Income Inequality Media ArticlesExcerpts of Key Income Inequality Media Articles in Major Media
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The top 1% of Americans are finally recovering from the great recession. A new analysis of IRS data revealed that the average income of the top 1% of income earners grew by 7.7% in 2015, reaching $1.36m. Report author Emmanuel Saez, an economics professor at the University of California-Berkeley ... revealed that in 2015, the rich were also taking home larger chunk of the US income. “The share of income going to the top 10% of income earners – those making on average about $300,000 a year – increased to 50.5% in 2015 from 50.0% in 2014, the highest ever except for 2012,” Saez wrote. It should not come as a shock that to many Americans talk of economic recovery rings hollow. The top 1% of families saw their income grow by 37% between 2009 to 2015, from $990,000 to $1.36m. The incomes of the other 99%, however, grew by just 7.6% during that time – from $45,300 in 2009 to $48,800 in 2015. In 2015, the income of the 99% grew by just 3.9%. After factoring in inflation, Saez calls it: “the best real income growth in 17 years”. And the rich? At 7.7%, their growth was twice that. Economy remains a top concern for US voters, according to a recent Gallup survey of 1,530 adults. The gap between rich and poor is bigger now than it’s been just about any time since the 1920s.
Note: For more along these lines, see concise summaries of deeply revealing income inequality news articles from reliable major media sources.
CEOs at the biggest companies got a 4.5 percent pay raise last year. That's almost double the typical American worker's, and a lot more than investors earned from owning their stocks - a big fat zero. The typical chief executive in the Standard & Poor's 500 index made $10.8 million, including bonuses, stock awards and other compensation, according to a study by executive data firm Equilar for The Associated Press. That's up from the median of $10.3 million the same group of CEOs made a year earlier. The raise alone for median CEO pay last year, $468,449, is more than 10 times what the typical U.S. worker makes in a year. The median full-time worker earned $809 weekly in 2015, up from $791 in 2014. "With inflation running at less than 2 percent, why?" asks Charles Elson, director of the John L. Weinberg Center for Corporate Governance at the University of Delaware. The answer is complicated. CEO pay packages now hinge on multiple layers of sometimes esoteric measurements of performance. That's a result of corporate boards attempting to respond to years of criticism ... from Main Street America, regulators and even candidates on the presidential trail this year. One bright spot, experts say, is the rise in the number of companies that tie CEO pay to how well their stocks perform. "There's progress generally in aligning compensation with shareholder returns," says Stu Dalheim, vice president of governance and advocacy at Calvert Investments. "But I don't think this compensation is sustainable."
Note: For more along these lines, see concise summaries of deeply revealing income inequality news articles from reliable major media sources.
The Federal Reserve's monetary policies "probably" fueled wealth inequality in the U.S. during the aftermath of the Great Recession, according to a former regional Fed bank president. Narayana Kocherlakota, who until this year headed the Federal Reserve Bank of Minneapolis ... wrote in a candid op-ed Wednesday that "it's not surprising that poorer American families got the impression that the Fed did more to help banks during the financial crisis and associated recession than it did to help them. The wealth of the typical family in the bottom three-quarters of the distribution declined by a lot more than that of the typical family in the top 10th [between 2007 and 2010]," Kocherlakota wrote. "This was partly the result of leverage: The poorer families tended to have more debt for each dollar in assets, so any decline in assets translated into a much larger percentage decrease in net worth." So as housing prices collapsed in the late 2000s, poorer families were left with large pools of debt and significantly diminished assets, while more wealthy families suffered less drastic blows even though they largely had greater exposure to high-value assets. The Fed's policies, then, appeared to more dramatically affect the fortunes of lower-income Americans than the nation's richest households. Kocherlakota thinks the Fed could have done more. Suggesting that the Fed's moves inherently contributed to rising income inequality in the U.S., though, is a surprising stance for a former regional bank president to take.
Note: For more along these lines, see concise summaries of deeply revealing income inequality news articles from reliable major media sources.
