Income Inequality News StoriesExcerpts of Key Income Inequality News Stories in Major Media
Note: This comprehensive list of income inequality news stories is usually updated once a week. Explore our full index to revealing excerpts of key major media news stories on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.
We could live in a country powered entirely by renewable energy, woven together by accessible public transit. Caring for one another and caring for the planet could be the economy’s fastest growing sectors. Many more people could have higher-wage jobs with fewer work hours. Canada is not this place today – but it can be. Climate scientists have told us this is the decade to take decisive action to prevent catastrophic global warming. That means small steps will no longer suffice. So we need to leap. There is no longer an excuse for building new infrastructure projects that lock us into increased extraction decades into the future. That applies equally to oil and gas pipelines; fracking in New Brunswick, Quebec and British Columbia; increased tanker traffic off our coasts; and to Canadian-owned mining projects the world over. Since this leap is beginning late, we need to invest in our decaying public infrastructure so it can withstand increasingly frequent extreme weather events. Moving to a far more localized and ecologically based agricultural system would reduce reliance on fossil fuels, capture carbon in the soil and absorb sudden shocks in the global supply – as well as produce healthier and more affordable food for everyone. “Austerity” – which has systematically attacked low-carbon sectors such as education and health care – is a fossilized form of thinking that has become a threat. One thing is clear: Public scarcity in times of unprecedented private wealth is a manufactured crisis, designed to extinguish our dreams.
Note: The esteemed authors of this essay are Naomi Klein, David Suzuki, Leonard Cohen, Donald Sutherland and Ellen Page. For more, read the complete essay, and see concise summaries of deeply revealing global warming news articles from reliable major media sources.
Jeremy Corbyn’s stunning transformation from perennial leftist rebel to leader of Britain’s Labour Party upended British politics Saturday. The Corbyn victory represented an extraordinary rebuke to Labour’s more centrist powers-that-be, especially to former prime minister Tony Blair, who had campaigned vigorously against Corbyn. But interventions from Blair and other party heavyweights apparently did little to halt Corbyn’s momentum and may have even backfired. In a fiery victory speech, Corbyn vowed to combat society’s “grotesque inequality” and make Britain a more humane country. Corbyn has often bucked the Labour leadership on critical issues — including the vote to authorize the Iraq war — and his message resonated among Labour voters who believe their party has been reduced to a pale imitation of the Tories, especially as it lurched to the center under Blair. He has previously called for Britain to leave NATO, favors unilateral nuclear disarmament and champions the nationalization of vast sectors of the economy. He has also said that he will apologize on behalf of Labour for the Iraq invasion and that Blair could face war-crimes charges. In Britain ... voters on both ends of the spectrum are looking for alternatives to the traditional power-brokers. “This isn’t just a leftist phenomenon. It’s a populist phenomenon,” [Queen Mary University professor Tim] Bale said. “It’s the idea that voters are fed up with politics as usual and an elite that’s compromised.”
Note: Former prime minister Tony Blair was reported to have personally made millions from warmongering, and was convicted in a symbolic Malaysian trial of “crimes against peace” in Iraq. Will Corbyn actually attempt to bring formal charges against Blair in the U.K.?
At first glance, it looks as if Americans’ incomes grew robustly in the years 2003 through 2012. Total income reported on tax returns, adjusted for inflation, rose almost 18 percent. So why do so many Americans report economic distress? Here are some eye-popping facts ... distilled from a new government report on tax returns filed in 2003 and 2012: Just 1,361 households enjoyed 8.5 percent of the total increase. During the years 2003-2012, the income of those 1,361 households rose from an average of $86 million to $161 million, per income tax filer, per year. As their income increased, their income tax burden fell by 3 cents on the dollar to 17.6 percent of their income. The top 1 percent, or 1.36 million taxpayers, enjoyed more than half of all the increased income in America. Average income declined for 95 percent of households. Think about how vast America is, from Key West, Fla., to Nome, Alaska, from Maine to Hawaii. Most people would never have heard of a town with just 1,361 households, a speck too small for most maps. And yet an economic community that size enjoyed a much thicker slice of the national income pie, while the vast majority of people had to get by on a smaller slice of income pie. While politicians and pundits talk in vagaries about ideology and politics, our Congress slowly but steadily builds an economic, legal and tax structure that takes from the many to benefit the few.
Note: For more along these lines, see concise summaries of deeply revealing income inequality news articles from reliable major media sources.
