For all the howls of rage from plutocrats like Tom Perkins and Ken Langone over possible tax rate increases, there has been relatively little public anger about the increasing wealth disparity in the United States — especially compared to the past.
The Great Debate
In his State of the Union address last month, President Barack Obama urged cities and states to bypass Congress and enact their own minimum wage increases. “You don’t have to wait for Congress,” he stated.
Many presidents don’t have the problem of salvaging their second terms because the voters threw them out of office. Among those who win reelection, the successful communicators, such as Ronald Reagan and Bill Clinton, used many of the techniques that President Barack Obama deployed in his State of the Union Address last night. He is likely to repeat them often this year, which is one that will determine whether his administration is remembered as transformational or transitional.
Are you better off than you were twenty years ago? Probably not relative to very rich people today, but what about relative to you, or to someone your age and position twenty years ago? Income inequality has been called the defining issue of our time. Powerful leaders, from President Obama to Pope Francis, have cited it as evidence that the unfettered capitalism that has enriched the wealthy hasn’t been shared. Of course, there’s a difference between the gains in income being shared evenly, shared a little, or making everyone else poorer. In many ways the average American is much better off than he used to be; in other ways he’s worse off. But even if we focus on what’s gotten better, we may still need to worry about the future.
The rich, to mangle F. Scott Fitzgerald slightly, they rationalize differently than you and me. Whether they succeed or fail, they’ve always got a pseudo-scientific excuse. If they do well, it’s because their habits are better than those of the rest of us peons. If they do badly, it was their upbringing, since wealthy parents too readily substitute lucre for love.
Inequality is at an all-time high in America. Since the 2008 crash, recent IRS figures show, the wealth of the top 1 percent grew 31 percent while the rest of American incomes grew by less than 1 percent. But although it might appear that income disparities affect only the poor and have primarily an economic impact, dozens of studies now link extreme inequality with poor health and shorter lives, across the entire socioeconomic spectrum.