Manufacturing jobs used to be a path to the middle class. But now many skilled, working Americans need some form of public assistance because their wages don’t pay for basic living expenses. Over 2 million supervised manufacturing workers, or about a third of the total, need food stamps, Medicaid, tax credits for the poor or other forms of publicly subsided assistance while they work on goods that can carry the tag “Made in the U.S.A.,” according to research of official government wage and welfare data released Tuesday by the University of California, Berkeley. The cost of these benefits to the U.S. taxpayer? From 2009 to 2013, federal and state governments subsidized the low manufacturing wages paid by the private sector to the tune of $10.2 million per year. “In decades past, production workers employed in manufacturing earned wages significantly higher than the U.S. average, but by 2013 the typical manufacturing production worker made 7.7 percent below the median wage for all occupations,” said the paper. The research aimed to extend an already well-established national debate on wages paid in the service industry, which are often juxtaposed to the factory work that lifted millions of Americans out of poverty for much of the 20th century. The research comes as U.S. workers overall are experiencing one of the lowest paces of wage growth on record.
The Panama Papers affair has widened, with a huge database of documents relating to more than 200,000 offshore accounts posted online. The papers belonged to Panama-based law firm Mossack Fonseca and were leaked by a source simply known as "John Doe". The documents have revealed the hidden assets of hundreds of politicians, officials, current and former national leaders, celebrities and sports stars. They list more than 200,000 shell companies, foundations and trusts set up ... around the world. Offshore companies are not illegal but their function is often to conceal both the origin and the owners of money, and to avoid tax payments. 11.5 million documents [were] originally given to the German newspaper, Sueddeutsche Zeitung. The paper allowed the ICIJ to have access. Hundreds of journalists ... then worked on the data. Their reporting was published last month. On Monday, 300 economists signed a letter urging world leaders to end tax havens, saying they only benefited rich individuals and multinational corporations, while boosting inequality. Last week, "John Doe" issued an 1,800-word statement, citing "income equality" as his motive [for leaking the documents]. He said: "Banks, financial regulators and tax authorities have failed. Decisions have been made that have spared the wealthy while focusing instead on reining in middle- and low-income citizens." He revealed he had never worked for a spy agency or a government and offered to help law authorities make prosecutions in return for immunity.
Note: Explore an excellent webpage on how to use this database of the Panama Papers. For more along these lines, see concise summaries of deeply revealing news articles about financial industry corruption and income inequality.
A small core of super-rich individuals is responsible for the record sums cascading into the coffers of super PACs for the 2016 elections, a dynamic that harks back to the financing of presidential campaigns in the Gilded Age. Close to half the money - 41 percent - raised by the groups by the end of February came from just 50 mega-donors and their relatives, according to a Washington Post analysis. Donors this cycle have given more than $607 million to 2,300 super PACs, which can accept unlimited contributions from individuals and corporations. That means super PAC money is on track to surpass the $828 million that the Center for Responsive Politics found was raised by such groups for the 2012 elections. The top 50 contributors together donated $248 million personally and through their privately held companies, or more than $4 out of every $10 raised by all super PACs. The last time political wealth was so concentrated was in 1896, when corporations and banking moguls helped McKinley, the Republican candidate, outspend Democratic rival William Jennings Bryan. Populist anger over how presidential races were financed led to a 1907 ban on corporations donating to federal campaigns. Forty years later, Congress prohibited unions and corporations from making independent expenditures in federal races. The picture dramatically changed in 2010, when the Supreme Court said in Citizens United v. Federal Election Commission that corporations and unions could spend unlimited sums on politics.
Note: The "Koch Empire" alone plans to spend $889 million on US elections in 2016. For more along these lines, see concise summaries of deeply revealing news articles about elections corruption and the manipulation of public perception. Then explore the excellent, reliable resources provided in our Elections Information Center.
The top 50 U.S. companies have stored $1.4 trillion in tax havens, Oxfam America reported Thursday. Oxfam released its new report, “Broken at the Top,” ahead of Tax Day in the U.S. and shortly after of the Panama Papers leak to show the extent to which major corporations such as Pfizer, Walmart, Goldman Sachs, Alphabet, Disney and Coca-Cola keep money in offshore funds. The use of over 1,600 subsidiaries lowered their global tax rate on $4 trillion of profit to an average of 26.5%, compared to the statutory minimum of 35%, according to Oxfam. Additionally, for every dollar of taxes these companies paid, they collectively received $27 in federal loans, loan guarantees and bailouts - footed by American taxpayers. “The vast sums large companies stash in tax havens should be fighting poverty and rebuilding America’s infrastructure, not hidden offshore in Panama, Bahamas, or the Cayman Islands,” Oxfam America president Raymond Offenheiser said in a statement.