When Paola Gonzalez received a phone call from RIP Medical Debt, she was certain what she heard was a mistake. A prank, maybe. The caller said a $950 hospital bill had been paid for in full. She wouldn’t have to worry about it again. “They wanted to pay a bill for me,” she said. “I was just speechless.” The 24-year-old student ... has lupus, a chronic autoimmune disease. “I can’t always work,” Gonzalez said. “I’ll be fine today and sick tomorrow. It’s really amazing that people would help out like this.” Gonzalez is one of many people who have had a debt paid by RIP Medical Debt, a nonprofit founded by two former debt collectors, Jerry Ashton and Craig Antico, that buys debt on the open market and then abolishes it, no strings attached. In [its first] year, the group has abolished just under $400,000. On July 4, it launched a year-long campaign to ... abolish $17.6 million of other people’s debt. It works like this: typical collection agencies will buy debts from private practices, hospitals, and other collection agencies. The buyers often [purchase] a debt for pennies on the dollar while charging the debtor the full amount, plus additional fees. Antico and Ashton are plugged into the same marketplace. They buy the debt for around one percent of the amount it's worth. Then, they forgive it. Ashton worked in the debt collections business for more than 30 years. The industry treated debts as “commodities” and sold them for a profit while the debtor struggled to pay off the full amount. “That I find to be unconscionable,” says Ashton.
Note: Ashton was inspired to rethink debt by Rolling Jubilee, a program that came out of the Occupy Wall Street movement which similarly abolishes student loan debt.
The Securities and Exchange Commission just ruled that large publicly held corporations must disclose the ratios of the pay of their top CEOs to the pay of their median workers. About time. In 1965, CEOs of America's largest corporations were paid, on average, 20 times the pay of average workers. Now, the ratio is over 300 to 1. It turns out the higher the CEO pay, the worse the firm does. Professor Michael J. Cooper of the University of Utah [and colleagues] recently found that companies with the highest-paid CEOs returned about 10 percent less to their shareholders than do their industry peers. So why aren't shareholders hollering about CEO pay? Because corporate law in the United States gives shareholders at most an advisory role. They can holler all they want, but CEOs don't have to listen. Larry Ellison, the CEO of Oracle, received a pay package in 2013 valued at $78.4 million, a sum so stunning that Oracle shareholders rejected it. That made no difference because Ellison controlled the board. In Australia, by contrast, shareholders have the right to force an entire corporate board to stand for re-election if 25 percent or more of a company's shareholders vote against a CEO pay plan two years in a row. Which is why Australian CEOs are paid an average of only 70 times the pay of the typical Australian worker. The new SEC rule requiring disclosure of pay ratios ... isn't perfect. Some corporations could try to game it. But the rule marks an important start.
Note: The above article was written by former U.S. 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.
America ... is indecently over-incarcerated. We lock up far more people per capita than any nation even close to our size: roughly 2.4 million men, women, and children. The financial toll of mass incarceration is irresponsible; the human toll is unconscionable. Just 40 years ago, our incarceration rates were much lower, and on par with our peer nations. Since then, however, our prison population has ballooned by about 700%. What happened? We launched the so-called War on Drugs. Criminalizing drug abuse only further shatters people and families that are already in pieces. Our criminal-justice system ... takes people whom we have failed since birth — subjecting them to substandard food, poor living conditions, failing schools, unsafe communities — and then tries to “correct” them through inhumane, over-punitive treatment. For four decades, we have embraced the lie that incarceration ... protects us. Mass incarceration does not make us safer; it makes us more vulnerable. It destroys communities, wastes resources, separates families, ruins lives. It is the result of policies that criminalize poverty and make prisons and jails become warehouses for deeply damaged people with little or no access to mental health or substance abuse treatment. Instead, let’s invest those resources in our neighbors and family members so they don’t end up in the system to begin with, and if they do, so they can get back on their feet.
Note: What is not mentioned here is the role of the greedy prison-industrial complex which has privatized prisons and made imprisoning people profitable. For more along these lines, see concise summaries of deeply revealing news articles about the corrupt prison industry built upon by systematic violations of civil rights.
