A report in Common Dreams examines a survey of economists about the impact of inequality in the U.S. Economists across all political ideologies agree that pushing money to the top earners limits the ability of those in the middle and working class to spend. The report cites Paul Krugman, who writes: “On average, Americans remain a lot poorer today than they were before the economic crisis. For the bottom 90 percent of families, this impoverishment reflects both a shrinking economic pie and a declining share of that pie.”
Economists agree that inequality is a problem. Too many politicians, however, fear the charge of “class warfare” and ignore this problem. They are also ignoring that wealth has been redistributed for the last three decades. It has been taken from the many and given to the few. This issue should concern everyone who works for a living.
I saw some interesting news in Saturday’s Chicago Sun-Times. First the real winner: Boeing CEO James McNerney received a 20% pay increase, which cashes out to a sweet $27.5 million for 2012. Meanwhile, Ford’s CEO Alan Mulally saw his pay cut by 29%. He will only earn $20.95 million. Before we feel too sorry for poor Mr. Mulally, we should note that he will still receive $680,809 in other compensation that includes a private plane, housing, and security. Most American wish they could get such a pay cut.
Not much time for a post today, but I found a very interesting article by Laura Clawson in Daily Kos Labor. The graph again shows how people are producing more while they are earning less. This is a message that working people need to get soon.