The Justice Department is asking local courts across the country to be wary of how they slap poor defendants with fines and fees. In a letter ... to the chief judges and court administrators in all 50 states, Vanita Gupta, the head of the department’s Civil Rights Division, and Lisa Foster, director of the Office for Access to Justice, wrote that illegal enforcement of fines and fees had been receiving increased attention. “Individuals may confront escalating debt; face repeated, unnecessary incarceration for nonpayment despite posing no danger to the community; lose their jobs; and become trapped in cycles of poverty that can be nearly impossible to escape,” Gupta and Foster wrote. “Furthermore, in addition to being unlawful, to the extent that these practices are geared ... toward raising revenue, they can cast doubt on the impartiality of the tribunal and erode trust between local governments and their constituents.” The White House and the department convened a summit on the issue in December. The Justice Department alleged in a recent lawsuit that officers in Ferguson, Mo., were violating citizens’ civil rights in part because their policing tactics were meant to generate revenue. The financial penalties - typically for minor misdemeanors, traffic infractions or violations of city code - disproportionately affect the poor, who cannot afford to pay immediately and are then hit with arrest warrants or additional penalties. Some towns [derive] 40 percent or more of their annual revenue from [these] petty fines and fees.
Note: Along with relying on municipal fines and fees that disproportionately impact the poor, some police departments simply steal from people when times get tough. For more along these lines, see concise summaries of deeply revealing news articles about government corruption and income inequality.
The pernicious influence of "economic hit men" has spread around the globe. John Perkins revealed his first-hand experience of this violent and coercive phenomenon. Now, in The New Confessions of an Economic Hit Man, he brings this story of greed and corruption up to date. The treacherous cancer beneath the surface, which was revealed in the original Confessions of an Economic Hit Man, has ... spread from the economically developing countries to the United States and the rest of the world; it attacks the very foundations of democracy and the planet's life-support systems. Although this cancer has spread widely and deeply, most people still aren't aware of it; yet all of us are impacted by the collapse it has caused. It has become the dominant system of economics, government, and society today, [and] created a "death economy" - one based on wars or the threat of war, debt, and the rape of the earth's resources. Although the death economy is built on a form of capitalism, it is important to note that the word capitalism ... includes local farmers' markets as well as this very dangerous form of global corporate capitalism, controlled by the corporatocracy. Despite all the bad news and the attempts of modern-day robber barons to steal our democracy and our planet ... when enough of us perceive the true workings of this EHM system, we will take the individual and collective actions necessary to control the cancer and restore our health.
Note: Read a revealing seven-page summary of Economic Hit Man and spread the word!
The Bureau of Labor Statistics released its monthly employment report at 8:30 a.m.. [Daniel Nadler] sat at the kitchen table in his one-bedroom apartment ... as the software of his company, Kensho, scraped the data from the bureau’s website. Within two minutes, an automated Kensho analysis popped up on his screen. At 8:35 a.m., Kensho’s analysis would be made available to employees at Goldman Sachs. In addition to being a customer, Goldman is also Kensho’s largest investor. "People always tell me ... ‘I used to have a guy whose job it was to do nothing other than this one thing," Nadler said. Within a decade, he said, between a third and a half of the current employees in finance will lose their jobs to Kensho and other automation software. If jobs can be displaced at Goldman, they can probably be displaced even more quickly at other, less sophisticated companies, within the financial industry as well as without. In late 2013, two Oxford academics released a paper claiming that 47 percent of current American jobs are at "high risk" of being automated within the next 20 years. So far the burden of job losses is stopping just short of the executive suites, even as the gains in efficiency are worsening already troubling levels of income inequality.
