.” Almost one out of every two Africans lives in extreme poverty today.

Denis Cogneau, responsible for research at the Institute of Research for Development (IRD), explains that these inequalities in Africa have a well-defined historical origin [fr]:
Les États postcoloniaux ont hérité d’institutions économiques et sociales extractives, caractérisées par un dualisme extrêmement marqué entre un secteur formel de taille réduite, et un vaste secteur informel incluant la paysannerie. De même, beaucoup de pays se caractérisent par un dualisme scolaire et sanitaire, caractérisé par la coexistence d’institutions d’élite publiques et privées coûteuses situées dans la capitale, et d’un secteur de base (écoles primaires et dispensaires) faiblement doté en personnel, médiocrement approvisionné et inégalement réparti sur le territoire. Dans ce contexte, l’école a joué un rôle très dangereux, car elle a été (et est toujours) l’une des clefs d’accès, «non seulement aux emplois dans le secteur moderne, mais aussi aux positions dans l’appareil d’État et au pouvoir politique, suivant en cela les évolutions des sociétés européennes». L’inégalité des chances dans l’accès implique, par conséquent, une reproduction plus accentuée des élites politiques.
Postcolonial states inherited extractive economic and social institutions, characterised by a sharply marked dualism between a small formal sector and a huge informal sector, including farmers. Similarly, many countries are characterised by a dualism in education and health, distinguished by the coexistence of expensive, private and public elite institutions situated in the capital, and a core sector (primary schools and health centres) lacking personnel, poorly stocked, and unevenly spread out across the region. In this context, school plays a very dangerous role, as it was (and still is) one of the keys of entry “not only to jobs in the modern sector, but also to positions in the state apparatus and political power, mirroring the evolution of European societies”. Consequently, the unequal chances of gaining access imply a more marked reproduction of the political elite.
What measures can be taken to reduce these inequalities?
At a a local level, efforts are often not made to understand the exact circumstances that lead to growing inequality. Several organisations have implemented tools to monitor the lives of vulnerable populations in order to clarify the reasons behind it.

In Madagascar, CIRAD (a French research centre working with developing countries to tackle international agricultural and development issues) has proposed the creation of an observatory to carry out monitoring and improve living standards in rural areas [fr]:
Le Réseau des observatoires ruraux (ROR) constitue un dispositif de suivi et d’analyse des conditions de vie des ménages ruraux. Un des objectifs principaux est d’appréhender l’évolution de la situation des ménages ruraux et l’impact des mesures publiques et des chocs externes sur ces ménages. Chaque observatoire comporte un panel de 500 ménages sur des sites choisis de manière raisonnée avec le bailleur. Le questionnaire couvre les principaux aspects des la vie des ménages sur une période de 12 mois. Les résultats permettent une comparaison des situations dans le temps (par année) et dans l’espace (entre les observatoires).
The network of local rural observatories (ROR) consists of a tool that tracks and analyses living conditions in rural households. One of the principal objectives is to gain an understanding of the evolution of the situation in rural households and the impact that public measures and external shocks have on these households. Each observatory is made up of a panel of 500 households in sites chosen in agreement with the landowner. The questionnaire covers the main aspects of household life over a 12-month period. The results mean we can make a comparison in time (per year) and in space (between observatories).
Sexual inequality in Burkina Faso has been identified as a significant barrier to development, as studies have shown that the participation of women in the active life of a country has a considerable impact on its development. Bougnan Naon explains what the Dakupa Association is doing [fr] on this topic in the Boulgou province:
L'enjeu du projet est de permettre la création d'un réseau fonctionnel avec des membres compétents pour influencer les attitudes/pratiques traditionnelles, ainsi que les politiques et stratégies locales de lutte contre les inégalités de genre [..] (L'objectif est de): former 50 acteurs-clefs locaux aux stratégies de prise en compte du genre dans la mise en œuvre des projets et programmes par an, d'organiser des suivis-supervisions pour faciliter l'application effective de l'approche (maîtrise des outils et de l'identification d'actions genre pertinentes) par les ONG au profit de leurs cibles.
The aim of the project is to enable the creation of a functional network with competent members in order to influence traditional attitudes/practices, as well as local policies and strategies which fight against gender inequalities [...] (The objective is to) create 50 local key players with strategies to ensure gender is taken into account when launching projects and programs each year, and for the NGO to get closer to its targets by organising supervisors to facilitate the effective application of the approach (learning the tools and identifying pertinent gender actions).



