My "daddy" was a firefighter with eight children. I got into the restaurant business as a teenager...something that he knew nothing about nor helped me get my first job. I started out as a prep cook in the kitchen and worked my way up to line cook in that restaurant. I put myself through college working five nights a week as a bartender. For some thirty five years I ran some of the larger bars and clubs in the country...once again in a field that my family had ZERO to do with! Would I have liked to have had a rich father who paid my way through school and set me up in a business? Sure...that would have been much easier. Did I whine about my lot in life and demand that someone "owed" me a living wage and a free college education? That never crossed my mind to be honest.
As for Donald Trump's success? He took a relatively modest family fortune and turned it into a business empire and he did it by working hard his entire adult life. Donald Trump's "daddy" didn't make him a billionaire. Donald Trump made himself a billionaire.
Well I predict the deregulations that are coming for guys like Trump will widen the gap between the rich and poor.
I have two privileged nephew's. Should they apologize my brother gives them every advantage he can? No. So I won't begrudge trump
Since the gap between the rich and the poor increased more under Barack Obama than any other President...it's hard to envision anything that Trump could possibly do to widen it more than it's been widened! Trump actually grasps what makes business men invest money and create jobs. It's an anticipation of profit...something that Barry could never quite figure out.
You must not have a good imagination then because it was all the GOP Bush policies that widened that gap. And Trump is going to double down on all that stuff. Lets see what were the things that caused the widened gap???
CEO pay went up while wages for workers stagnated
They raised co pays and deductables for workers which means less take home.
Cuts to social security and medicare
Hiring illegals so the business owner makes more but workers take the hit
Tax breaks to the rich
Corporate tax breaks
Its hard for me to see how the gap isn't going to get bigger.
Barack Obama was in office for two terms, Sealy! That's eight long years! During that time the gap between the rich and the poor got wider than any other President. What's laughable is that you on the left can't admit that happened...so you've decided that you'll blame Obama's failure on George W. Bush despite the fact that Democrats controlled the House, the Senate and the Oval Office when Obama took office and could have done a complete overhaul of the tax system. What did Barack Obama do to address ANY of the problems that you just named? Are you claiming that he was such an impotent President that he powerless to pass any legislation to address those issues? Interesting narrative when he WAS able to pass the Affordable Care Act!
Yes and the ACA did shrink the gap between the rich and poor. Think about it. If the poor didn't have healthcare before, that's another great example of the gap. But Obama gave the poor insurance. That means he shrunk the gap whether you like to admit it or not.
globalization and technological change have made most people less competitive, while making the best educated more competitive.
the increasing concentration of political power in a corporate and financial elite that has been able to influence the rules by which the economy runs.
this transformation has amounted to a pre-distribution upward.
Intellectual property rights—patents, trademarks and copyrights—have been enlarged and extended, for example, creating windfalls for pharmaceutical companies. Americans now pay the highest pharmaceutical costs of any advanced nation.
At the same time, antitrust laws have been relaxed for corporations with significant market power, such as big food companies, cable companies facing little or no broadband competition, big airlines and the largest Wall Street banks. As a result, Americans pay more for broadband Internet, food, airline tickets and banking services than the citizens of any other advanced nation.
Bankruptcy laws have been loosened for large corporations—airlines, automobile manufacturers, even casino magnates like Donald Trump—allowing them to leave workers and communities stranded. But bankruptcy has not been extended to homeowners burdened by mortgage debt or to graduates laden with student debt. Their debts won’t be forgiven.
The largest banks and auto manufacturers were bailed out in 2008, shifting the risks of economic failure onto the backs of average working people and taxpayers.
Contract laws have been altered to require mandatory arbitration before private judges selected by big corporations. Securities laws have been relaxed to allow insider trading of confidential information. CEOs now use stock buybacks to boost share prices when they cash in their own stock options.
Tax laws have special loopholes for the partners of hedge funds and private-equity funds, special favors for the oil and gas industry, lower marginal income-tax rates on the highest incomes and reduced estate taxes on great wealth.
Meanwhile, so-called “free trade” agreements, such as the pending Trans Pacific Partnership, give stronger protection to intellectual property and financial assets but less protection to the labor of average working Americans.
Today, nearly one out of every three working Americans is in a part-time job. Many are consultants, freelancers and independent contractors. Two-thirds are living paycheck to paycheck.
And employment benefits have shriveled. The portion of workers with any pension connected to their job has fallen from just over half in 1979 to under 35 percent today.
Labor unions have been eviscerated. Fifty years ago, when General Motors was the largest employer in America, the typical GM worker, backed by a strong union, earned $35 an hour in today’s dollars.
Now America’s largest employer is Wal-Mart, and the typical entry-level Wal-Mart worker, without a union, earns about $9 an hour.
More states have adopted so-called “right-to-work” laws, designed to bust unions. The National Labor Relations Board, understaffed and overburdened, has barely enforced collective bargaining.
All of these changes have resulted in higher corporate profits, higher returns for shareholders and higher pay for top corporate executives and Wall Street bankers – and lower pay and higher prices for most other Americans.
They amount to a giant pre-distribution upward to the rich. But we’re not aware of them because they’re hidden inside the market.
The underlying problem, then, is not just globalization and technological changes that have made most American workers less competitive. Nor is it that they lack enough education to be sufficiently productive.
The more basic problem is that the market itself has become tilted ever more in the direction of moneyed interests that have exerted disproportionate influence over it, while average workers have steadily lost bargaining power—both economic and political—to receive as large a portion of the economy’s gains as they commanded in the first three decades after World War II.
Reversing the scourge of widening inequality requires reversing the upward pre-distributions within the rules of the market, and giving average people the bargaining power they need to get a larger share of the gains from growth.
The answer to this problem is not found in economics. It is found in politics. Ultimately, the trend toward widening inequality in America, as elsewhere, can be reversed only if the vast majority join together to demand fundamental change.
The most important political competition over the next decades will not be between the right and left, or between Republicans and Democrats. It will be between a majority of Americans who have been losing ground, and an economic elite that refuses to recognize or respond to its growing distress.
The Real Reason for the Growing Gap Between Rich and Poor