The Rich Get Richer And Then Boom Goes The Bubble
From Gooserock at Daily Kos
The purpose of income is accumulation of wealth. The ball game is for the wealth.
Here's a graph from Scientific American of family financial net worth from the beginning of Reagan to the beginning of Bush.
The categories are
Top 1% minus those 400
The article is from Feb. 18, 2001 "The Rich and Other Americans" by Roger Doyle. I don't have a link, subscription required last time I visited.
You can see why I label the Top 1% "enablers" and suckers. Their wealth growth during the 90's boom was not much better than an ordinary bank CD.
The United States of America, since Ronald Reagan was sworn in, has been all about a tiny clique that would barely fill a suburban high school.
by Gooserock on Sat Apr 30th, 2005 at 15:26:45 PDT
Note the graph. The highest point of inequality was in 1930. This inequality is a sign of asset bubbles in real estate and investments. Note how political reforms bring down this inequality rapidly. Also key is the fact that political reforms enacted in 1934 were two fold: social security guarunteeing a secure retirement and the right to strike. The right to strike has been eliminated under Ronald Reagan and note that this along with tax cuts for the rich has caused income inequality to soar again. Worse, Reagan raised the tax on social security making it onerous and now the GOP is in a full frontal attack on SS saying it is in trouble...duh...thanks to them. Their fix is to make it even less equal than before dividing recipients into two classes: the welfare ones and the investor ones who will move heaven and earth to eliminate the money going to the welfare ones.
Bush is dividing to conquer. He and his media minions will press this matter. They know their asset bubble is about to pop and first they must sell off the assets to others, the huge baby boomer class, so when that bubble pops as it is destined to do pretty soon, the retirees will have to pay for all this by losing everything they saved or were promised.
Isn't this fun?
Another graph showing how clearly the ruling elite benefited from Bush tax cut/assest balloon policies.