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If you forget politics for a minute, while everyone is fighting against party lines, the hard economic mathematics reveal a strong reality that few are willing to face: in the past fifty years most Americans have been left in financial dust while the richest raced from us.
Income is moving over 50 years
According to a border study, the lowest 90 percent of Americans earned 66.57 percent of total tax income in 1975. By 2019, this proportion had shrunk to 46.83 percent.
According to real -time, the average assets for the top 1 percent of 4.3 million US dollars in 1976 increased to $ 27.3 million in 2021 -estimated 535 percent of nominal increase. The estimated 27 percent profit for inflation still reflects the dangerously destabilizing asset concentration at the top.
The middle 60 percent of the households, the core of the workforce, recorded only 60 percent of real income in the same period (Pro Pew Research Center and estimates by Brookings Institution).
Corporate tax cuts did not help workers
President Donald Trump's corporate tax cuts in 2017 lowered the interest rate from 35 percent to 21 percent and cost 1.3 trillion dollars over a decade.
They were sold as wage busters and promises an increase of $ 4,000 per budget. In reality, the results were far too short. Accordingly MarketwatchIn the two years after the cuts, real average wages rose only by 0.09 percent faster than before, a negligible change.
Investigations by the joint tax committee showed that the tax cuts' profits mainly went to first -class earners, and the workers did not increase under the 90th percentile. Instead, companies have transferred most of the profits into buyback and dividends, more than 6.4 trillion dollars for the S&P 500 companies from 2018 to 2022 -more than in workers, infrastructure or F&E (research and development).
According to the IMF (International Wonary Fund), which were cited by the Center for Household and Political Priorities, only about 20 percent of the tax-cut windfall went to capital or F&E. The return purchases rose by 55 percent in 2018 and are expected to exceed 2025 1 Billion US dollar.
Corporate studies make the picture clearer:
- Pepsico gave investors almost 21 billion US dollars in 2021, 2022 and 2023, while increasing the prices for consumers and taking employees.
- ComCast returned to the shareholders of almost 43 billion US dollars in 2021, 2022, 2023 to reduce 1,000 jobs and increase broadband rates.
- Unitedhealth rewarded shareholders in 2023 with almost 15 billion US dollars and increased profits by refusing 33 percent of the claims.
The actual cost of living has exploded
While the income has stayed behind, the price for the bare essential has increased:
- New car: The average price has more than doubled since the 1970s, from around $ 26,100 in 1972 (adjusted in inflation) to over $ 48,000 in 2022.
- Housing: The US real estate prices have risen by around 170 percent since the early 1970s, which made it about 2.7 -more expensive today (Fred/ to data).
- College: The costs for a four -year public conclusion (tuition fees, fees, space, board) rose from $ 10,231 in 1980 to $ 28,775 in 2019, which corresponds to an increase of around 180 percent. Some analyzes show that the total costs have increased by over 700 percent since the 1960s.
Add the costs for health care, food, supply companies and childcare costs, and American prosperity has become too far for everyone apart from the tip of the food chain.
Wrong hope and misguided guilt
Some defend guidelines that deepen the inequality, which are driven by the blind political loyalty or the invented myth that gives hard work access to the top 1 percent. However, the reality is clear according to the data: Almost 99 percent of Americans will never achieve permanent prosperity.
For those who earn an average of $ 62,000, the explosive assets, which corresponds to the top 1 percent stagnated wages, rising living costs and shrinking opportunities, contrasts a faulty economy to enrich the ultra-rich while leaving everyday worker.
What you can do:
2025/2030 income levels and measurements of income inequality
From Esri: “The data of the household income are usually reported as an orderly categorical distribution, together with summarizing measures of the middle and average household income. These summary measures provide a description of the income profile of an area, but state limited information about the form of the distribution of income.
'It's hard. It is common to brutally ': Trump Bill to harm the poorest in America the most harm
The author writes: “Last November, Donald Trump put out a solemn vow for all Americans:” Every citizen, I will fight for her, her family and her future every day. “Eight months later, Trump supports many guidelines that mean millions of millions of pain.”
10 million Americans will not be insured due to Trump tax and lawyer, estimates the CBO estimates
The author writes: “Ten million Americans will not be insured in the next decade due to changes in the tax and the law of President Donald Trump. This was found to estimate the Congress budget office. The impartial CBO analysis is carried out after the legislation is created in July an update from an earlier analysis, in which almost 11 million Americans from previous versions of the legislation from legislation are not insured are.”
The era of large increases for low -paid workers is over
Out of The Wall Street Journal: “Something remarkable in the years had happened immediately and especially after pandemic: wages for poor workers rose much faster than for the rich. This ERA could at least be temporarily set. The concerns about the health of the labor market may have ended after the disappointing July job report, which may have been increased to the health of the workplace.”
The business party continues to roll for the rich. Not so much for everyone else
The author writes: “This year, rich Americans basically slow down their role with a higher sentence. Why it is important: New data make it clear that the good times for cross-income strong wage growth, less debt as increasing financial stress.
The effects of the living salary check on salary check: shorter life, more stress
From the Committee on Health, Education, Labor and Pension Committee of the US Senate, the massive income and the inequality of assets in our country is not just an economic problem. The expanded gap between the rich and the working class is an essential factor for determining whether they live a long life and are healthy. Has increased steadily for the richest in America, low and medium -sized incomes have seen little or no profits.
From 2021: A new approach to measuring income inequality in recent decades
From the Rand Corporation: “In a study by the Rand Corporation 2020, a new method for measuring income inequality. They found that an income for employees under the top 10 percent of the income distribution at the same speed since 1975, the employees in this group in this group with 2.5 trillion more than 275 percent of the conditions in 2018, over the year 2018, about the year 2018 The 43-minute statements about the 43rd years had earned 47 trillion dollars in 2018, about the year 2018, about the 43-minute statements of the year.
From 2019: Why the law on tax cuts and jobs (TCJA) led to buyback rather than investments
The author writes: “The underlying logic of the TCJA was that the enabling of companies that companies would maintain a higher proportion of profits, long -term growth. Instead, the company's dominant reaction to the TCJA share buyback was. In the first three quarters of 2018, the return purchases of 583.4 billion USD rose by 12.5 percent in 2017.”