President Obama has spent the summer at war with his own party over how to write the rules of global trade. Not since Woodrow Wilson promised to break the “money monopoly” ... has the Democratic Party found itself so inflamed against the intersection of wealth and power. The giants of the party now find their credentials, and motivations, under attack. The new fire is fueled by a shift in economics that feels like a crisis for many Americans. Real wages have increased 138% for the top 1% of American income earners since 1979, but only 15% for the 90% below. From 2002 to 2013, the only groups of American households that did not see their real incomes on average decline or stagnate were headed by college graduates and young people in their 20s. At the same time, over a quarter-century, fixed costs such as housing, education and health care have outpaced inflation. [Sen. Elizabeth Warren’s] message ... is that both Republicans and Democrats have misread the economic challenge and been co-opted by the forces of greed. “The pressure on the middle class is not simply a natural force,” she says. “It is the result of deliberate decisions made by the leaders of this country.” America’s enemy, in other words, lurks within. “This is not a top-vs.-bottom story,” she continues. “This is a top-and-everyone-else story. This is a 90-10 story.” Two-thirds of Americans now believe that wealth should be more evenly distributed. An even greater share of the country supports raising taxes on those who make more than $1 million.
Note: For more along these lines, see concise summaries of deeply revealing income inequality news articles from reliable major media sources. Then explore the excellent, reliable resources provided in our Elections Information Center.
If companies don't ... focus on "internal equity" – how the highest paid executive's pay compares with that of everyone else in the organization – they risk losing their own staff's dedication and focus. Indeed, a bias to focus only on the external market in recent years has helped push executive compensation way out of whack. Because of the yawning gap between the leaders and the led, employee morale is suffering, talented performers' loyalty is evaporating, and strategy and execution is suffering at American companies. A smaller gap makes for greater solidarity, and as a result better performance, throughout the workplace. At Whole Foods, we've made adjustments to keep the external and internal equity perspectives in balance. We have a salary cap – the maximum allowable ratio of the highest cash compensation to average employee cash compensation. Today it's 19 to 1. The maximum cash compensation anyone can make at Whole Foods at about $650,000. Whole Foods has never lost to a competitor a top executive that we wanted to keep since the company began more than 30 years ago. The truth is that maximizing personal compensation is not the only motivation that people have in their work. We discover that once our basic material needs are satisfied, money becomes less important to us. In my experience, deeper purpose, personal growth, self-actualization, and caring relationships provide very powerful motivations and are more important than financial compensation for creating both loyalty and a high performing organization.
Note: This article was written by the CEO of Whole Foods, John Mackey. For more along these lines, see concise summaries of deeply revealing news articles on income inequality from reliable major media sources.
The Dutch city of Utrecht ... has paired up with the local university to establish whether the concept of 'basic income' can work in real life, and plans to begin the experiment at the end of the summer holidays. Basic income is a universal, unconditional form of payment to individuals, which covers their living costs. The concept is to allow people to choose to work more flexible hours in a less regimented society, allowing more time for care, volunteering and study. University College Utrecht has paired with the city to place people on welfare on a living income, to see if a system of welfare without requirements will be successful. The Netherlands as a country is no stranger to less traditional work environments - it has the highest proportion of part time workers in the EU, 46.1 per cent. However, Utrecht's experiment with welfare is expected to be the first of its kind in the country. Alderman for Work and Income Victor Everhardt: "One group ... will have compensation and consideration for an allowance, another group with a basic income without rules and of course a control group which adhere to the current rules. Our data shows that less than 1.5 percent abuse the welfare. What happens if someone gets a monthly amount without rules and controls? Will someone sitting passively at home or do people develop themselves and provide a meaningful contribution to our society?"
Note: Explore a treasure trove of concise summaries of incredibly inspiring news articles which will inspire you to make a difference.
Despite an explosion in technology and a huge increase in worker productivity, the middle class continues its 40-year decline. Today, millions of Americans are working longer hours for lower wages and median family income is almost $5,000 less than it was in 1999. Meanwhile, the wealthiest people and the largest corporations are doing phenomenally well. Today, 99 percent of all new income is going to the top 1 percent, while the top one-tenth of 1 percent own almost as much wealth as the bottom 90 percent. In the last two years, the wealthiest 14 people in this country increased their wealth by $157 billion ... more than is owned by the bottom 130 million Americans. Large corporations and their lobbyists have created loopholes enabling corporations to avoid an estimated $100 billion a year in taxes by shifting profits to ... offshore tax havens. US companies are buying back billions of dollars of their own stock in a way that manipulates stock prices, hurts the economy and, by the way, used to be against the law. Instead of putting resources into innovative ways to build their businesses or hire new employees, corporations are pumping their record-breaking profits into buying back their own stock and increasing dividends to benefit their executives and wealthy shareholders. It is a major reason why CEOs are now making nearly 300 times what the typical worker makes. We ... must do a lot more to rebuild the middle class, check corporate greed, and make our economy work again for working families. It is time to say loudly and clearly that corporate greed and the war against the American middle class must end.
