The Super Rich Get Richer, Everyone Else Gets Poorer and the Democrats Punt

by: Robert Reich  |  Robert Reich's Blog | Op-Ed

The super-rich got even wealthier this year, and yet most of them are paying even fewer taxes to support the education, job training, and job creation of the rest of us. According to Forbes magazine’s annual survey, just released, the combined net worth of the 400 richest Americans climbed 8% this year, to $1.37 trillion. Wealth rose for 217 members of the list, while 85 saw a decline.

For example, Charles and David Koch, the energy magnates who are pouring vast sums of money into Republican coffers and sponsoring tea partiers all over America, each gained $5.5 billion of wealth over the past year. Each is now worth $21.5 billion.

Wall Street continued to dominate the list; 109 of the richest 400 are in finance or investments.

From another survey we learn that the 25 top hedge-fund managers got an average of $1 billion each, but paid an average of 17 percent in taxes (because so much of their income is considered capital gains, taxed at 15 percent thanks to the Bush tax cuts).

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The rest of America got poorer, of course. The number in poverty rose to a post-war high. The median wage continues to deteriorate. And some 20 million Americans don’t have work.

Only twice before in American history has so much been held by so few, and the gap between them and the great majority been a chasm — the late 1920s, and the era of the robber barons in the 1880s.

And yet the Bush tax cuts of 2001 and 2003, which conferred almost all their benefits on the rich, continue.

Democrats have decided to delay voting on whether to extend them for the top 2 percent of Americans or for the bottom 98 percent until after the mid-term elections.

Democrats have thereby given up a defining issue that could have enabled them to show the big story of the last three decades — the accumulation of almost all the gain from economic growth at the top — and to make a start at reversing it.

When will they ever learn?  

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When their global ethical,

When their global ethical, Economic and ENVIRONMENTAL GRAVEYARDS have gone back to Flowers, EVERYONE!



Now that Democrats are

Now that Democrats are caving to the Republicans at the mere threat of deceitful negative advertisements, there is little hope remaining. The wealthy are stupid because if they destroy the middle class, that will destroy America, and the wealthy right along with it.

As long as media outlets through which voter information is disseminated to the masses do not, or can not, apply "truth in advertising" to political advertising, and as long as mainstream media simply repeats political lies and deceptions without any fact-checking or debunking, then a very large section of American voters will continue to be deceived and vote against their own self-interests based on those deceptions. And now that the money spent on campaign advertising is unlimited for corporations, look for things to go from bad to worse.



The reason why the Democrats

The reason why the Democrats have delayed the vote is per orders from Obama: the Republican in sheep's (Democrat's) clothing. The reason they have delayed is because they have absolutely NO INTENTION of revoking these tax cuts for the rich after the elections. You'd have to be really f#cking dumb not to get that one. Obama is once again letting his left wing know that they are SHIT to him, that their VALUES AND POLICIES ARE FOREIGN TO HIS ADMINISTRATION. After all, these tax cuts should have been revoked immediately upon his taking office by a special legislative act. Obama is right wing Republican sympathetic shit, once again.



The Bush tax cuts for the

The Bush tax cuts for the wealthy will expire by themselves. With friends like you, Liced-christ, Obama has even more enemies. Hope you like it back with the GOP running us further into the ditch.



Why are you worried about

Why are you worried about John Kerry, Algore, Bill Clinton and the like? They're all old news.

How about the guy in the White House, he'll never have to buy his own pork chops again. Oh wait, bad example.



Personalities aside, it does

Personalities aside, it does seem likely that congress will vote after the election to extend the tax cuts, and that Obama will sign off on it.

If he's "bipartisan" with a majority, just imagine how flexible he'll be with a minority.

It's harsh but fair, I think, to blame Obama in large part for the coming upset: he has certainly over-compromised with--indeed aggressively reached out to--the Republican enemy, and L-C has reasons for his rant.



So, economics is a zero-sum

So, economics is a zero-sum game? Why am I surprised, since Mr. Reich also preaches the Luddite philosophy.

There's a reason why envy is one of the Seven Deadly Sins.

Rich people can't prevent you from earning money. Rich people can't limit your ability to produce.

