Jonathan Weiler: America's Staggering Inequality and Our Strong Preference for a Swedish Alternative
Of course, many think inequality is irrelevant, as long as a rising tide lifts all boats. But while the wealthiest Americans live ever more opulent lifestyles, ordinary Americans, especially at the sixtieth percentile and below are running in place, if not falling further behind. For one thing, the typical household puts in longer work hours now than was true in 1979, placing added strains on many American families. Furthermore, in the past three years the general picture of distribution has likely worsened, with record levels of long-term unemployment as well as draconian cuts to basic services like health care and education at the state and local level, which have disproportionately affected people lower down the income ladder.
So, the relatively weak gains for the majority of Americans in the past thirty years have been precarious, subject to a swift and un-nerving reversal of fortune, while those at the top continue to enjoy record incomes and wealth.
Marked for emphasis on the truth!
Do You Think It Can't Happen Here?
"As Yasser El-Shimy, former diplomatic attaché at the Egyptian Ministry of Foreign Affairs, wrote in Foreign Policy, 'income inequality has reached levels not before seen in Egypt’s modern history.'
"But Egypt still bests quite a few countries when it comes to income inequality, including the United States:
"According to the CIA World Fact Book, the U.S. is ranked as the
42nd most unequal country in the world, with a Gini Coefficient of 45.
"In contrast:
"– Tunisia is ranked the 62nd most unequal country, with a Gini Coefficient of 40.
"– Yemen is ranked 76th most unequal, with a Gini Coefficient of 37.7.
"– And Egypt is ranked as the 90th most unequal country, with a Gini Coefficient of around 34.4.
"
The Gini coefficient is used to measure inequality: the lower a countryÂ’s score, the more equal it is.
"
Obviously, there are many things about the U.S. economy that make it far preferable to that in Egypt, including lower poverty rates, higher incomes, significantly better infrastructure, and
a much higher standard of living overall.
"
But income inequality in the U.S. is the worst it has been since the 1920′s, which is a real problem.
"Currently, the top one percent of households make nearly 25 percent of the total income in the country, after they made less than 10 percent in the 1970′s.
"Between 1980 and 2005, '
more than 80 percent of total increase in Americans’ income went to the top 1 percent.'”
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