Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

xchrom

(108,903 posts)
Thu Oct 24, 2013, 09:23 AM Oct 2013

The Trillion Dollare Money Pump for the 1%

http://www.commondreams.org/view/2013/10/24

I saw the movie Inequality for All, where Robert Reich explains the depth and meaning of inequality in America. He paints a compelling picture.

Reich sets up the movie with a teaser: "Something happened in the mid-'70s."

Indeed "something did happen in the mid-'70s." For one thing, since then workers' wages as a fraction of the total economy have lagged by over a trillion dollars per year. If workers' wages had kept up with gains in productivity since the mid-70's, wages would be double what they are now. Most new income goes to the top 1 Percent.




The movie translates my blue squiggly line in the graphic into human terms, seen in the faces of families, students, workers, co-workers and neighbors. Their struggle, disappointment, and diminished prospects answer another key question in the movie: Does inequality matter?

It matters. A lot.

Our current downward spiral leads us to a Lesser America -- less social cohesion, less political stability, less prosperity, less ability to compete globally.
46 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
The Trillion Dollare Money Pump for the 1% (Original Post) xchrom Oct 2013 OP
our country's problem is not one of political faction or partisanship datasuspect Oct 2013 #1
+1 xchrom Oct 2013 #2
If you really think the parties are the same, why are you a DUer? nt SunSeeker Oct 2013 #8
some of us agree with the theory of the democratic party datasuspect Oct 2013 #10
+1000 LuvNewcastle Oct 2013 #12
It is being put in practice. If everyone VOTED, it would be implemented nationwide. SunSeeker Oct 2013 #18
Respectfully.... ReRe Oct 2013 #23
Respectfully, if Dems all voted, it would put a spine in those Dems. SunSeeker Oct 2013 #41
OK... I agree with that. ReRe Oct 2013 #44
You left out...... daleanime Oct 2013 #3
you are correct datasuspect Oct 2013 #4
Bullshit. The parties are not the same. The graph went up sharply under Clinton. nt SunSeeker Oct 2013 #7
Never said they were the same..... daleanime Oct 2013 #38
There's folks who like to push the "both parties are same" meme to depress the Dem vote. SunSeeker Oct 2013 #40
And there is no one pushing any.... daleanime Oct 2013 #43
It's one thing to not like some of the terms of a deal... SunSeeker Oct 2013 #45
It is good to see people waking up to the theater. woo me with science Oct 2013 #17
we have a choice of getting screwed with lube or without yurbud Oct 2013 #30
100% correct, and I for one will no longer play the game. liberal_at_heart Oct 2013 #42
Superimpose that graph over a graph of the top marginal tax rate... Blanks Oct 2013 #5
Excellent observation. Low tax rates cause the rich to pull money out, not reinvest. SunSeeker Oct 2013 #20
I wish more people noticed the correlation. eom Blanks Oct 2013 #25
What does this graph look like for other countries? nt SunSeeker Oct 2013 #6
2008 and on should look better than it does seveneyes Oct 2013 #9
Yes - It's taking this long to recover from Bush crashing the economy (DUH). groundloop Oct 2013 #14
Obama had 24 working days of a filibuster proof majority in the Senate. SunSeeker Oct 2013 #19
FYI ReRe Oct 2013 #26
The 1 % is the enemy. L0oniX Oct 2013 #11
And yet...the 1% are the 1% only because we allow them to be. Orsino Oct 2013 #32
Great post BethMomDem Oct 2013 #13
Looks like class warfare to me. And working people are losing. JEB Oct 2013 #15
Excellent post. K&R woo me with science Oct 2013 #16
The 1% are the one problem from which our others spring, always have been. n/t Egalitarian Thug Oct 2013 #21
Yes, it's the cheap labor conservatives, and it started in the 70s. bemildred Oct 2013 #22
k&r for the truth, however depressing it may be. n/t Laelth Oct 2013 #24
K&R ReRe Oct 2013 #27
If anybody knows what is going on, Robert Reich does! K&R B Calm Oct 2013 #28
K & R !!! WillyT Oct 2013 #29
Warren Buffet said it best, MindMover Oct 2013 #31
so what happened in the mid 1970s? hfojvt Oct 2013 #33
the early 70s saw 1) the oil slump turn into stagflation; on top of that 2) the ecologists and women MisterP Oct 2013 #34
When the President of the USA fires air traffic controllers ... MindMover Oct 2013 #37
The current downward spiral has its genesis in the Federal government's refusal to subject indepat Oct 2013 #35
What happened in the mid 1970s? BKH70041 Oct 2013 #36
K & R Quantess Oct 2013 #39
world trade, efficiency and productivity gains due to automation Pretzel_Warrior Oct 2013 #46
 

datasuspect

(26,591 posts)
1. our country's problem is not one of political faction or partisanship
Thu Oct 24, 2013, 09:24 AM
Oct 2013

that is merely window dressing, a dog and pony show, bread and circuses, political theater.