This country's biggest problem is its citizens' lack of character; we'd rather sit at our computers and whine than get off our butts and work. Public schools have robbed us of our critical thinking abilities and convinced us that we are helpless sheep in constant need of big government assistance.



@18:13 Obama needs more

@18:13

Obama needs more criticism It's too bad you won't jump on board. All the mediocre democrats bow before the big, bad ogre of a possible Republican victory. You don't know that Obama as a conservative is holding you hostage to HIS right wing policies. Obama and you believe that his somewhat less right- wing agenda is acceptable. Sorry, it's not, at least for me it's not. We're going nowhere in big circles. Yes, of course Obama is not George Bush. He's worse. I guess you like Obama's four neocon wars breaking our government, starving our people, destroying the minds of our children and sending wave after wave of insecurity around the globe for all those involved, which is everyone,really. You mediocre democrats won't be reminded of those wars, will you? Today you will.



Not only are the Democrats

Not only are the Democrats punting away their responsibilities to those of us who voted them in with a mandate, apparently they haven't even noticed that their balls have gone flat.



Those spineless Democrats

Those spineless Democrats could screw up a wet dream.



Kucinich/Dean_2012 I hope

Kucinich/Dean_2012

I hope the Republicans take back the House and impeach Obama. That's what he gets for lying about change, then throwing progressives and the middle and lower income classes under the bus for his upper 1% plutocratic overlords.

The Senate of course, just as in the case of Clinton's impeachment, will not have the votes to remove him from office. But he will be too unpopular to run for president again in 2012.

The doors will then be open for a true progressive like Dennis Kucinich or Howard Dean to take the Democratic Presidential nomination in 2012, regardless of how much the MSM censors or smears them.



Do the writers of these

Do the writers of these articles read the comments of the readers? If not, they should.....



What economists consistently

What economists consistently fail to discuss - even those I respect like Reich - is that society does not need the rich to pay a larger proportion of their wealth back to it out of the goodness of their hearts because they are so altruistic. (As far as they're concerned Carnegie's Gospel of Wealth already goes too far in that regard.) No, the reason they are REQUIRED to pay is that they became wealthy on the backs of hard-working people. There is NO wealthy person who would be wealthy if it were not for the hard work of those in the middle and working classes. So they will only understand when all of us are in the gutters, and they are losing everything because there are no working people anymore to provide the heavy lifting that made them wealthy to begin with. (Nor for that matter anyone to exploit nor propagandize.) If it didn't involve good people going into the gutter, which would destroy the country, I'd say let 'em hit bottom like the stupid, witless, evil, greedy bottom feeders they are.



I had great expectations

I had great expectations from the Democratic majority and from the Democratic Presidency but the result has convinced me corporate America's reach is much higher and deeper than any of us can visualize. Government of, by and for the People has become that of Corporate America (the board members, big stock holders and the CEO/corporate officers). If history is a guide, the US polity has become sick and is on a downward spiral. The Contract ON America from the Elephant is appealing to the majority. Do we need more proof that we are doomed? We need a lion in the system to stand up to a bunch hyenas eating the whale.



There is a "Contract on

There is a "Contract on America". It's put out by the Wall Street Mafia...........



Is there really a difference

Is there really a difference between the Republicans and the Democrats, other than public facade? Behind closed doors, they are all making deals that benefit themselves, not the constituents. It's a government that's been bought.



You Have To Ask, Why? Why

You Have To Ask, Why?

Why would they do this? If they were in the game to win it is a no brainer. Make the republicans show they stand for the upper 2%.

So why wouldn't they do that? Because it is predetermined they are to loose this round by some puppet master in the shadows?

Or are they really that stupid?

What ever the reason, we are in deep doo-doo.



Last year , when Obama said

Last year , when Obama said "the economy is not a zerosum game", I knew we were in trouble because we were either dealing with lies or with advisors who had not read the book. FDR's economist held that money rises to the top and unemployment comes when there is no money left at the bottom.Von Neuman and Morgenstern wrote The Theory of Games and Economic Behavior, formalizing that theory. The beauty of their analysis was to show that any(!) economy could be so described. Jobs are only saved if the rules (regulations) protect the bottom level players or by taxation which provides chips for all players. As FDR said: Mr. Hoover does not understand that laid off government workers join the unemployment lines.

