Saturday, April 26, 2014

AN ECONOMIC GRAND CANYON

Ronald Reagan would be so proud. The American people, who bought his idea of "trickle down" wealth are now reaping what it sowed. Complete annihilation of the middle class.



I must admit, he did deliver on his promise that, if Americans would just sit back and let the rich get richer; not burden them with taxes or regulations, they would one day reap the rewards that the rich would allow to trickle down to them.



The "trickle" as it turned out was not even a dribble. You could get more from an 80 year old guy with a melon sized prostate.



Pope Francis called it for what it is when he said;


“Some people continue to defend trickle-down theories which assume that economic growth, encouraged by a free market, will inevitably succeed in bringing about greater justice and inclusiveness in the world,” Francis wrote in the papal statement. 

“This opinion, which has never been confirmed by the facts, expresses a crude and naive trust in the goodness of those wielding economic power and in the sacra­lized workings of the prevailing economic system.”

“Meanwhile,” he added, “the excluded are still waiting.”



The wealthy are getting even wealthier – in part because they’re so wealthy to start with.

That’s the upshot of new research, which shows that the richest 1% of Americans derive huge profits from capital gains, stock dividends and other types of business- or investment-related gains.

In other words, rich people are making a lot of money on their money.

Anyone, of course, can benefit from stock-related gains. But the rich have benefited a lot more, in part because they have higher incomes that enable them to invest more.

The divergence is likely to exacerbate income inequality in coming years, according to the analysis by the Economic Policy Institute.

The analysis found that the share of “income from wealth” going to the top 1% surged to 54% in 2010 from 33.5% in 1979. It was based on data from the Congressional Budget Office.

In 1979, the bottom 90% had 36.2%, according to the Economic Policy Institute. The 9% in between (the top 2% to 10%) claimed 30.3%.

By 2010, the share derived by the bottom 90% had fallen to 22.9%, while the middle group slid to 23.0%.