Cross posted from The Stars Hollow Gazette
Nobel Prize laureate Joseph Stiglitz has consistently pointed out that the US is on the wrong track for economic recovery and that the continued support for the money pit of Iraq and the shifting the countries wealth to the 2% elite will be the downfall of economics growth, He recently wrote an excellent article in Vanity Fair, Of the 1%, by the 1%, for the 1%, pointing out that even the wealthy will come to regret this path.
t’s no use pretending that what has obviously happened has not in fact happened. The upper 1 percent of Americans are now taking in nearly a quarter of the nation’s income every year. In terms of wealth rather than income, the top 1 percent control 40 percent. Their lot in life has improved considerably. Twenty-five years ago, the corresponding figures were 12 percent and 33 percent. One response might be to celebrate the ingenuity and drive that brought good fortune to these people, and to contend that a rising tide lifts all boats. That response would be misguided. While the top 1 percent have seen their incomes rise 18 percent over the past decade, those in the middle have actually seen their incomes fall. For men with only high-school degrees, the decline has been precipitous-12 percent in the last quarter-century alone. All the growth in recent decades-and more-has gone to those at the top. In terms of income equality, America lags behind any country in the old, ossified Europe that President George W. Bush used to deride. Among our closest counterparts are Russia with its oligarchs and Iran. While many of the old centers of inequality in Latin America, such as Brazil, have been striving in recent years, rather successfully, to improve the plight of the poor and reduce gaps in income, America has allowed inequality to grow.
This is well worth the time to read the entire piece and save it as a reference as this country sinks further into the morass and becomes a “Banana Republic”as the Tea Party Republicans try to drag this country back to the 19th century by repealing laws that protect children and workers.
Stiglitz also appeared on Democracy, Now! with Amy Goodman and Juan Gonzalez to discuss his article and the current US “budget crisis” that has been fabricated by the right wing, Obama and the ever beholding MSM:
Nobel Economist Joseph Stiglitz: Assault on Social Spending, Pro-Rich Tax Cuts Turning U.S. into Nation “Of the 1 Percent, by the 1 Percent, for the 1 Percent”
This week Republicans unveiled a budget proposal for 2012 that cuts more than $5.8 trillion in government spending over the next decade. The plan calls for sweeping changes to Medicaid and Medicare, while reducing the top corporate and individual tax rates to 25 percent. We speak to Nobel Prize-winning economist Joseph Stiglitz, who addresses the growing class divide taking place in the United States and inequality in a new Vanity Fair article titled “Of the 1, by the 1, for the 1%.” Stiglitz is a professor at Columbia University and author of numerous books, most recently Freefall: America, Free Markets, and the Sinking of the World Economy. “It’s not just that the people at the top are getting richer,” Stiglitz says. “Actually, they’re gaining, and everybody else is decreasing… And right now, we are worse than old Europe.” includes rush transcript