GOOD they work hard and deserve it with how hard they work!
Capitalism pays as does hard work!
Maybe they will hire you one day,,, never know,,,I'm going to celebrate!
It gets better (or worse, depending on your political stripe) - the top 1% of households account for 40% of financial net worth, more than the bottom 95% of households put together. This is data for 2000, from the Survey of Consumer Finances (and adjusted by academic Edward Wolff). Since 2000 was the peak year in equities, and the top 1% of households have a lot more equities in their net worth than the rest of the population who tend to have more real estate, these data might exaggerate the U.S. plutonomy a wee bit.
We project that the plutonomies (the U.S., UK, and Canada) will likely see even more income inequality, disproportionately feeding off a further rise in the profit share in their economies, capitalist-friendly governments, more technology-driven productivity, and globalization.
With the exception of the boom in the Roaring 1920s, this super-rich group kept losing out its share of incomes in WWI, the Great Depression and WWII, and till the early eighties. Why? The answers are unclear,
...
The rich in the U.S. went from coupon-clipping, dividend-receiving rentiers to a Managerial Aristocracy indulged by their shareholders.
Pre-Plutonomy
Income Savings rate Savings
Top 20% $20 10% $2
Next 20% $20 10% $2
Third 20% $20 10% $2
Fourth 20% $20 10% $2
Poorest 20% $20 10% $2
Total $100 10% $10
Plutonomy Emerges:
Income New savings rate Savings
Top 20% $60 5% or 8% or 9% $3 or $4.8 or $5.4
Next 20% $10 11% $1.1
Next 20% $10 11% $1.1
Next 20% $10 11% $1.1
Poorest $10 11% $1.1
Total $100 7.4% or 9.2% or 9.8% $7.4 or $9.2 or $9.8
Source: Citigroup Investment Research
Again, plutonomies like the U.S., Canada, and the UK have lower household savings rates than the more egalitarian countries like France, the Netherlands, Switzerland, Spain, and Japan.
At the heart of plutonomy, is income inequality. Societies that are willing to
tolerate/endorse income inequality, are willing to tolerate/endorse plutonomy.
Earlier, we postulated a number of key tenets for the creation of plutonomy. As a
reminder, these were: 1) an ongoing technology/biotechnology revolution, 2) capitalistfriendly governments and tax regimes, 3) globalization that re-arranges global supply chains with mobile well-capitalized elites and immigrants, 4) greater financial complexity and innovation, 5) the rule of law, and 6) patent protection.
We make the assumption that the technology revolution, and financial innovation, are likely to continue. So an examination of what might disrupt Plutonomy - or worse, reverse it - falls to societal analysis: will electorates continue to endorse it, or will they end it, and why.
Organized societies have two ways of expropriating wealth - through the revocation of property rights or through the tax system.
A third threat comes from the potential social backlash. To use Rawls-ian analysis, the invisible hand stops working. Perhaps one reason that societies allow plutonomy, is because enough of the electorate believe they have a chance of becoming a Plutoparticipant. Why kill it off, if you can join it? In a sense this is the embodiment of the “American dream”.[/quote
Originally posted by Janky Red
GOOD they work hard and deserve it with how hard they work!
Capitalism pays as does hard work!
Maybe they will hire you one day,,, never know,,,I'm going to celebrate!