Number one is real simple. I predicted it in my book, The Rigged Game: Corporate America and a People Betrayed, that income inequality is growing in the United States. President Obama, Wall Street Senator Ron Wyden, the Democratic party leadership, Mitt Romney and the Republican party leadership, know this. They all have the same plan regardless of who wins the upcoming presidential election. They plan to make sure income inequality continues to grow by redistributing income and wealth from the 99 to the 1 percent.
Currently, the 1 percent receive about 30 percent of all income in the US, up from about 7-8 percent in 1980. That means the 99 percent have less money to purchase stuff with, which is why the economy is mired in this Great Recession, jobs are scarce, and the economy is tilting on the edge of an economic abyss that will make our current situation look like the good old days.
There is one key difference between the two; Republicans want to redistribute income to the 1 percent faster than the Democrats. Big Deal. The end result is the same; the economic disenfranchisement of the 99 percent. It will soon be banana republic time in the United States. Political disenfranchisement has already occurred.
The rich have created a much larger income gap because they have stolen the money from the 99 percent via US legislation, such as free trade treaties, deregulation and privatization scams. All of these redistribute income from the 99 to the 1 percent.
Liberal Wall Street Senator Ron Wyden, a nasty son-of-a-Wall Street-Bitch, is a driving force behind these scams. Free trade treaties open the door for US businesses to ship (or create) jobs overseas. The difference between the lost higher wage US jobs and the new lower overseas jobs goes into the pockets of the rich via higher corporate profits, surging dividends and rising share prices. The senator of Wall Street knows this but continues to vote for Wall Street and hedge funds over the interests of the 99 percent. Worse yet, the jobs shipped away or created overseas were once the tax base that supported government services, such as schools, roads, bridges, fire fighters and polices.
“The middle class is shrinking. According to Prof. Alan Krueger, Chairman of President Obama’s Council of Economic Advisers, ‘the shift in income inequality over the last three decades is the equivalent of moving $1.1 trillion of income from the 99 percent to the top 1 percent every single year.’” There’s a reason for this. That’s because $1.1 trillion of income has been redistributed every year on average from the 99 to the 1 percent via free trade treaties, deregulation and privatization scams.
The middle class is still shrinking under Obama. He knows this and continues to sign legislation to do exactly this. Last autumn he signed free trade treaties with Panama, South Korea and Colombia. The result, according to numerous estimates, will be a net loss of nearly a million jobs. So the difference between the old higher wages and the new lower wages goes into the pockets of the wealthy. Now Obama has his people negotiating the Trans Pacific Free Trade Agreement (TPP), which the Guardian newspaper of the UK calls “Nafta on steroids.” The TPP will accelerate the decline of the middle class by redistributing more income and political power from the 99 to the 1 percent. Obama knows this, but continues the policy anyway.
So what? Profits are up? Where are the jobs? Obviously, trickle down didn’t work. Worldwide, US corporations are sitting on over $5 trillion. But they can’t invest it because demand is so slack due to the massive redistribution of income from the 99 to the 1 percent.
Wall Street Mitt the Twit Romney claims tax cuts for the rich will stimulate the economy, but 30 years of failed trickle down economics is ultimately the primary reason the current economy sucks big time, like total New Great Depression. The Twit’s trickle down economic policies will only make things worse for the 99 percent. That’s because the 1 percent will have more income with the cuts with which to purchase more legislation from Mitt Romney (if elected), Obama (if re-elected), Ron Wyden, John Boehner, Rand Paul, Earl Blumenauer and lots of others in congress and the senate. So does Obama and Wyden. Too bad for the 99 percent. Apparently, Mitt the Twit thinks the US economy should be used to redistribute income from the 99 to the 1 percent. Make the rich richer at the expense of the rest of us? I don’t think that’s what an economy is for.
Bank profits are enormous because the Federal Reserve continues to help these folks out. Fed Chairman Ben Bernanke last week announced a plan to stimulate the economy. It was a lie. The fed has decided to purchase $40 billion of worthless mortgage backed bonds from wealthy investors and institutions such as investment banks like Goldman Sachs and Morgan Stanley. The Fed will purchase the worthless or nearly worthless bonds on a face value basis. If the investors or banks paid $10 million for the bonds, which are now valueless, the Fed will still pay the stupid bank or investor $10 million for the worthless bonds. The Fed has been very helpful with increasing the profits of banks for several years now using such scams.
CEO pay has risen because the government and the Federal Reserve continue to bail out the rich and help to increase corporate profits by enacting income redistribution legislation, like the South Korea free trade treaty. See the chart above.
There is a reason 1 in 5 US workers earn so little. Wall Street Senator Ron Wyden and others continue to redistribute income from the 99 to the 1 percent via free trade treaties that ship or create jobs overseas. This puts downward pressure on wages in the US, which redistributes income from the 99 to the 1 percent. The same process occurs when too many immigrants come to the US, creating a surplus of labor, which also puts downward pressure on wages. Republicans love this, but so do Wall Street democrats, like Ron Wyden.
Breakdown of the $26 trillion the Federal Reserve Handed Out to Save Stupid, but Rich, Investors and Banks
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