Bob Herbert has a good op-ed in the New York Times that looks at the growing economic inequality in the USA (http://www.nytimes.com/2007/12/22/opinion/22herbert.html?_r=1&hp&oref=slogin). While the top tier of the population makes more and more money, the rest of the populace is left struggling to maintain the life style they had growing up. Of course, the Chimperator is oblivious to such things and, I suspect, could care less. Here are some column highlights:
Christmastime is bonus time on Wall Street, and the Gucci set has been blessed with another record harvest. Forget the turbulence in the financial markets and the subprime debacle. Forget the dark clouds of a possible recession. Bloomberg News tells us that the top securities firms are handing out nearly $38 billion in seasonal bonuses, the highest total ever. But there’s a reason to temper the celebration, if only out of respect for an old friend who’s not doing too well. Even as the Wall Streeters are high-fiving and ordering up record shipments of Champagne and caviar, the American dream is on life-support.
Record bonuses on Wall Street at a time when ordinary working Americans are filled with anxiety about their economic future are signs that the trickle-down phenomenon that was supposed to have benefited everyone never happened. The rich, boosted by the not-so-invisible hand of the corporate ideologues in government, have done astonishingly well in recent decades, while the rest of the population has tended to tread water economically, or drown.
A study released last month by the Pew Charitable Trusts noted that “for most Americans, seeing that one’s children are better off than oneself is the essence of living the American dream.” But for the past 40 years, men in their 30s, prime family-raising age, have found it difficult to outdistance their dads economically. As the Pew study put it: “Earnings of men in their 30s have remained surprisingly flat over the past four decades.” Family incomes have improved during that time largely because of the wholesale entrance of women into the work force.
What seems to be happening now is that working Americans, and that includes the middle class, have exhausted much of their capacity to tread water. Wives and mothers are already working. Mortgages have been refinanced and tremendous amounts of home equity drained. And families have taken on debt loads — for cars, for college tuition, for medical treatment — that would buckle the knees of the strongest pack animals. According to Demos, a policy research group in New York, “American families are using credit cards to bridge the gaps created by stagnant wages and higher costs of living.” Americans owe nearly $900 billion on their credit cards.
Instead of celebrating bonuses this Christmas season, too many American workers are looking with dread toward 2008, worried about their rising levels of debt, or whether they will be able to hang on to a job with few or no benefits or how to tell their kids that they won’t be able to help with the cost of college.
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