[lbo-talk] Growing gap between the haves and have-nots (MSNBC article)

Tommy Kelly tkelly15450 at charter.net
Mon Aug 16 20:45:53 PDT 2004


WASHINGTON - Over two decades, the income gap has steadily increased between the richest Americans, who own homes and stocks and got big tax breaks, and those at the middle and bottom of the pay scale, whose paychecks buy less.

The growing disparity is even more pronounced in this recovering economy. Wages are stagnant and the middle class is shouldering a larger tax burden. Prices for health care, housing, tuition, gas and food have soared.

The wealthiest 20 percent of households in 1973 accounted for 44 percent of total U.S. income, according to the Census Bureau. Their share jumped to 50 percent in 2002, while everyone else’s fell. For the bottom fifth, the share dropped from 4.2 percent to 3.5 percent.

Jobs and the economy top the list of voter concerns this election year. President Bush touts a strong economy that is growing, but polls find that Americans have doubts and think jobs are scarce. John Kerry is trusted more on the economy, with Democrats talking regularly of “two Americas,” divided between the rich and everyone else.

That argument has merit, some private economists say.

“For those working in the bottom half of the pay scale, they’re under an enormous amount of pressure,” said Mark Zandi, chief economist at Economy.com.

New government data also shows that President Bush’s tax cuts have shifted the overall tax burden to the middle class from the wealthiest Americans.


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source: http://www.msnbc.msn.com/id/5726153/



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