The above increases required a decade. To improve their livelihood at an earlier time by much less, wage and salary workers required more than one and a half decades.
Last year, the top 25 hedge fund managers earned, on average, $1 billion each.
That these financial powers and owners of production, 20% of households own more than 90% of the US stock, leave little for the rest is evident. As of 2007, the top 1% of households (the upper class) owned 34.6% of all privately held wealth. The next 19% (the managerial, professional, and small business stratum) had 50.5%, which means that just 20% of the people owned a remarkable 85% leaving only 15% of the wealth for the bottom 80%.
As more and more wage and salary workers fall down the economic ladder, from the bottom 80%, to the bottom 40%, to the bottom 20%, how can the economy be revived, if at all. Without their having more money to spend, nothing much is going to happen. Business may obtain more tax cuts but until there is evidence of an increase in demand, there will be little new hiring.
Joe Bageant, author of Deer Hunting with Jesus and just released Rainbow Pie, understands the working poor and middle class better than any PhD sociologist. He understands our capitalistic economy as well as any PhD economist. Joe says their ain't no escape from collapse, that we are just dancing at the Doomsday Ball.
He may be right. But pre-collapse, if it comes to that, there are some things that Congress and the Administration could do to increase the wage of the working man and woman. All require an about face in current policy.
Increase in the demand for labor would be assisted by withdrawal from the World Trade Organization, NAFTA and similar free trade agreements, elimination of guest worker programs, control of the Mexican border, imprisonment of employers of undocumented workers, and a public jobs program aimed at infrastructure needs.
Increased wages would be assisted by increased unionization that would accrue with approval of the Employee Free Choice Act and by increasing the minimum wage.
Offsets would include a reduction in Government costs and in increase in Government revenue.
Cost reductions should include the elimination of crony capitalism; all contracts should be competitively bid, and privatization should cease. Military spending should be reduced by at least 25%.
Significant cost reductions are believed possible through the appointment of an independent prosecutor and staff for a new "Whistle Blower Acceptance Department." That department would encourage, through significant rewards and immunity from prosecution, the identification of waste and fraud in all government spending and be responsible for the diligent prosecution of those responsible.
Increased Government revenue should include the imposition of tariffs on imported goods, a financial transaction tax, a significant continuing tax surcharge on the income of the upper 5% and a one- time surcharge on their wealth, the elimination of subsidies for manufacturing, agriculture, minerals and hydrocarbons, the elimination of tax loopholes of every stripe for individuals and corporations including off-shore transfer pricing and tax havens.
In short, Government policy must be shifted to protectionism and active support of the middle class.
Success should be measured by the Franklin D. Roosevelt standard: "The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little."
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