Reprinted with permission from Global Voices.

Rising Inequality: Recovery Driven Almost Entirely by the Rich


Union Membership and Inequality: Workers suckered by propaganda to be anti-union.
As a result, corporations are running over them. (Chart from CTU Economic Bulletin)

By Gaius Publius, Professional Writer and Contributing Editor at AMERICAblog.com
America's income inequality has grown so wide that the current "recovery" is driven primarily by the upper fifth of income earners, as revealed by the latest consumer spending data. Right now, more than 60% of all consumer spending is done by just the top 20% of income earners. And retailers are noticing.

This is the America that's in recovery. Who is part of that 20% with most of the spending money? First, obviously, are the bigs (the Kochs, the Edelsteins, the Rubins and Dimons, the hedge fund kings and queens). The next level down includes their top retainers (those who are paid — or campaign-financed — to serve their financial interests ... people like, well ...). And finally, there's the broad class of well-paid and needed professionals, those who get the real trickle-down, who earn real money when the economy is good. Doctors, lawyers, high-tech pros, engineers, sales types, the people at the airport on a weekday. Everyone with a needed skill who keeps the machine running and whose job can't be outsourced.

Inflation-adjusted incomes below that point have collapsed, or gone flat with barely a hint of recovery. We'll show this data in two ways below. Read on.

Consumer Spending Data Shows Where the Money Is

Much of this is revealed in a study of consumer spending as described in a recent New York Times article. First, the money quote, then more from the article. The quote:
[T]he current recovery has been driven almost entirely by the upper crust [the top 5% of earners], according to [the study's authors] Mr. Fazzari and Mr. Cynamon. Since 2009, the year the recession ended, inflation-adjusted spending by this top echelon has risen 17 percent, compared with just 1 percent among the bottom 95 percent.
More broadly, about 90 percent of the overall increase in inflation-adjusted consumption between 2009 and 2012 was generated by the top 20 percent of households in terms of income, according to the study, which was sponsored by the Institute for New Economic Thinking, a research group in New York.
The study mentioned above is fascinating but technical. Reading the write-up in the Times will get you well started. It puts numbers to an otherwise amorphous entity, "rising income inequality."

Most Consumption Occurs At the Top

The section just quoted covered change in consumption. There's also information about the amount of consumption itself, divided among the various moneyed and un-moneyed classes. Take a look at this chart, especially the three 2012 bottom lines:

From the top part of the graph, we find that the top 5% of income accounts for almost 40% of consumption. That's stunning in itself. From the middle part, we see the top 20% of income now accounts for more than 60% of consumption. And from the bottom, the other 80% of the nation by income — all of the rest of us — account for less than 40% of consumption. And again, as the graphs show, the trend is widening.

The Vast "Shrinking Middle"

All of this means that the buying power of our vast middle class is shrinking, and with it the wealth of the companies that depend on it. The article is filled with examples of higher-end products and retailers doing well, just like the very low end (like Dollar Tree) which serves the near-destitute. Meanwhile retailers in the middle are seeing a ton of trouble — dwindling sales, store closings and plummeting stock prices. A taste from the article:
Investors have taken notice of the shrinking middle. Shares of Sears and J. C. Penney have fallen more than 50 percent since the end of 2009, even as upper-end stores like Nordstrom and bargain-basement chains like Dollar Tree and Family Dollar Stores have more than doubled in value over the same period.
The same trend is true for restaurants, where middle class brands — think Olive Garden and the like — are hurting. At Olive Garden (average bill of about $16 per diner), revenue is falling. At Capital Grille (average bill of about $70 per diner), revenue is up.