Note: The above article was written by 2016 presidential candidate Bernie Sanders. For more along these lines, see concise summaries of deeply revealing news articles on income inequality from reliable major media sources.
At any given time, roughly 480,000 people sit in America's local jails awaiting their day in court, according to an estimate by the International Centre for Prison Studies. These are people who have been charged with a crime, but not convicted. They remain innocent in the eyes of the law. Three quarters of them ... are nonviolent offenders, arrested for traffic violations, or property crimes, or simple drug possession. Many will be found innocent and have their charges dropped completely. Defendants who [are] detained before trial [wait] a median of 68 days in jail. Many ... are forced to wait simply because they can't afford to post bail. A 2013 analysis by the Drug Policy Alliance ... found that nearly 40 percent of New Jersey's jail population fell into this category. People sit behind bars not because they're dangerous, or because they're a flight risk, but simply because they can't come up with the cash. A recent analysis by the Vera Institute ... found that 41 percent of New York City's inmates were sitting in jail on a misdemeanor charge because they couldn't meet a bail of $2,500 or less. For low income people, the consequences of a pre-trial detention, even a brief one, can be disastrous. And in many cases, these people will eventually be found to be innocent. Some civil rights reformers [argue] that bail policies are tantamount to locking people up for being poor. We spend somewhere in the ballpark of $17 billion dollars annually to keep innocent people locked up as they await trial.
President Obama chose Nike headquarters ... to deliver a defense last week of his proposed Trans-Pacific Partnership. It was an odd choice of venue. While Nike still makes some shoe components in the United States, it hasn’t assembled shoes here since 1984. Last year, a third of Nike’s remaining 13,922 American production workers were laid off. Most of Nike’s products are made by 990,000 workers in low-wage countries whose abysmal working conditions have made Nike a symbol of global sweatshop labor. America has a huge and growing problem of inequality. Most Americans are earning no more than the typical American earned 30 years ago, adjusted for inflation — even though the U.S. economy is almost twice as big. Since then, almost all the economic gains have gone to the top. The so-called economic recovery that began in 2009 has ... had no effect on the wages of most Americans. Jobs are coming back, but wages are still stuck in the mud. Here’s where Nike comes in. Congressional Republicans — and the president — want a giant trade deal that protects corporate investors but will lead to even more offshoring of lower-skilled American jobs. We know that when Americans displaced from manufacturing jobs join the glut of Americans competing for personal service jobs ... their wages decline. It’s not Nike’s fault. Nike is simply playing by the rules. But the rules are tilted against the interests of most American workers.
Note: The above article further clarifies why the Trans-Pacific Partnership is a pending disaster. The article was written by former US Secretary of Labor and current professor of public policy at UC Berkeley Robert Reich, who also released a two minute video to educate the public about the dangers of the TPP. For more, see concise summaries of deeply revealing income inequality news articles from reliable major media sources.
When Jack Dawley returned in 2007 to his hometown, Norwalk, Ohio, after eight years in prison and on parole in Wisconsin, he knew getting by would be difficult. For four years, he ... paid down the $1,400 in fines and court fees he owed. But in 2012, he injured his back, lost his job and missed a payment on his court debt. He was arrested and sentenced to jail for 10 days. When he got out, he had 90 days to make a payment. He failed, and went back to jail. A cycle was beginning: jail every 90 days. Although the United States outlawed debtors’ prison two centuries ago, that, in effect, is where Dawley kept going. It is crowded there. [In] Ferguson, MO ... the recent Department of Justice investigation of the police and courts portrays a system designed to jail the poor for their poverty. Across America, courts levy fines and fees ... on misdemeanor offenders, and jail them when they cannot pay. You don’t go to jail for walking your dog without a leash, making an illegal left turn or burning leaves without a permit, but in many states you will go to jail if you can’t pay the resulting fees and fines. We have a two-tier system: The rich pay fines. The poor go to jail. Debtors’ prison is both senseless and illegal. In 1983, the Supreme Court ruled that courts must inquire about a defendant’s ability to pay fines and can jail only those who can pay but won’t. Yet defendants don’t know [that] they can ask for a hearing on their ability to pay, [and] courts routinely fail to suggest a hearing.
