The following is distributed by Knight Ridder/Tribune Information Services
Copyright (c) 2005 Holly Sklar. It was found posted on the website for Democratic Socialists of America. The entire article can be read here.
". . . Pulitzer Prize-winning journalist David Cay Johnston puts the growing gap between the very rich and everyone else in stark perspective. He examined the income reported on tax returns of the top 0.01 percent -- about 14,000 households with at least $5.5 million in income.
From 1950 to 1970, for every additional dollar earned by those in the bottom 90 percent, those in the top 0.01 percent earned an additional $162.
From 1990 to 2002, for every additional dollar earned in the bottom 90 percent, those at the top brought in an extra $18,000.
If you are feeling financially down this holiday season, there's a good reason. Average workers have been earning less after inflation, not more. Average hourly earnings dropped 5 percent, adjusting for inflation, between 1979 and 2004 -- while domestic corporate profits rose 63 percent.
The share of national income going to wages and salaries is at the lowest level since 1929 -- the year that kicked off the Great Depression. The share going to after-tax corporate profits, which heavily benefit wealthy Americans through increased dividends and capital gains, is at the highest level since 1929.
Income gaps in the workplace have become increasingly outrageous, as seen in the growing gap between worker pay and CEO pay. We can demonstrate it with a pile of chocolate.
Give 1 piece of chocolate to your worker stand-in and 44 pieces to your CEO stand-in. That was the 1980 ratio of average full-time worker pay to average pay among CEOs in Business Week's survey of major corporations.
For the equivalent 2004 ratio, give 1 piece of chocolate to the worker and 362 to the CEO."
Democrat or Republican, they're both allowing things to get worse.
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