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Posts Tagged ‘income redistribution’

The United States Federal Reserve Bank issued a report in September 2017 showing that the top 1 percent of US income earners now own almost twice as much wealth as the bottom 90 percent of Americans. Notice the corporate media did not cover this report. They did not want us to know this stuff.

Anyway, wealth is defined as assets, such as stocks, bonds, futures options, houses, cars, clothes, trinkets and such.

The graph above is straight from the Federal Reserve Bulletin. Notice the bottom 90 percent have seen their wealth drop from nearly 38 percent of the total wealth in 1989 to 23 percent today, a 40 percent drop. Meanwhile, the 1 percent has seen their wealth grow from just under 30 percent in 1989 to 38.6 percent today. The 1 percent also own more wealth than those people among the 90 to 99 percent, but just barely.

The reason the 1 percent has gained so much wealth while the 90 percent has lost it is that the rich are stealing it from everybody else via their corruption of both major political parties, and such corrupt politicians as Donald Trump, Mitch McConnell, Orrin Hatch, Paul Ryan, and Ron Wyden.

In the same report, Federal Reserve researchers discovered the rich stole a record-high 23.8% of the overall US created income in 2016 (See graph below), up from 8 percent in 1980. However, the current figure appears to be understated. At least one report shows the rich are stealing 37+ percent of the total income produced in the United States. The Fed’s report showed the bottom 90% of families now make less than half of the country’s income. That figure slipped to 49.7% in 2016, down by more than 20% since 1992 (It is likely the drop is greater according to another study).

The reason why the billionaires are getting wealthier and the rest of us are becoming poorer is because of such things as trade agreements via political corruption, privatization scams, tax cuts for the rich, unrestricted campaign finance donations, mandatory testing of public school students K-12, student loans, Federal Reserve and US government rescue of mortgage-backed bondholders by the tens of trillions of dollars (See The $26 Trillion Dollar Bailout to Save the 1 Percent, a totally corrupt corporate wing of the US Supreme Court (John Roberts, Clarence Thomas, Samuel Alito, Neil Gorsuch, and Anthony Kennedy),  etc…. Corruption in US politics have not been this bad since the Gilded Age, and this is how the rich are getting richer by stealing from the rest of us.

Millions of US jobs have been exported since 1992, thanks to trade treaties negotiated to ensure US corporations can export jobs to low wage nations, as well as create jobs in these poverty-wage nations rather than here. The difference between the old higher US wages and the new lower extreme poverty wages in Mexico (where the minimum wage is $4.70 a day), China, Bangladesh, Vietnam and elsewhere goes straight into the already fat wallets of the well-to-do parasites of the millionaire and billionaire classes.

The job losers (the producers) might get unemployment insurance if they are lucky. The rich take their stolen loot and purchase wealth, such as stocks and bonds. The job losers often have to sell their assets to cover their expenses as they search for new jobs that typically pay less than what they once earned.

This is a nice income and wealth redistribution scam that every Democratic and Republican senator and member of the House of Representatives know very well. Every president since and including Ronald Reagan and Barack Obama have known this scam.

The billionaires continued their war against the 99 percent when the US Senate passed their tax cut for the rich and their corporations. And so the war continues against the 99.5 percent. This is class warfare at its most one-sided.

You can find the report from the Federal Reserve at https://www.federalreserve.gov/publications/files/scf17.pdf. The graphs are located on pages 11 and 12 if I remember correctly.

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You only need to look at the Bush tax cuts of almost 15 years ago to recognize how tax cuts for the rich destroy jobs and redistribute income from the 99 to the 1 percent in the process. George W Bush was the first president since Herbert Hoover to experience negative job growth during his presidency. Now Trump will be the second president since Hoover to experience negative job growth. Here’s how the scam works.

The tax cuts for corporations will increase their after-tax profits. This will be handed out to the rich in the form of higher stock prices (capital gains) and dividend payments.

Meanwhile, the tax-cuts for the rich will deliver them more after-tax income with which to purchase more speculative investments. Both corporations and the individual wealthy will then inflate the current stock market bubble by purchasing more stocks, futures options, and other things of those natures. (A futures market is an auction market in which participants buy and sell commodity and futures contracts for delivery on a specified future date)

Naturally, this will bid up the price we pay for commodities, such as food, natural gas and oil. The difference between the current prices and the new higher (inflated via tax cuts for the rich) prices we will pay means that more of our income will be redistributed from us to the 1 percent.

