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Sunday, October 13, 2013

How Redistribution to the Rich Has Broken the Back of America


“Conservative columnist Thomas Sowell recently declared, "The history of the 20th century is full of examples of countries that set out to redistribute wealth and ended up redistributing poverty." Ironically for thinkers like him, the last 35 years have redistributed U.S. poverty by redistributing wealth to the rich. The middle class, once the backbone of a strong American society, has been broken, beaten down, pushed further and further toward poverty levels. Here are five well-documented ways that this has happened: (See the details of each at the link provided; space here restricts reprinting them.)
  1. Income Redistribution is Worse than Usually Reported We are told that the richest 1% doubled its share of income in the past thirty years. But from 1980 to 2006, according to both IRS and CBO figures, they nearly TRIPLED their share of income -- and that's after-tax income.
  2. Wealth Redistribution is Even Worse than Income Redistribution In 1983 the poorest 47% of America owned about 2.5 percent of the nation's wealth, an average of $15,000 per family. In 2009 the poorest 47% of America owned ZERO percent of the nation's wealth (their debt exceeded their assets).
  3. The Redistribution of Productivity: Boosting Profits rather than Wages From 2001 to 2011, total corporate profits more than doubled, to almost $2 trillion, while the corporate federal income tax rate was cut in half.
  4. Finance is Outrunning Society, and Taking the Money with Them Americans once trusted the financial industry to safeguard their retirement money. But high tech has transformed high finance, at a much faster rate than the average investor can understand the changes.
  5. Redistribution through Government Manipulation There are numerous ways the very rich have cajoled and coerced and connived their Congressional partners to redistribute money in their direction."