Joseph Stiglitz : 1 Percent of the US takes the Income of 25 Percent " the point is that there has been this growing inequality not only in income but actually inequality of wealth is even much greater , there is a shrinking of opportunity it's not just that the people on the top are getting richer , if they were getting richer because they were contributing more to our society and everybody else was doing well that will be one thing but actually they are gaining and everybody else is decreasing in fact right now it is not just the bottom but even the middle , the median income half above half below are poorer today than they were half a decade ago , so all the growth that has occurred in our country in the last decade or more has gone to the upper 1 , 2 percent at the same time there is really shrinking opportunity ...."
I normally do not agree with Mr. Stiglhitz, but I do share his views on this issue. Over time, in the confines of Corporate Boardrooms and through their interaction with the Political Class, the affluent have managed to stack the deck in their favor and dramatically shift the balance of income and assets. In the heyday of the 50's, CEO's were not earning hundreds or even thousands of times more than the average worker. This came about through the repeated Executive practice of rewarding the top of the food chain (Boards, Senior Mgt and Shareholders) for performance and excluding the worker from participating in the profit allocation. It became further distorted as economic operations were relocated overseas. Unfortunately, I think this model is beyond repair and that absent political intervention and reform, we will see similar events to those transpiring in the Middle East. At that point the ruling class may have to decide whether it is better to share the pie or live abroad.
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