Who's Gorging and Who's Getting Roasted in the Economic Barbecue? (AlterNet)

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Who's Gorging and Who's Getting Roasted in the Economic Barbecue?

By James M. Cypher, Dollars and Sense. Posted March 26, 2007.



Not since the Gilded Age of the late 19th century has America witnessed such a rapid shift in the distribution of economic wealth as it has in the past 30 years.

Economic inequality has been on the rise in the United States for 30-odd years. Not since the Gilded Age of the late 19th century -- during what Mark Twain referred to as "the Great Barbeque" -- has the country witnessed such a rapid shift in the distribution of economic resources.

Still, most mainstream economists do not pay too much attention to the distribution of income and wealth -- that is, how the value of current production (income) and past accumulated assets (wealth) is divided up among U.S. households. Some economists focus their attention on theory for theory's sake and do not work much with empirical data of any kind. Others who are interested in these on-the-ground data simply assume that each individual or group gets what it deserves from a capitalist economy. In their view, if the share of income going to wage earners goes up, that must mean that wage earners are more productive and thus deserve a larger slice of the nation's total income -- and vice versa if that share goes down.

Heterodox economists, however, frequently look upon the distribution of income and wealth as among the most important shorthand guides to the overall state of a society and its economy. Some are interested in economic justice; others may or may not be, but nonetheless are convinced that changes in income distribution signal underlying societal trends and perhaps important points of political tension. And the general public appears to be paying increasing attention to income and wealth inequality. Consider the strong support voters have given to recent ballot questions raising state minimum wages and the extensive coverage of economic inequality that has suddenly begun to appear in mainstream news outlets like the New York Times, the Los Angeles Times, and the Wall Street Journal, all of which published lengthy article series on the topic in the past few years. Just last month, news outlets around the country spotlighted the extravagant bonuses paid out by investment firm Goldman Sachs, including a $53.4 million bonus to the firm's CEO.
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Today, it does not appear that there are, as yet, any viable forces at work to put the brakes on the current runaway process of rising inequality. Nor does it appear that this era's power elite is ready to accept any new social compact. In a recent report on the "new king of Wall Street" (a co-founder of the hedge fund/private-equity buyout corporation Blackstone Group) that seemed to typify elite perspectives on today's inequality, the New York Times gushed that "a crashing wave of capital is minting new billionaires each year." Naturally, the Times was too discreet to mention is that those same "crashing waves" have flattened the middle class. And their backwash has turned the working class every-which-way while pulling it down, down, down. ........

The complete piece is at: http://www.alternet.org/workplace/49374/