Some time ago I wrote an entry:
♦ The war against the middle-class.
Where I featured two articles: Gilded Age Crime: Poor Go Homeless, Wealthy Get Bailouts and Grapes of Wrath Return discussing how the global market capitalism and so-called “free trade” is creating a new gilded age.
Well, some recently released data from the IRS has been making the rounds and can be well analyzed here:
♦ Rich get richer and middle class stagnates
Here’s some of the info: The top 1% of the U.S. population earned 21.2% of the income in 2005 while the bottom 50% of the population earned 17% of the money. That top 1% had a 5% increase between 2001 and 2005. However, they also had the biggest tax cut of the population, getting a nearly 5% tax decrease over the lower 50% meaning the 1% made more and got to keep more of what they made. Once again in 2006 capital gains went up (corporate earnings) while general employee wage income went down. Meaning: Corporations are making more money, but the employees are being paid less. As well as benefits such as insurance are also being cut, and insurance costs have gone up beyond the rate of inflation.
What’s this all mean? The middle class is once again becoming the working poor in this country while the wealthy are getting richer, creating a gilded age like we had in the 1920’s before the market crash.
Basically what this shows is that only those in the top 1% truly were better off in 2005. When you take into consideration the increasing costs of health care and energy, most people in the other brackets are facing income stagnation or actual income loss. Still wondering why a majority of the population think we’re in a recession or heading there?
Here’s a little image I made to help give a visual:

The bottom graph refers to this information just released by the Helsinki-based World Institute for Development Economics Research of the United Nations University (UNU-WIDER):
♦ Pioneering Study Shows Richest Two Percent Own Half World Wealth
The most comprehensive study of personal wealth ever undertaken also reports that the richest 1% of adults alone owned 40% of global assets in the year 2000, and that the richest 10% of adults accounted for 85% of the world total. In contrast, the bottom half of the world adult population owned barely 1% of global wealth.
The response from capitalist ideology would be: So? It’s the free market. People earn what the market will bear, etc etc.
Well first of all let’s get something straight. We don’t have a free market. The U.S. (nor any country) does not have an open, free economy. The government control, regulates, and creates the market through it’s printing of the money and it’s control of it through the Federal Reserve System. A system that is run by the Federal Reserve Banks that are part government run and part controlled by a handful of capital rich corporations.
Now, tell me how free of a market it can be when the market is essentially controlled by the corporations, and a government that literally sells laws and regulations to these corporations? Since Hearst and J.P. Morgan and DuPont and the other robber barons actually bought laws from the federal government to curb free trade and give themselves greater power over the market, the tradition has continued. What happens when Hilary Clinton receives the most or second most (depending on what year over the last 6) amount of money from corporate healthcare companies of any U.S. senator? She reveals a plan for “universal healthcare” that makes it a law for all citizens to have to buy health insurance. (Meanwhile the U.S. is the ONLY industrial nation to not have real universal health care for its citizens.)
Where are the lobbyists for the poor up on Capital Hill?
There is no free market, no free economy. It’s a corporatocracy kept alive by corporate owners and members-of-the-board who hold political positions. So long as massive inherited wealth continues, corporations own the government, and the people are complacent, the chasm between the rich and the poor will continue to widen and we will have a nation, eventually world, of serfs and royalty. And we’ll let it happen so long as we hold onto the ideology handed down to us from those in power, which at this time in history is the capitalist ideology: “Work hard, pull yourself up by the bootstraps, and you’ll become rich! Fail, and it’s entirely your fault for not working hard enough.”
Not that there’s anything wrong with hard work! But for whom are you working? For who’s benefit? Ultimately, in the capitalist society, it’s your corporate owners. The harder you work, the more millions the people at the top of the pyramid earn. CEO’s who make millions of dollars, make even more millions when they leave a company, especially if they can lower labor costs by lowering wages, cutting benefits, and laying people off. The masses who are being brainwashed to “work hard! Become rich!” earn $8, $12, maybe $15 an hour or $30,000 a year, barely able to afford medical care if at all, while the people at the top of the corporate pyramid buy more houses, more jets, take more vacations in Paris and Maui. So, is the capitalist ideology working? Of the millions of people in the country, why are only 5-10% considered wealthy? Are 90-95% of the population not working hard enough? Is it entirely their own fault for not working and pulling themselves up by their bootstraps?
Funny how under capitalism the proletariat are fed the ideology of work hard! Fail and it’s your fault! And the people who benefit from it are the corporate owners and capitalists. In feudalism, the peasants were told that their lot was ordained by God and the royalty and land owners are because of God’s will–and the peasants accepted it for centuries. Who did ideology provided and perpetuated by the rich land lords benefit most?
The wealth must be redistributed, the governments must be brought down, and the people must work as a cooperative collective if humanity, society, is to progress and flourish. There is more than enough wealth in the world for every living person of the 6 billion people on the world, to have a comfortable western middle-class-like lifestyle–except that wealth is being hoarded and incestuously passed around by the 1% of the population that has the governmental protection. Whether that’s in the U.S., Russia, the Congo–wealth and power flow upward to those at the top of the pyramid who primarily got the fortune of being there thanks to inherited wealth. Maybe global socialist revolt won’t happen next year, or in the next 100 years, but it must happen.