INEQUALITY AND ITS CONSEQUENCES
There are a few figures we should keep in mind about the US economy. The bottom 90% of households owns 31.1% of total household wealth, less than the top 1% of households which owns 31.4% of total household wealth (assets including real estate, securities, vehicles, personal effects, etc.). Income is also skewed. In 2022 the top 5% of households received 23.5% of aggregate household income, and the bottom 40% got 11.2%. The conclusion has to be that the US suffers from acute wealth and income inequality.
What does this mean? It means that inflation seriously affects the majority of the population, while the small minority at the top barely feels it at all. It means that most families lack a personal safety net in case of trouble like loss of a job or illness, and this in a country with an inadequate social safety net. And it means if enough politicians listen to their more affluent constituents as well as their own personal interests, nothing is going to be done about it. It also means that our politics are unstable and prone to demagogues who use emotional issues such as migrants, schoolbooks, sexual preferences, and abortion to divert the electorate from focusing on issues caused by inequality.
Source: The New York Times, 11/19/23.