Is this what class warfare would look like?

income

In 2010, total national income increased by some $288 billion. As economist Emmanuel Saez noted last month, that amounted to a growth in average real income per family of 2.3 percent.

Not bad, right? Welllllll…..

Remember that joke about Bill Gates walking into a bar and raising the average net worth of bar patrons to $6 billion? That’s what’s happening here, because as Saez also notes:

“Top 1% incomes grew by 11.6% while bottom 99% incomes grew only by 0.2%. Hence, the top 1% captured 93% of the income gains in the first year of recovery. Such an uneven recovery can help explain the recent public demonstrations against inequality. It is likely that this uneven recovery has continued in 2011 as the stock market has continued to recover. National Accounts statistics show that corporate profits and dividends distributed have grown strongly in 2011 while wage and salary accruals have only grown only modestly. Unemployment and non-employment have remained high in 2011.”

Again, 93 percent of income growth went to 1 percent of the population; 99 percent of the population split the remaining 7 percent. I do not believe that over the long haul such a maldistribution of wealth can sustain a country with the values, traditions and economic structure of the United States.

Do you?

– Jay Bookman

446 comments Add your comment

JKL2

April 16th, 2012
11:10 pm

bruno- His B & B was a hopeful message that America is great. Obama’s message is that we suck.

Well said. Now if we could just get all the Demwits on here to look past the color of his skin…

Bruno

April 16th, 2012
11:10 pm

FStephenMasek

April 16th, 2012
11:11 pm

Soothsayer – Those who loose jobs are at fault if they sit and do nothing. Many people say that getting fired/laid off was one of the best things which ever happened to them. I’m certainly one. It happened more than once, but the last time I started my own company (on the proverbial shoe string)and have never looked back. All of the big government socialism, facsism, and communism hurts those at the bottom the most, yet many of them keep voting for it!

What have people who earn, and the work is earn, done wrong to deserve the punishment of higehr taxes? Studied too hard? Worked too hard? Worked too smart? Saved too much? Invested to much? Stayed away from drugs and such too much?

Instead of class warfare, we all need to unite against our common enemy, big government which destroys opportunities and drags down our entire economy. We need to be against corporate welfare as much as we are against any other welfare.

William Pierce

April 16th, 2012
11:16 pm

Oblunder LOVES class warfare! The top 10% ALREADY pay 50% of the taxes and 50% pay NO TAXES at all and get a check back! Obongo’s Secretary paid a HIGHER rate than he did! So much for the “Buffet rule!” What a blind shill you are for the socialist in theif.

td

April 16th, 2012
11:27 pm

“If you look at Piketty’s data showing the share of income received by the top 1% since the 1970s, you will see sudden upward spikes after major tax rate cuts. That suggests that a portion of the income gains at the high end are not based on structural factors, such as globalisation as Piketty suggests, but are simply expected responses to changes in tax law. In a 2009 paper, Emmanuel Saez and co-authors confirmed that, noting:

“It is striking to note that the share received by the top 1% of income recipients started to increase precisely after 1981—when marginal tax rates started to decline. The timing of the jump in the share of top incomes from 1986 to 1988 corresponds exactly to the sharp drop in the weighted average marginal tax rates from 45% to 29% after the Tax Reform Act of 1986. These correspondences in timing…provide very compelling evidence that high incomes are indeed quite responsive to marginal tax rates.” 2

Piketty’s Political Arguments

Mr. Piketty argues that if we don’t impose very high taxes on the rich “there is a serious risk that citizens will ask for much more damaging, anti-market policies.” The Economist debate proposition similarly suggests that we need to buy “social peace” by imposing high tax rates at the top. I think the reality is exactly the opposite. The more arbitrary and punitive government intervention becomes, the more that politicians and the public will get used to it, and the more likely that further punitive measures will be imposed. The government that persecutes certain people with 80% tax rates will find it much easier to expropriate the property of other groups it deems to be a menace. The more that politicians try to centrally plan the end goals for society, the less they will focus on making the general rules of government equal and fair.”

