Category: Rich Poor USA

The United States has always been a country marred by the inequality of its citizens but never to the degree that exists today when the poles are more concentrated and farther apart. There are more rich Americans and they are richer than ever before. The poor are not only poorer but more numerous. What is more alarming is that people from the middle classes are slipping into poverty. Having a job is not always a solution. Many families in which the breadwinners are employed full time still can’t afford to have a home or a decent life.

At the other end of the scale of inequality are the American rich, whose wealth and flashy lifestyles are unprecedented. The classic millionaire has slipped into the middle class; now it’s the billionaires who make the news. And it’s not just the Internet whizkids. Now even garden-variety bankers, accountants and company CEO’s–virtually anyone who can adjudicate his or her own salary–can also aspire to the vacuous elite.

According to a 2017 report on CEO pay from the Economic Policy Institute, chief executives at 350 top companies made $15.6 million on average in 2016—271 times what the typical worker earns. The CEO of Marathon Petroleum, Gary Heminger, took home an astonishing 935 times more pay than his typical employee in 2017.

Even Americans with “good jobs” are overworked and lack first-world working conditions. Any European worker is entitled to a month’s paid vacation in his or her first year of work. How long does it take the average American worker to merit a month’s vacation? Maternity leave in Spain has just been extended by their socialist government to 16 weeks, with an additional five weeks of paternity leave for the father.

Some Inequality Numbers

Most of these statistics are from the Stanford Center on Poverty and Inequality:
Wage Inequality
Over the last 30 years, wage inequality in the United States has increased substantially, with the overall level of inequality now approaching the extreme level that prevailed prior to the Great Depression.

Education Wage Premium
Only college graduates have experienced growth in median weekly earnings since 1979 (in real terms). High school dropouts have, by contrast, seen their real median weekly earnings decline by about 22 percent.

Gender Pay Gaps
Throughout much of the 20th century, the average woman earned about 60% of what the average man earned. Starting in the late 1970s, there was a substantial increase in women’s relative earnings, with women coming to earn about 80% of what men earned.
This historic rise plateaued in 2005 and, since then, the pay gap has remained roughly unchanged.

Women’s pay as a percentage of that of men

Child Poverty
The United States boasts fifth position in the world ranking of the percentage of poor children with 21 percent of its children in poverty,

Health Insurance
In 2007, 8.1 million American children under 18 years old were without health insurance. Children in poverty and Hispanic children were more likely to be uninsured.

Bad Jobs
“Bad jobs” are typically considered those that pay low wages and do not include access to health insurance and pension benefits. As shown here, about 10% of full-time workers are in low-wage jobs, about 30% don’t have health insurance, and about 40% don’t have
pensions. The graph also shows that the likelihood of being in a bad job is much worse for part-time workers, for on-call and day laborers, and for those working for temporary help agencies.

Incarceration
The incarceration rate in the United States has grown so dramatically since the 1970s that the U.S. now has one of the highest rates in the world. The rise in incarceration has been especially prominent among young Black males and high school dropouts. As shown in this graph, a full 37% of those who are both young black males and high school dropouts are now in prison or jail, a rate that’s more than three times higher than what prevailed in 1980.

Percent of 20-34-year-old men in prison or jail, by race, ethnicity,
and educational attainment, 1980 and 2008

Homelessness is as American as Apple Pie

Scenes of homelessness such as are seen on the streets of the United States today are unthinkable in any other country in the first world.

According to The Week, March 11, 2018, about 554,000 people in the U.S. were homeless on any given night in 2017 — including nearly 58,000 families with children — meaning they didn’t have a safe, permanent place to sleep. That figure represents a 1 percent rise since 2016 — the first time the nation’s homeless population has increased in seven years. But the country’s biggest cities, especially those on the West Coast, have seen a far bigger rise in homelessness. New York City, which has the nation’s largest homeless population, reported a 4 percent increase since 2016 to about 76,500 people, San Diego a 5 percent increase to 9,160, and Los Angeles a 26 percent increase to nearly 55,200.

Consider This Testimony Posted on Quora.com by an Open-eyed American Retiree

I am American. I am married to a French woman. I have worked for years in the United States and for years in Europe. Americans, including myself (as a working-class boy who became a university professor and Dean), are culturally molded (brainwashed) into believing that work is everything. Our lives revolve around the work we do.

I’m retired now, but in my final years as a top-level administrator I was working so hard— 10 hours a day, 6 days a week—that I did not take the vacations due me. At the end, my employer owed me more than 6 months vacation time. And, oh yes, a former employer fired me because at 55 years of age I was being paid too much in their view and they could hire a 30-year-old for much less. That is normal in America. There is no such thing as loyalty to a long time and valued worker. Workers are “inputs” into the process, not people. Americans have been raised to think this is the way it is and the way it should be.

I think it likely that the United States has been controlled by the elites at the economic top for a very long time—probably since the time of the famous “Robber Barons” of the late 19th century. Today the United States is one of the most economically unequal countries in the world. The “wealth gap” is enormous. The top 1% are billionaires. There is literally nothing they cannot buy: law, tax codes, regulations, media outlets, controlling interests in big corporations, the entire healthcare and medical industry, the infamous “military industrial complex,” political campaigns, etc. In short, the government in the USA exists to serve the super wealthy.

In much of Europe governments (incredibly) seem to be truly inclined to see themselves as serving the people and their welfare. So, the government provides high quality and free (or very inexpensive) education—including at university level, as well as high-quality universal healthcare for everyone. And workers are given protections and rights that are unheard of in the USA, including at least 4 weeks vacation a year. Of course, the people pay higher taxes for these services, but it seems well worth it. And, Chief Officers of companies are not paid ludicrously high salaries and bonuses. In fact few companies in Europe are public corporations, and so the chief executives do not have the power to raise their own salaries and bonuses as do the American chief executives of the infamous public corporations (run by “agents” not by the owners).

In short: The American workplace is brutal and the European workplace is much more humane. Americans are trained to respond to this by saying “But American companies are more successful, they generate more wealth.” Not only is this untrue (the GDP of the EU is very close to that of the USA), but so much of the wealth created in the USA just goes straight up to the billionaires at the top. That’s why one out of seven families in the USA lives in poverty, and why the American working class has not progressed economically since the late 70s.

As long as Americans are willing to be brutalized in the workplace and accept a government dedicated to the oligarchs, nothing will change for them.

Greatness?

President Donald Trump says that his goal is to “make America great again,” and there’s nothing to keep him from doing just that. But he should be mindful that true greatness is not about invading Iran, nor bigger limousines, nor tax breaks for fat cats. It’s about taking care of your people–all of them.

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