Posts Tagged ‘wealth’
Although wealth is one of the pillars of the economic system, reliable data on personal wealth ownership is in short supply. The Credit Suisse Global Wealth Report aims to help bridge this deficit by providing the most comprehensive, reliable and timely source of information on global household wealth. Global wealth has reached a new all-time high of USD 241 trillion, up 4.9% since last year, with the US accounting for most of the rise. Average wealth hit a new peak of USD 51,600 per adult, but inequality remains high, with the top 10% of the world population owning 86% of global wealth, compared to barely 1% for the bottom half of all adults.
This document presents details on the wealth and income distributions in the United States, and explains how we use these two distributions as power indicators.
Some of the information may come as a surprise to many people. In fact, I know it will be a surprise and then some, because of a recent study (Norton & Ariely, 2010) showing that most Americans (high income or low income, female or male, young or old, Republican or Democrat) have no idea just how concentrated the wealth distribution actually is. More on that a bit later.
As far as the income distribution, the most striking numbers on income inequality will come last, showing the dramatic change in the ratio of the average CEO’s paycheck to that of the average factory worker over the past 40 years.
In Plenitude economist and bestselling author Juliet Schor offers a groundbreaking intellectual statement about the economics and sociology of ecological decline, suggesting a radical change in how we think about consumer goods, value, and ways to live. Humans are degrading the planet far faster than they are regenerating it. As we travel along this shutdown path, food, energy, transport and consumer goods are becoming increasingly expensive. The economic downturn that has accompanied the ecological crisis has led to another type of scarcity: incomes, jobs, and credit are also in short supply. Our usual way back to growth a debt-financed consumer boom is no longer an option our households, or planet, can afford. Responding to our current moment, Plenitude puts sustainability at its core, but it is not a paradigm of sacrifice. Instead it’s an argument that through a major shift to new sources of wealth, green technologies, and different ways of living, individuals and the country as a whole can actually be better off and more economically secure. And as Schor observes, Plenitude is already emerging. In pockets around the country and the world, people are busy creating lifestyles that offer a way out of the work and spend cycle. These pioneers’ lives are scarce in conventional consumer goods and rich in the newly abundant resources of time, information, creativity and community. Taken together, these trends represent a movement away from the conventional market and offer a way toward an efficient, rewarding life in an era of high prices and traditional resource scarcity. Based on recent developments in economic theory, social analysis, and ecological design, as well as evidence from the cutting edge people and places putting these ideas into practice, Plenitude is a road map for the next two decades. In encouraging us to value our gifts nature, community, intelligence, and time Schor offers the opportunity to participate in creating a world of wealth and well-being.
It is a confounding moment in American political history. On the one hand, evidence of democratic possibilities is undeniable. In 2008, millions of Americans helped catapult a man of half-African descent into the White House long before observers thought the nation was “ready.” Democratic movements have won major victories in recent decades, spreading civil rights, improving the status of women and ending unpopular wars. This is the continuation of a trend with deep roots in American history, reaching back at least to the Jacksonian era, of extending the equality principle into American culture at large.
On the other hand, democracy appears chronically dysfunctional when it comes to policies that impinge on the rich. Despite polls consistently showing that large majorities favor increasing taxes on the wealthiest Americans, policy has been moving for decades in the opposite direction. Reduced taxes on the ultra-rich and the corporations and banks they dominate have shifted fiscal burdens downward even as they have strained the government’s capacity to maintain infrastructure, provide relief to children and the poor, and assist the elderly.
The United States holds the dubious distinction of having the most unequal income distribution of any advanced industrialized nation. While other developed countries face similar challenges from globalization and technological change, none rivals America’s singularly poor record for equitably distributing the benefits and burdens of recent economic shifts. In Categorically Unequal, Douglas Massey weaves together history, political economy, and even neuropsychology to provide a comprehensive explanation of how America’s culture and political system perpetuates inequalities between different segments of the population.