http://www.cato.org/publications/commentary/resenting-rich-rebutting-thomas-piketty

Thulsa Doom

April 16th, 2012
11:35 pm

td,

That is some damn excellent research. I stated earlier that I thought these were somewhat baloney stats but wasn’t sure how. Any idiot who stops and thinks about it for a minute knows that as a middle class person we have far more in the way of material wealth and gains then we did 30 years ago. That’s just common sense. Trying to figure out they are either manipulating data or assumptions or leaving out particular variables to make their point is the tricky part.

And last to add to the obvious point about incomes what a lot of people don’t realize is that wages may not have increased substantially but overall benefits have for the average worker in the way of various perqs and allowances- more vacation days, holidays, sick days, personal days, health care benefits, life insurance benefits, cell phone allowances, car allowances, expense accounts, all sorts of things.

Great job td.

Bruno

April 16th, 2012
11:55 pm

Reagan’s greatest moment:

http://www.youtube.com/watch?v=gEjXjfxoNXM

“And I want to say something to the schoolchildren of America who were watching the live coverage of the shuttle’s take-off. I know it’s hard to understand, but sometimes painful things like this happen. It’s all part of the process of exploration and discovery. It’s all part of taking a chance and expanding man’s horizons. The future doesn’t belong to the fainthearted; it belongs to the brave. The Challenger crew was pulling us into the future, and we’ll continue to follow them.”

zeke

April 17th, 2012
1:53 am

YES IT IS CLASS WARFARE! When you align one group against another based only on their incomes, THAT IS CLASS WARFARE! Democrats and liberals use such moronic policies to further their absurd redistribution agenda!

Oblama

April 17th, 2012
2:14 am

Jay again with a topic that socialists love. It appears that you will be happy once everyone is equally poor and miserable and there is no incentive to succeed. You may get your wish sooner than you expect due this crushing Fed debt and the first ever downgrades of U. S. bonds.

MiltonMan

April 17th, 2012
7:07 am

The rest of us – the “poor” 99% of US “citizens” are 100% better off than 99% of the rest of the world’s population.

Don't Forget

April 17th, 2012
7:15 am

Bottom line, supply side doesn’t work, especially when you have a demand side problem. The R’s may have changed faces but they haven’t changed policies. In fact, they are doubling down on the failures of the early 2000’s.

stands for decibels

April 17th, 2012
7:21 am

mornin’.

I understand that this year, a majority of Pulitzer judges were unable to award a prize to fiction writing or to opinion writing.

Which makes me sad for two reasons:

1) Jay was denied (I assume someone submits his work to the committee each year); and

2) I never bothered to submit Redneck Convert’s work, something I’ve resolved to do in the past but never got it out of my Round Tuit file.

Rightwing Troll

April 17th, 2012
7:23 am

Is it just me, or are the wingnut teatards especially angry today?

Misty Fyed

April 17th, 2012
7:27 am

Once again a graph of incomplete information. If this “rich 1 percent” is getting richer because of unfair advantages; by all means, the playing field should be leveled. If it’s only because more money leads to more money, or because of good decisions..well….good for them. All we get from Jay is “somebody makes more money than I do. It’s not “fair”. No information on why; just the what. Typical liberal argument.

stands for decibels

April 17th, 2012
7:29 am

Also too–I’m not sure what’s funnier, Redneck’s actual work or the (faux-?) cluelessness of his targets, i.e., silly online conservatives.

see also:

Yep Doom, lotta Mormon underware “jokes” gonna come outta Redneck.

Jay and his lib ilk choir will be slapping their knees laughing at his cleverness.

I’d like to think that bit ^^ is actually a parody, but I really don’t think these guys are smart enough to pull that off, so I’ll have to take it at face value–they really do think that whoever is doing RC’s schtick actually has it in for Mormons.