our problem is the oligarchy that pays both parties and keeps them in willing submission.

 

datasuspect

(26,591 posts)
10. some of us agree with the theory of the democratic party
Thu Oct 24, 2013, 10:20 AM
Oct 2013

and would like to see it put into practice.

LuvNewcastle

(16,834 posts)
12. +1000
Thu Oct 24, 2013, 10:33 AM
Oct 2013

I would even take that further. I believe in the idea of America, and I want us to live up to what we are supposed to stand for.

SunSeeker

(51,513 posts)
18. It is being put in practice. If everyone VOTED, it would be implemented nationwide.
Thu Oct 24, 2013, 10:42 AM
Oct 2013

It does not help to lie about the Dems. Sure there are some bad Dems, but as a party we are for protecting the middle class, and when we are in power, we do. As the chart shows. CA is also a good example. We need to get out the vote and switch out the Tea Baggers in the House. Your maligning of the Dems impedes that.

ReRe

(10,597 posts)
23. Respectfully....
Thu Oct 24, 2013, 11:04 AM
Oct 2013

In addition to voting out the Tea Baggers, we need to vote out the "go-along-to-get-along-with-Tea-Bagger" Democrats, both in the House AND the Senate.

SunSeeker

(51,513 posts)
41. Respectfully, if Dems all voted, it would put a spine in those Dems.
Fri Oct 25, 2013, 05:46 PM
Oct 2013

But no, unless it is a Presidential election year, Dems sit it out. Not so with the baggers. They have their candidates back and come out rain or shine. Vulnerable Dem candidates know this. They don't want to go the way of those two CO Dem state legislators that just got recalled by the baggers. So they try for the vote of folks in the middle and avoid pissing off the baggers. If they knew they had a reliable and sizable vote on the left, they would aggressively push for a progressive agenda.

ReRe

(10,597 posts)
44. OK... I agree with that.
Fri Oct 25, 2013, 07:55 PM
Oct 2013

As effed up as our election process is though, I don't really know if we can blame ourselves. The last midterm, the left was reeling from the slap in the face. Hey, I didn't like the slap in the face, but I voted and everyone I know voted, and we all voted the Democratic ticket. Shame on Democrats who sit out the midterms. The midterm is nothing but an extension of the General Election, as it is the process by which we give the President the help he needs to uphold real Democratic values. Democracy is a VERB. Get up and get to the polls & vote every single time the polls are open, local/state/Congress/General. Every one of them have a direct affect on our lives and the life of everyone in this country.

2014! 2014! 2014! 2014! 2014! 2014! 2014! 2014! Get the lead out, Democrats! No excuses. GOTV!

daleanime

(17,796 posts)
38. Never said they were the same.....
Fri Oct 25, 2013, 03:36 PM
Oct 2013

that doesn't mean that they don't share some similar goals. Why do you think it comes up all the time?

SunSeeker

(51,513 posts)
40. There's folks who like to push the "both parties are same" meme to depress the Dem vote.
Fri Oct 25, 2013, 05:33 PM
Oct 2013

You see it so often in the MSM that it even gets picked up by some on the left. Some know that kind of bullshit will get hidden here, so they try to say it different ways.

Dems and the GOP do not share "similar goals." The GOP wants to do away with taxes on corporations and kill government (shrink it so they can "drown it in a bathtub&quot . Dems want a government that provides a safety net and represents the will of the majority (a democracy). These goals are not even close, let alone similar. If you think otherwise, you are on the wrong site.

daleanime

(17,796 posts)
43. And there is no one pushing any....
Fri Oct 25, 2013, 06:32 PM
Oct 2013

'grand deals' while calling themselves democratic? It wouldn't matter what site I was at, if I kept my eyes closed.

