Some things I encounter have to be put out there in toto, or much of the point is lost. When once the country rolls over and dies because of the disparity of wealth, such pieces as this will seem prescient. Every single one of these points is telling (not to mention outrageous), but I'm absolutely convinced that no one in this country is the least bit concerned. We're more intent on fiddling while the country falls down about our ears.
This article--and it's not included in its entirety--appeared on the Alternet blog. It's just variation on a theme that's been echoing through the nation's consciousness for several years now. But it doesn't seem to be striking any chords.
The information came from the Credit Suisse 2014 Global Wealth Databook (GWD), which goes on to reveal much more about the disappearing middle class.
1. Each Year Since the Recession, America's Richest 1% Have Made More Than the Cost of All U.S. Social Programs
In effect, a reverse transfer from the poor to the rich. Even as conservatives blame Social Security for being too costly.
Much of the 1% wealth just sits there, accumulating more wealth. The numbers are nearly unfathomable. Depending on the estimate, the 1% took in anywhere from $2.3 trillion to $5.7 trillion per year. (All numeric analysis is detailed here.)
Even the smaller estimate of $2.3 trillion per year is more than the budget for Social Security ($860 billion), Medicare ($524 billion), Medicaid ($304 billion), and the entire safety net ($286 billion for SNAP, WIC [Women, Infants, Children], Child Nutrition, Earned Income Tax Credit, Supplemental Security Income, Temporary Assistance for Needy Families, and Housing).
2. Almost None of the New 1% Wealth Led To Innovation and Jobs
In 2005, for every $1 of financial wealth there was 66 cents of non-financial (home) wealth. Ten years later, for every $1 of financial wealth there was just 43 cents of non-financial (home) wealth.
Over 90% of the assets owned by millionaires are held in low-risk investments (bonds and cash), the stock market, and real estate. Business startup costs made up less than 1% of the investments of high net worth individuals in North America in 2011. A recent study found that less than 1 percent of all entrepreneurs came from very rich or very poor backgrounds. They come from the middle class.
On the corporate side, stock buybacks are employed to enrich executives rather than to invest in new technologies. In 1981, major corporations were spending less than 3 percent of their combined net income on buybacks, but in recent years they've been spending up to 95 percent of their profits on buybacks and dividends.
Oxfam reported that just 85 people own as much as half the world. Here in the U.S., with nearly a third of the world's wealth, just 47 individuals own more than all 160 million people (about 60 million households) below the median wealth level of about $53,000.
4. The Upper Middle Class of America Owns a Smaller Percentage of Wealth Than the Corresponding Groups in All Major Nations Except Russia and Indonesia.
The upper middle class in the U.S., defined as everyone in the top half below the richest 20%, owns 11.9 percent of the wealth. Indonesia at 10.5 percent and Russia at 7.5 percent are worse off, but in all other nations the corresponding upper middle classes own 12 to 27 percent of the wealth.
America's bottom half compares even less favorably to the world: dead last, with just 1.3 percent of national wealth. Only Russia comes close to that dismal share, at 1.9 percent. The bottom half in all other nations own 2.6 to 10.2 percent of the wealth.
5. Ten Percent of the World's Total Wealth Was Taken by the Global 1% in the Past Three Years
As in the U.S., the middle class is disappearing at the global level. An incredible one of every ten dollars of global wealth was transferred to the elite 1% in just three years. A level of inequality deemed unsustainable three years ago has gotten even worse.This is the bad news, and it's surely bad enough, but if you continue to read the article, it goes on to suggest that a so-called transaction tax could be used to get the richest to contribute their fair share towards the cost of everything. They don't pay anywhere near that now, you can be sure.