Just like, oh, if I imagine someone muttering under their breath about black folks as “ni*CLANG!*s”, therefore I must *totally* hate me some black folks.

Misty Fyed

April 17th, 2012
7:30 am

“wingnut teatards”

A description that screams “I may not be the best at debate but rest assured that when you stump me…I’ll call you a name.”

stands for decibels

April 17th, 2012
7:34 am

If this “rich 1 percent” is getting richer because of unfair advantages

If?

Been asleep that last thirty years? Have you not noticed that virtually every piece of legislation passed has been filtered through whatever requirements our aristocracy have slapped upon it?

The game’s been rigged for so long, it ought to be pretty clear by now that moneyed interests will only continue making the rules work for them and against the vast majority of Americans… well, unless you’re brainwashed by their media outlets.

stands for decibels

April 17th, 2012
7:35 am

I’ll call you a name

yebbut you shoulda heard what he *wanted* to call you.

Mick

April 17th, 2012
7:41 am

Another day, another defense of the wealthy class by their water carrying wannabe’s….see the fancy club on the hill? Thanks for your support but you can’t come in…keep carrying for us because there’s always a chance that you might win the lottery…

kayaker 71

April 17th, 2012
7:47 am

Even if Bozo and his clan are successful at demonizing the 1% and taking what they make by giving to the hangers on to be faaaaaaaaaaair, the majority of them would continue to lay around on their lazy asses and expect more. Go to work and try to excel? Hell no….. it’s not in their vocabulary. Just give me that government check.

Normal, Plain and Simple

April 17th, 2012
7:49 am

Mick @ 0741.

Well said. I’m surprised that they just don’t get it. There are two kinds of Republicans. The rich and the duped.

Barking Toad

April 17th, 2012
7:50 am

Jay should be in favor of the fair tax

Don't Forget

April 17th, 2012
7:54 am

Fair tax ? Beware flowery sounding rhetoric. Who pays more and who pays less. Let the people decide what’s fair.

Granny Godzilla - Union Thugette

April 17th, 2012
7:56 am

This is a HUGE deal with the electorate…

The GOP ignores it a great risk.

kayaker 71

April 17th, 2012
7:56 am

Mick,

The funny thing about penis envy liberals like you is pretty simple. If someone dropped a few million in your lap, and someone else tried to take it away from you, you would yell just as loud as many who have worked for their money. It’s funny how a few hundred K in the bank can make you pretty possessive of it, especially if there’s a little sweat on it. So don’t give me this liberal bull s*it about the evil rich….. it’s nothing but penis envy, my friend and you and all of your liberal friends are just too lazy to put in the effort to make it work.

carlosgvv

April 17th, 2012
7:57 am

Jay, you wonder if this maldistribution of wealth can continue over the long haul? Unfortunately, the answer is yes. Money is the driving engine in politics and both our Parties are bought and paid for by Big Business. A third party filled with honest people who cannot be bought and a thorough reform of our money-driven political process will be needed. There is no evidence this will happen in the foreseeable future.

Cosby

April 17th, 2012
7:58 am

Class warfare..the 1% worked the bottom 52% sucked up taxpayer money and did not. that is the reason your numbers above are skewed…the bottom 52% were not even working but living the good life thanks to the Federal Government!!!

Don't Forget

April 17th, 2012
8:00 am

jeez kayaker, is it possible for you to “attempt” to make a point without a personal insult?

kayaker 71

April 17th, 2012
8:02 am

Don’t Forget, 8:00

This whole blog if full of personal insults. Haven’t you noticed?

Latino Voter

April 17th, 2012
8:03 am

Keep over taxing the wealthy and giving to the poor and soon our country will be just like Greece or Portugal. Also, for those who think that America is unfair you should plan a trip to other countries where 1% live in Mansions and 50% live in the mud.

Don't Forget

April 17th, 2012
8:06 am

kayaker – that’s your excuse? My folks taught me very early on that that type of rationalization wasn’t gonna cut it.