Has Michael Moore gone soft? You might think so, making a snap judgment of Where to Invade Next, a ... documentary hellbent on seeing the best in people. Other people. Not us Americans. Moore sets up his film by daydreaming about a summons from the Joint Chiefs of Staff. "Instead of using Marines, use me," he pleads. As we watch a collage of America at its worst – bank scandals, stock frauds, housing foreclosures, black teens murdered by cops – Moore sets out to invade the world for bright ideas. In Italy, he meets a couple who get 30 days paid vacation each year with no loss in productivity. In France, Moore is astonished by school kids who are served nutritional food. On a visit to a Norway prison, the worst felons are treated with compassion, with sentences capped at 21 years, even for murderers. Yet the crime rate is low, as is recidivism. In Tunisia, women win free health care from a hidebound Islamist regime. And get a load of Portugal, where using drugs is not a crime, but rehab is offered to those who want it. A trip to Iceland finds that the bankers who brought economic ruin to their country are thrown in jail instead of being bailed out. Love him or hate his methods, Moore touches a nerve in Where to Invade Next. In a climactic remembrance at the Berlin Wall, he recalls a time when a corrupt regime was brought down by people willing to protest. What counted most were humanitarian principles, the same bedrock concepts that America was founded on. See, the joke's on us.
Around the developed world consumers seem to be losing their appetite for more. Even goods for which there once seemed insatiable demand seem to be losing their lustre. At a Guardian Sustainable Business debate, Steve Howard, head of Ikea’s sustainability unit, declared: “In the west, we have probably hit peak stuff. We talk about peak oil. I’d say we’ve hit peak red meat, peak sugar ... peak home furnishings.” The average western consumers’ home is bulging with all the materials and goods it needs. Only in developing countries have consumers the capacity to want more, but as Howard accepted, for that they need buying power, which in turn rests on the global distribution of income and wealth being fairer. Economist Tomas Sedlacek, who has won an international following for his book Economics of Good and Evil, insists that [most people today] work in jobs they do not much like, to buy goods they do not much value – the opposite of any idea of the good life. What we want is purpose and a sense of continual self-betterment, which is not served by buying another iPhone, wardrobe or a kitchen. Yet purpose and betterment need a social context: purpose is a shared endeavour and self-betterment is to act on the world better with others. The New Economics Foundation has developed a matrix of five key performance measures to get beyond indicators of “stuff” such as GDP: job quality, wellbeing, health, environment and fairness. These are the categories we should measure and track.
Wealth inequality has grown to the stage where 62 of the world’s richest people own as much as the poorest half of humanity combined. The [new] research, conducted by the charity Oxfam, found that the wealth of the poorest half of the world’s population – 3.6 billion people – has fallen by 41 per cent, or a trillion US dollars, since 2010. While this group has become poorer, the wealth of the richest 62 people on the planet has increased by more than half a trillion dollars. The report, “An Economy for the 1%”, says the gap between the global richest and the global poorest has widened in just the last 12 months. In 2010, 388 people had the same wealth as the poorest half of humanity. In 2011, this fell to 177, [and] has continued to fall each year. Oxfam GB chief executive Mark Goldring said a crackdown on global tax havens was a necessary step towards ending the rampant global inequality. "World leaders’ concern about the escalating inequality crisis has so far not translated into concrete action to ensure that those at the bottom get their fair share of economic growth. We need to end the era of tax havens which has allowed rich individuals and multinational companies to avoid their responsibilities to society," [he said].
Note: Read about reliable news articles on secretive meetings where global elites make decisions with far-reaching implications. For more along these lines, see concise summaries of deeply revealing income inequality news articles from reliable major media sources.
Politicians and business leaders gathering in the Swiss Alps this week face an increasingly divided world. Just 62 people ... own as much wealth as the poorest half of the entire world population and the richest 1 percent own more than the other 99 percent put together, anti-poverty charity Oxfam said on Monday. The wealth gap is widening faster than anyone anticipated, with the 1 percent overtaking the rest one year earlier than Oxfam had predicted only a year ago. Rising inequality and a widening trust gap between people and their political leaders are big challenges for the global elite as they converge on Davos for the annual World Economic Forum, which runs from Jan. 20 to 23. Edelman's annual "Trust Barometer" survey shows a record gap this year in trust between the informed publics and mass populations in many countries, driven by income inequality and divergent expectations of the future. The gap is the largest in the United States, followed by the UK, France and India. The next wave of technological innovation, dubbed the fourth industrial revolution and a focus of the Davos meeting, threatens further social upheaval as many traditional jobs are lost to robots. "Far from trickling down, income and wealth are instead being sucked upwards at an alarming rate," the report says. It points to a "global spider's web" of tax havens that ensures wealth stays out of reach of ordinary citizens and governments.