In other words, we will be made to pay more to the rich for the food we eat, the natural gas we use to heat our homes, and the gasoline we need to power our cars, as well as other things, and that extra money we will be forced to pay will go straight into the pockets of the billionaires, people like Warren Buffett, the Koch Brothers, and Donald Trump.

The stock market bubble, perhaps the biggest in US history, will now continue to grow as both corporations and the individual wealthy have more money to bid stock prices up. The stock market bears a remarkable resemblance to a Ponzi scheme. A Ponzi scheme is a form of fraud in which belief in the success of a nonexistent enterprise (or artificially high stock prices) is fostered by the payment of quick returns to the first investors from money invested by later investors. In this case, the rich will be paid more and more for so long as the bubble continues to inflate, and for so long as it takes for the bubble to fizzle out. Corporate management will feel the pressure to export more and more US jobs in order to pay what is necessary to prop up their stock prices.

In other words, the tax cuts will produce greater pressure on corporate managements to export more US jobs to low age nations whenever possible. The difference between the old higher US wages and the new lower overseas wages will go straight into the pockets of the superwealthy. The rich will get all the increasing returns on investment from us, the stakeholders, rather than later investors. In that way, along with one other way which I shall not go into now, the stock market closely resembles a Ponzi scheme.

Trump’s disastrous tax cuts will cause a one trillion dollar increase in the federal deficit over the next ten years. Naturally, in order to reduce the deficit, Republicans will demand reductions of federal expenditures on education, road maintenance, social security payments to the elderly and disabled, Medicare, Medicaid, Welfare, food stamps and other programs that benefit the middle class and the poor, because of the deficit they have created with their tax cuts for the rich. In this way, the billionaires will become richer at the expense of everybody else, thanks to the unnecessary tax cuts.

Meanwhile, quite naturally, Republicans will insist on increased federal military expenditures and expanded deportations of undocumented immigrants because these programs are highly profitable to their base, which is the billionaires who control the party, and not the grassroots. The US currently spends more on its military than the next 26 nations combined, 25 of who are US allies. Talk about overkill or unnecessary.

The tax cuts are unnecessary inasmuch as the 1 percent are stealing a record amount of the total national income, going from 8 percent in 1980 to 37+ percent nowadays. Three people, (Jeff Bezos, Warren Buffett, and Bill Gates now own wealth (assets) than the bottom 50 percent of the US population. The top 1 percent now own more wealth than the bottom 90 percent. In addition, corporate profits are at record levels. So neither corporations or the rich need the money except as a way to steal more money from the rest of us, and the money from their theft will keep those stock markets, futures market, and other markets boiling upward until the bubbles pop. And that will produce a disaster for Trump, the Republicans, and us.

Every Republican who voted yes on the bill knows everything that I have written above. Yet, they still voted yes. This shows that the billionaires are their real constituents and not the grassroots. They all know the bill was passed on a series of lies.

Read more: Futures Market https://www.investopedia.com/terms/f/futuresmarket.asp#ixzz507u73Y1m The d
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Trump’s tax scam, as you can see from the video above, is a big tax giveaway to the rich via corporations. When corporations receive tax breaks, this raises their after-tax profits, which is then passed on almost exclusively to the rich via higher dividends and surging stock prices.

We already have an ultra-dangerous stock market bubble about to implode, and Trump’s tax plan will only make it bigger, but it will also make the coming recession worse by a wide margin. It is likely Trump’s tax plan is designed to do precisely this.

This means the tax plan has been written to create greater income and wealth inequalities, which are already at dangerous levels not seen before in US history. US corporate profits have been at record levels for years, gaining in size quarter after quarter.

Is anybody corrupt, stupid or insane enough to believe that corporations and the rich need more money? Trump and the Republican Party are most likely all three of the above, or is it something else?

The corporate tax cuts given by the Trump plan will keep that bubble expanding until it pops. That is the only logical explanation for the tax plan, which is an extremely dangerous idea in itself.

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Wealth inequality has grown since the Great Recession, according to a new report by the Pew Research Center. This inequality is at a level never seen before in the history of the United States, and it has been fueled by unprecedented income redistribution from the 99 to the 1 percent. Wealth and income inequalities have been created by a level of US political corruption not seen since the Gilded Age; and led by such political hacks as Wall Street Senator Ron Wyden and Wall Street Congressman Paul Ryan.

