Facist Watch
America’s middle class experiences the chasm between the rich and everyone else on a daily basis. As if just trying to heat their homes isn’t enough, along comes the worst economic threat to hit since the oil crises in the 1970s.
A meltdown, the pundits call it, caused by a weak housing market, an overall credit crunch and the cost of US engagement in armed conflicts all over the world, most notably Afghanistan.
So it comes as no surprise that the richest 1% now holds almost 50% of the wealth in the U.S. This percentage is tallied with basic net worth plus all stocks, bonds, cash, and material assets held by America’s rich elite.
How did this happen? Let’s start with the reign of Republican President Ronald Reagan. Remember Reaganomics? That doctrine painted a picture for Americans of ‘trickledown’ economics. By providing tax cuts and other incentives to the already rich, the theory was that the nation’s economy would be stimulated, providing growth and new jobs for the other 99% of us. Well, that didn’t happen and now the proverbial rooster is crowing the blues.
Of course the reality of that philosophy has proven to be a stark reminder – that the rich get richer as the poor get poorer.. When too much wealth is owned by the top echelons of society the middle class slides further into debt and the already poor are worse off than ever. There is no trickledown- that’s a myth. What we have seen and experienced is the fact that middle America can no longer support the dreams and schemes of the filthy rich.
The once comfortable large middle class in America has seen their wealth eroded right over to the power rich. This shift that started in the 1980s has culminated to the position we are in today – in recession and in big trouble. Here is a good example: private household indebtedness since 2000 has soared by 70%. This compares with an overall increase in real disposable personal income of 12%.
The already rich aren’t about to share the wealth. They are not prepared to reduce their expectations of wealth; they are not prepared to take less from Wall Street. The large corporations want their tax breaks to keep their shareholders happy with large healthy dividends. The English language has a word for it – greed. Greed begets greed, so the rich get richer.
The worst case scenario is that the current US recession will likely last for several years to come. Some believe we are headed for a depression much larger and more complex that the Great Depression of the 1930s. At the top, the 1% will be aware of a downturn in the economy because they see the investment statements from their brokers. But will they feel the pinch? Likely not because they have so much money they will continue to live at the high end while the rest of Americans literally struggle to put food on the table.
In pointing out the gross inequities in the wealth market in the U.S., other factors do have to be considered. The price of crude oil from the middle east, volatility in Asian markets and other global factors. But the bottom line is that the American public has been seduced by ‘easy money’ that was made so abundant – by the rich, the banks and Wall Street.
Now the nation is arguing about the bailout for Wall Street. It’s the epitome of the epidemic – bailing out the rich at the expense of everyone else. Where do people think that $700 billion is going to come from? The working class of course.
It seems incredible beyond words to further store up the rich while the nation’s crumbling infrastructure needs desperately to be shored up. It seems incredible that the socioeconomic ills of our country could be made well by a handful of people. Where is Bill Gates, where is Oprah, where is Ross Perot and where are the highly paid athletes and celebrities (Bono), the executives who earn millions in salary and millions more in bonuses? To be fair, they do have charitable foundations and so forth, but let’s face it – it’s tax deductible.
The power of the almighty dollar has taken over this country and greed is the creed. At the end of the day, the richest 1% will soon undermine the largest economy in the world. Greed will eventually bottom out every major economy in the world, causing unimaginable havoc, poverty and needless suffering. It may sound apocalyptic and it will be.
Americans – take back what is owed you and take action before it is too late!
