When the facts change, I change my mind. What do you do? -- John Maynard Keynes

Wednesday, March 6, 2013

Incomes Flat in Recovery, but Not for the 1%

Another reason we need comprehensive tax reform--

Incomes Flat in Recovery, but Not for the 1% - NYTimes.com: "Incomes rose more than 11 percent for the top 1 percent of earners during the economic recovery, but not at all for everybody else, according to new data. The numbers, produced by Emmanuel Saez, an economist at the University of California, Berkeley, show overall income growing by just 1.7 percent over the period. But there was a wide gap between the top 1 percent, whose earnings rose by 11.2 percent, and the other 99 percent, whose earnings declined by 0.4 percent. Mr. Saez, a winner of the John Bates Clark Medal, an economic laurel considered second only to the Nobel, concluded that “the Great Recession has only depressed top income shares temporarily and will not undo any of the dramatic increase in top income shares that has taken place since the 1970s.” The disparity between top earners and everybody else can be attributed, in part, to differences in how the two groups make their money. The wealthy have benefited from a four-year boom in the stock market, while high rates of unemployment have continued to hold down the income of wage earners. . . ."

The Bernanke-Federal Reserve and Obama-Washington policy has been geared for the past four years to boost the stock market (and hence increase the income and wealth of the 1%), while destroying incentives to save and devaluing the US dollar. What kind of policy is that?


The Big Picture

Financial Crisis - The Telegraph

JohnTheCrowd.com | The Sailing Website

Craig Newmark - craigconnects