It is only natural that wealth for the rich has grown since they have stolen via their political hacks 99 percent of all income growth from 2009 to 2014 and the vast majority of income growth since then. However, not willing to anger their corporate donors, the higher-ups at Pew are unwilling to disclose why the rich have acquired more wealth while the rest of us have lagged.

As the next recession unfolds, and it is unfolding, it is likely to be much worse in many ways than the Great Recession simply because the demand for goods and services on the part of the 99 percent has to a large degree been redistributed to the 1 percent since the last recession.

For more information see Federal Reserve’s Survey of Consumer Finances

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How corrupt and sick is an economic and political system designed to churn out billionaires at the expense of everybody else? The top three richest Americans (Jeff Bezos, Warren Buffett, Bill Gates) own more wealth than the bottom 50 percent of Americans. Is this what an economy is for?

A report from the Institute for Policy Studies has come out with a study on wealth inequality in the United States, which is a function of redistributing income from those who work for a living to the unproductive and idle ultra-rich.

The ultra-rich control both major political parties. So naturally, politicians enact trade policies and legislation that redistribute income from the 99 to the 1 percent. Republicans, such as the Bush clan, and Democrats such as the Clinton clan, as well as politicians such as Wall Street’s Senator Ron Wyden, and Congressman Paul Ryan have been instrumental in creating financial inequality. Quite naturally, President Trump wants to make income and wealth inequality worse through his proposed tax cuts for the rich. The repercussions of this inequality will likely be enormous. The last time such inequality occurred resulted in the Great Depression.

Key Findings from the study include:

* The three wealthiest people in the United States — Bill Gates, Jeff Bezos, and Warren Buffett — now own more wealth than the entire bottom half of the American population combined, a total of 160 million people or 63 million households.
* America’s top 25 billionaires — a group the size of a major league baseball team’s active roster — together hold $1 trillion in wealth. These 25 have as much wealth as 56 percent of the population, a total 178 million people or 70 million households.
* The billionaires who make up the full Forbes 400 list now own more wealth than the bottom 64 percent of the U.S. population, an estimated 80 million households or 204 million people — more people than the populations of Canada and Mexico combined.
* The median American family has a net worth of $80,000, excluding the family car. The Forbes 400 own more wealth than 33 million of these typical American families.
* One in five U.S households, over 19 percent, have zero or negative net worth. “Underwater households” make up an even higher share of households of color. Over 30 percent of black households and 27 percent of Latino households have zero or negative net worth to fall back on.

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President Donald Trump has proposed tax cuts for the rich and corporations, which is another way of saying Trump wants tax cuts for the rich and then more tax cuts for the rich. In other words, the person who will most likely benefit from the Donald Trump tax cuts is billionaire Donald Trump. The 99 percent will get virtually nothing. In other words, Trump’s tax plan is designed to create greater income and wealth inequality in a nation that already has the most income and wealth inequality among the industrialized nations.

You will note in the video above, while they make some good points about Trump’s tax cuts for the rich, the folks at MSNBC fail to mention growing income and wealth inequality because the Wall Street controlled Democratic leadership doesn’t want its station MSNBC to mention it any more than the billionaires who control the Republican Party want their news outlets to mention it. Currently, the rich steal anywhere from 24 to 38 percent of all income produced in the United States, compared to 8 percent in 1980. In addition, the richest 10 percent of Americans own more wealth than the bottom 90 percent, a historic and still growing record.

As corporations get tax cuts, much of those tax savings will go to the rich via higher corporate profits, rising dividends, and surging stock prices. The rest of us will suffer the consequences. In addition, of course, corporations will have more money to invest, supposedly to create jobs, as if giving corporations tax cuts will magically increase consumer demand. That’s not likely. So what will they invest in?

Historically, US corporations buy other corporations, especially rivals, when they receive tax cuts or higher profits. This, of course, creates redundancies in a variety of job areas, such as accounting and computer technicians. When mergers occur, employees are the first thing to go in order to eliminate those redundancies. Of course, to help pay for these mergers, income will be redistributed from those who work for a living to the idle rich as US jobs are exported to low-wage nations and the difference between the higher paying US jobs and the new lower wage jobs in China, India and elsewhere will fuel corporate profits, and push up dividends and share prices. This fuels the bank portfolios of the rich, and this obviously creates greater income inequality. That’s what those free trade treaties have been negotiated to do, and Democrats, like Wall Street Senator Ron Wyden, are not stupid little boys and girls who are ignorant of this fact.

