The Rise of American Cannibals

The Economist  Nov 6th 2014

A NEW paper by Emmanuel Saez of the University of California, Berkeley, and Gabriel Zucman of the London School of Economics suggests that, in America at least, inequality in wealth is approaching record levels. The authors examine the share of total wealth held by the bottom 90% of families relative to those at the very top. In the late 1920s the bottom 90% held just 16% of America’s wealth—considerably less than that held by the top 0.1%, which controlled a quarter of total wealth just before the crash of 1929. From the beginning of the Depression until well after the end of the second world war, the middle class’s share of total wealth rose steadily, thanks to collapsing wealth among richer households, broader equity ownership, middle-class income growth and rising rates of home-ownership. From the early 1980s, however, these trends have reversed. The top 0.1% (consisting of 160,000 families worth $73m on average) hold 22% of America’s wealth, just shy of the 1929 peak—and almost the same share as the bottom 90% of the population.

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The baleful influence of corporate power

Over 100 years ago, it was a Republican who warned us about the baleful influence of corporate power on representative government.

Today the business once transacted by individuals in every community is in the control of corporations, and many of the men who once conducted an independent business are gathered into the organization, and all personal identity, and all individualities lost. Each man has become a mere cog in one of the wheels of a complicated mechanism. It is the business of the corporations to get money. It exacts but one thing of its employees: Obedience to orders. It cares not about their relations to the community, the church, society, or the family. It wants full hours and faithful service, and when they die, wear out or are discharged, it quickly replaces them with new material. The corporation is a machine for making money, but it reduces men to the insignificance of mere numerical figures, as certainly as the private ranks of the regular army.

from  The Texas Economic Miracle Is Killing People by Charlie Pierce