THE RICH GETTING RICHER AND THE POOR EATING THEIR SCRAPS

THE RICH GETTING RICHER AND THE POOR EATING THEIR SCRAPS

PART 1- GETTING SENSE OF US ECONOMY FROM THE TOP  (1 and 2)

1-

Bloomberg BusinessWeek's Peter Coy has from delving into the details of the latest data on income growth in America. The richest 0.1 percent of the American population has rebuilt its share of wealth back to where it was in the Roaring Twenties. And the richest 0.01 percent’s share has grown even more rapidly, quadrupling since the eve of the Reagan Revolution. The Richest Rich Are in a Class by Themselves. Peter Coy, April 03, 2014. http://www.businessweek.com/articles/2014-04-03/top-tenth-of-1-percenters-reaps-all-the-riches

See figure: the new Gilded Age: open http://www.zerohedge.com/news/2014-04-09/richest-rich-have-never-been-richer-rest-us

The bottom nine-tenths of the 1 Percent club have about the same slice of the national wealth pie that they had a generation ago. The gains have accrued almost exclusively to the top tenth of 1 Percenters.

SOURCE:  The Richest Rich Have Never Been Richer Than The Rest Of Us. Submitted by Tyler Durden on 04/09/2014. http://www.zerohedge.com/news/2014-04-09/richest-rich-have-never-been-richer-rest-us

 

-------- 

2-

Fed Governor Tarullo, ironically speaking at the Hyman Minsky Financial Instability Conference, suggested that the reduction in share of national income for "workers" (i.e. income inequality) is troubling. Furthermore, he added, "changes reflect serious challenges not only to the functioning of the American economy over the coming decades, but also to some of the ideals that undergird the nation's democratic heritage." His speech, below, adds that since there has been only slow growth so far, expectations for a growth spurt are misplaced and that the Fed-policy-driven recovery has "benefited high-earners disproportionately."

Full Tarullo speech available here

Here are the highlights...

Longer-Term Challenges for the American Economy

There is considerable ongoing debate about whether the financial crisis and recession amplified changes already afoot in the economy, accelerated them, or simply revealed them more clearly. Whatever one's view on that question, the confluence of some apparently secular trends raises important questions about our nation's future growth potential and our ability to provide opportunity for all of our people. Indeed, these changes reflect serious challenges not only to the functioning of the American economy over the coming decades, but also to some of the ideals that undergird the nation's democratic heritage. This evening I will address in some detail four particularly important developments:

1. Productivity growth has slowed. As a result, the overall economic pie is expanding more slowly than before.
2. Some indicators further suggest that workers have been claiming a smaller share of the overall economic pie during the past decade.
3. Inequality has continued to increase, meaning that a larger portion of overall economic resources is commanded by a smaller segment of the population.
4. Economic mobility across generations is not particularly high in the United States, and it has not been increasing over time.

SOURCE: Fed Admits Policies Benefit Rich, Fears For "Nation's Democratic Heritage". Submitted by Tyler Durden on 04/09/2014. http://www.zerohedge.com/news/2014-04-09/fed-admits-policies-benefit-rich-fears-nations-democratic-heritage

--------- 

PART 2- GETTING SENSE OF US ECONOMY FROM THE BOTTOM

1-  One in millions of people speaks clearly about her disappointment:

Carey Wedler was one of the fervent "Obama girl" who believed the myth about "hope and change." Now she realizes that Obama has "become exactly like  George Bush", the one she hate. Below are some of her observations on all the "mayhem and crime" committed by the president:

You bailed out bankers and placed them in your cabinet.

You placed Monsanto in charge of your FDA

You helped out pharmaceutical and health insurance companies with Obamacare

You expanded Bush's wars and started new ones with drones branding yourself a humanitarian war monger

You bragged about crippling sanctions against Iran though they directly affected civilians

You extended the patriot act and asserted your right to spy on the American people

You asserted your right to detain them without trial

You seized the authority to assassinate Americans without providing any evidence of their guilt or offering them due process of law

You viciously punish journalists and pursue whistleblowers who expose your crimes though you vowed to protect them when you were running for office

You arm Al Qaeda insurgents and refused to close Guantanamo, and you along with congress have criminalized protest

And still you have the audacity to scold dictators about democracy, protests and freedom

Her conclusion:

MR. OBAMA - YOU ARE THE BIGGEST FRAUD THAT HAS EVER BEEN PERPETRATED ON THE AMERICAN PEOPLE. 

SOURCE: The Stunning Metamorphosis Of An "Obama Girl". Submitted by Tyler Durden on 04/09/2014. http://www.zerohedge.com/news/2014-04-09/stunning-metamorphosis-obama-girl

 

              

========