Many of the non-poor — and, in fact, a lot of the rich — receive benefits from government ... for which we don't make them pee in a cup. We've rounded up some ... examples: 1. The mortgage interest deduction for big houses and second homes. 5 million households in America making more than $200,000 a year get a lot more housing aid than the 20 million households living on less than $20,000. 2. The yacht tax deduction. 3. Rental property. If you're a landlord ... you can deduct many of the expenses you incur renting a home. 4. Fancy business meals. Talking business over an expensive dinner [is] tax deductible. That puts taxpayer spending on food stamps into relief. 5. Investment income is taxed at a much lower rate than regular income. 6.The estate tax. 7. Gambling loss deductions. 8. The Social Security earnings limit. Social Security taxes only apply to income up to $118,500 – anything after that is Social Security tax-free. So the more money you make, the less your effective Social Security tax rate is, making this tax about as regressive as they come. Social Security’s own actuaries estimate that eliminating this cap would reduce the program’s long-term deficit by about 86 percent. 9. Retirement plans. 10. Tax prep.
Note: For more, read what the Washington Post had to say about our corporate predator state in 2013, and see concise summaries of deeply revealing income inequality news articles from reliable major media sources.
Not long ago I was asked to speak to a religious congregation about widening inequality. Shortly before I began, the head of the congregation asked that I not advocate raising taxes on the wealthy. I had a similar exchange last year with the president of a small college who had invited me to give a lecture that his board of trustees would be attending. “I’d appreciate it if you didn’t criticize Wall Street,” he said. It seems to be happening all over. A nonprofit group devoted to voting rights decides it won’t launch a campaign against big money in politics for fear of alienating wealthy donors. A Washington think tank releases a study on inequality that fails to mention the role big corporations and Wall Street have played ... presumably because the think tank doesn’t want to antagonize its corporate and Wall Street donors. A major university shapes research and courses around economic topics of interest to its biggest donors, notably avoiding any mention of the increasing power of large corporations and Wall Street on the economy. It’s bad enough that big money is buying off politicians. It’s also buying off nonprofits that used to be sources of investigation, information and social change, from criticizing big money. Our democracy is directly threatened when the rich buy off politicians. But no less dangerous is the quieter and more insidious buy-off of institutions democracy depends on to research, investigate, expose and mobilize action against what is occurring.
Note: The above article was written by former U.S. Secretary of Labor and UC Berkeley professor Robert Reich. For more along these lines, see concise summaries of deeply revealing income inequality news articles from reliable major media sources.
Many believe that poor people deserve to be poor because they’re lazy. In reality, a large and growing share of the nation’s poor work full time — sometimes 60 or more hours a week — yet still don’t earn enough to lift themselves and their families out of poverty. It’s also commonly believed ... that the rich deserve their wealth because they work harder than others. In reality ... their wealth has been handed to them. The rise of these two groups — the working poor and non-working rich — is relatively new. Why are these two groups growing? The ranks of the working poor are growing because wages at the bottom have dropped, adjusted for inflation. The real value of the federal minimum wage is lower today than it was a quarter century ago. In addition, most recipients of public assistance must now work in order to qualify. The new work requirements haven’t reduced the number or percentage of Americans in poverty. They’ve just moved poor people from being unemployed and impoverished to being employed and impoverished. At the same time, the ranks of the non-working rich have been swelling. A study by the Boston College Center on Wealth and Philanthropy projects a total of $59 trillion passed down to heirs between 2007 and 2061. This is ... about to become the major source of income for a new American aristocracy. The tax code encourages all this by favoring unearned income over earned income.
Note: The above article was written by former U.S. 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.
David Korten began his professional life as a professor at the Harvard Business School on a mission to lift struggling people in Third World nations out of poverty by sharing the secrets of U.S. business success. Yet, after a couple of decades in which he applied his organizational development strategies in places as far-flung as Ethiopia, Nicaragua, and the Philippines, Korten underwent a change of heart. In 1995, he wrote the bestseller When Corporations Rule the World, followed by a series of books that helped birth the movement known as the New Economy, a call to replace transnational corporate domination with local economies, control, ownership, and self-reliance. This month, Korten, who is also the co-founder and board chair of YES!, publishes a new book challenging readers to rethink their relationship with Earth—indeed, with all creation, from the smallest quantum particle to the whole of the universe. The world needs “a new story,” he says. Buying into the “Sacred Money and Markets” story that money is wealth and the key to happiness locks us into indentured servitude to corporate rule. It’s the traditional development model, or transnational capitalism, that damages Earth as a living community, including not just humans but all life forms. Control of money is the ultimate mechanism of social control in a society in which most every person depends on money for the basic means of living. The only legitimate purpose of the economy is to serve life, is to serve us as living beings making our living in co-productive partnership with living Earth.
