Skip to content


Extreme Inequality or Democracy?

Dissident Voice Article

By Ron Forthofer

Last autumn, likely due to the Occupy movement, there was a shift of media attention from debt reduction and the cutting of vital public programs (for example, Social Security, Medicare and Medicaid) to the issue of extreme wealth and income inequality in America. Extreme inequality is of concern for many reasons, but Supreme Court Justice Louis Brandeis provided perhaps the most crucial reason when he said: “We can have democracy in this country or we can have great wealth concentrated in the hands of a few, but we can’t have both.”

Many of those who support grossly unequal outcomes attempt to distract the public from the critical extreme inequality in wealth and income here by stressing equal opportunity as the key. Incredibly, they seem to think that we have equal opportunity in America. However, Paul Krugman’s January 8th column, “America’s Unlevel Field“, clearly points out that the playing field in the U.S. today is definitely not anywhere close to being level.

Despite the terribly unequal opportunities that exist, Americans have generally accepted the idea of some reasonable level of wealth and income inequality. The public’s acceptance sprang from the idea that some people have special talents or make special contributions that merit greater rewards.

However, two factors have undercut this support. First, there is a weakening of the connection between reward and merit. In addition, we have now reached an obscene level of inequality that is exemplified in a report from the Heritage Institute. Based on data from 2000, the Heritage Institute showed that CEO pay for major U.S. corporations was wildly out of line with those of our economic competitors. For example the average pay for CEOs in Japan was 10 times the average worker’s wage compared to 531 times here. Of the 26 countries in the report, Brazil had the second largest inequality with a value of 57.

The obscene rise in this inequality in the U.S. is striking, going from a value of 24 times in 1965 to 42 times in 1980 to 85 times in 1990. More recent data show that the U.S. value declined from the 531 times in 2000 to well over 300 times the typical worker’s pay in 2010. Note that the comparisons are affected by how many major corporations are included in the studies. For example, another estimate for the U.S. in 2000 was 300 times compared to the 531 times mentioned above; regardless, the U.S. is way out of line compared to our economic competitors and the change over time is appalling.

The Heritage Institute report included 2004 and 2006 quotes from Warren Buffett, chairman of Berkshire Hathaway, that address both merit and extreme inequality. According to the report, in a May 2004 letter to shareholders, Warren Buffett wrote about the inadequacy of corporate governance structures among U.S. companies. “(If) Corporate America is serious about reforming itself, CEO pay remains the acid test.” Buffett added: “The results aren’t encouraging.” Buffett criticized lavish pay packages and the “lapdog behavior” of directors, calling the situation an “epidemic of greed.”

In a 2006 shareholder report, Buffett stated: “Too often, executive compensation in the U.S. is ridiculously out of line with performance.” “Getting fired can produce a particularly bountiful payday for a CEO. Indeed, he can “earn” more in that single day, while cleaning out his desk, than an American worker earns in a lifetime of cleaning toilets. Forget the old maxim about nothing succeeding like success: Today, in the executive suite, the all-too-prevalent rule is that nothing succeeds like failure.”

Extreme inequality is even more problematic when it results from questionable behavior and/or political connections. Consider that those in the financial sector, whose unethical and immoral practices almost collapsed the financial system, were not held accountable for their actions. Talk about the lack of a moral hazard! Instead, besides initially profiting from fraud, they became even wealthier due to the taxpayer-funded bailout of the financial sector.

Changes in the tax system played a major role in increasing the level of inequality in America over the past decades. For example, the corporate share of federal taxes went from 28% in the 1950s to an average of roughly 10% over the 2001 to 2010 period. In addition, the top marginal individual tax rate dropped from 91% in 1954 to 35% today. Cuts in the top capital gains taxes for long-term gains from 28% to 15% have primarily benefited those at the top of the wealth scale. Politicians have also greatly weakened the estate tax that worked to lessen inequality somewhat. These changes certainly have played a major role in creating the extreme inequality we see today.

Our method of financing political campaigns, some would call it legalized bribery, makes it particularly easy for large corporations and the wealthy to push for tax reductions and tax loopholes at the expense of small business competitors and the public. Free Lunch: How the Wealthiest Americans Enrich Themselves at Government Expense (and Stick You with the Bill) and Perfectly Legal: The Covert Campaign to Rig Our Tax System to Benefit the Super Rich–and Cheat Everybody Else, two books by Pulitzer Prize winner David Cay Johnston, provide numerous examples of this corruption and other questionable business practices by large corporations. America: Who Really Pays the Taxes? and several other books by investigative reporters and twice Pulitzer Prize winners Donald Barlett and James Steele also address how the tax code is manipulated to the benefit of the rich and powerful. In The Tyranny of Oil, Antonia Juhasz details how huge energy and financial corporations greatly profit from their corruption of the political system, and how the public bears the cost. Among her many examples are the government’s failure to enforce anti-trust laws and its creation of the “Enron loophole”.

If compensation were indeed based on merit, Americans could accept a reasonable level of inequality. However, as shown above, besides merit, income and wealth are often linked to many other factors, including the corruption of politicians.

