More Gains For the Top 1%

According to a story by Jessica Dickler of CNN Money, "From 1979 to 2007, average household income for the nation's top 1% more than tripled, while middle-class incomes grew by less than 40%", based on a new report from the Congressional Budget Office. The report goes on to say that the household income for the top 1% has grown 275%, while the household income for the Middle Class grew by just under 40%. (Dickler, 2011)

So much for the "trickle-down economy" myth. Rather than creating jobs, the top 1% are hoarding their wealth and avoiding paying taxes through loopholes and political alliances. Corporations continually cut pay and benefits for their workers in order to increase the bonuses for their executives. They currently are sitting on $2 trillion that could be used to create jobs and increase worker pay. What it all comes down to is the bottom line. The bottom line, that is, for inflating the pockets of their executives. They have eliminated millions of American jobs and have sent millions more to other countries. A JP Morgan analysis of public companies that disclose, keyword here is disclose, their foreign money showed that eleven companies are holding $10 billion or more in foreign countries (Casselman, 2011). They have made a conscience decision to facilitate the downfall of the American financial system in order to acquire even greater profits for themselves. This is simply appalling!

Since the top 1% cannot seem to do the ethical thing on their own, I suppose we should offer them incentives for creating American jobs and stiff penalties for outsourcing jobs to foreign countries and intentionally manipulating our financial system. Whatever the solution, something needs to be done. If we continue on this coarse, there will be no more Middle Class; only the wealthy and the poor.

Sources:

Dickler, Jessica (2011). CNN Money. CBO study shows growing income disparity. Retrieved from http://money.cnn.com/2011/10/26/news/economy/cbo_income/index.htm?iid=Lead&hpt=hp_t2

Casselman, Ben (2011). WSJ. Companies shun investment, hoard cash. Retrieved from http://online.wsj.com/article/SB10001424053111903927204576574720017009568.html