"Rich-Poor Income Gap Greater Than 1929"

"Income Gaps hit record levels in 2006, new data show": "New data from the Congressional Budget Office (CBO) show that in 2006, the top 1 percent of households had a larger share of the nation’s after-tax income, and the middle and bottom fifths of households had smaller shares, than in any year since 1979, the first year the CBO data cover. As a result, the gaps in after-tax incomes between households in the top 1 percent and those in the middle and bottom fifths were the widest on record. “Taken together with prior research, the new data suggest greater income concentration at the top than at any time since 1929."

Among the CBO's findings was that "The average after-tax income of the top 1 percent of the population more than tripled, from $337,000 to over $1.2 million. (An increase 256 per cent) while "The average after-tax income of the poorest fifth of the population rose only from $14,900 to $16,500" (an increase of 11 per cent.) The CBO shows that the same inequality thrives in the tax system which is blatantly regressive: "Households in the bottom fifth of the income spectrum received tax cuts averaging $20" whereas "within the top 1 percent, those with incomes exceeding $1 million received tax cuts averaging $118,000." ("New data show the rich-poor gap tripled between 1979 and 2006." Center on Budget and Policy priorities, Arlen Sherman)

Growing inequality- now more flagrant than ever given the government bailouts and preferential treatment of financial institutions- is feeding an anger which is spreading across America. Timothy Geithner has become the face of a thoroughly corrupted system run by money-grubbing speculators, avaricious banksters and shyster fund managers. He has become a lightening-rod for all manner of criticism which should be directed at the inherent flaws of a system which provides obscene riches to crafty tycoons and securities fraudsters while the people who shine the rich folks’ limos or build their homes find themselves perusing the want ads the end of an unemployment line. The real economy is sinking fast and, with it, any hope for a quick recovery. Policymakers are completely at a loss. The public knows that things are worse than they are being told."

- Mike Whitney, fergiewhitney@msn.com

http://counterpunch.org/whitney05012009.html