The Rich and the Rest of Us

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Today, as in the robber baron era a century ago, the gap between those at the top and the rest of us is simply staggering. The richest 1 percent of Americans currently hold wealth worth $16.8 trillion, nearly $2 trillion more than the bottom 90 percent. A worker making $10 an hour would have to labor for more than 10,000 years to earn what one of the 400 richest Americans pocketed in 2005.

How vast has our parallel universe of the ultrarich become? The Wall Street Journal now dedicates a full-time beat reporter, Robert Frank, to cover what he calls Richistan. Richistan did not suddenly appear on the American scene. Our top-heavy era has evolved from a heavily bankrolled effort by conservatives and corporations to instill blind faith in the market as the magic elixir that can solve any problem. This three-decade war against common sense has preached that tax cuts for the rich help the poor, that labor unions keep workers from prospering, that regulations protecting consumers attack freedom. Duly inspired, our elected officials have rewritten the rules that run our economy–on taxes and trade, on wage policies and public spending–to benefit wealthy asset owners and global corporations.

To reverse this reckless course, we need to change our nation’s dominant political narrative and restore faith in the critical role that government must play to protect the common good. But we can’t stop there. We need to confront directly the threat posed by this inequality.

One Response to “The Rich and the Rest of Us”

  1. Roland Hesz Says:

    First thing would be to change the law that forces the corporations to disregard everything except the profit. Funny, no? The actual law makes the corporation guilty if they care about anything else but profit.

    The Court held that a business corporation is organized primarily for the profit of the stockholders, as opposed to the community or its employees. The discretion of the directors is to be exercised in the choice of means to attain that end, and does not extend to the reduction of profits or the nondistribution of profits among stockholders in order to benefit the public, making the profits of the stockholders incidental thereto.

    Dodge v. Ford

    Because this company was in business for profit, Ford could not turn it into a charity. This was compared to a spoilation of the company’s assets. The court therefore upheld the order of the trial court requiring that directors declare an extra dividend of $19 million.


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