Courtesy of Michael Panzner at Financial Armageddon
And Yet…?
Some would say there’s no real relationship between the data highlighted in these two posts:
"Unemployment’s Rising Toll on Families" (Economix)
Last year, nearly one in eight families included an unemployed person, the highest proportion since the Labor Department began keeping track in 1994.
"Chart of the Day: Finance is Back!" (MotherJones)
Via Matt Yglesias, Kathleen Madigan reports that finance industry profits have recovered from their late unpleasantness and now account for over 30% of all corporate profits once again. Life is grand if you’re a plutocrat, isn’t it?
And yet…?
Disposed Towards Revolt?
Most Americans who see the upheaval occurring in the Middle East and in other places overseas probably think it won’t (or can’t) happen here. But as I noted almost three years ago in "Not Too Hard," one thing that leaves people feeling favorably disposed towards revolt is significant inequality. In "Losing Our Way," New York Times columnist Bob Herbert makes it clear that we have plenty of that:
There is plenty of economic activity in the U.S., and plenty of wealth. But like greedy children, the folks at the top are seizing virtually all the marbles. Income and wealth inequality in the U.S. have reached stages that would make the third world blush. As the Economic Policy Institute has reported, the richest 10 percent of Americans received an unconscionable 100 percent of the average income growth in the years 2000 to 2007, the most recent extended period of economic expansion.
Americans behave as if this is somehow normal or acceptable. It shouldn’t be, and didn’t used to be. Through much of the post-World War II era, income distribution was far more equitable, with the top 10 percent of families accounting for just a third of average income growth, and the bottom 90 percent receiving two-thirds. That seems like ancient history now.
The current maldistribution of wealth is also scandalous. In 2009, the richest 5 percent claimed 63.5 percent of the nation’s wealth. The overwhelming majority, the bottom 80 percent, collectively held just 12.8 percent.
This inequality, in which an enormous segment of the population struggles while the fortunate few ride the gravy train, is a world-class recipe for social unrest. Downward mobility is an ever-shortening fuse leading to profound consequences.
