In 1958 the top 10% income share, including capital gains (income from
investments), accounted for 33.56% of the wealth in the US. By 2008 this figure
had risen to 48.23%. This means that in 2008, the 10% most wealthy people in
America owned nearly 50% of our country's income.
What impact does this shifting of wealth have on other economic classes?
Well, before we launch into this examination it would help to delineate America's "official" economic classes. The challenge is that there are numerous
opinions about income thresholds and education and job-type parameters
for grouping economic classes, and I have been unable to find a digestible chart. So I have taken the liberty of distilling and combining
several models to come up with the simplified outline shown below.
Amounts are in 2011 dollars. I am not suggesting that my version is
academically sound, but it's close enough for these purposes.
The Top 400 - Owners of one or more mega corporations, Investors at a planetary level. Net worth over $1billion
The Super Rich - Includes most senior executives, celebrities, and heirs. Annual income over $700,000
Upper Middle Class - Includes sought-after professionals, and senior managers. Annual household income over $120,000
Middle Class - Includes middle managers, other professionals and white collar workers. Annual household income over $75,000
Working Class (Upper bracket earns a Living Wage)- Includes blue collar workers. Annual household income over $50,000
Lower Class (Subsistence Workers) - Includes clerical and apprentice blue collar worker. Annual household income over $22,314 (2011 poverty level)
Working Poor - Entry-level, unskilled, minimum wage workers. Family household income less than $22,314 (2011 poverty level)
The populace in the first four economic classes are doing at least well in terms of economic stability and well-being. It is the people that fall into the last three classes that are struggling, particularly the Lower Class and the Working Poor. And, as the gap between the very wealthy
and the middle class steadily expands, the number of people in the last three classes is steadily increasing.
If we do not take measures to reduce this gap or at least halt further expansion, our economic demographics could morph
into those of a third world country.
How so?
Let's start by looking at the Working Class, where people in the upper bracket of that class earn what's called a Living Wage.
Monday, September 26, 2011
Sunday, September 25, 2011
REMINDER TO LEADERS AND POLITICIANS: Integrity and Honesty Matter
OK, I know I'm pretty idealistic but in my view Integrity and Honesty matter. While these characteristics are noble in every person, they are hugely important in our nation's Leaders and would-be Leaders.
How disheartening it is that so many people in high office have decided it is OK to tell tales, spin yarns, and tell out-and-out lies to the very same people they promised to represent - you and me. Some consider it perfectly acceptable to fiddle with numbers until the "data" chokes out the story they like, or to selectively quote snippets of a study instead of presenting the big picture. And, like sharks with chum, they tear into any opponent as needed to make themselves look good. In today's political climate, such Leaders would find fault with Jesus if it promoted their own objectives.
Of course these people didn't wake up one morning with a sucking vacuum where integrity once lived. No, their ethics and honesty were traded as they worked their way up the ladder. Too many political candidates have no problem ditching honesty in favor of votes: they are as comfortable telling a lie as they are shaking a hand.
How disheartening it is that so many people in high office have decided it is OK to tell tales, spin yarns, and tell out-and-out lies to the very same people they promised to represent - you and me. Some consider it perfectly acceptable to fiddle with numbers until the "data" chokes out the story they like, or to selectively quote snippets of a study instead of presenting the big picture. And, like sharks with chum, they tear into any opponent as needed to make themselves look good. In today's political climate, such Leaders would find fault with Jesus if it promoted their own objectives.
Of course these people didn't wake up one morning with a sucking vacuum where integrity once lived. No, their ethics and honesty were traded as they worked their way up the ladder. Too many political candidates have no problem ditching honesty in favor of votes: they are as comfortable telling a lie as they are shaking a hand.
Mob Mentality and Racism
Over the past few months, I've made a conscious effort to expand my knowledge and my perspective about our Leaders and the issues facing our nation. Why? Because I think America is at a cross-roads and we need to be very careful about how we proceed. As a voter, I want to understand the issues and the actual (not proclaimed) values and credentials of the candidates. Otherwise, I'm just another bobbing head in the rabble.
So instead of relying on just 2 or 3 online news sources that reflect my own perspectives, I tripled my reading list and made sure it includes sources that "lean" in a direction other than my own. So far, this approach is working great: I've been learning a lot, and I find myself more willing to consider other viewpoints.
