For 1% of Americans the Economy Rocks!
Paul Krugman in today's New York Times:
I’d like to say that there’s a real dialogue taking place about the state of the U.S. economy, but the discussion leaves a lot to be desired. In general, the conversation sounds like this:Bush supporter: “Why doesn’t President Bush get credit for a great economy? I blame liberal media bias.”
Informed economist: “But it’s not a great economy for most Americans. Many families are actually losing ground, and only a very few affluent people are doing really well.”
Bush supporter: “Why doesn’t President Bush get credit for a great economy? I blame liberal media bias.”
To a large extent, this dialogue of the deaf reflects Upton Sinclair’s principle: it’s difficult to get a man to understand something when his salary depends on his not understanding it. But there’s also an element of genuine incredulity. Many observers, even if they acknowledge the growing concentration of income in the hands of the few, find it hard to believe that this concentration could be proceeding so rapidly as to deny most Americans any gains from economic growth.
Yet newly available data show that that’s exactly what happened in 2004.
(snip)
...the real income of the richest 1 percent of Americans surged by almost 12.5 percent. Meanwhile, the average real income of the bottom 99 percent of the population rose only 1.5 percent. In other words, a relative handful of people received most of the benefits of growth.
(snip)
In short, it’s a great economy if you’re a high-level corporate executive or someone who owns a lot of stock. For most other Americans, economic growth is a spectator sport.
Can anything be done to spread the benefits of a growing economy more widely? Of course. A good start would be to increase the minimum wage, which in real terms is at its lowest level in half a century.
But don’t expect this administration or this Congress to do anything to limit the growing concentration of income. Sometimes I even feel sorry for these people and their apologists, who are prevented from acknowledging that inequality is a problem by both their political philosophy and their dependence on financial support from the wealthy. That leaves them no choice but to keep insisting that ordinary Americans — who have, in fact, been bypassed by economic growth — just don’t understand how well they’re doing.
So basically, the 99% of us who are out of luck will have to:
A.) wait until this Congress gets serious about helping working Americans and stops blocking the Democrats who are fighting tooth-and-nail to raise the minimum wage...
B.) wait until The Bush Adminstration decides to impliment policies that benefit all Americans....
C.) take back Congress in November...
D.) take back the White House in 2008...
E.) C & D
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