Given the dire straits – high levels of unemployment and underemployment, homelessness, lack of health insurance, home foreclosures, huge credit card debts and college loan debts, shortages of food – that many Americans face today, our extreme inequality is intolerable. The current situation demands a drastic overhaul of our corrupt political/economic system to end and to prevent future extreme inequality. Unless we act now, control by the wealthy and powerful will be solidified.

View the original article at dissidentvoice.org

Related Posts with Thumbnails

Posted in Analysis & Review.

Tagged with , , , , , .

Support #altnews & keep Dark Politricks alive

Remember I told you over 5 years ago that they would be trying to shut down sites and YouTube channels that are not promoting the "Official" view. Well it's happening big time. Peoples Channels get no money from YouTube any more and Google is being fishy with their AdSense giving money for some clicks but not others. The time is here, it's not "Obama's Internet Cut Off Switch" it's "Trumps Sell Everyones Internet Dirty Laundry Garage Sale".

It's not just Google/YouTube defunding altenative chanels (mine was shut), but Facebook is also removing content, shutting pages, profiles and groups and removing funds from #altnews that way as well. I was recently kicked off FB and had a page "unpublished" with no reason given. If you don't know already all Facebooks Private Messages and Secret Groups are still analysed and checked for words related to drugs, sex, war etc against their own TOS. Personally IU know there are undercover Irish police moving from group to group cloning peoples accounts and getting people booted. Worse than that I know people in court at the moment for the content they had on their secret private group. Use Telegrams secret chat mode to chat on, or if you prefer Wickr. Or if you need to, buy a dumb phone with nothing for the NSA to hack into if you are that paranoid. Ensure it has no GPS tracking on it and the battery can be removed. These are usually built for old people to get used to technology storing only a set of numbers to call. However they have no games, applications to install and other ways people can exploit the computer tracking device you carry round with you most of the day.

So if your not supporting this site already which brings you news from the Left to the Right (really the same war mongering bollox) then I could REALLY do with some..

Even if it's just £5 or tick the monthly subscription box and throw a few pound my way each month, it will be much appreciated. Read on to find out why.

Why?

Any support to keep this site would be appreciated. You could set up a monthly subscription for £2 like some people do or you could pay a one off donation as a gift.
I am not asking you to pay me for other people's articles, this is a clearing house as well as place to put my own views out into the world. I am asking for help to write more articles like my recent false flag gas attack to get WWIII started in Syria, and Trump away from Putin. Hopefully a few missiles won't mean a WikiLeaks release of that infamous video Trump apparently made in a Russian bedroom with Prostitutes. Also please note that this article was written just an hour after the papers came out, and I always come back and update them.

If you want to read JUST my own articles then use the top menu I have written hundreds of articles for this site and I host numerous amounts of material that has seen me the victim of hacks, DOS plus I have been kicked off multiple hosting companies, free blogging sites, and I have even had threats to cease and desist from the US armed forces. Therefore I have to pay for my own server which is NOT cheap. The more people who read these article on this site the more it costs me so some support would be much appreciated.

I have backups of removed reports shown, then taken down after pressure, that show collusion between nations and the media. I have the full redacted 28/29 pages from the 9.11 commission on the site which seems to have been forgotten about as we help Saudi Arabia bomb Yemeni kids hiding in the rubble with white phosphorus, an illegal weaapon. One that the Israeli's even used when they bombed the UN compound in Gaza during Operation Cast Lead. We complain about Syrian troops (US Controlled ISIS) using chemical weapons to kill "beautiful babies". I suppose all those babies we kill in Iraq, Yemen, Somalia and Syria are just not beautiful enough for Trumps beautiful baby ratio. Plus we kill about 100 times as many as ISIS or the Syrian army have managed by a factor of about 1000 to 1.

I also have a backup of the FOX News series that looked into Israeli connections to 9.11. Obviously FOX removed that as soon as AIPAC, ADL and the rest of the Hasbra brigade protested.

I also have a copy of the the original Liberal Democrats Freedom Bill which was quickly and quietly removed from their site once they enacted and replaced with some watered down rubbish instead once they got into power. No change to police tactics, protesting or our unfair extradition treaty with the USA but we did get a stop to being clamped on private land instead of the mny great ideas in the original.

So ANY support to keep this site running would be much appreciated! I don't have much money after leaving my job and it is a choice between shutting the server or selling the domain or paying a lot of money just so I can show this material.

Material like the FSB Bombings that put Putin in power or the Google no 1 spot when you search for protecting yourself from UK Police with "how to give a no comment interview". If you see any adverts that interest you then please visit them as it helps me without you even needing to give me any money. A few clicks per visit is all it takes to help keep the servers running and tag any tweets with alternative news from the mainstream with the #altnews hashtag I created to keep it alive!

However if you don't want to use the very obvious and cost free ways (to you) to help the site and keep me writing for it then please consider making a small donation. Especially if you have a few quid sitting in your PayPal account doing nothing useful. Why not do a monthly subscription for less money instead. Will you really notice £5 a month?


0 Responses

Stay in touch with the conversation, subscribe to the RSS feed for comments on this post.



Some HTML is OK

or, reply to this post via trackback.



css.php