Unsustainable

OXFAM International just released a staggering report on inequality in the world. Here are the highlights.

• Almost half of the world’s wealth is now owned by just one percent of the population.

• The wealth of the one percent richest people in the world amounts to $110 trillion. That’s 65 times the total wealth of the bottom half of the world’s population.

• The bottom half of the world’s population owns the same as the richest 85 people in the world.

• Seven out of ten people live in countries where economic inequality has increased in the last 30 years.

• The richest one percent increased their share of income in 24 out of 26 countries for which we have data between 1980 and 2012.

• In the US, the wealthiest one percent captured 95 percent of post-financial crisis growth since 2009, while the bottom 90 percent became poorer.

The world economy simply cannot be sustained with this level of inequality. Demand is not where it should be and this is exactly why. If this gap continues to widen, demand will fall and more people will have less money as smaller businesses collapse.

Check out this video clip below from "Morning Joe" which illustrates how this is no longer a left-right divide.

 

Joe sounds quite a bit like Ronald Reagan in that 1986 speech I cite often. Note that they discuss how it isn't simply one issue like the tax code or the minimum wage but many issues that have coalesced into a fundamental systemic failure.

Barack Obama came to Washington to change it and this could be just the issue to do it. My colleagues on the Right and in the Tea Party assure me that they loathe the political and aristocratic class and its rent seeking as much as I do. So, what are we going to do about it?