If you don’t care about income inequality, and you think the richest 20 percent of Americans should control 85 percent of our nation’s wealth, well, if you believe that, then these are good times for you. If however you see this huge cavern between the wealthiest incomes and the rest of us, you should be very concerned.
I’ve been sort of following the work of Emmanuel Saez. Saez is an economics professor at University of California – Berkeley. He studies income inequality. In 2010, I wrote about a report Saez put out showcasinig the issue of a widening gap between the richest among us and us.
For income equality, the wheels came off 1980 and the problem has not been resolved. Saez issued a new report on income inequality in September 2017.
Here’s a snippet from the report’s conclusion and a few graphs to help understand the scale of this problem and why we should be talking about it as a problem.
In light of this study and the empirical data backing up the authors’ claims, the Republican Party is about to pass one of the largest income tax bills not the likes of which has been seen in decades.
Legislative spoiler alert: The Republican tax bill getting rammed through congress piles huge tax cuts on the wealthy while everyone else pays more.
So if you feel like your finances are squeezed to the point of bursting, that’s only going to get worse.
The report also shows that trickle down economics only works if your goal is to transfer wealth up.