Our entire economy is characterized by cartel rentier skims, central-bank goosed asset bubbles and stagnating earned income for the bottom 90%.
Despite the rah-rah about the "ownership society" and the best economy ever, the sobering reality is very few Americans are able to get ahead, i.e. build real financial security via meaningful, secure assets which can be passed on to their children.
As I've often discussed here, only the top 10% of American households are getting ahead in both income and wealth, and most of the gains of these 12 million households are concentrated in the top 1% (1.2 million households). (see wealth chart below).
Why are so few Americans able to get ahead? there are three core reasons:
1. Earnings (wages and salaries) have not kept up with the rising cost of living.
2. The gains have flowed to capital, which is mostly owned by the top 10%, rather than to labor ((wages and salaries).
3. Our financialized economy incentivizes cartels and other rentier skims, i.e. structures that raise costs but don't provide any additional value for the additional costs.
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2 comments:
I'm sure alot of what your saying I'd true; however, my husband and I of 51 years without a college degree were able to buy a 30,000 dollar house with dual income. Sold 6 years with a profit. We did this for years and purchased a 500,000 dollar home and own a condo. I am not bragging but it can be done. That's what is so great about America. Yes the rich get richer etc but you must take charge of your life. You can't expect to live where there are no jobs and do well. Such as States with shut down coal mines. You can't expect to make slot of money living in a small town with no industry. I fell your article does not cover the real reason why earnings have not kept up. If there are no jobs - since they moved to other countries - thanks Mr Obama - there are no wages to keep up. Yes cost of living goes up, prices go up with no added value but I feel you must move to an area that does keep up. Don't know the real answer but I do believe that industry gets alot of tax breaks some are excessive.
Businesses (small or large) can write off business expenses such cars; boats; meals; vacations; homes on their taxes. That's why your neighbors who owns McDonalds; Rolly Polly; also own RVs; Expensive Cadallic SUVs; Ranger Rovers; boats etc. All business expenses. This perk should be stopped. Guess who picks up the tab - you do. You can prove anything with statistics it a boils down on the data you use.
Such BS this article is. Can tell you very easily why they grapple with getting ahead.. consumer debt. They buy $hit they can’t afford. Drive up the credit card debt and then suffer through 19-22% interest accruing daily. Who’s fault is that? The consumers. No one out a gun to your head and made you buy the house you can’t afford or any of the other nonsense ppl buy on credit. You pay banks to financially rape you and then whine & moan because you can’t get ahead!!!!
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