Note: David Korten's new book is titled: Change the Story, Change the Future. Explore a treasure trove of concise summaries of incredibly inspiring news articles which will inspire you to make a difference.
The chairman of the venerable Gallup research and polling firm says the official U.S. unemployment rate is really an underestimation and a “big lie" perpetuated by the White House, Wall Street and the media. What CEO and Chairman Jim Clifton revealed in his blog Tuesday about how the Labor Department arrives at the monthly unemployment rate is no secret -- including that Americans who have quit looking for work after four weeks are not included in the survey. The department's current rate of 5.6 percent unemployment is the lowest since June 2008, with President Obama using his State of the Union address and campaign-style stops across the country to tout an economic recovery. “There's no other way to say this,” Clifton says. “The official unemployment rate … amounts to a big lie.” His arguments are similar to those made by Washington Republicans after the Bureau of Labor Statistics announced the rate each month during the height of the recession. However, Gallup is an 80-year-old, nonpartisan firm. Clifton suggests the biggest misconception about the official rate is that it doesn’t denote “good” full-time jobs. “When the media, talking heads, the White House and Wall Street start reporting the truth -- the percent of Americans in good jobs; jobs that are full time and real -- then we will quit wondering why Americans aren't ‘feeling’ something that doesn't remotely reflect the reality in their lives. And we will also quit wondering what hollowed out the middle class,” he said.
Note: Read the article by Gallup CEO Jim Clifton showing that the US official unemployment rate of 5.6% is very misleading. Gallup research finds 44% of US citizens available to work are not getting enough work. Fox News was the only media source to report on this story without attacking Clifton for his comments.
Jim Clifton, longtime CEO of Gallup ... penned an op-ed on the company website referring to the “big lie” of the official Bureau of Labor Statistics monthly unemployment rate. The 5.7% rate for January he says is woefully inadequate and does not take into account part-time workers, those earning $20 a week, those underemployed, and the hundreds of thousands of others who have simply given up looking for work. The real unemployment is much larger. In all of this, Clifton is absolutely right. The published rate is not only woefully inadequate, it is misleading and dishonest. In a follow up interview on CNBC ... he notes that he fears that telling the truth will endanger his life. So he backed off the “big lie” headline by telling CNBC: “I think that the number that comes out of BLS [Bureau of Labor Statistics] and the Department of Labor is very, very accurate. I need to make that very, very clear so that I don’t suddenly disappear. I need to make it home tonight.”
Note: Read the article by Gallup CEO Jim Clifton showing that the US official unemployment rate of 5.6% is very misleading. Gallup research finds 44% of US citizens available to work are not getting enough work. Then watch the video where he admits he fears for his life for reporting on this. Notably, the Forbes article summarized above confirms that Clifton's statements are accurate, but criticizes him for revealing that mass media is manipulated by the financial and political elite.
The middle class can't be saved unless Wall Street is tamed. Yet most presidential aspirants don't want to talk about taming the Street because Wall Street is one of their largest sources of campaign money. Six years ago ... the financial collapse crippled the middle class and poor, consuming the savings of millions of average Americans and causing 23 million to lose their jobs, 9.3 million to lose their health insurance and some 1 million to lose their homes. A repeat performance is not unlikely. Wall Street's biggest banks are much larger now than they were then. Five of them hold about 45 percent of America's banking assets. In 2000, they held 25 percent. Meanwhile, the Street's lobbyists have gotten Congress to repeal a provision of Dodd-Frank curbing excessive speculation by the big banks. The language was drafted by Citigroup and personally pushed by Jamie Dimon, CEO of JPMorgan Chase. It's nice that presidential aspirants are talking about rebuilding America's middle class. But to be credible, the candidates have to [propose] to limit the size of the biggest Wall Street banks, to resurrect the Glass-Steagall Act (which used to separate investment banking from commercial banking), to define insider trading the way most other countries do (using information any reasonable person would know is unavailable to most investors), and to close the revolving door between the Street and the U.S. Treasury. It also means not depending on the Street to finance their campaigns.
Important Note: Explore our full index to revealing excerpts of key major media news stories on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.