DANGEROUS ECONOMIC INEQUALITY
The upper one percent of income earners are inhibiting the economic recovery of the United States. The magnitude of that disparity represents a serious threat to America's financial future. We now have the highest income inequality since the Depression and you know what happened back then.
Something has gone terribly wrong. After 40 years of widening income equality and the greatest downturn in the economy since the Depression, we have done nothing about it. A fifth of our children live in poverty in one of the wealthiest nations in the world. The middle class has been weakened and cannot support the consumer spending that has traditionally driven the nations economy . The middle class now has lower incomes, adjusted for inflation, since 1996. That means that its now economically impossible to invest in their future, educate their children,starting or improving existing businesses.
The middle class is holding back tax receipts because the upper 1% are skilled at avoiding taxes and have the money to petition Congress for even more tax breaks, This economy is being borne on the backs of those who can least afford it while those in the upper 1% continue to accelerate their wealth with tax incentives and other financial opportunities that reward them with even more of the national income. The government suffers because it doesn't have the money to repair the infrastructure, invest in education, research, and health that are crucial to our economic growth. What's scary about this gap between the upper one percent of income earners and the rest of us is that these were the same conditions that caused the stock market crash in 1929 and the ensuing Great Depression that rose in it's aftermath. Economic inequality and economic instability have brought the United States to the edge of financial calamity.We bailed out the banks while unemployment rose to over 10% nationwide. The average income of a male worker in 2011 is lower than in was in 1968.
Since the Great Recession, the increase in wealth has gone to the upper 1% of income earners. As income for the rest of us has remained stagnant or dropped, tuition costs for advanced education have soared. If your family isn't in the upper 1% of income earners, the only way for your kids to attend college is for them to take out usurious student loans. The tragedy is that once they graduate they'll enter a part time economy which will burden them with the payback of that loan for the rest of their lives. A parent who cosigns on that loan will have to pay it back if the student dies.
We are paying a higher price for our financial inequality. Here's a quote by Nobel laureate economist Joseph Stiglitz "alleviating this inequality by promoting growth are both intertwined and complimentary goals". He asserts that we must deal with this dangerous situation now or suffer the consequences just as we did in the Great Depression of the 1930's.