Extreme Income Inequality Is ‘Fantastic’ Says Millionaire Host of 'Shark Tank' TV Show: Income Inequality Feeds O'Leary's Superiority Complex

Kevin O'Leary
Guess we now know why America's business class is deliberately keeping un-
employment high: Kevin O'Leary: Host of "Shark Tank". (Photo by Randstad Canada)

"The next time you’re watching the show keep in mind that multi-millionaire businessman Kevin O’Leary is an absolute far right, emotionless sociopath."

Shark Tank Host Kevin O’Leary Thinks Extreme Income Inequality Is ‘Fantastic’ (Video) (via Firebrand Progressives)
If you’re a fan of the television show Shark Tank, where people pitch their business ideas to a panel of wealthy entrepreneurs in the hopes of gaining financial backing, the next time you’re watching the show keep in mind that multi-millionaire…

The 'American Prosperity' Myth: America's Middle Class Almost LAST Among Developed Nations - Further From the Top Than Most Others


"Middle Class RIP" (Illustration by DonkeyHotey)
"The Bottom Half of America Owns a Smaller Percentage of National Wealth than Almost All Other Countries and Continents."

By Paul Buchheit
Inequality is a cancer on society, here in the U.S. and across the globe. It keeps growing. But humanity seems helpless against it, as if it's an alien force that no one understands, even as the life is being gradually drained from its victims.

The recent  Oxfam report on global wealth inequality reveals some of the ugly extremes that have divided our world. It also directs our attention to the  Global Wealth Report compiled by Credit Suisse, and the companion Databook, which offer a shocking testament to the severity of U.S. and global inequality.

Continue Reading...

Angry Billionaire Compares 'Occupy Wall Street' and Rebellion Against Income Equality and the 1% to the Rise of the Nazis

Tom Perkins
Tom Perkins (left) compares "Occupy Wall Street" with the Nazis: That's exactly the kind of "big lie"
propaganda Germany's murderous Nazis were known for. (Photo by TechCrunch)

By Caroline Bankoff
Does San Francisco's backlash against its wealthy tech workers bear any resemblance to Nazi Germany? Influential rich guy Tom Perkins thinks so! In a letter to The Wall Street Journal titled "Progressive Kristallnacht Coming?" published on Saturday, Perkins, a billionaire who founded venture capital firm Kleiner Perkins Caufield & Byers, writes, "I would call attention to the parallels of fascist Nazi Germany to its war on its 'one percent,' namely its Jews, to the progressive war on the American one percent, namely the 'rich.'"

After citing the Occupy movement, San Franciscans' anger over Google buses and rising real-estate prices, and the San Francisco Chronicle's "libelous and cruel attacks" on his his ex-wife, romance author Danielle Steel, as evidence of "a rising tide of hatred of the successful one percent," Perkins (who once wrotes some sexy fiction of his own) concludes, "This is a very dangerous drift in our American thinking. Kristallnacht was unthinkable in 1930; is its descendent 'progressive' radicalism unthinkable now?"
Continue Reading...

1% Must Pay 75%: Top French Court Backs President Francois Hollande's Drive to Limit Executive Pay

Occupy Wall Street Demonstration, Zuccotti Park, Oct 2011: Photo by Ronald David Jackson)
Occupy Wall Street Demonstration, Zuccotti Park, Oct 2011.
(Photo by Ronald David Jackson)
France's top court Sunday approved a proposal for companies to pay 75 percent tax on annual salaries exceeding $1.4 Million (US) in line with President Francois Hollande's drive to limit executive pay at a time of economic hardship.

According to the French government, this tax will affect some 470 companies and about 1,000 people.

Continue Reading...

Top French Court Approves 75% Company Tax on High Salaries

Top French court approves 75% company tax on high salaries (via AFP)
France's top court Sunday approved a proposal for companies to pay 75 percent tax on annual salaries exceeding one million euros in line with President Francois Hollande's drive to limit executive pay at a time of economic hardship. The Constitutional…

Related Posts Plugin for WordPress, Blogger...