Note that the payers chips are real assets not printed money. No one ever mentions that it was understandable to the voters of that era debt could wipe one out. If times are bad we don't ask our children to pay, we live by "cash and carry". The Great Depression was not allowed to create national debt. Debt came when business interests argued government should be run like a business and rely on credit to be paid off in the future.

I do rember the Joint Committee on the Econmic Report annually published a graphic showing percen of income paid in taxes became smaller the greater the incme despite a top marginal income tax rate of 80%. I never saw the grapics after the top tax rate was cut. With sufficient wealth lawyers can invoke tax mechanims which can avoid income taxes all together. The progressive tax rates up to 80% served to level the playing field enough for the economic games to continue.



In order to get capital

In order to get capital earnings or dividens, the cimpany needs profits, profit is already taxed at about 30%...hence dividens should not have any extra tax.



Oh, now I get it. The

Oh, now I get it. The Republican platform should be called "The Answer to the Servant Problem."



So what exactly is that

So what exactly is that $1bil per year worth when the Fed Reserve just printed another $1tril out of thin air? Zero-sum or not, the belief that we can invent money with no tangible value is going to destroy this country, and sooner rather than later.



Erich Von Freemason you are

Erich Von Freemason you are what's wrong with America:
"Rich people can't prevent you from earning money. Rich people can't limit your ability to produce.

This country's biggest problem is its citizens' lack of character; we'd rather sit at our computers and whine than get off our butts and work. Public schools have robbed us of our critical thinking abilities and convinced us that we are helpless sheep in constant need of big government assistance."

Rich people can indeed prevent you from earning a fair wage, they already have. They can indeed limit your ability to produce by off-shoring jobs.

You call people stupid because of public education? I agree. 30 years of de-funding and devaluating public ed has left us with idiots like you. Thanks for elucidating the problems with OUR country with your personal example of overt stupidity.



Sat, 09/25/2010 - 05:55 —

Sat, 09/25/2010 - 05:55 — dryfly (not verified)

"FDR's economist held that money rises to the top and unemployment comes when there is no money left at the bottom.Von Neuman and Morgenstern wrote The Theory of Games and Economic Behavior, formalizing that theory."

In what chapter did they formalize that theory? I can't seem to find it in my copy.

Sat, 09/25/2010 - 15:47 — CaptB (not verified)

1) A fair wage is whatever the two parties agree on. The wage will never be greater than the economic production of the job. The production must also cover payroll taxes, benefits, etc.

2) We've been offshoring jobs for 50 years, and it has had no effect on the unemployment rate (fluctuations in the rate are universally recognized as having other causes).

3) I didn't call anybody, "stupid."

4) Can you prove your case, or does just disagreeing with somebody and spewing insults win the debate?



"When will they ever

"When will they ever learn?"

It's not about lack of understanding. It's about corruption!



Tax 'em! This country

Tax 'em!

This country enjoyed great prosperity when the top tax bracket was 91% (under Republican Eisenhower) . . .

The Big Myth is that the rich will use extra money to create jobs.

Like all the jobs they've created since W's tax cuts went into effect?!?

In reality, the rich use their extra cash to create faux-populist movements like the tea party and to buy elections!



"From each according to

"From each according to their gullibility to each according to their greed!" Get it, it's the system stupid. The democrats are there to divert you from doing what you need to do, revolt, strike, anything instead you go from Tweedledee to Tweedledum & get the tweedle shaft..



Bob, I sympathize . . . and

Bob, I sympathize . . . and yet . . . you offer no alternatives, specifically something YOU are doing to solve the problem.



Kevin, if you're going to

Kevin, if you're going to throw Dennis Kucinich's and Howard Dean's names around, please keep your idiotic comments about impeachment to yourself! Learn to concentrate on your Representative in the House and save your snarks for your Senators.



Someone should remind the

Someone should remind the obscenely wealthy that they don't know how to make anything for themselves, build anything for themselves, grow anything for themselves, or heal anything for themselves. When they have their Midas Moment, they will wake up on their own. We can't wait that long; by then, we'll be dead.



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