Note: Read about the annual Davos forum and other more secretive meetings where global elites make decisions with far-reaching implications. For more along these lines, see concise summaries of deeply revealing income inequality news articles from reliable major media sources.
Robert Reich, former secretary of labor under President Bill Clinton and a professor of public policy at University of California, Berkeley, spent years warning of twin demons: Technology and globalization. Machines displaced ... workers whose routine jobs could be automated, and globalization meant the flight of manufacturing and service jobs to factories and call centers in emerging countries. The result was ever-widening inequality. In his latest book, “Saving Capitalism: For the Many, Not the Few,” he’s changed his tune. While those two factors still play a role in growing inequality, he cites a new culprit: “the increasing concentration of political power in a corporate and financial elite that has been able to influence the rules by which the economy runs.” [Reich explains], "Capitalism is based on trust. It’s impossible to have a system that works well and is based on billions of transactions if people don’t trust that others are going to fulfill their obligations, or they fear someone will take advantage of them or exploit them. That’s when a system moves from production to protection. Economists have been documenting inequality using various measures, but I haven’t seen much documentation of this issue of power. Political scientists and economists are [reluctant] to get into this field. Economists look at market power and monopolies, but the other areas I’ve talked about - this vicious cycle of compounded wealth and power that changes the rules of the game - economists are really not taking it on."
Note: Read how the market is rigged to grow inequality in this summary of a Robert Reich essay that recently appeared in Newsweek. For more along these lines, see concise summaries of deeply revealing income inequality news articles from reliable major media sources.
The very richest Americans have financed a sophisticated and astonishingly effective apparatus for shielding their fortunes. Some call it the “income defense industry,” consisting of a high-priced phalanx of lawyers, estate planners, lobbyists and anti-tax activists. All are among a small group providing much of the early cash for the 2016 presidential campaign. Operating largely out of public view - in tax court, through arcane legislative provisions and in private negotiations with the Internal Revenue Service - the wealthy have used their influence to steadily whittle away at the government’s ability to tax them. The effect has been to create a kind of private tax system, catering to only several thousand Americans. Two decades ago ... the 400 highest-earning taxpayers in America paid nearly 27 percent of their income in federal taxes, according to I.R.S. data. By 2012 ... that figure had fallen to less than 17 percent, which is just slightly more than the typical family making $100,000 annually. Some of the biggest current tax battles are being waged by some of the most generous supporters of 2016 candidates. Whatever tax rates Congress sets, the actual rates paid by the ultra-wealthy tend to fall over time as they exploit their numerous advantages.
Note: The IRS now conducts only half as many audits of the super-rich as it did five years ago. Over half of the money contributed so far to 2016 US presidential candidates has come from just 158 families. For more along these lines, see concise summaries of deeply revealing news articles on government corruption and income inequality from reliable major media sources.
Half of all the money contributed so far to Democratic and Republican presidential candidates - $176 million - has come from just 158 families, along with the companies they own or control. Who are these people? According to the report, most of these big contributors live in exclusive neighborhoods where they have private security guards instead of public police officers, private health facilities rather than public parks and pools. Most send their kids and grand kids to elite private schools rather than public schools. They fly in private jets and get driven in private limousines rather than rely on public transportation. They don't have to worry about whether Social Security or Medicare will be there for them in their retirement because they've put away huge fortunes. It's doubtful that most of these 158 are contributing to these campaigns out of the goodness of their hearts. They're largely making investments, just the way they make other investments. And the success of these investments depends on whether their candidates get elected, and will lower their taxes even further, expand tax loopholes, shred health and safety and environmental regulations so their companies can make even more money, and cut Social Security and Medicare and programs for the poor - and thereby allow these 158 and others like them to secede even more from the rest of our society. These people are, after all, are living in their own separate society. They want to elect people who will represent them, not the rest of us.
