Why the Wealthy Determine the Economy-US in danger of becoming a "Plutonomy"-Yahoo News

It is no surprise, of course, that the rich spend so much, since they earn a disproportionate share of income. According to economists Emmanuel Saez and Thomas Piketty, the top 10% of earners captured about half of all income as of 2007.

What is surprising is just how much or our consumer economy is now dependent on the rich, and how that share has increased as the U.S. emerges from recession. In the third quarter of 1990, the top 5% accounted for 25% of consumer outlays. That held relatively steady until the mid-1990s, when it started inching up past 30%. It dipped in 2003 and again in 2008, but started surging in 2009 amid the greatest bull market rally in history, with the Dow Jones Industry Average rising nearly 50% in the last nine months of the year.

finance.yahoo.com...

This article is very similar to the "leaked" Citibank memo that was sent to its top clients...
www.scribd.com...

Our whole plutonomy thesis is based on the idea that the rich will keep getting richer. Whilst the rich are getting a greater share
of the wealth, and the poor a lesser share, political enfrachisement remains as was – one person, one vote (in the plutonomies). At some point it is likely that labor will fight back against the rising profit share of the rich and there will be a political backlash against the rising wealth of the rich.


I am surprised... actualluy shocked... though, that the MSM is actually reporting on this as a problem, that the MSM is showing this disparity and talking about it.

Thoughts?

While this is true and the middle and lower classes will come to serve the rich, any attempt to stop this would be met with cries of "Socialism" and anti share the wealth cries.

I wish people would QUIT misrepresenting things.

The uber rich DO NOT PAY TAXES. Period.

That is what their lawyers, their trusts, their foundations, etc are for.

For the ignorant to think that raising taxes on those that cannot afford to have or create these things are just being IGNORANT.

Take a look at the Kennedy Foundation for example.

What they do is set up these entities that are "supposed" not for profit and charities. The people live in the castles that are owned by the foundation. They get paid for their sustenance like their cars, their food, EVERYTHING that is supposedly operating expenses of the foundation.

And the ignorant KEEP falling for the lies. PERIOD.

Maybe people should start looking into this and begin to understand they are being LIED TO.

reply to post by Tyrannyispeace


Very good statement. You are of course correct. I cannot remember the exact figures but I read a paper some time ago where an economist was talking about this disparity and it was jaw dropping. It was like where the middle class paid like 80% of the taxes or something ridiculous, the top fifty major corporations as far as profit each actually received millions in tax credits!

It's disgusting. Welcome to the Corporatist/Fascist States of America. Where every elitist scum criminal can pursue the American dream of producing nothing and becoming rich and powerful on the backs of the middle class!

reply to post by Redwookieaz


Well you bring into another component. See, corporations pay absolutely NO taxes either.

Here is how that works. A corporation has expenses and income. The income is EXACTLY equal to expenses.

Let us say a corporation has a profit, those profits are paid out to the investors as cash disbursements. Therefore, no matter what, the corporation NEVER pays a tax, period. Depending on whom gets the disbursements, they pay the taxes.

So, let us say a foundation or a trust, which is a not for profit entity is a major stockholder, there income from that holding is then installed into their books. Which of course then THEIR accountants and lawyers pull the IRS CODE shuffle.

Those uber rich NEVER pay a dime of taxation. Hell, look at what the super rich are doing now, vowing to DONATE half of their wealth, this then can be amortized or depreciated over years so that they will no longer pay taxes for years to come on their profits.

It is all a game that unless you are uber rich, you are not allowed to play.

Then we have the ignorant come on sites like this, that have no idea how the game is played and scream and yell like imbeciles.

Thanks for the kudos, just trying to inform.

While the poor keep trying like a donkey for the proverbial carrot... and they will never reach it, the carrot the elite hold that is unattainable. the thing I was surprised about was that a mainstream newspaper actually came out and said it was a "probability". Gee, really?


This is why the memo that was leaked, that Citibank was so embarrassed about, caught one fear of theirs that they expressed... their deep chagrin over the system that still allows "one person, one vote" in this country.

reply to post by Tyrannyispeace


Well thanks again for further enlightening me to the way of the Elite. That actually sounds like what they were saying in the article I read so long ago I believe.

reply to post by thegoodearth


And of course thanks for the OP. It seems that having an economy based on the spending habits of the elite is bad on many different levels. Things are going to get worse I think. The divide will worsen and there will truly be the lucky chosen few who rule, and then the serfs.

Very sad to see things head in this direction. The US could have been much more if the TPTB weren't so short sighted. We will have to accomplish without and in spite of them if our country is going to survive looking anything like it was meant to be.

............"I wish people would QUIT misrepresenting things....."


yeah me to...


guess noone ever worked for their wealth
guess they never planned, prepared did anything of the sort..

guess all rich people are just born that way.......

since a guy who apparently isnt rich telling everyone else what those rich people sopposedly does.

middle class pay more taxes than a rich person???????????? bold face lie
rich pay no taxes another bold face lie.
corporations pay no taxes bold face lie.
guess what if it wasnt for the rich corporations or banks

who makes all those little things you go out and buy everyday
who employs you?
who loans you the money so you can go buy a car, a house ?

guess they just magically appear and every one of them justs makes up a number at random.

guess theres no such thing as insurance,lawyers,unions,workmans comp you know that pesky little thing call overhead.


if you guys wanna vilify rich and banks and corporations your free to....

just as i am free to put everything in this thread and flush it down the toilet
because IN MY OPINION thats where it belongs.