Slow economic and income growth for the majority is a problem, but it has nothing to do with inequality. The outcry over inequality is a political left ploy that masks the real problems and misleads Americans.
What we can do to fix the problem: The rise of top incomes relative to the bottom 99 percent represents a sharp reversal of the trend that prevailed in the mid-20th century. Between 1928 and 1979, the share of income held by the top 1 percent declined in every state except Alaska (where the top 1 percent held a relatively low share of income throughout the period). This earlier era was characterized by a rising minimum wage, low levels of unemployment after the 1930s, widespread collective bargaining in private industries (manufacturing, transportation [trucking, airlines, and railroads], telecommunications, and construction), and a cultural and political environment in which it was outrageous for executives to receive outsized bonuses while laying off workers.
We need policies that return the economy to full employment, return bargaining power to U.S. workers, and reinstate the cultural taboo on allowing CEOs and financial-sector executives at the commanding heights of the private economy to appropriate more than their fair share of the nation’s expanding economic pie. Source: Economic Policy Institute (1)
“appropriate more than their fair share of the nation’s expanding economic pie” I love it. Taboo! Exactly how does the growth in value of stock shares count as appropriation of anything? In many cases that value was created in new and innovative ventures that while creating great wealth for a few also created jobs and opportunities for many more.
We are comparing periods after the depression, during and after WWII and before globalization with intense international competition.
Nearly all that gain for the top earners is not wages, but capital appreciation. But more important what does it take from anyone else? The issue of low growth for the majority has much more to do with a changing world economy, innovative technology and our educational systems failure to adapt.
We should not be scapegoating a handful of Americans, but instead focusing on the true causes of minimal advancement by the majority. Why stop at the top 1%, why not accuse every family in America with an income greater than the average?
The opposite of inequality is equality. Is that what we seek, everyone average?
If you want to blame someone, blame successive generations of politicians at both local and federal levels who spend more time creating new scapegoats and excuses than they do solving problems.