INCOME INEQUALITY

Warning:  Soapbox time.  I seriously doubt these meandering, ill informed thoughts of mine will be read by very many.  To those who do, I thank you and ask you to vote, not by party affiliation but for the person and his/her vision for a stronger and a more economically diverse America.

          The information below was compiled with information from The Congressional Research report at http://digital.library.unt.edu/explore/collections/CRSR/browse/?q=income+inequality&t=fulltext and Oracle ThinkQuest at http://library.thinkquest.org/10949/fief/hifeudal.html  Please note also that population growth (less for the fifth quintile, or top 20% and more for the bottom 20%). 

While our economy is growing, albeit at a much slower rate than historic rates, much of it can be attributed to industrial and technological advances, i.e., software, robotics and worker efficiency through improved manufacturing methodology and materials.  These factors also contribute, but are not wholly, responsible for the jobless rate.  There are simply not many jobs for what was previously defined as a “skilled worker”.  These factors DO NOT, however, justify the historic, ever increasing disparity between the top 20% of income earners vs the bottom 80% (20% of which are historically below the poverty line and has not changed scientifically). The economic theories addressing this conundrum are relatively simple; the more money spread among the masses, the more spending and increased demand for goods, resulting in greater factory output, demanding more space and more workers and the cycle begins anew.  Spending among the top 20% is within a niche of expensive goods in which quality not quantity is in demand and therefore not produced in quantity.  Am I campaigning for a Socialist distribution of wealth? Absolutely not!! 

 

The Congressional Research Service defines the middle class as the middle 60% of households, which received a disproportionately smaller share of the total economic pie in 2011 (45.7%) than in 1968 (53.2%). Over the same period, the disproportionately large income shares of the top 20% and the top 5% of households have trended upward. The top fifth’s share of total household income rose from 42.6% in 1968 to 51.1% in 2011; the top 5%’s share rose from 16.3% to 22.3%.  The CRS states that these estimates are derived from federal income tax data.

Economic philosophy suggests that continuation of this income inequality could lead to a modern day Feudal System.  Oracle ThinkQuest defined the feudal society as being constructed for one reason: security. The nobles wanted the security of maintaining control over their far-reaching kingdoms, so they were forced to delegate power to local control. The peasants wanted security from marauders and barbarians from neighboring lands. They also wanted security from invading armies. And thus the development of the feudal system and the fief structure was almost inevitable. However, all this came at the great expense of the common man. He gave up many freedoms for his security. The question they ask you is: Was it worth it?

Now the question becomes; am I a Socialist Left Winger espousing distribution of wealth?  The answer is no, far from it.  I believe in a capitalistic society but not one in which corporate power and greed can override the rights and privileges of the common man to achieve the American Dream.

If you have read this far, thank you for your patience and your tolerance for a stupid man that thought this white paper would, in any way, influence anyone’s thinking.  In any case, you might be interested in Robert Reich’s thoughts on the subject at http://www.denverpost.com/business/ci_24889586/robert-reich-income-inequality-defining-issue-u-s