America’s Income Inequality

Next time you hear someone say “the rich earned all their money,” call them on it. If your wealth came from economic exploitation, it doesn’t count. And according to these numbers, there’s been an awful lot of exploitation:

income inequality

This shows that wealth redistribution has been happening for a while, from the bottom to the top, and it’s hurting our economy. This directly represents managerial compensation and profits compared against non-managerial compensation in the US Economy 1964-2010. This reinforces an often-repeated mantra among progressives. Despite gains in productivity, the “job creator” myth ensures that all gains go to the top, leaving millions of workers in poverty.

As is clear, capital’s share of income has been growing at the expense of labor’s share since the late-1970s. And if you believe that anybody that works hard enough can achieve wealth in this nation, think again. Income is a determining factor in how easy it is to move socially, especially vertically, and usually in relation to previous generations. Social mobility is lower in America than in probably any other industrialized nation, defeating the “American dream” myth. The so-called “job creators” don’t spend their money, so it doesn’t create jobs. As has been explained again and again, consumers are the real job creators. And until corporations start sharing a higher percentage of their profits with everyday workers, the economy, and the job market, by extension, is going to suffer.

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