Income Inequality Analysis, Affects on Growth and Cures
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Income Data Summary from Chart 1979-2914
in thousands of dollars
Source Urban Institute

Super Rich earning over $350
Grew to 1.8% of Population.

Most Agree with Warren Buffett's 5% Tax Over $5 Million Income Which Would Brings in $20 Billion. Source

Upper Middle Earned $100-$349 Grew Dramatically to 29.4

Taxing Upper Middle Income Class say 5% would bring in more than $20 Billion. Would it affect the American Dream?

 Middle Middle Earned $50-$99 Decreased to 32.0%

Lower Middle Earned $30-$49 Decreased to 19.8%

Poor <$30 Decreased to 19.8% Plus a Higher Safety Net

Do We Need to Know For All Income Classes
Who Gets What from Our Safety Net?  Source

Analysis: Income Inequality is made most important by Media and Politicians.
 It is based on Market Income which is Not the Most Appropriate Measure.


Important stuff includes:


1) Wellbeing must replace market income as the success measure.

2) Actions of the very wealthy should be analyzed.

3) Affect of large groups working in concert affect tax code reconsidered.

4) Size and redundancy of our Safety Net should be made more efficient.

5) Our Democratic Federalist Capitalistic Republic is in charge.
 

1) Well-Being is Most Important

A) Political Stability has allowed productivity to increase which is a key to increased individual wellbeing especially child and young people Think how the public safety net has increased since the 1930's. Who wants to give up SS and Medicare? Why do some always want to cut the other guys government benefits. Think economic distress in Russia, Europe, and even Japan and Germany.
 

B) Scientific achievements have continuously added to citizen well-being. Think public health, smart phones, streaming audio-video, Gillette Stadium ... See Health Problems Solved

C) Personal compensation which includes market income, fringe benefits and government transfers have increased though not so much lately. Think Russia, China, and Europe's really slow recovery from the Great secession. 

D) Nurture thorough better parenting has increased continuously if not always rapidly and with genetics Nature is next.

 

 

2) Recent Actions of Very Wealthy

Income going to most of the top 1% is reasonable amount but
those earning in the top 1/10 of 1% (those over $435,000 in 2014)
really are making out in our Flat Free-Trade World.

Going After the Top 1/10 of 1% or even the top 1%
will help but it will not solve the problem. Retirement Age Must be increased and tax incentives to be more green just make  sense. The size of homes in getting gluttonous.

 

 

 

 

3) Income Affect of Large Voting Groups
 working in concert to minimize their taxes should be reconsidered.

 

4) Size and redundancy of Safety Net should be analyzed for efficiency.

See Why is Poverty Controversial

The Bottom Line on Taxes
Note: That Payroll Taxes of 15.3%% are paid by all which adds much of a burden to all but the top 20%

5.

6) Our Democratic Federalist Capitalistic Republic is in charge.
Designed to implement any proposed long-term solutions;
it will succeed but with some constitution.

People wanting a income different distribution should vote accordingly but
many voters feel they have more important needs.

Many Use of Political Action Committees to Redistribute Income
Voters protecting
Guns and God use the NRA.
Greed
motivates some.
Business enhance after tax profits using the Chamber of Commerce.
 Retirees join AARP to get a larger share of the pie.
Government is run by employees who use their union and
politicians receive much help and both vote
to enhance on career possibilities.

Together they make redistribution difficult.

Income Inequality Affects Growth

Cures

1) College Only Helps Our Brightest Who Must Work Very Hard. Our education system must change from maximizing the math and verbal ability of all students to maximizing a student's special intelligence, that which they do well. Career and life preparation requires a new Education Manifesto.

 

2) There is No Solution for
Too Many Low Paying Jobs

See World Changed and Good Jobs Disappeared

 

 

 

 

3) Entitlements
G
ot More from a
Flat Federal Budget

   Poverty Got Less

Sacrifice Needed

 

 

Interesting but for a Peasant I live well.

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What I learned today 7/27/16
Before Slavery those captured in war were killed or eaten!