Mick

April 17th, 2012
8:07 am

yaker

You don’t know me!!!! Otherwise you wouldn’t make such a foolish rant. I have never called the rich evil, you did. I have worked hard all my life and still do and would prefer to die with my boots on. We just buried a good friend who was a member of the 1%, a man who had every material this life could afford him. In the end, it wasn’t enough and he took nothing with him. The rich in this country can pay more because they damn well can afford to!!! People like you just have to be there for them, but you will never be of them, so roll up your sleeves and keep humping that water and when you think you’re done say: Thank you sir, may I have another….

Granny Godzilla - Union Thugette

April 17th, 2012
8:08 am

kayaker 71

Your familiarity with penis envy makes us wonder….

And chuckle.

Cosby

52% unemployed?

Barking Toad

Fair Tax?

http://www.bing.com/images/search?q=mixed+nuts&view=detail&id=73ED1299CE2D4C37EF43CE03A6ED2E77AD9ADC6C&first=0&FORM=IDFRIR

Don't Forget

April 17th, 2012
8:14 am

One other thing kayaker, the rich are no better and no worse than the middle or the poor. There are good and bad throughout the economy. Or is your contention that the market primarily recognizes virtue?

Jm

April 17th, 2012
8:22 am

Buffett rule stalled in senate

Oh well

straitroad

April 17th, 2012
8:30 am

Jay,

How much do you earn compared to the CEO of Cox Communications? Is there a similar disparity there? Certainly you should be on equal footing as you have just as much risk in the enterprise and certainly more responsibility.

commoncents

April 17th, 2012
8:47 am

Would the 99% have those gains (as small as they are) without the 1% getting theirs?

kayaker 71

April 17th, 2012
8:51 am

granny, 8:08,

Yeah, I’m pretty familiar with them. I seem to look at one most every day. That same familiarity is not limited to just me, however, as I am sure that you must be aware of. It sometimes includes another in my household. who seems to graciously contend that it hasn’t changed much over the years but she is just being kind. The only envy of this kind that I have is that it is no longer 35yrs old.

barking frog

April 17th, 2012
8:53 am

MiltonMan

April 17th, 2012
8:57 am

“There’s also an “exit tax” for the very rich who choose to leave. During the last 25 years, a number of millionaires and billionaires have renounced their citizenship. Among them: Ted Arison, the late founder of Carnival Cruises, and Michael Dingman, a former Ford Motor Co. director.”

Also, just ask the state of New York how its “millionaire tax” is working out – you might have to cross state lines to find them.

Grasshopper

April 17th, 2012
9:17 am

“I do not believe that over the long haul such a maldistribution of wealth can sustain a country with the values, traditions and economic structure of the United States.”

That’s because you are a communist Jay.

real john

April 17th, 2012
9:59 am

Maybe we should ask Obama’s friends attending his $35,000 per person fundraising dinners…

jms

April 17th, 2012
10:44 am

“Fair tax ? Beware flowery sounding rhetoric. Who pays more and who pays less. Let the people decide what’s fair.”

I don’t think that’s a good idea. I think we are seeing that most people think it fair for someone else to foot the bill.

TiredOfIt

April 17th, 2012
11:34 am

” During the last 25 years, a number of millionaires and billionaires have renounced their citizenship.” Sounds like true Americans to me? There will always be more to fill their slots. That’s the great thing about this country.

Jonmaguire22

April 17th, 2012
12:01 pm

Mr. Bookman – it almost sounds like you are saying that the rich people are taking all the money out of companies instead of giving higher wages or investments.

As part of a small business – I can say that yes, the owners of business have the ability to take the money out, BUT if they do not invest in the company the company will die. Without profit there is no investment in companies – either in machinery, R&D or people. You must have capital to make investments – we must have high wage earners who want to make more money – we need them to want to risk their money to make more money – otherwise you and I both will be out of our jobs.

Class Warfare My Ass | Blithering Idiot

April 22nd, 2012
1:46 pm

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