Monday, May 20, 2013

Evaluating America's 1%/99% Situation


In today’s New York Times, Timothy Noah extends the Times’ ongoing discussion of The Great Divide, “a series on inequality — the haves, the have-nots and everyone in between — in the United States and around the world, and its implications for economics, politics, society and culture.

“The series moderator is Joseph E. Stiglitz, a Nobel laureate in economics, a Columbia professor and a former chairman of the Council of Economic Advisers and chief economist for the World Bank.”

Noah’s central point is that the wealth being accumulated by the 1% of us is a challenge to America’s economic health and so is the growing skills-based gap.

I’d add that the 1% ought to be worried about the growing poverty within the 99% because that’s money disappearing from the pockets and purses of the customers and potential customers needed to buy the goods and services offered or promoted by the 99%—and the erosion of the buying power of the 99% has been continuing since 1979.

Also, the 1% needs to remember that the world history of revolutions tells us gross imbalances in rich vs. poor have ultimately not gone well for the terribly outnumbered rich.

Timothy Noah is the author of “The Great Divergence: America’s Growing Inequality Crisis And What We Can Do About It.”


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