Income Gap Is Widening, Data Shows

[Roland99]

Source: New York Times

http://www.nytimes.com/2007/03/29/business/29tax.html?_r=1&oref=slogin

Income inequality grew significantly in 2005, with the top 1 percent of Americans — those with incomes that year of more than $348,000 — receiving their largest share of national income since 1928, analysis of newly released tax data shows.

...

While total reported income in the United States increased almost 9 percent in 2005, the most recent year for which such data is available, average incomes for those in the bottom 90 percent dipped slightly compared with the year before, dropping $172, or 0.6 percent.

The gains went largely to the top 1 percent, whose incomes rose to an average of more than $1.1 million each, an increase of more than $139,000, or about 14 percent.

The new data also shows that the top 300,000 Americans collectively enjoyed almost as much income as the bottom 150 million Americans. Per person, the top group received 440 times as much as the average person in the bottom half earned, nearly doubling the gap from 1980.

Read more: http://www.nytimes.com/2007/03/29/business/29tax.html?_r=1&oref=slogin

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Smashing!!!

[Virginia Dare]

1. Mission accomplished...

this was a major goal for the Bushies, make the rich richer and the poor poorer.

[samplegirl]

2. Pigs at the trough

and it continues. Two minimum wage jobs await most of us.

[Ezlivin]

3. When will we become the "insurgents"?

Income inequality this stark cannot continue indefinitely. The disaffected will strike out at some point.

Good thing that the top 1 percent can afford gated communities and their own private security. They are going to need it.

[Uben]

6. Oh yes it can!

Anyone that is good at math knows why. If the rich do not spend more than they take in, and continue to save at a rate higher than the poor, the gap will ALWAYS continue to widen.

There are only three ways this can be reversed, none of which will happen in the near future


1.The rich are taxed at a much, much higher rate
2.The rich decide to give their fortunes to the poor (like Warren Buffet)
3.The rich are relieved of their monies by force

[Yavin4]

13. There Will Be No Insurgency...

so long as debt is relatively cheap and easily available.

[Broadslidin]

4. Know Wonder, the Desperate 'little people' Play Into the Sub-Prime Con..

Tis good,
the N.Y.T. report refers to the year, 1928.

The article has been printed out and taped to the wall,
next to the World Com stock certificate.

[Roland99]

5. And, remember this little gem, too (Jim Cramer, CNBC, calls avg. investors 'dupes') >>>>>

http://www.marketwatch.com/news/story/jim-cramers-big-mouth-reveals/story.aspx?guid=%7BEFABFEB9%2D4FC7%2D45A8%2DA14A%2D6318372C33E2%7D

Jim Cramer, the boisterous host of CNBC's "Mad Money," recently bragged in an interview about manipulating stock prices when he was a Wall Street trader, proving all too directly -- and stupidly, I might add -- that investment professionals profit off the backs of the naïve investing public.

Cramer is just admitting to a game every one on Wall Street knows: professional money managers use retail investors as pawns in their pursuit of high returns -- ridiculously so.

The question is whether Cramer and every other professional Wall Street investor should be faulted for using all the ammunition with which they are equipped -- market knowledge, sophisticated trading schemes, high technology and public relations -- or whether it's the stupid investors who are duped who should be chastised.

It takes two to trade. And on the other side of every one of Jim Cramer's trades is (or was) someone willing to take the opposite bet from him. These aren't the buy-and-hold investors who have money in 401(k)s we're talking about here. These are active traders who step on to the Wall Street game field and think they can outperform the pros.

[Le Taz Hot]

7. Exactly why I won't invest

in the stock market (when I had a middle class job and could afford it, that it). There are other, more sound investments one can make. Good real estate purchases come to mind.

[Uben]

9. Real estate is good

It has provided a solid 8% return for the last 30 yrs or so.

[Tandalayo_Scheisskopf]

8. All one has to do...

Is look at a real-time feed of trading on one of the market indexes(the S&P mini is a great one), to see how large investors manipulate the psychology of a market to their own benefit.

[Redbear]

10. Hmmm ... 1928 . I remember something happening in 1929

What was that?

[rman]

11. The whole thing collapsed, sparing the rich

because they had build plenty of reserves to survive the meager years in luxury.

Is that what you mean?

[progressoid]

16. Dang, that does sound familiar...

Oooh, I remember. Popeye was created!

Whew, thats a load off of my mind.

[Vanje]

12. party like its 1928! nt

[Roland99]

17. Wonder if we'll get another Dust Bowl, too.

[earth mom]

19. Why not? We've got Global Warming now. California is in a major drought...

probably other states are as well... :yoiks:

[DixieBlue]

14. This is just so incredibly disgusting and disheartening.

I don't know what else to say. Really, speechless here.

[Yavin4]

15. Why There's No Mass Outrage At This Income Disparity

One four letter word, DEBT. As long as the masses can borrow and borrow, there will be no popular uprising against income disparity.

The whole sub prime lending machine was designed to give the masses the illusion that they were on a similar level to the top 10%. Put the masses in a big house with lots of toys all bought on credit, and they won't even know that they're getting poorer, whilst the top 10% get richer.

Then when everything collapses, they will internalize the failure, instead of rising up against the unfair system.

[earth mom]

20. When people have to start paying for everything with cash...

they get the picture real fast at how little they really have. I know this from experience...

[jayfish]

21. Because Folks Are Worried About Losing...

all of the crap they don't really own.

Jay

[WhaTHellsgoingonhere]

18. I wish "households" were included in their analysis. I think we'd see an even starker picture. n/t

[Stockholm]

22. K&R

Perhaps one of the the most important article of the day.