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Saturday, September 27, 2014

"Siphon-up economics”...the scourge of generations

"The growing gap between the wealthiest Americans and everyone else is about much more than dollars. It’s about everything that matters to you most — your kids, their education, your family’s health, your community, your quality of life, and the democracy you live in. Growing inequality is damaging all of these things. As the rich get richer, they gain more political influence that enables them to hoard their wealth. American corporations have turned tax avoidance into an art form, while 31 states no longer collect estate or inheritance taxes from millionaires and billionaires. A new report by Standard & Poor’s found that rising income inequality is itself responsible for declining state revenue.

That means federal, state, and local governments have trouble paying for public education, parks, highways, infrastructure, financial aid, and other social programs. It means that the quality of your community may decline. It means that your child may attend schools that are understaffed and over-crowded. Down the road, it means your child may have to take on massive debt just to attend the local state university. As the rich get richer, they also disempower workers through union-busting, worker misclassification, wage theft, and lobbying against a minimum wage hike. Why? Because their wealth actually depends on your lack of mobility. For instance, 66 percent of low-wage employers in America are large, wealthy corporations who lobby against increasing the minimum wage.

In this “siphon-up economics,” the rich get richer by draining wealth from the rest of us. The new Census data reveal that since the late 1980s, incomes for the bottom half of Americans have stagnated while those of the top 10 percent have steadily climbed."

http://www.commondreams.org/views/2014/09/27/scourge-siphon-economics