Income inequality severely hampers economic growth, and the USA has severe income inequality

HERE’S SOME AMERICAN EXCEPTIONALISM FOR YOU: did you know that income inequality in the United States is currently MORE UNEQUAL than countries like the Ivory Coast, Ethiopia, and Pakistan? Ethiopia, people! WTF!

Income inequality in the U.S. is higher than at any other time since the Great Depression, and the U.S. is currently more unequal than countries like the Ivory Coast, Ethiopia, and Pakistan. Though Republicans dismiss concerns over the gap as “class warfare,” the ever-increasing level of disparity has tangible consequences, leading to poor work performance and a greater gap in life expectancy. And now, according to a new Finance & Development study, income inequality also “kills economic growth.”  Study Shows Income Inequality Severely Hampers Economic Growth

REMEMBER AFTER 9-11 WHEN BUSH TOLD US TO GO SHOPPING, to “enjoy life, the way we want it to be enjoyed“. Who do you suppose that benefited, exactly? He and his rich friends knew exactly what they were doing:

Median wages grew too little over the past 30 years to drive the kind of spending necessary to sustain the consumer economy. Instead, increasingly exotic forms of credit filled the gap, as the wealthy offered the middle class alluring credit card deals and variable-interest subprime loans. This allowed rich investors to keep making money and everyone else to feel like they were keeping up—until the whole system imploded. -Study: Income Inequality Kills Economic Growth

And this:

Using 2007 figures, sociologist William Domhoff points out that the top one percent have five percent of the nation’s personal debt while the bottom 90 percent have 73 percent of total debt. The Top 5 Facts You Should Know About The Wealthiest One Percent Of Americans

WHY SHOULD THE WEALTHY PAY (SLIGHTLY) HIGHER TAXES? One reason is the economy, which will never bounce back until there’s some kind of a reversal in the inequality of our country’s economic system. Since 1980, the wealthy have profited enormously from the increased productivity of its workforce, while its workforce have made no gains in either wages or take home income in the same period.

(Click for larger image)

WHO DROVE THE PRODUCTIVITY HIGHER AND HIGHER in the chart above? It was the workers, middle class and working class Americans. We’ve all worked very hard in the past 30 years, so why aren’t we all rich — or, at the very least, why didn’t our wages and income gains keep pace with the richest of the rich as it did from 1947 – 1979?

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2 thoughts on “Income inequality severely hampers economic growth, and the USA has severe income inequality

  1. Pingback: Things I have no problem with: new taxes on the wealthiest Americans | Under the Mountain Bunker

  2. Pingback: Eric Cantor’s solution to income disparity: we need to rely on the wealthy to take care of it | Under the Mountain Bunker

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