Income Inequality Exposed
Return to Economic Issues Updated 2/26/18         Please link to, use to educate and 

1. Problem Middle Getting Less Pie    2. Middle Geting Fewer Benefits from Tax Rules    3. All Top Earning 1% Do Well   

4. Earners Pay Less Income Tax   5. Some Save Lots, Most Save Little    6. Corporations Pay Less Taxes    7. Politics Created Low Rates, High Tax Benefits

    8. Wellbeing is More Important Than Market Income!    9. Solutions are Problematic     10. Other Stuff
   
 

1. Middle Getting Less Pie
Only Rich and Poor Getting a Larger
Share of a Much Bigger GDP Pie
 

1971

2012

 Change
Upper Tier Up 14% 20% Up 86%
Middle Tier Down 61% 51% oops Down 10%
Lower Tier Up 25% 29% Up 16%
Total 100% 100%  

Note: Real GDP pie has grown a lot so middle income is up just not as much as the top the bottom. Depending on where the stock market is; the top can vary a lot. Remember liars, dame liars, and all data users?. Middle Class: A Candle Burning at Both Ends. 

 
   

2. Middle Getting Fewer Benefits from Tax Rules

 

3. All Top Earning 1% Do Well,
Some Do Very Well,  Some Very Very Well and Some Very Very Very Well  

Group 3 the Very Very Very Rich group 3 are the top 1/100th of 1%.

They Earn More Than the Rest of the Rich combined 2/10th to 1%).

  
   

 

  
   

4. Top Earners Pay Less Income Tax

 

  
   

5. Some Save Lots, Most Save Little
SS and Medicare Not Counted as Savings so Lowest 90% Savings is Understated

 

  
   

6. Corporations Pay Less Taxes

zucman.eu/leaks/

  
   
   

7. Politics Created Low Rates and Tax Benefits
Causing Inequality and a Solution to Inequality

 

 		 
People wanting a more equal income different distribution should vote accordingly. Problem. many voters have more important needs than income. For some protecting Guns is at the top, others protect their God. For many voters Greed is important. This group includes business and retirees who use political action committees. Think AARP, Act Blue, Leadership PACs. Finally Government employees including politicians vote based on career possibilities. Together The 4G's make redistribution difficult.
 

 

8. Thankfully, Wellbeing is More Important Than Market Income!

A) Market Income Inequality is Hyped by Media and Out-of-Office Politicians.  

B) Well Being is Most Important.

C) Government Helps Bottom Quarter

4) Solutions Are Problematic

  
 

 

8C) Government Helps the Bottom Quarter

Some Will Always Be Unhappy as
Some Want More, Others Want Less?
See Entitlements Get More of a Flat Federal Budget

 

 
 

8D. Stable Economic Growth Helps Everyone

 

  
 

9. Solutions are Problematic

9A) College Helps Only Our Brightest
Who Must Work Hard to Compete Internationally

See Educating the Class of 2034

 

  
 

9B) Too Many Low Paying Jobs

See World Changed and Good Jobs Disappeared

 		 
 

 

9C) Poverty Rate Stuck

See Helping Poor is Controversial

 

  

Epilogue: Wellbeing is Most Important and Improving.

 

1) Political Stability has allowed productivity to increase which is a key to increased individual wellbeing especially child and young people Think how the public safety net has increased since the 1930's. Who wants to give up SS and Medicare? Why do some always want to cut the other guys government benefits. Think economic distress in Russia, Europe, and even Japan and Germany.

 		  2) Scientific achievements have continuously added to citizen well-being. Think public health, smart phones, streaming audio-video, Gillette Stadium ... See Health Problems Solved  
3) Personal compensation which includes market income, fringe benefits and government transfers have increased though not so much lately. Think Russia, China, and Europe's really slow recovery from the Great secession. 		   4) Nurture thorough better parenting has increased continuously if not always rapidly and with genetics Nature is next.
 

10. Other Stuff

See Tax Evasion Rises With Wealth 3 min video

Are overseas corporate income included?
For US wealthy this is big bucks.