Top 1% took in record share of income in 2012
A new study says the wealth gap is now even larger than it was before the stock market crash of 1929.
If our recent post about a video lecture by Chrystia Freeland on the rise of the new global superrich didn't convince you, new figures on income inequality appear to underscore her thoughts. A new academic analysis of IRS data going back to 1913, says the top 1% of Americans collected a record 19.3% of all household income last year.
According to economists at the University of California at Berkeley, Oxford University and the Paris School of Economics, that figure broke the 18.7% of the pretax income collected by the nation's top 1% back in 1927 -- shortly before the stock market crash that heralded the Great Depression.
The study also notes that, while the superrich were also hit hard by the global economic downturn, their incomes have bounced back with the recovery and that 95% of income gains reported since 2009 have gone to the top 1%.
One of the researchers involved in the study, Emmanuel Saez at UC Berkeley, says the record income for superrich Americans last year may also be due to their cashing in stock holdings to avoid newly imposed capital gains taxes.
In a paper he published last year, Saez suggested these new rich are not the stereotypical "old money" but in fact are the "working rich" -- the new entrepreneurs or highly paid "superstar" employees Freeland mentioned in her lecture.
At the same time he notes that from 2007 to 2009, average family income fell by 17.4%, the largest two-year drop since the Great Depression.
Saez says if you look at the nation's history, "falls in income concentration due to economic downturns are temporary unless drastic regulation and tax policy changes are implemented and prevent income concentration from bouncing back."
And he notes that policy changes like the Depression-era New Deal helped reduce such income concentration for decades.
"We need to decide as a society whether this increase in income inequality is efficient and acceptable," he concludes, "and, if not, what mix of institutional and tax reforms should be developed to counter it."
Oh, please.....keep telling me how I am not working hard enough - or how I am not putting in enough hours - or, how I am "living beyond my means" because I want a roof over my head, shoes on my feet, and food in my stomach. Best yet, tell me how I am guilty of "class envy". The only thing I envy is the life I had twenty years ago, and things only seem to keep getting worse....
Shipping jobs overseas is benefiting the wealthy. The lack of good jobs and the high price of oil is hurting everyone else. The business of poverty creation by the wealthy is benefiting the wealthy.
JUSTSLAPME:I agree 100%.People cry and moan about some woman geeting food tamps
to feed her kids but don`t anything about tax breaks for the rich and the trillions the pentagon
spends with plenty of waste.
The more the Wealth is concentrated at the Top, the less control everyone else has. That's why we have too Big too Fail Banks and the Global FEDS printing to Infinity. All in a effort to insure the Rich get Richer and the SuperRich control everything and everyone. The rest of us can straight to hades as far as the elitist are concerned.
In the United States in 2010, the most recent data available:
The top one(1) percent own 42% of the privately held financial assets.
The top five(5) percent own 72% of the privately held financial assets.
The top ten(10) percent own 80% of the privately held financial assets.
The top twenty(20) percent own 95% of the privately held financial assets.
The bottom eighty(80) percent own 5% of the privately held financial assets.
In addition, the bottom forty(40) percent have virtually no financial assets.
The new definition of the American Dream antagonizes
the traditional meaning. If they work hard enough, then
all citizens can inherit the rewards of being in debt and
broke. New labor will be plentiful and inexpensive.
Hell, people will work 3 jobs for the price of 1 and
without benefits. Its not about what they cant afford,
but it is about what arrangement$ can be made for them
to obtain the bare necessities. We will pound in their
heads that overpriced education (an additional cash-
cow) is the key to success but tell them that they lack
experience or are overqualifed when they apply for
jobs that have already been filled internally or outsourced. Federal and state projects
can be financed with lotteries (with ridiculous odds of winning) as the citizens
dream of ending their suffering with a big payout.
Poverty is big business in the U.S.A. Who profits?
I would love to see the numbers on the amount of corporate welfare we taxpayers are paying for in the form of corporate tax breaks and credits, and subsidies. C'mon people. Quit voting for the party that stands for no new taxes, then gives all your tax money away to corporations that obviously don't need it.
Average taxpayer household income down, 1% taxpayer income at an all-time high - and still they cry for more.
1)Family and Friends. We live in a society that rewards friendships and family first, not necessarily the most qualified.
2)The Biggest Part of Government Spending by Far has been in Defense. By far the biggest amount of Welfare has been via Defense Contracts.
3)The Financial Industry at one point accounted for 40% of all earnings in the S&P 500 index. The Financial Industry get 100% of fake money printing from the Global Feds. Biggest Scam going and some of the biggest incomes yearly.
4)Big Oil, each year, the Crude industry has several companies in the top 10 profit earners of any Corporations Globally. We pay that price at the pump regardless of actual supply.
5)Health-Care Industry, you see the Bills and soaring cost for decades.
And on, and on.
Fact is, I am 100% certain that pocketBS isn't in the top 1%. He certainly is in the top 1% in spilling BS. Fact, folks really don't have a problem with folks become wealthy. The problem is folks can't do it by themselves. Certainly not if you run a major Corporation. It's rare to have a one man show and then that person is bought out and repeats that over and over.
I love the fact that Companies yearly like Tesla, Google, Facebook, and eventually Twitter have gone Public. I don't have a single problem with the founders making a Mint off the Offering. I don't have a single problem with Venture Capitalist making a investment in stated companies and making a Mint also. 99% of all folks do NOT want a society where everyone makes the same. That's just insane propaganda and fear-mongering. What folks do want, a living wage when Corporate America is making Record Profits and Hoarding Record Cash and the Global FEDS are printing to infinity to keep the already Wealthy Solvent. This is a Fiat Based Money System and it's rigged beyond belief. Everyone can't be wealthy, the system was never designed to allow that. And it never will.
Still waiting for a Real Player to actually "go to jail" for all the funny stuff that went on between 2006 and 2009...
How is it we can charge Snowden in a matter of days...and nobody has let to be charged with fraud/theft/etc for crashing the Economy...or was that legal...?
Extremely odd, that is...
Saez says if you look at the nation's history, "falls in income concentration due to economic downturns are temporary unless drastic regulation and tax policy changes are implemented and prevent income concentration from bouncing back." LOVELY CONGRESS WE HAVE NOW AINT IT.
"NEW YORK- In the biggest shake-up of the Dow Jones industrial average in nearly a decade, Goldman Sachs, Visa and Nike will join the blue-chip index, replacing three companies whose stock prices were considered too low, including Alcoa, which ends more than half a century of membership.
The three companies - an investment bank, credit card payment processor and apparel company, respectively - will also replace Bank of America Corp, Hewlett-Packard Co, along with Alcoa in the 30-stock average, the index managers said Tuesday."
When you consider that Goldman Sachs is not even a "bank" nor does it conduct banking services for and to most of America, you get that this article and this quote are part of a pattern. They mark the end of rich people on Earth and begin the process that singles them out, does them in and gives our planet back to people who live on it, not abuse it to death. Good bye idiots, your arrogance isn't a "talent" or attribute, it's a mark... like a bulls eye.
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[BRIEFING.COM] In case anyone needed a reminder how beholden the stock market has gotten to the Fed keeping rates at the zero bound, they were offered one today when the major indices pretty much turned on a dime following a report out of The Wall Street Journal's Fed watcher, Jon Hilsenrath, that suggested the Fed may very well keep the "considerable period" language in tomorrow's directive.
Following the Fed is an exasperating study of semantics, yet no one but the Fed is to ... More
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