Income Inequality Needs To be Addressed Now: Financial Times

ft.com:

The financial crisis spurred many policymakers around the world to meet challenges with bold, creative, non-partisan solutions. As the crisis and recession recede, policymakers must refocus on persistent structural challenges. Top of the list in the US -- and elsewhere -- is income inequality.

US data remain sobering. Recent figures from the Internal Revenue Service show that in 2007 the top-percentile income share reached 23.5 per cent, continuing a 30-year increase.

Read the whole story: ft.com

Comments

[MyTalkRadiou]

Obama needs to do actual reform instead of just talk & plan

good articles: http://br.st/tU

~~

[Mark2100]

"continuing a 30-year increase"

hmm, what happened 30 years ago that might have precipitated this.... oh yeah, Reagan.

[Reality Czech]

Give 2 people $1,000,000

One reinvests the money in starting a small business and in 1 year grows their assts by 3%

The other spends it all on tangible goods, using up the entire $1 million and going into debt after overspending it.

How would you address the resulting income inequality?

[billyfitz]

What does your inane post have to do with the cost of tea in China? Is this supposed to be some kind of analogy? Try making it logical and relevant and then get back to us.

BTW - the two people in your post had income equality - they both received $1,000,000. Duh.

[cef911f1]

Well, billyfist pretty much said it all. However, a million dollar/year salary is not the problem. It's the salaries that are 50 to a 200 times that. What is particularly galling is someone one like Nardelli who almost bankrupted Home Depot is given a 210 million severance package when he was ousted. Or the Wall Streeters that make huge bonuses regardless of performance.

This kind of greed eventually results in a bad outcome for all and eventually for the greedy. The guillotine and the late 1700's come to mind.

[Biz Savings]

Income Equality will never exist due to greed. Starting a business is the best way to level the playing field. Discount Business Association provides start up help for small business owners.

http://discountbusinessassociation.com

[BillLT]

I hope the dems can still have a majority in 2010.

hat tip to ; http://iamned4.blogpsot.com

The opportunity for change so far has been squandered

[sueinmn]

What makes you think they will do any better then? They are weak. The GOP caused this mess and the Dems have the power and refuse to use it! We need a third party. Many of them do not deserve re election. Both parties!!!

[mountainweb]

Face it, with a socialist as president, who has NO CLUE how to create jobs, there is NOT going to be a "redistribution of wealth" because there are going to be less jobs. obama will raise taxes which lowers spendable incomes and redistributes the wealth to the government. Is that the "change" voted for?

[Valerie Keefe]

First of all Obama is not a socialist, he barely tangentially qualifies as a liberal. And I'm sorry, but there was not mass unemployment during the 50s with that notorious Bolshevik Eisenhour and 80 percent-plus top bracket tax rates.

[HeevenSteven]

Addressed by who? The chicken-sh**ts in congress? CEOs? I won't hold my breath.

[Lyr]

This is a list of reasons why Andrew Jackson vetoed renewing the charter of the second bank of the United States (today the Federal Reserve does what the second bank of the united states did)

It concentrated the nation's financial strength in a single institution.
It exposed the government to control by foreign interests.
It served mainly to make the rich richer.
It exercised too much control over members of Congress.
It favored northeastern states over southern and western states.

Do any of these problems sound familiar? It's time to end the fed!

[Haditup2here]

This article was a "fail" to me when it came to the issue of taxes. First off, the U.S. is NOT the highest taxed nation. Secondly, our tax system is a more of a regressive tax system as opposed to progressive. Why would someone making $8350.00 be taxed at 10% when that is below the poverty line while someone making $170,000 is nearly capped at $16,750 and only pays 3% more than people like me in the third tax bracket?

[swift goat pet for truth]

We have a flat tax system NOW.
In fact, the top 1% pay LESS in total tax burden than the next 9%, base on percentage of income.

http://www.prospect.org/csnc/blogs/ezraklein_archive?month=04&year=2009&base_name=why_do_state_and_local_taxes_h

http://www.ctj.org/pdf/taxday2009.pdf

[Antiks]

The article failed all the way around. Corporations don't need to be 'enticed' or 'encouraged' -- they need to be taken by the horns and made to do the right thing.

[Reality Czech]

how do you define the "right thing?"

[Reality Czech]

$8350.00 is less than minimum wage...want to try again?

[Haditup2here]

You are obviously not the brightest bulb, I see . . . . and it is funny how you have tried to call me out.

First off, the minimum wage is based on an HOURLY wage -- not the the total income
which should be $ 7.25, by the way.

Secondly, the poverty level for a family of one Is set at $10,830.00 while it is set at $22,050 for a family of 4.

You know these things can be found online simply by googling. When you make such p0sts, it makes you l00k foolish especially in the age of Youtube and instant information.

[efmo]

I think this article was making the case that corporations pay too much in taxes - didn't I read somewhere earlier this year that 2/3 of corporations paid no taxes in 2008? Is the FT from UK? I love the comparisons in corporate tax rates (esp. by conservatives here in the US) with overseas but always leaving out how much higher personal income tax levels are in Europe compared to here. Did that make sense?

[TraderMark1]

Wait, I only thought 1% of america is smart enough is hold 90% of the wealth?

Thats what I am told daily - the other 99% is just dumb.

Let me go check my dogma once more for the talking points.

[WorkingClass]

You left out lazy. Its dumb and lazy.

[addisonsteele]

During the 1980s, the Economist, of all magazines, published an issue headlined: The Brazilification of the United States. The cover article focused on the fact that Republican economic policies during that decade, which Republicans have never abandoned, were the principal cause of income inequality in the United States.

[MyLIberalKos]

Everything but the little people have become too big to fail.

Everyday we pay the consequences of Reaganomics and neoconservative economics

good articles; http://iamned1.blogspot.com

80's: Arthur Laffer, MIlton Freidman, Greenspan, Alexander M. Haig, Jr, Donald T. Regan, James A. Baker 3rd,
Later: Robert Rubin, Bernanke, Paulson

[swift goat pet for truth]

"To be a social conservative is to believe that the
poor have too much money, and the rich don't have
enough." - J.K. Galbraith

[LHoney]

Fanned/faved.

[swift goat pet for truth]

middle class has not had a decent raise in income in the last 30 years, while the rich has had raises of hundreds of percent.

this is the problem. the solution is most difficult.
a progressive tax system, BASED ON PERCENTAGE OF INCOME, would help.

http://www.prospect.org/csnc/blogs/ezraklein_archive?month=04&year=2009&base_name=why_do_state_and_local_taxes_h

http://www.ctj.org/pdf/taxday2009.pdf

[lightningbolt]

The inequality gap will continue to increase as long as the bailout money given to the insolvent banks is not returned to the government. The bailout takes money from taxpayers and gives it to insolvent banks who then give that money to their criminal executives in the form of multimillion dollar bonuses. Until this massive theft is stopped, inequality will increase.

[Reality Czech]

"The bailout takes money from taxpayers and gives it to insolvent banks who then give that money to their criminal executives in the form of multimillion dollar bonuses."

Or maybe if you actuality decide to stop talking out of your butt, you'd read the TARP legislation that prohibits this