The Wealth Gap: An Existential Threat

American Thinker ^ | 05/15/2024 | Robert A. Taft

[SeekAndFind]

Since 1970 the value of the dollar has steadily declined. The lower 80% of Americans have lost income and purchasing power, largely due to the exodus of manufacturing by global corporations. As a result, the wealth gap between the global rich and the rest has widened.

From 2007-2016 the net worth of the richest Americans increased by 20% while the lower 80% decreased by the same percentage, widening the wealth gap considerably. The Federal Reserve sparked this change using quantitative easing to boost the sagging stock market. The rich could invest in this wealth explosion but the rest could not as much. 

Increasingly wealthy globalists pressured the government and now the top 1% own over half of U.S. wealth while the top quintile owns about 94% of the wealth. The bottom 80% have their wealth tied up in their homes or vehicles and most suffer from chronic debt. 

Not only does the Fed-backed stock market favor the super-rich, but the U.S. tax system does too. The average American pays an effective tax rate of 13% while the very rich pay 18%. But when wealth gains are included, the effective tax rate on the very wealthy averages a mere 4.8%. 

While the wealth gap concentrates ownership in a small group of people so it does to industry. More and more large corporations dominate most sectors at the expense of small businesses. As small companies suffer and are saddled with increasing regulations, larger corporations benefit from monopoly power, less competition, and the ability to set prices artificially high.

The wider the wealth gap goes, the more our social and political fabric will deteriorate. According to the Great Gatsby Curve, increased inequality will result in less upward advancement from one generation to the next.

[DevonD]

“The average American pays an effective tax rate of 13% while the very rich pay 18%. But when wealth gains are included, the effective tax rate on the very wealthy averages a mere 4.8%.”

Why does the American Thinker post this person’s writing. The above nonsense seems like liberal thinking to me. The rich pay more taxes but because of “wealth gains” they are taxed less. Keep you eye out for wealth gains, and 4.8% tax on rich as the new talking points, you will know where that came from.

Yes, in times of bad inflation, the majority get hammered. That is why the Fed and Govt try to avoid high inflation. That among many other reasons is why they lie about inflation, underreporting it by at least 1%. That is a problem Biden’s handlers are having. They believe there own lies about inflation so do not understand why people are complaining about the cost of stuff.

[zeestephen]

Re: "The rich could invest"

Correction...

The rich CHOSE to RISK their excess savings in companies that can, and do, go bankrupt, or fail to grow for decades.

If the Lower 80% of American earners had been allowed to invest their four decades of Social Security contributions in the SP 500, most of them would have been millionaires in retirement.

Instead - Social Security and Medicare are the world's two largest Ponzi Schemes!