
And we the people... continue to dance the dance... of the Beggar's Waltz. The current Presidential debates on certain issues such as tax rates, middle class income, "socialism", and wealth distribution got me thinking about the actual numbers. What are the figures about the socio-economic make up of America?
First, let me point out, I will make reference to two separate terms... "average income" and "median household income." The first referring to each invididual PERSON, the second referring to each collective home, be it a home with one sole bread winner, or multiple people with their own separate sources of income coming into that home. I make that distinction because though the median household income in this nation is barely creeping upwards, if not alltogether stagnant, the average salary in this country is going down. Between 1974 and 2004, the average individual salary of an American male dropped 12.5%. The median household income has not reflected this, ONLY because over the last 35 years, there have been more and more women entering the workforce.
John McCain has said many times on the campaign trail, and I've heard it in other places (such as my arch-nemesis Rush Limbaugh), that 40% of Americans do not pay any taxes. They are, of course, taken out as federal withholdings on every paychecks, however about 40% of the American population gets a full refund during the April tax season. What noone ever mentions, is why they dont pay tax. Consider it some small minute resemblance of compassion for the poorest Americans. But 40% is a large portion of our total population. According to a tax study cited on Lou Dobbs one third of American workers earn less than $15,000 per year. 33% of our entire work force! Which seems in line with the Republican talking point that 40% of American workers pay no taxes. And according to the same study, 76% of American workers make less than $50,000 a year. And, of course, 95% of the American people make less than $250,000 per year, but no shock there. So, when there is mention of the upper middle class, Americans need to understand this is a very, very minute percentage of the entire United States population. Though they FULLY know better, the way these Republican pundits talk to the American people, some of these nitwits would give you the impression that...
a) Avg person makes about $50K/yr (untrue)
b) Avg household brings in about $75K/yr (untrue)
c) There is only about 5-8% of the population (all lazy) who make less than $15K/yr (untrue)
All, three are total... utter... garbage.
I've made mention on several previous occasions that after World War 2, America benefited from the decimation of Europe by becoming the leading world manufacturer. While Europe had to rebuild its infrustructure, all those displaced labor jobs came here. And though economic inequality was at one of its highest peaks right before the stock market crash of 1929 that led to the Great Depression, government programs (FDR's new deal) and new (relatively) high wage manufacturing markets helped to bridge the economic gap.
However, in recent decades, we have begun to see a trend of manufacturing jobs outsourced to other nations at a significantly lower wage rate. We have also seen an influx of low wage "service" jobs, while simultaneously seeing dramatic increases in CEO compensation.
If it wasn't so blood-boiling, it would almost be humorous how supporters of big business, like to claim that raising wages, or returning business tax rates to pre-Bush levels will cause businesses to fail. Look at the above chart. While they keep "selling" the talking point to people of all income levels who are against tax increases, they have also began to hoard more and more of the total profits for themselves on the upper management level. How is it possible that the Average American male earns 12.5% less from 1974 to 2004 (click here for full story) while CEO's went from making 27 times to 262 times the average salary of their employees over roughly the exact same period?!!! How is this possible? Your wages go down and upper management compensation grows exponentially? But raising wages or a slight tax increase would kill jobs? Yeah... okay... sure. You tell that to the double-digit IQ'ed hamsters walking around. The only thing wage and/or tax hikes would kill are these (morally anathema) OPTIMIZED profit margins and personal wealth that has been skyrocketing for the very select few over the last 30 years.

And the fact that "a certain party" has continued to vote against raising the minimum wage... wow! I dont get why average Americans dont care about this issue. The minimum wage is supposed to be the minimum earning a single person can sustain themselves on alone. It may not directly affect you, but it gives you the mindset of those who are making decisions, and those OTHER decisions will affect you. I know the Democrats finally FORCED a bill through, but this should be noted. If you look at the above chart, adjusted for inflation, the minimum wage is at its lowest levels since the mid 1950's! And the minimum wage has depreciated (in purchasing power) by 35% since its peak in 1968! I guess that was too much "spreading the wealth." And noone ever mentions the rising COST of living, in comparison to the standard of living. Compared to previous generations, I wonder why noone ever factors that in. University costs (college is free in Europe, btw) outpace inflation. Healthcare costs outpace inflation. However, if you look at the chart below, you can see that the "median" household income hasn't change at all over the last 40 years, while the top 5% keeps collecting more... and more... and more... and more... of the pie.

