Income inequality is not a populous issue. It has existed in countries where capitalism is the basis of it's economy.
This was in the Washington Post:
Jarad Bernstein's graph of the year: Rising income inequality is no surprise after seeing this. (click here)
By WonkBorg
December 31, 2013
The figure shows the percent of time that the unemployment rate was “too high,” meaning that it was above the rate economists (and, importantly, the Fed) associate with full employment. In the postwar decades, job markets were slack less than a third of the time. Since then, they’ve been slack about two-thirds of the time, even if you leave out the great recession. While there’s a lot that goes into rising income inequality, it is not a coincidence that low, middle, and high incomes grew together in periods when tight labor markets dominated, and vice versa.
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Capitalism cares only about itself. It has no god. It has no president. It has no rules. It exists to satisfy it's own dynamics to wealth.
What I find most interesting about the graph is the correlation it reveals about the 'greed' of outsourcing.
There was a time in the USA when cheap foreign products were considered of far less quality. The USA companies went looking for cheap labor.
In the late 1960s and 1970s it was Japan.
Korea was cheap labor in 70's and 80's.
China was in 90's and now and India also.
Let's take this one step further. By the year 2000, job creation in the USA flat lined.
Companies outsourced for profits, but, it also rid them of unions. It was the union that protected the income of the Middle Class.
When compared to the outsourced jobs and the income inequality graph, the picture becomes more and more clear.
This isn't rocket science. If there are less union jobs, there is less pay to the majority of Americans. The majority Middle Class supports the product base of Wall Street. There is no way the 1% or the 0.1% can sustain an economy alone. So while CEOs cash in on get rich quick schemes that sends American jobs overseas; they are also destroying their products markets. China has been producing American goods for three decades, yet the quality of life of their population is still impoverished. That is because the Chinese also suffer from poverty wages and unable to achieve upward mobility.
That is not exactly the most interesting part:
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The job creation rate reflects a flat economic growth extending back to January 2001.
The Great Recession was a V-shaped recession that recovered jobs at the same rate as Bush job creation rate before the Great Recession. Even with all the government spending under Bush he could not move the economy. The degree of outsourcing was so intense that Bush concentrated on construction and military for his economic growth. The construction was draconian both in government treasuries and the environment. It was a supply side economy whereby China built huge cranes in most global ports and out produced other countries. The growth of China under the Bush economy was enormous, yet the people of China reaped little of Wall Streets profits. The Chinese government focused it's new wealth on building the strength of it's government and national accomplishments.
The fact the US construction business could not be effectively outsourced except for any raw materials it used, was the reason the housing market became so huge. When the collapse occurred in 2008, the dependency of the USA on construction jobs to the Middle Class collapsed as well and there became female heads of households because the construction business was gone and the men had nowhere to go to be employed. The jobs were gone.
A better way to look at it, is that the USA job market began to be specialized in jobs that Wall Street could not outsource. There was little diversity to sustain any downturn in 2008.
Wall Street got greedy and the SUSTAINABILITY of companies shrank. As the continued collapse of the American job force, Middle Class and unions declined there were more and more mergers and acquisitions which only served to make the job market shrink, too.
The reason there is a 1% and a 0.1% is because capitalism has no morals, has no conscience, has no rules and seeks only to satisfy it's own dynamics to wealth. The more contraction of the 'production base' of any product, the less competition, the less the quality forced by that competition, the less monies in the hands of consumers and the reduction of product base.
Local economies build jobs, competition, security and self-interest. The American people need to recover their economy because Wall Street is unable to do it. If Americans are to rebuild their economy, income inequality has to be resolved and poverty minimized to an all time low. Once the USA economy has regained it's integrity, the larger global economy will improve as well.
The countries of China, Brazil, Russia and India have to develop their Middle Class for improvement in trade between nations. There cannot be a Wealthy Country that all others feed off. IT DOES NOT WORK.
This was in the Washington Post:
Jarad Bernstein's graph of the year: Rising income inequality is no surprise after seeing this. (click here)
By WonkBorg
December 31, 2013
The figure shows the percent of time that the unemployment rate was “too high,” meaning that it was above the rate economists (and, importantly, the Fed) associate with full employment. In the postwar decades, job markets were slack less than a third of the time. Since then, they’ve been slack about two-thirds of the time, even if you leave out the great recession. While there’s a lot that goes into rising income inequality, it is not a coincidence that low, middle, and high incomes grew together in periods when tight labor markets dominated, and vice versa.
Capitalism cares only about itself. It has no god. It has no president. It has no rules. It exists to satisfy it's own dynamics to wealth.
What I find most interesting about the graph is the correlation it reveals about the 'greed' of outsourcing.
There was a time in the USA when cheap foreign products were considered of far less quality. The USA companies went looking for cheap labor.
In the late 1960s and 1970s it was Japan.
Korea was cheap labor in 70's and 80's.
China was in 90's and now and India also.
Let's take this one step further. By the year 2000, job creation in the USA flat lined.
Companies outsourced for profits, but, it also rid them of unions. It was the union that protected the income of the Middle Class.
When compared to the outsourced jobs and the income inequality graph, the picture becomes more and more clear.
This isn't rocket science. If there are less union jobs, there is less pay to the majority of Americans. The majority Middle Class supports the product base of Wall Street. There is no way the 1% or the 0.1% can sustain an economy alone. So while CEOs cash in on get rich quick schemes that sends American jobs overseas; they are also destroying their products markets. China has been producing American goods for three decades, yet the quality of life of their population is still impoverished. That is because the Chinese also suffer from poverty wages and unable to achieve upward mobility.
That is not exactly the most interesting part:
The Great Recession was a V-shaped recession that recovered jobs at the same rate as Bush job creation rate before the Great Recession. Even with all the government spending under Bush he could not move the economy. The degree of outsourcing was so intense that Bush concentrated on construction and military for his economic growth. The construction was draconian both in government treasuries and the environment. It was a supply side economy whereby China built huge cranes in most global ports and out produced other countries. The growth of China under the Bush economy was enormous, yet the people of China reaped little of Wall Streets profits. The Chinese government focused it's new wealth on building the strength of it's government and national accomplishments.
The fact the US construction business could not be effectively outsourced except for any raw materials it used, was the reason the housing market became so huge. When the collapse occurred in 2008, the dependency of the USA on construction jobs to the Middle Class collapsed as well and there became female heads of households because the construction business was gone and the men had nowhere to go to be employed. The jobs were gone.
A better way to look at it, is that the USA job market began to be specialized in jobs that Wall Street could not outsource. There was little diversity to sustain any downturn in 2008.
Wall Street got greedy and the SUSTAINABILITY of companies shrank. As the continued collapse of the American job force, Middle Class and unions declined there were more and more mergers and acquisitions which only served to make the job market shrink, too.The reason there is a 1% and a 0.1% is because capitalism has no morals, has no conscience, has no rules and seeks only to satisfy it's own dynamics to wealth. The more contraction of the 'production base' of any product, the less competition, the less the quality forced by that competition, the less monies in the hands of consumers and the reduction of product base.
Local economies build jobs, competition, security and self-interest. The American people need to recover their economy because Wall Street is unable to do it. If Americans are to rebuild their economy, income inequality has to be resolved and poverty minimized to an all time low. Once the USA economy has regained it's integrity, the larger global economy will improve as well.
The countries of China, Brazil, Russia and India have to develop their Middle Class for improvement in trade between nations. There cannot be a Wealthy Country that all others feed off. IT DOES NOT WORK.
