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Interesting article discussing the inequality bubble


Quotes from the article:

The rich just keep getting richer. The rest just keep getting shafted, regardless of the long-term consequences to the American economy. The rich don’t care. And based on how brazen the new GOP budget is about widening the inequality gap, you can bet they’ll just keep thumbing their noses at the rest of America

The inequality gap is now at 1929 levels, in fact, the widest it has been in a century, which makes the GOP gamble with the future of America a real “assault on the middle class,” says CNN, as the GOP keeps adding more and more benefits for the wealthy, while cutting incentives for the 90% who are actually building the economy of America’s future.

A couple years ago a Credit Suisse Global Wealth Report gave us a snapshot of just where this explosive inequality bubble is headed, reminding us of something far worse than the 1929 Crash, but of the 1790s when inequality triggered the French Revolution, and 17,000 lost their heads under the guillotine.

The Credit Suisse data reveals that just 1% own 46% of the world, while two-thirds of the world’s people have less than $10,000. Forbes also reports that just 67 billionaires already own half of Planet Earth’s assets. Credit Suisse predicts a world with 11 trillionaires in a couple generations, as the rich get richer and the gap widens.

History is warning us: Inequality is a recipe for disaster, rebellions, revolutions and wars. Not in two generations. Much, much sooner, a reminder of the Pentagon’s famous 2003 prediction: “As the planet’s carrying capacity shrinks, an ancient pattern of desperate, all-out wars over food, water, and energy supplies will emerge ... warfare will define human life on the planet by 2020.” Yes, much sooner than two generations.

Here’s an edited version of the “Stunning Truth About Inequality,”, a must-read for America’s 95 million investors:

1. Inequality gap’s worse than you imagine. “Americans consistently underestimate the amount of inequality in our country ... would be shocked to learn the truth ...

2. Gap’s worse than history’s worst. “Twice as bad as in ancient Rome, worse than in tsarist Russia, worse than in America’s Guilded Age.”

3. America is falling behind other developed nations. “Worse in America than any other developed nation.” Could ignite a 1790’s style revolution.

4. Inequality permanent. “Staggering inequality in America has become permanent.”

5. America’s two economies. “There are two economies: one for the rich, and the other for everyone else.” Thomas Pikkety’s “Capital in the Twentieth Century,” confirms it.

6. Top 1% in a bull rally, while the 99% in recession. “Economy’s recovered for the richest 1% … the rest of the country is more or less stuck in a depression.”

7. Rich keep getting richer. “The super rich are raking in more than ever before.”

8. Poor getting poorer. “While more and more people are sliding into poverty.”

9. Middle class now dead. “One of every five households in the America is on food stamps. The middle class has more or less been destroyed.”

10. Inequality causes crashes. “Who’s who of prominent economists and investors say that inequality causes crashes and hurts the economy.” Start preparing now.

11. Great Depression. “Extreme inequality helped cause the Great Depression ... the current financial crisis … and the fall of the Roman Empire.”

12. Bad politicians and policies. “Inequality isn’t happening for mysterious or uncontrollable reasons. Bad government policy is responsible for runaway inequality.”

13. Leadership. “Bush was horrible, but income inequality has increased even more under Obama than under Bush.“

14. Conservatives. “It’s a myth that conservatives accept runaway inequality. Conservatives are as concerned as liberals regarding the stunning collapse of upward mobility, the ending of the American Dream.”

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