The cause of this issue (besides an uninformed/uninvolved electorate) is the laissez-faire capitalism that America has embraced. Every defense about business is profit. "You can't get the government involved... it will ruin profit." Everyone speaks about the invisible hand that automatically guides the markets to a place of equilibrium. The facts [that anyone can look up] clearly do not represent that. There is a corporate fascism going on. Institutionalized inequality... where big business DICTATES the earnings of the people. Fascist in terms of corporate decision making... corporate influence over government. Lobbying, we'll say... where there is enough influence to kill certain bills that most Americans dont keep up with, like the 8 previous minimum wage bills that died after Republican's killed legislation. Fighting government regulation, which helps companies police themselves... suppressing wage increases, busting up unionization and the buying/absorbtion of small businesses.
The American dream was not to go to work for some corporation. That is not a bad job or choice for a career in many cases, however, the American dream was entrepreneurship. Self-employment creates wealth. Ownership. The guy who owns a small burger restaurants earns more money than the guy who manages the McDonald's franchise, even though McDonald's is bringing in FAR more money. Why? Because McDonald's has a lot of boardroom executives that are taking home a large chunk of that money, where as, even though the guy who owns Chuck's Burgers grosses less, he's personally keeping more. There are small businesses that thrive but most markets, most workers, most cash flow goes through the "hands" of major corporations, and these corporations compensate the executive disproprotinately more than the average employee. In essence, the corporations are the source of most inequality... hoarding the majority of American wealth for the very, very few.

What is the difference between wealth and income? Income would be considered your earnings, whereas wealth would be what you currently OWN which can be appropriated or exchanged at some type of monetary value. Your paycheck reflects income. A Roth IRA reflects wealth. Home ownership (though not very liquid) reflects wealth. Business assets, financial securities, yachts... all examples of wealth. The above graph shows that the WEALTH in this nation has been secured by the hands of a very... very few. Wealth in the United States is far more disproportionate than income. The top 1% of Americans control 34.3% of US wealth. The top 10% own SEVENTY ONE PERCENT of all wealth. And if you look at the "smidget" on the far right, you will see the bottom 40%... all those evil evil people... those lazy people... who dont pay taxes, they have less than 1% of the wealth in this nation. The bottom 40% of Americans control .02% to be exact! Not 2% of the wealth... .02%. And these numbers count home ownership. If you dont count OWNER-occupied homes, the wealth disparity is even more scary. Why is that? Well, according to the Federal Reserve Board's Survey of Consumer Finance (click here), the top 10% owns 85% of all outstanding stock, 85% of all financial securities and 90% of all business assets.

The above chart shows the differences in income and wealth per economic group in America. We usually talk about INCOME, and with 76 out of every 100 Americans earning less than $50,000 per year... and 95 out of every 100 Americans earning less than $250,000 per year... there are major INCOME inequalities... but when you look at wealth, or the lack thereof... that should offend every American! We talk about the American dream and I would ask if the dream is dead. Dream deferred? Or dream denied. THE UNITED STATES OF AMERICA HAS THE LARGEST WEALTH DISPARITY OF ANY INDUSTRIALIZED NATION IN THE WORLD. The "closest" would be England, where our top 1% controls 34.3% of all wealth, whereas in England the top 1% controls about 22%. And we can only use the term "closest" if you consider America's top one percent controlling 150% as much as England's top 1%... "close."
Maybe... just maybe, we will have more compassion the next time we're interacting with one of the low wage service jobs that make up a larger and larger portion of our workforce. 33% of Americans earn less than $15,000 per year. Be it... security guard, cashier, dry cleaning employee, fast foot worker, airport bagger, department store employee, grocery clerk, grocery stocker, janitor, house cleaner, gas station attendant, waitress, waiter, restaurant host, retail store clerk or any of the myriad of other low wage employees we interact with on regular basis.
When asked in an interview about the negative affects of inequal wealth distribution affecting the United States, NYU economic professor Edward Wolff said this:
"Typically when countries are more equal, education achievement and benfits are more equally distributed in the country. In a country like the United States, there are still huge disparities in resources going to education, so quality of schooling and schooling performance are unequal. If you have a society with large concentrations of poor families, average school achievement is usually a lot lower than where you have a much more homogenous middle class population, as you find in most Western European countries. So schooling suffers in this country, and, as a result, you get a labor force that is less well educated on average than in a country like the Netherlannds, Germany or even France. So the level of inequality results in less human capital being developed in this country, which ultimately affects economic performance." (entire article here)
IF... and I mean... IF... if there was a class war, as Republicans try to scare people with it, that war is over. People, might I add, who are on the wrong side of the that class war. We lost. Hopefully, the battle will begin anew. Until then.. we all... continued to dance the dance... as dictated to us... the Beggar's Waltz