But an unpleasant side effect is that I am now 100% sure of a couple things I already suspected:
So instead of relying on just 2 or 3 online news sources that reflect my own perspectives, I tripled my reading list and made sure it includes sources that "lean" in a direction other than my own. So far, this approach is working great: I've been learning a lot, and I find myself more willing to consider other viewpoints.
But an unpleasant side effect is that I am now 100% sure of a couple things I already suspected:
Saturday, September 24, 2011
Neither Party Is More Fiscally Effective - It's Not That Simple
As part of a long-running discussion as to the fiscal effectiveness of Republicans v. Democrats, I sent a friend of mine a link to the chart shown below. Not surprisingly, he quickly responded with an email that read, "But who was in control in Congress at the time?"
Of course, my friend is right - we need to be cautious about looking at charts and drawing conclusions.
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| Click on image for larger view |
Of course, my friend is right - we need to be cautious about looking at charts and drawing conclusions.
What About Those GOP Candidates?
For the past several weeks, I've been following the GOP debates and candidates with a lot of interest. There is at least a fair chance one of them will become our President in 2013 and so I want to get to know these people.
Here's my take on the candidates as of now... we're early in the game and so I reserve the right to change my opinion as time goes on. These are my opinions (to which I am entitled) and you are free to agree or disagree - I'd love to read your comments.
Now in the interest of full disclosure, I admit up front that I am not an admirer of today's GOP. There's several reasons why but I'll deal with that in another Post. Just so you know...In my view the GOP line-up leaves a lot to be desired and, depending on who becomes the Chosen One in next summer's primary, Obama may remain in office. So if you vote Republican, chose your candidate carefully.
Here's my take on the candidates as of now... we're early in the game and so I reserve the right to change my opinion as time goes on. These are my opinions (to which I am entitled) and you are free to agree or disagree - I'd love to read your comments.
Congressional Pay and Benefits
If you or me or anyone else gets on a rant, let's just make sure we have the facts right. Otherwise we're only adding to the noise and misinformation that is impeding us from
getting real work done.
For example, there is a lot of misinformation floating around about the pay and benefits for our Congressmen in the House and Senate. As you might have gathered from some of my other Posts, I'm pretty disgusted with Congress right now, but fair is fair and facts are facts.
And here they are:
For example, there is a lot of misinformation floating around about the pay and benefits for our Congressmen in the House and Senate. As you might have gathered from some of my other Posts, I'm pretty disgusted with Congress right now, but fair is fair and facts are facts.
And here they are:
Friday, September 23, 2011
Our War Record
I fully expect to take some flack from strangers and friends regarding this article. But sometimes a person just needs to say what's on their mind.
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Looking at the above information, have recent wars and conflicts have been worth the cost in dollars, in death, in reputation?
Thursday, September 22, 2011
Capital Punishment - We're #4 in the World
According to Amnesty International’s 2010 Death Sentences and Executions report, the
US ranks at #4 out of the top 5 countries to execute the most people.
Pakistan is #5 and we are outdone only by Iraq, Iran, and China.
America executed 46 people in 2010, down from the 2009 total of 52 but still a notable increase from the 2008 total of 37. Since 2007, we have executed a total of 179 people (counting the executions on 21 September 2011). Texas, Alabama, Ohio, Virginia, and Oklahoma are the states with the most executions since since 2007.
I have mixed feelings about Capital Punishment and I'll use recent executions to explain.
America executed 46 people in 2010, down from the 2009 total of 52 but still a notable increase from the 2008 total of 37. Since 2007, we have executed a total of 179 people (counting the executions on 21 September 2011). Texas, Alabama, Ohio, Virginia, and Oklahoma are the states with the most executions since since 2007.
I have mixed feelings about Capital Punishment and I'll use recent executions to explain.
Economic Survival - Not Class Warfare
In 2008, the most recent year for which data is available, the 400 richest Americans on average paid 18.1 percent of their adjusted gross income in federal taxes.
