Our 'Winner Take All' Economy Is Destroying Us

[n2doc]

by Tim Koechlin

The United States is, by every reasonable measure, the most unequal of the world’s rich countries. And this is not new development. For more than three decades, the US has been suffering from a crisis of inequality. The Democrats have not taken this crisis seriously enough. The Republicans seem hell-bent on making it worse.

Evidence of extreme and rising economic inequality in the US is quite overwhelming. In 1979, the top 1% earned about 9% of all income; in 2013, they earned 24%. The incomes of the top 0.1% have grown even faster. More than half of all economic growth since 1976 has ended up in the pockets of the top 1%. Meanwhile, the incomes of the shrinking middle class have stagnated, and the incomes of those with a high school education or less have fallen substantially. The purchasing power of the minimum wage has fallen by about 15% since 1979. One in five kids lives in poverty.

How have we responded to all of this? By cutting taxes for the rich, busting unions and vilifying the poor! Over the past few decades, effective tax rates on US corporations and the richest 1% have fallen by about a third. Among the world’s rich countries, US tax rates on the rich are near the very bottom. Since 1970, the percentage of private sector workers in unions has fallen from 29% to 7%.

It has not always been this way. Between 1948 and 1975, the income of the median US household doubled. The incomes of the bottom 20% actually grew a little faster than the incomes of the top 20% over this period. Between 1928 and 1950, the distribution of income in the US actually became dramatically more equal.

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https://www.commondreams.org/view/2014/01/28-0

[pipoman]

1. What has happened to destroy the US

Is the sidestepping of the constitutional protections originally put in place. Fast track, NSA, unequal tax structure, unequal application of criminal statutes, the list goes on.

If the US had stuck to the intent of the founding of this nation, we wouldn't be in the position we are today.

[Herman D]

2. One of the issues is the shrinking middle class

At one time, the USA was a manufacturing powerhouse, where most of the manufacturing was performed by high school graduates. As NAFTA and globalization have progressed, manufacturing in the USA has declined and those jobs have moved offshore. Now a high school diploma qualifies a person to work at a fast food restaurant, jobs and tasks that do not require much in the way of brain horsepower.
We have thousands of college graduates who cannot find work in their chosen field of study. Why is that? The answer could be two, three-fold or more. Did the college student research the job market before selecting a major to see what employment opportunities lie ahead for their chosen major? That could be part one and the slow economic recovery is number two. Add to the fact that India, with a population of 1 billion has over 300 million college graduates, many in technical areas that are in higher demand. Globalization has drained jobs out of the USA and brought in educated workers who trash the market by working for less than the job-salary standard.
Another area contributing to wage disparity is professional sports. Anyone care to discuss that?

[n2doc]

3. There are few fields that have lots of openings

Doesn't matter what you study. The few areas that do have hiring needs usually require a ton of experience (but be sure you aren't too old, that will kill your chances too). Unless you make your own business, what you study doesn't mean you will get a job.

And there are areas, like engineering, where many don't have the ability in math to do the job. That's just a fact. It doesn't mean they are stupid or lazy. Everybody has a different skill set.

[Herman D]

6. Engineering, nursing, teaching; all have openings.

Those degrees cover a fairly wide spectrum of skills. And they are all specific.

Psychology, sociology, physics; you're not doing anything with those unless you get a masters or PhD. Well, maybe you'll get a job in a county social services dept where you will be overworked/underpaid and a target of the press when one of your cases goes south and a scapegoat is needed.

[n2doc]

7. Teaching pays squat in most places and requires a very specific set of social skills

How many folks can handle partial differential equations? You aren't getting an Engineering degree unless you are very comfortable with high level math and physics. And Nursing takes years of experience to get to the point where the pay is ok, and again takes a specific set of skills. And none of those is going to make much if a dent, if any, in the national unemployment rate.

I think the statistic is, 3 applicants for every opening, overall.

[davidn3600]

9. Many places have hiring freezes for teachers

Nursing is saturated in many places as well.

As for engineering... sorry but not everyone has the mindset to be able to do Calculus.

[Herman D]

11. My list of suggestions was never intended to be all-inclusive

Just a couple of examples.

My niece is graduated from nursing; the nursing field that's saturated, according to her, is pre-natal. There are openings for many specialties. She had multiple offers.

[jsr]

4. Recommend

[LuvNewcastle]

5. K&R

[WillyT]

8. HUGE K & R !!!

[El_Johns]

10. KR> ARE WE SICK OF THEM YET???