Gap Between Haves, Have-nots Expands

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  • DLR'sCock
    Crazy Ass Mofo
    • Jan 2004
    • 2937

    Gap Between Haves, Have-nots Expands

    Yep, as I predicted 10 years ago(not that it's difficult to see)........if things don't change this will continue...






    Gap Between Haves, Have-nots Expands
    Associated Press

    Monday 16 August 2004

    WASHINGTON (AP) — Over two decades, the income gap has steadily increased between the richest Americans, who own homes and stocks and got big tax breaks, and those at the middle and bottom of the pay scale, whose paychecks buy less.

    The growing disparity is even more pronounced in this recovering economy. Wages are stagnant and the middle class is shouldering a larger tax burden. Prices for health care, housing, tuition, gas and food have soared.

    The wealthiest 20% of households in 1973 accounted for 44% of total U.S. income, according to the Census Bureau. Their share jumped to 50% in 2002, while everyone else's fell. For the bottom fifth, the share dropped from 4.2% to 3.5%.

    Jobs and the economy top the list of voter concerns this election year. President Bush touts a strong economy that is growing, but polls find that Americans have doubts and think jobs are scarce. John Kerry is trusted more on the economy, with Democrats talking regularly of "two Americas," divided between the rich and everyone else.

    That argument has merit, some private economists say.

    "For those working in the bottom half of the pay scale, they're under an enormous amount of pressure," said Mark Zandi, chief economist at Economy.com.

    New government data also shows that President Bush's tax cuts have shifted the overall tax burden to the middle class from the wealthiest Americans.

    "We're just trying to get ahead." said Debbie Reames, 49, of Raytown, Mo., whose bank job of 24 years was sent overseas in February. "But it seems like we climb a few rungs and then we fall back again."

    Reames has a new secretarial job, which pays $7,000 a year less than her bank job, and she works catering jobs for extra money. Her husband, Russ, can no longer work after an injury. One son is finishing college and another will start in the fall.

    So the family budget tightened. That meant fewer cable channels, more meals at home, postponed doctor appointments, missed vacations, delayed credit card payments, all to "keep the wolf away from the door," she said.

    The U.S. jobs market is soft, sending wages down. Hiring came to a near standstill last month, with companies adding just 32,000 new jobs overall, stunning economists who had expected seven times as many.

    More than a million jobs have been added back to the 2.6 million lost since Bush took office, but they pay less and offer fewer benefits, such as health insurance. The new jobs are concentrated in health care, food services, and temporary employment firms, all lower-paying industries. Temp agencies alone account for about a fifth of all new jobs.

    Three in five pay below the national median hourly wage — $13.53, said Sung Won Sohn, chief economist for Wells Fargo.

    On a weekly basis, the average wage of $525.84 is at the lowest level since October 2001.

    The income gap is showing up in booming sales of luxury items. Porsche Cars North America Inc. says sales are up 17% for the year. Strong sales at Neiman Marcus, Nordstrom and Saks Fifth Avenue overshadow lackluster sales at stores such as Wal-Mart, Sears and Payless Shoes.

    Real estate agent Lance Anderson, 38, of Overland Park, Kan., expects a record sales year, as homeowners upgrade to more expensive homes and commercial clients expand. He recently took his family to Disney World for a two-week Florida vacation.

    "My clientele, it seems as a whole, has seen positive growth," he said. So his family, including three children, now eat out more often and spend more on clothes. They recently bought two new cars and anticipate buying a larger house in the next few years.

    Economists say wages should rise as companies boost hiring. But the growing gap between the haves and have-nots will remain.

    Technology has eliminated many U.S. jobs, as has global competition, particularly from low-wage countries such as China. Highly skilled, educated workers in America will thrive as demand rises, Sohn said, while low-skilled jobs remain vulnerable to outsourcing.

    "This really has nothing to do with Bush or Kerry, but more to do with the longer-term shift in the structure of the economy," Sohn said.


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  • Warham
    DIAMOND STATUS
    • Mar 2004
    • 14589

    #2
    Yes, it has nothing to do with Bush or Kerry. That is correct.

    Comment

    • CyberDust6
      Roth Army Recruit
      • Aug 2004
      • 13

      #3
      Give me a break.

      First, what does it matter who the tax burden was shifted to. Every single person who payed federal income taxes in the United States is now paying lower federal income taxes, and thanks to the Bush tax cuts 5 million of the poorest Americans no longer pay any federal income taxes.

      Also, the CBO survey they are citing for the shifting of the tax burden is flawed. It is flawed because it includes the payroll tax, which every working American pays into and hopes to receive a direct benefit from it when they turn 65. Since the payroll tax takes money directly from your paycheck to pay for government run insurance plans, specifically Social Security and Medicare, it is flawed to call it a tax and include it when examining the tax burden because you will directly be receiving the benefits of it when you become 65.

      Second, yeah businesses only created 32,000 jobs last month. However, at the same time, according to the household survey, 629,000 Americans decided to start their own businesses. This caused the national unemployment number to dip from 5.6% to 5.5%.

      Third, yeah it is true that some jobs are outsourced to other countries, but at the same time we are receiving more jobs from other countries to make up for the loss. Read this if you want the facts on outsourcing:



      Finally, the percent change in sales for Porsche, Neiman Marcus, and Sax Fifth Ave might be bigger than Walmart or Target. However, if you look at the actual number in dollars Walmart and Target dwarf those high end retailers in sales.

      I know you liberals are trying to make people think the only people benefiting in this economy are the super wealthy at the expense of the middle class, but unfortunately it is simply not true. This economy is not in the gloom and doom state that you and the media are trying to portray it in.

      Van Halen with David Lee Roth Rocks!!!!!!!!!!!!!!

      Comment

      • JCOOK

        #4
        May be the have nots should.......Work harder that might help

        Comment

        • WACF
          Crazy Ass Mofo
          • Jan 2004
          • 2920

          #5
          In Canada the biggest share of tax dollars come people employed in the primary industries.
          Sounds like it is no different in the U.S., the gap between middle class and the rich here is no differnt than in your country too.
          Face it...the rich rule the country...they deternime who gets what break and it will always be self serving.
          Our PM registers his ships from his shipping company in the Bahamas...to get the tax break...nothing like being PM and not supporting your own country through the taxation put in place...jackass...

          Comment

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