- Apr 12, 2011
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As long as a rising economic tide kept incomes afloat, concerns about inequality rarely surfaced for long.
Only after four years in which income disparities actually narrowed a bit typical of recessions did last year's emergence of Occupy Wall Street make inequality a big political issue.
But, as the movement's "We are the 99%" slogan comprising almost everyone suggests, what really has people upset is the fact that everyone's slice of the pie, on average, has gotten a bit smaller.
The nation has now gone through a five-year stretch in which real per capita disposable income has shrunk, the first time that's happened since the demobilization after World War II.
[snip]
On a per capita basis, real GDP has gone through six years of zero growth, dating back to the third quarter of 2005. And even that dismal performance depended on trillion-dollar deficits to keep the economy and incomes from sinking.
The Transfer Economy
Excluding increased outlays on government social benefits, real per capita personal income, after ups and downs, is almost exactly where it was back in Q1 2001. That reflects sharp job losses in 2008 and 2009 that still have private-sector payrolls mired back at late 1999 levels.
Increased government transfers are due to the inexorable rise of Social Security and Medicare costs...
[snip]
Only after four years in which income disparities actually narrowed a bit typical of recessions did last year's emergence of Occupy Wall Street make inequality a big political issue.
But, as the movement's "We are the 99%" slogan comprising almost everyone suggests, what really has people upset is the fact that everyone's slice of the pie, on average, has gotten a bit smaller.
The nation has now gone through a five-year stretch in which real per capita disposable income has shrunk, the first time that's happened since the demobilization after World War II.
[snip]
On a per capita basis, real GDP has gone through six years of zero growth, dating back to the third quarter of 2005. And even that dismal performance depended on trillion-dollar deficits to keep the economy and incomes from sinking.
The Transfer Economy
Excluding increased outlays on government social benefits, real per capita personal income, after ups and downs, is almost exactly where it was back in Q1 2001. That reflects sharp job losses in 2008 and 2009 that still have private-sector payrolls mired back at late 1999 levels.
Increased government transfers are due to the inexorable rise of Social Security and Medicare costs...
[snip]
Excerpt. read more at Occupy? Inequality Push Misses Real Problem: Per Capita Income Has Fallen Over Five Years - Investors.com