Wealthy people whose primary source of income is from a salary pay higher taxes than those who draw most of their earnings from investment income. This is because the tax rate on capital gains is set at 15% while the tax rate on earned income (salary) could be well over 30%. A wealthy person with both earned income and investment income could pay an overall average of 18.1%, depending on how much wealth is derived from which type of source.Obama isn't talking about making the rich pay a higher PROPORTION of their income than the middle class in taxes. His "Buffet Rule" proposes that the rich shouldn't get away with paying an overall (income + capital gains) LESSER proportion than the middle class.
Wednesday, September 21, 2011
The Land of the Free is Home to 2.4 Million Prisoners
'Tis the star-spangled banner! Oh long may it wave
O'er the land of the free and the home of the brave!
PRISON POPULATION
The United States has the highest documented incarceration rate in the world. At year-end 2009 it was 743 adults incarcerated per 100,000 population. A 2008 New York Times article points out:
Still, it is the length of sentences that truly distinguishes American prison policy. Indeed, the mere number of sentences imposed here would not place the United States at the top of the incarceration lists. If lists were compiled based on annual admissions to prison per capita, several European countries would outpace the United States. But American prison stays are much longer, so the total incarceration rate is higher. ... "Rises and falls in Canada's crime rate have closely paralleled America's for 40 years," Mr. Tonry wrote last year. "But its imprisonment rate has remained stable."According to the Bureau of Justice, at the end of 2009:
- Over 7.2 million people were on probation, in jail or prison, or on parole - 3.1% of all U.S. adult residents or 1 in every 32 adults.
- A total of 4,203,967 adult men and women were on probation and 819,308 were on parole or mandatory conditional release following a prison term.
- State and federal prison authorities had jurisdiction over 1,613,740 prisoners: 1,405,622 under state jurisdiction and 208,118 under federal jurisdiction.
Friday, September 16, 2011
Texas is our Health Care Caboose
With 95% of the state population covered by Health Insurance, Massachusetts has the highest level of coverage in the nation... thanks to health care reform very similar to the 'job-killing' Affordable Care Act that detractors contemptuously refer to as "Obamacare." Meanwhile, at least 1 in 4 four Texans do not have Health insurance.
The U.S. Census Bureau published a comparison of uninsured rates between the states using a 3-year average of data from 2008 to 2010. In that analysis, Texas was ranked the worse out of all 50 the states with 24.8 percent of the population not having any health insurance coverage.
And, a 2010 Gallup poll backs up the Census Bureau findings. This poll revealed that 27.2% of Texans lack health insurance.
Yep, Texas is our health care caboose, lurking at the bottom of the barrel for health insurance coverage. Nicely done Rick Perry.
SOURCES
The U.S. Census Bureau published a comparison of uninsured rates between the states using a 3-year average of data from 2008 to 2010. In that analysis, Texas was ranked the worse out of all 50 the states with 24.8 percent of the population not having any health insurance coverage.
And, a 2010 Gallup poll backs up the Census Bureau findings. This poll revealed that 27.2% of Texans lack health insurance.
Yep, Texas is our health care caboose, lurking at the bottom of the barrel for health insurance coverage. Nicely done Rick Perry.
SOURCES
Wednesday, September 14, 2011
It's not the Poverty Rate, It's the Poverty Level!
Because the poverty rate increases when there is a Recession, yesterday's "breaking news" was not unexpected... although it is still troubling that the US is now experiencing the highest poverty rate since it spiked to 15.2% in 1983, during the early Reagan years[1]. But even more than the poverty rate, I find the poverty level to be very disturbing. Apparently, a family of four (2 adults and 2 children) that makes even one dollar more than $22,314 per year before tax is NOT considered to be living in poverty[2]. Huh?
A family that brings home $22,315 per year, $1,860 per month before tax is taken out, is left with a whopping $1525 per month after tax (assuming an 18% rate) with which to shelter, clothe and feed four people. This is only $355 a week for two adults and two children. And these number apply to both high cost-of living places such as New York City and low cost of living areas such as Tulsa, OK. No wonder folks are heading south.
A family that brings home $22,315 per year, $1,860 per month before tax is taken out, is left with a whopping $1525 per month after tax (assuming an 18% rate) with which to shelter, clothe and feed four people. This is only $355 a week for two adults and two children. And these number apply to both high cost-of living places such as New York City and low cost of living areas such as Tulsa, OK. No wonder folks are heading south.
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