Categorically Unequal is striking both for its theoretical originality and for the breadth of topics it covers. Massey argues that social inequalities arise from the universal human tendency to place others into social categories. In America, ethnic minorities, women, and the poor have consistently been the targets of stereotyping, and as a result, they have been exploited and discriminated against throughout the nation’s history. African-Americans continue to face discrimination in markets for jobs, housing, and credit. Meanwhile, the militarization of the U.S.-Mexican border has discouraged Mexican migrants from leaving the United States, creating a pool of exploitable workers who lack the legal rights of citizens. Massey also shows that women’s advances in the labor market have been concentrated among the affluent and well-educated, while low-skilled female workers have been relegated to occupations that offer few chances for earnings mobility.
America’s unrivalled disparities are not simply the inevitable result of globalization and technological change. As Massey shows, privileged groups have systematically exploited and excluded many of their fellow Americans. By delving into the root causes of inequality in America, Categorically Unequal provides a compelling argument for the creation of a more equitable society.
This is a transformative book. It’s the best book on American politics that I’ve read since Before the Storm. Not all of it is original (the authors seek to synthesize others’ work as well as present their own, but provide due credit where credit is due). Not all of its arguments are fully supported (the authors provide a strong circumstantial case to support their argument, but don’t have smoking gun evidence on many of the relevant causal relations). But it should transform the ways in which we think about and debate the political economy of the US.
The underlying argument is straightforward. The sources of American economic inequality are largely political – the result of deliberate political decisions to shape markets in ways that benefit the already-privileged at the expense of a more-or-less unaware public.
Read also: Here’s What’s the Matter With Kansas
Winner-take-all politics: how Washington made the rich richer-and turned its back on the middle class
A groundbreaking work that identifies the real culprit behind one of the great economic crimes of our time–the growing inequality of incomes between the vast majority of Americans and the richest of the rich. We all know that the very rich have gotten a lot richer these past few decades while most Americans haven’t. In fact, the exorbitantly paid have continued to thrive during the current economic crisis, even as the rest of Americans have continued to fall behind. Why do the “have it- alls” have so much more? And how have they managed to restructure the economy to reap the lion’s share of the gains and shift the costs of their new economic playground downward, tearing new holes in the safety net and saddling all of us with increased debt and risk? Lots of so-called experts claim to have solved this great mystery, but no one has really gotten to the bottom of it–until now. In their lively and provocative Winner-Take-All Politics, renowned political scientists Jacob S. Hacker and Paul Pierson demonstrate convincingly that the usual suspects–foreign trade and financial globalization, technological changes in the workplace, increased education at the top–are largely innocent of the charges against them. Instead, they indict an unlikely suspect and take us on an entertaining tour of the mountain of evidence against the culprit. The guilty party is American politics. Runaway inequality and the present economic crisis reflect what government has done to aid the rich and what it has not done to safeguard the interests of the middle class. The winner-take-all economy is primarily a result of winner-take-all politics.
Increasing inequality in the United States has long been attributed to unstoppable market forces. In fact, as Jacob Hacker and Paul Pierson show, it is the direct result of congressional policies that have consciously — and sometimes inadvertently — skewed the playing field toward the rich.
The U.S. economy appears to be coming apart at the seams. Unemployment remains at nearly ten percent, the highest level in almost 30 years; foreclosures have forced millions of Americans out of their homes; and real incomes have fallen faster and further than at any time since the Great Depression. Many of those laid off fear that the jobs they have lost — the secure, often unionized, industrial jobs that provided wealth, security, and opportunity — will never return. They are probably right.
And yet a curious thing has happened in the midst of all this misery. The wealthiest Americans, among them presumably the very titans of global finance whose misadventures brought about the financial meltdown, got richer. And not just a little bit richer; a lot richer.
As the ongoing occupation of Wall Street by hundreds of protesters enters its third week — and as protests spread to other cities such as Boston and Los Angeles — demonstrators have endorsed a new slogan: “We are the 99 percent.” This slogan refers an economic struggle between 99 percent of Americans and the richest one percent of Americans, who are increasingly accumulating a greater share of the national wealth to the detriment of the middle class.
It may shock you exactly how wealthy this top 1 percent of Americans is. ThinkProgress has assembled five facts about this class of super-rich Americans: