The gap between the wealthiest Americans and the poorest is bigger than at any time since the 1920s — just before the Depression. According to an analysis this year by Edward Wolff of New York University, the top 20% of wealthy individuals own about 85% of the wealth, while the bottom 40% own very near 0%. Many in that bottom 40% not only have no assets, they have negative net wealth. LATFrankly, I don't want to be standing in a line waiting for the rich to be kind and offer me bread, clothing or anything else, which is why I have no debt and live simply. But any catastrophe could change that.
Many people aren't so fortunate to even have the opportunity to be frugal or to lift themselves up by their bootstraps.
Through no fault of their own, they may have health issues or disabilities or dysfunctional families that leads to problems later in life. They may have had a tragic accident, lost the family breadwinner. There are any number of reasons that people fall into poverty.
Through no fault of their own, they may have health issues or disabilities or dysfunctional families that leads to problems later in life. They may have had a tragic accident, lost the family breadwinner. There are any number of reasons that people fall into poverty.
An illness, disease or injury often sends a person to the poorhouse because of the high cost -- and little value -- of healthcare.
Republicans want to take away access to healthcare.
This wealth gap is a trend. Wolff In 2003:
Republican philosophy doesn't take into account tragedies, mistakes, misfortune. For them it's dog eat dog, survival of the fittest.
I would argue that giving the middle class and the poor a tax advantage is NOT a "redistribution" of wealth, seeing that the rich get rich off the backs of the middle class and the poor. CEO salaries have been trending upward for years.
I would argue that giving the middle class and the poor a tax advantage is NOT a "redistribution" of wealth, seeing that the rich get rich off the backs of the middle class and the poor. CEO salaries have been trending upward for years.
Look at the outsourcing trend. Companies couldn't make enough profit here, so they sent jobs to other countries to exploit low wage workers there.
Look at undocumented immigrants hired secretly by companies to work hard for little money. Then they get blamed for taking American jobs, when it's really just another example of the rich getting rich by exploiting vulnerable people.
Look at undocumented immigrants hired secretly by companies to work hard for little money. Then they get blamed for taking American jobs, when it's really just another example of the rich getting rich by exploiting vulnerable people.
The recession is a another good example. Wall Street took full advantage of the middle-class desire to access the "American Dream" of home ownership. People who couldn't afford houses were told that they could buy one. Then Wall Street brilliantly and greedily bundled those mortgages, wrapped them in a bow and sent them on their way, making huge profits.
Then when our financial system choked on our bad mortgages, they needed us to bail them out -- for our sake! The middle class got screwed on both ends. The poorest among us suffered the worst.
Sure, some people work really hard to get where they are, but often they have a staff that didn't get raises or health benefits or a living wage. Nowadays, many employers offer next to nothing in salaries or benefits.
Sure, some people work really hard to get where they are, but often they have a staff that didn't get raises or health benefits or a living wage. Nowadays, many employers offer next to nothing in salaries or benefits.
We can't all be an entrepreneur.
Our education system is failing us, which is another dagger for the poor and middle class. It means that more and more people don't have access to higher wage jobs. This nation actually has a lot of jobs available, but many Americans aren't educated enough to take them. Republicans want to cut education too.
Once you have money, it's easy to make money. Most rich people get to a point where they earn money by not doing anything at all. They collect on their investments.
Once you have money, it's easy to make money. Most rich people get to a point where they earn money by not doing anything at all. They collect on their investments.
MM: Where does that leave the bottom tiers?
Wolff: The bottom 20 percent basically have zero wealth. They either have no assets, or their debt equals or exceeds their assets. The bottom 20 percent has typically accumulated no savings.
A household in the middle — the median household — has wealth of about $62,000. $62,000 is not insignificant, but if you consider that the top 1 percent of households’ average wealth is $12.5 million, you can see what a difference there is in the distribution. Read more
