U.S. Economy Is Increasingly Tied to the Rich

finance.yahoo.com...

Who cares how the rich spend their money?

Well, perhaps everyone should these days. Consumer spending accounts for roughly two-thirds of U.S. gross domestic product, or the value of all goods and services produced in the nation. And spending by the rich now accounts for the largest share of consumer outlays in at least 20 years.

According to new research from Moody's Analytics, the top 5% of Americans by income account for 37% of all consumer outlays. Outlays include consumer spending, interest payments on installment debt and transfer payments.

By contrast, the bottom 80% by income account for 39.5% of all consumer outlays.

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.

This article goes on to proclaim the U.S. is in danger of becoming a "Plutonomy" or an economy dependent entirely on the spending of the rich. The funny thing here is I remember reading something like that in the forbidden "Capital" by ole' Marx.

The gap between the rich and the poor is the widest it's ever been. During the Carter years they took a survey and found the richest American made 25 times what the poorest worker did. Years later it's up to 75 times. Trickle down my ass
www.huffingtonpost.com...

Now, I'm not sure what can be done about it without people screaming about the dreaded "Socialism" or whatever Ism everyone is scared of today. The Republicans seem to think it's all "personal" responsibility and we are all broke because it's our fault. The Democrats talk a good game but just do the same crap the Republicans do for the most part. Those Tea Party folks? Well, I don't get what they want really. There is the Libertarian "pie in the sky" talk, problem being I know there is no pie in the sky for us ( and i also don't like pie).

Seeing as there is no general solution at the moment, I see this continuing for the time being. Until people finally get sick of the bone they are being thrown and decide to bite their masters. If that ever happens..Who knows? Part of me thinks it will never happen.

What do you mean becoming?

The government bailed the banks out for christ sake. The congress was threated there would be martial law and the economy would crash if they didnt.

Then Goldman Sachs used the billions of dollars taken from the people to give million dollar bonuses to associates and buy luxary jets. You even have people from Goldman Sachs as powerful lobbyists the government are taking their marching orders from!

Seriously, its not a "becoming" anymore. It is a plutocracy. Corrupt to the bone.

Poor people mean nothing to the rich in America. Its a disgusting system, completely inhumane.


[edit on 9-8-2010 by Copernicus]

reply to post by Copernicus


What do I mean by it? I didn't say it. The article said it. You should probably read it before you start attributing opinions to me. Generally, I think we are already there.

reply to post by antonia


This article goes on to proclaim the U.S. is in danger of becoming a "Plutonomy" or an economy dependent entirely on the spending of the rich. The funny thing here is I remember reading something like that in the forbidden "Capital" by ole' Marx.

You hit the nail directly on the head. For any educated person living on this planet that has read marxism for themselves knows that marx on his evolution of a society has stated this indeed.


The truly ironic thing is that these same elites cull over him and state at every given chance what a communist-mixed up man he was!

The truly remarkable feet to this man is every dang thing he wrote about a society is or has come to pass, hard to argue with facts isn't it

Well, what to say about this? The whole economy-concept is based on trust anyway and these kind of articles corrode away that trust. While the rich gorge themselves on the corpse of this corroding figment of a mass-delusion the rest of humanity have two choices that matter, go along and let the economy take the rest of your freedom away by going into voluntary slavery or reject the economy as it is now, take a stand and go another way. With or without those precious luxuries that only money can buy at this moment.

Ah well, snapping out of it, going back to my job in foresaid voluntary bondage.

[edit on 9-8-2010 by Harman]

reply to post by antonia


Unfortunately the current trend of the wealth flowing disproportionally to the upper economic tiers of the US Population has much to do with the ongoing shrinking middle class of Americans.

The US Middle class was historically been built upon manufacturing jobs, of which many, if not most, no longer exist.

Look around you, what can one say was produced in America these days ?

This lack of domestic production and subsequent loss of jobs has lead to creating an even larger percentage of the working "poor" Americans.

As the middle class shrinks, and more Americans become poor, it only further concentrates wealth amongst the remaining wealthy Americans.

I feel that the only way in which we will begin to see this trend begin to change is if more young Americans begin thinking differently and using their innovation and consider becoming business owners themselves. And capitalizing upon the system that caters to the wealthy via tax breaks for businesses regardless of how small.

Or

By changing the way in which they view education and gaining the requisite education necessary for today's better jobs in healthcare and technology.

Areas of the economy that aren't as hard hit AND are actually flourishing.





nice hei mao btw

The best that the middle-class folk can do for the situation is not elect republicans into office, period.

Whenever a republican is in office, history reveals that the situation certainly gets worst. The middle-class ratio among traditional red states is terrible. Republicans favor the wealthy only, and this is rather obvious to the unbiased observer who watches them function in office.

It seems their goals are to create a master and slave nation where they and the wealthy can slash the whip across our back at will.

reply to post by Baloney


You mean don't elect either republicans or democrats... They both work for the ultra rich and not for the rest of your country.

Originally posted by antonia

Generally, I think we are already there.

no... we have quite a ways to go..

ØbamaCare will cull the poor & feeble from getting entitlements/foodstamps, etc


the roadways will All transfer into toll roads, so only the well heeled
can use them without pinching their pennies like the serf-class will have to do.
local streets will be filled with moped's/golf-cars of the teeming poor masses---much like India was up till the recent past (a 3 wheel society)

only the very wealthy will be able to protect their wealth with Trusts and such... we the masses will have what remains of formerly healthy 401k and IRAs converted into govt protected Annunities ...tied to the 5 year Treasury interest rate, soon to be below 1%


no, we got a long way to slide, & the gap between the haves & have-nots will become worse than the race discriminations seen pre-civil war era in the northern sweat-shops &/or the southern plantations.


welcome a rationed dystopia

Remember the old saying...."If you can't beat them, then join them!"

This is what many working poor Americans haven't yet grasped.

THe laws are created to benefit the rich and the rich get richer as a result of people's ignorance to this simple fact.

I have pointed this out on more than one occasion here on ATS that in an interview with the Billionaire Warren Buffet he pointed out that his Secretary, earning a measly $35K per year paid more in taxes than he did.....

How does he do this ?
By having his money go to a Corporation in which he is simply a beneficiary of.
He is paid from his corporation.

Tax laws are different for Corporations vs Wage Slaves.
They pay hardly or any taxes at all !

People need to under stand the way things really work amongst the well to do.

And if they did, by simply educating themselves, they wouldn't necessarily become rich overnight BUT they would have considerably more money for themselves and their children.


DENY IGNORANCE

So are you suggesting the economy should instead be tied to the poor?

I don't get the logic. Please splain it to me.