This is one of the reasons why there is not a shred of evidence that supply-side economics, otherwise known as tax cuts for the rich, has ever created a single job, but there is plenty of evidence tax cuts for the rich and corporations have destroyed US jobs. Under President George W. Bush, tax cuts were enacted for the rich, making certain that the growth in jobs and real wages were negative, the only time in US history that has occurred under a single president since Republican Herbert Hoover.

Naturally, there are other things the Republicans are refusing to mention.

Gary Markstein / Creators Syndicate

There will be an increased federal deficit of $2.5 trillion, which is typical under irresponsible Republican administrations and Congress, just like the Reagan years, and the other twelve years under the Bush presidents. Naturally, cutbacks in federal spending will be proposed.

Republicans and some Democrats will insist the US is not spending a sufficient number of dollars on its military, so that will not be subject to reductions. The US spends more on the military than the next 25 nations combined, 24 of whom are US allies, but clearly, that’s insufficient because US military spending is quite profitable. However, social security, Medicare, Medicaid, and other less profitable programs that help the politically powerless will be on the table for cuts if Trump’s tax cuts for the rich sails through Congress.

The rich, of course, have stolen just about all real income and wealth increases over the last thirty-five years, thanks to their financial abilities to corrupt both major political parties and the federal government in the process. Naturally, their dirty money has also corrupted most state and city governments. So, obviously, the financial and political deck is completely stacked against the 99 percent.

Luckily, the Democrats in the US Senate will object to this irresponsible behavior because the billionaires of Wall Street who control the party will object to it. That’s the only reason why Democratic senators like Ron Wyden will likely oppose the legislation. Even some Republicans may oppose Trump’s tax plan because it is completely against the national interest, that is if one assumes the citizens of the United States who make up 99 percent of the population are a part of that national interest.

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Citizens of the United States spend more per capita for healthcare than another high wage nation. This suggests the US healthcare system is mighty inefficient compared to other systems, both in terms of price and in services provided. Vermont Senator Bernie Sanders introduced a bill in the US Senate on

Sanders introduced a bill in the US Senate on Wednesday September 13, 2017 that would provide “cost” and “services provided” efficient “Medicare for All.” 57 percent of Americans support Medicare for All, according to Kaiser Health News. Fifteen Democratic Party legislators support the bill, which is up from 1 (Sanders) a few years ago.

Fifteen Democratic Party legislators support the bill, which is up from 1 (Sanders) a few years ago. “Medicare for All,” but that’s more of a handy slogan than reality, as this plan would greatly expand Medicare and overhaul it — for example, it would greatly expand the type of coverage offered and also eliminate deductibles.

“Medicare for All” would greatly expand Medicare and overhaul it.  For example, it would greatly expand the type of coverage offered and also eliminate deductibles, copays and premiums. Private insurance companies are also currently a part of the Medicare system. That wouldn’t be the case under Sanders’ plan.”

Under the current US system, premiums, copays, and deductables have constantly increased for decades, long before Obamacare came into being. Medical services have been cut back, even as costs (and profits) have risen. Much of this cost increase (if not all of it) is so publicly traded limited liability health care corporations can increase profits, which tend to push up share prices and dividends. In effect, health care provided by publicly traded corporations is really an income redistribution scam perpetrated on the 99 percent by shareholders of the 1 percent. Such corporation distort the market through collusions.

Sanders plan would be phased in over four years and would cover more things than Medicare currently does. His plan would cover dental and vision care, for example, which are for the most part not covered by Medicare.

So how does Sanders propose to pay for this system that covers all Americans? First of all, it would reduce employer and self-employed healthcare costs by eliminating the need for businesses and self employed people to purchase health care for themselves and their employees. According to PBS, “Sanders proposed a 7.5 percent payroll tax on employers, a 4 percent individual income tax and an array of taxes on wealthier Americans, as well as corporations. In addition, Sanders’ plan says the end os f big health insurance-related tax expenditures, like employers’ ability to deduct insurance premiums, would save trillions of dollars.”

The cost would, obviously, be less expensive and more efficient than the profit motived health care system we now have in the United States.

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