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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThe U.S. Middle Class Has Faced a Huge “Inequality Tax” in Recent Decades
http://www.epi.org/publication/the-u-s-middle-class-has-faced-a-huge-inequality-tax-in-recent-decades/In 2014, rising income inequality became a front-burner political issue, as policymakers and the general public became more aware of the enormous stakes for the American middle-class. The figure below shows actual income growth for the middle 60 percent of U.S. households since 1979 and what this growth would have been had it simply matched the growth of average income, which was buoyed by stratospheric growth at the top of the income ladder. Its important to note that it is clearly possible for all households to see income growth approaching the overall average ratethis is what occurred for decades following the end of World War II.
By 2007, the last year before the Great Recession, incomes for the middle 60 percent of U.S. households would have been roughly 23 percent (nearly $18,000) higher had inequality not widened (meaning that growth for the middle 60 percent simply matched overall average growth). The wedge between these incomes is essentially a tax on middle-class incomes imposed by rising inequality. Top incomes (driven largely by stock market movements) fell sharply during and immediately after the Great Recession, temporarily reducing this wedge between average growth and growth for the broad middle class. The income data ends in 2011but the stock market has recovered strongly since then, so one imagines that the inequality tax has surely risen in recent years as well. By contrast, the broad middle class has yet to meaningfully benefit from economic growth since the Great Recession ended, mainly due to stagnant wages.
upaloopa
(11,417 posts)Brownback cuts taxes for wealthy. I think he increased sales tax which hits lower incomes the worse. He create a deficit. People reelect him for act two where he takes money from government workers and retirees to make up for the tax cuts he gave the wealthy. He takes wealth from lower classes by increasing taxes on them and stealing their pensions and passes it up the ladder in the form of tax cuts for the wealthy. If he could run again the idiots in Kansas would reelect him again.
Wall Street created the housing bubble by giving loans to people who could not afford them and creating worthless securities to cause the Great Recession. Congress bailed them out and this week repubs elected by the people gave them permission to do it again with promises from us to bail them out again.
Americans vote for the people who screw them then we get stories telling us that the American people are screwed.
daleanime
(17,796 posts)and only factor?
upaloopa
(11,417 posts)It isn't worth talking about
daleanime
(17,796 posts)no, it isn't.
upaloopa
(11,417 posts)you catch all kinds of hell.
daleanime
(17,796 posts)about public responsibility.
upaloopa
(11,417 posts)daleanime
(17,796 posts)it's something you don't worry about.
upaloopa
(11,417 posts)tell me what public responsibility means to you.
Sherman A1
(38,958 posts)that people seem to vote against their own economic well-being, it is never just one reason, but rather a combination of reasonings, opportunities and unplanned events that have conspired to get us from there to here.
I don't discount your logic and the argument presented, but there is more to the picture.
upaloopa
(11,417 posts)But I think people have more control than they realize. I think we are convinced that the system is so powerful and works against us that we have no roll to play in the outcomes we face. The 1% is counting on that.
We will never turn this around if we think there is nothing we can do.
We expect the party to put something palatable in front of our noses or we won 't vote. That insures the other side that does vote gains little by little each election to where we find ourselves out of power like we are for the next two years.