Note: This essay was written by former US Secretary of Labor Robert Reich. For more along these lines, see concise summaries of deeply revealing income inequality news articles from reliable major media sources.
Every hour spent auditing a taxpayer with more than $5 million in income nets the government $4,545, the Treasury Inspector General for Tax Administration found in a report released Friday. Auditing taxpayers in the $200,000 to $399,999 income bracket was less fruitful, generating just $605 in revenue per audit-hour. And yet the IRS spent more than four times as many hours examining taxpayers in the $200,000 to $399,999 income bracket than the $5 million-plus. That's especially important as congressional budget cuts have forced the IRS to pare back its taxpayer audits. The percentage of individual taxpayers audited each year has reached the lowest point in a decade, and is now just 0.84%. The highest-income taxpayers have seen the biggest decline in audit rates. In 2011, 30% of tax returns from taxpayers making more than $10 million got a second look by the IRS. In 2014, it was just 16%. The IRS already gives special attention to tax returns with an income above $200,000. But the inspector general recommends that the IRS increase that threshold. The agency will consider changing those thresholds, said Douglas O'Donnell, the commissioner of the IRS's Large Business and International Division. But he also said the IRS does not target groups of taxpayers based just on how much revenue an audit will generate.
Note: In the US in recent years, the super-rich have been taxed less and less while companies like General Electric sometimes pay no taxes at all. For more along these lines, see concise summaries of deeply revealing news articles on income inequality and government corruption news articles.
Much of the national debate about widening inequality ... ignores the upward redistributions going on every day, from the rest of us to the rich. These redistributions are hidden inside the market. The only way to stop them is to prevent big corporations and Wall Street banks from rigging the market. For example, Americans pay more for pharmaceuticals than do the citizens of any other developed nation. This costs you and me an estimated $3.5 billion a year - a hidden upward redistribution of our incomes to Pfizer, Merck and other big proprietary drug companies. Likewise, the interest we pay on ... loans is higher than it would be if the big banks ... had to work harder to get our business. As recently as 2000, America’s five largest banks held 25 percent of all U.S. banking assets. Now they hold 44 percent — which gives them a lock on many such loans. The net result: another hidden upward redistribution. Why have food prices been rising faster than inflation, while crop prices are now at a six-year low? Because the giant corporations that process food have the power to raise prices. Result: a redistribution from average consumers to Big Agriculture. Why do you suppose health insurance is costing us more? Health insurers are hiking rates 20 to 40 percent next year, and their stock values are skyrocketing. Add it up - the extra money we’re paying for pharmaceuticals, Internet communications, home mortgages, student loans, airline tickets, food and health insurance - and you get a hefty portion of the average family’s budget.
Note: This essay was written by former Secretary of Labor Robert Reich. For more along these lines, see concise summaries of deeply revealing income inequality news articles from reliable major media sources.
In the past year, global wealth reversed a steady upward climb and fell by $12.4 trillion, largely due to currency fluctuations. But worldwide wealth inequality continued its upward march: The top 1 percent of households “account for half of all assets in the world,” according to the 2015 Credit Suisse Global Wealth Report. That’s a first since the Swiss bank began compiling the data in 2000, and a level “possibly not seen for almost a century,” the researchers write. For those on the other end of the wealth spectrum, meanwhile, the numbers are reversed. The poorest half of the world’s population owns just 1 percent of its assets. Financial assets have seen a 6 percent rise in the share of total wealth since 2008, benefiting the wealthy, who hold a disproportionate amount of capital. The overall rise in global wealth continued to be driven in large part by China and the emerging markets, which have doubled their aggregate wealth since 2000. China, whose wealth has grown fivefold since the beginning of the century, was shaken by market turmoil in the middle of the year but still managed to add $1.5 trillion in wealth. In 2015, a household net worth of $759,000 will put you in the ranks of the global one-percenters. The cutoff for the top 10 percent stood at $68,800.
Important Note: Explore our full index to revealing excerpts of key major media news articles on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.