Yes, vote for the best choice you can get, but don't think that's the end all.

SunSeeker

(51,513 posts)
45. It's one thing to not like some of the terms of a deal...
Fri Oct 25, 2013, 11:57 PM
Oct 2013

...but it is a whole 'nother thing to claim the two sides negotiating the deal have "similar goals." You are just way off base on that and are simply parroting an MSM false equivalence talking point.

And, as I suspect you know, Reid said there will be no deficit-reduction "grand bargain," instead making clear that his priority in upcoming negotiations will be to get rid of sequestration.

http://www.democraticunderground.com/1014630801

Voting IS the end all. As I said up the thread, if we voted with the regularity of the baggers and had our candidates' back like the baggers do their candidates, our Dem office holders would get a spine and we'd get the progressive legislation we wanted. But no, unless it is a Presidential election year, Dems sit it out. Not so with the baggers. They have their candidates back and come out rain or shine. Vulnerable Dem candidates know this. They don't want to go the way of those two CO Dem state legislators that just got recalled by the baggers. So they try for the vote of folks in the middle and avoid pissing off the baggers. If they knew they had a reliable and sizable vote on the left, they would aggressively push for a progressive agenda.

yurbud

(39,405 posts)
30. we have a choice of getting screwed with lube or without
Thu Oct 24, 2013, 11:47 AM
Oct 2013

and even the lube party is getting stingy with the lube.

Blanks

(4,835 posts)
5. Superimpose that graph over a graph of the top marginal tax rate...
Thu Oct 24, 2013, 09:47 AM
Oct 2013

When the top rate goes up, wages go up. When they drop, so do wages.

SunSeeker

(51,513 posts)
20. Excellent observation. Low tax rates cause the rich to pull money out, not reinvest.
Thu Oct 24, 2013, 10:50 AM
Oct 2013

Higher tax rates encourage reinvestment in the business so the money is not taxed. Pretty simple, really. Thom Hartmann makes that point all the time.

groundloop

(11,513 posts)
14. Yes - It's taking this long to recover from Bush crashing the economy (DUH).
Thu Oct 24, 2013, 10:37 AM
Oct 2013

AND the GOPers in Congress are doing a bang up job at obstructing and holding back economic recovery.

SunSeeker

(51,513 posts)
19. Obama had 24 working days of a filibuster proof majority in the Senate.
Thu Oct 24, 2013, 10:45 AM
Oct 2013

Then Dems stays home in 2010. With that little help, I am amazed Obama was able to bend the line back up at all, but he did.

ReRe

(10,597 posts)
26. FYI
Thu Oct 24, 2013, 11:14 AM
Oct 2013

I did vote in the 2010 midterm, voted for Democrats, as well as everyone I know who is physically near me, family and friends. Also, I too am amazed that PO has been able to accomplish as much as he has with a recalcitrant unbending opposition in the House. and filibustered Senate.

Orsino

(37,428 posts)
32. And yet...the 1% are the 1% only because we allow them to be.
Thu Oct 24, 2013, 12:58 PM
Oct 2013

We seem to be our own worst enemies, in part because we allow ourselves to be dominated by a handful of people.

bemildred

(90,061 posts)
22. Yes, it's the cheap labor conservatives, and it started in the 70s.
Thu Oct 24, 2013, 11:04 AM
Oct 2013

And it will stay that way until we tax the shit out of them again.

MindMover

(5,016 posts)
31. Warren Buffet said it best,
Thu Oct 24, 2013, 12:06 PM
Oct 2013

"My friends and I have been coddled long enough by a billionaire-friendly Congress. It’s time for our government to get serious about shared sacrifice."

“There’s class warfare, all right,” Mr. Buffett said, “but it’s my class, the rich class, that’s making war, and we’re winning.”

http://www.nytimes.com/2006/11/26/business/yourmoney/26every.html

hfojvt

(37,573 posts)
33. so what happened in the mid 1970s?
Thu Oct 24, 2013, 01:07 PM
Oct 2013

The article points to a lot of things but not very many policies.

I usually point to Reaganomics. The top tax rate got cut from 70% to just 28%.

That takes away a big dis-incentive to steal.

Stealing may be a bad word becuase the "theft" is typically "perfectly legal." It's more a matter of power than it is of law. Those at the top have the power to reward themselves with extra money.

When the top tax rate is 70%, they have LESS incentive to do so. Why use your power to get another $5 million if the government is just gonna take $3.5 milliion of it away from you? (and the state government will also take away another $300,000 (at least)).

But now that I think of it more, I think I know what happened in the mid 1970s - healthcare privatization.

Back in the pre-Nixon days most hospitals were non-profits. That changed in the mid-1970s, didn't it? Put another line on that graph and look at what health-care costs did in those years.

Because in many jobs, people are not JUST paid wages. They are paid wages PLUS benefits. As the benefits become more and more expensive (because of health insurance costs) that puts a squeeze on wages.

But another thing that happened in the mid 1970s was inflation. Remember Ford with his "WIN" button - for Whip Inflation Now. In 1970 the minimum wage was $1.6 which was $9.12 in 2011 dollars. It did not get raised again until 1974, by 1973 it had fallen to $7.97 an hour. It got raised to $2 in 1974, then $2.10 in 1975 and $2.30 in 1976, $2.65 in 1978, $2.90 in 1979, $3.10 in 1980 and $3.35 in 1981 (at which point Reagan and Senate Republicans pretty much nailed it to the ground).

But even by 1981, with a 100% increase from 1970, the 2011 value of the minimum wage in 1981 had FALLEN to just $8.15 an hour from the $9.12 an hour it was in 1970.

By the time it got to 1990, before George HW Bush could be prevailed upon to allow it to be raised again, the minimum wage had fallen to just $5.98 in 2011 dollars in 1989. A lot of other wages are tied to the minimum wage.

Even after it was raised to $7.25 in 2009, it has not kept up with inflation. It should be $7.90 today if it had almost 109% of what it is now.

MisterP

(23,730 posts)
34. the early 70s saw 1) the oil slump turn into stagflation; on top of that 2) the ecologists and women
Thu Oct 24, 2013, 03:09 PM
Oct 2013

and Counterculture were questioning the whole "everyone will be happy with perpetually increasing production and chemical suburbs" thing

Reaganomics was invented to take advantage of the first aspect, by proclaiming that any intervention or high wage share for workers "had failed conclusively" and was thus slashed

the second aspect had a complex response: one wing was a revindication of expertise: the whitecoats know what they're doing, and if you don't believe that you're a tarot-snappin' creationist; the second wing was the Hayekites/Sowellites saying "only intervention can cause monopoly and all this other bad stuff": RW-libertarians are a blatant astroturf designed to hit all the right Countercultural buzzwords in service to the Kochs and Mellons while pretending to be all heretical

there's also ethnic tensions thrown in the mix

MindMover

(5,016 posts)
37. When the President of the USA fires air traffic controllers ...
Fri Oct 25, 2013, 01:43 AM
Oct 2013

We the working class, blue collar, union men/women were screwed and have been ever since ....

indepat

(20,899 posts)
35. The current downward spiral has its genesis in the Federal government's refusal to subject
Thu Oct 24, 2013, 06:31 PM
Oct 2013

the income and wealth of the uber-wealthy and the income of large, profitable corporations to equitable taxation: the higher the income generally, the lower its taxation. This is a virulently right-wing ideology and Democrats have almost fully gotten on board. The meme that America is the best place in the world to live is wholly false imo, as America, having fallen to or near the bottom in all quality-of-life ranking factors among industrialized nations of the world, testifies: it is perhaps the best place in the world for the oligarchs to operate and for the uber-wealthy, who can live in gated/walled-in fortresses if they choose, to live. Of course most Republicans have pledged their allegiance to Grover Norquist not the raise taxes and are demanding social security and Medicare benefits be cut to reduce the national debt, almost all of it at their making, to a level they insist: Speaker Boehner has already gotten 98% of what he had wanted, so look for him to now go for the jugular.

BKH70041

(961 posts)
36. What happened in the mid 1970s?
Thu Oct 24, 2013, 06:38 PM
Oct 2013

I remember some sportscaster tried to explain the infield fly rule. The country hasn't been the same since.

 

Pretzel_Warrior

(8,361 posts)
46. world trade, efficiency and productivity gains due to automation
Fri Oct 25, 2013, 11:58 PM
Oct 2013

to name a couple. Absolute obliteration of unions is another.

Latest Discussions»General Discussion»The Trillion Dollare Mone...