Inequality in the United States is now so obscene that it’s impossible, even for mainstream economists, to avoid the issue of surplus.Read more
Large corporations and wealthy individuals pay far less than their fair share of taxes. Until we democratize the economy, the rest of us—who are not members of the boards of directors of large corporations or wealthy individuals—will continue to be forced to shoulder the burden of paying taxes to finance government services.Read more
The growth of inequality over decades is due to the ability of those at the top and those at the very top to capture a large portion of the growing surplus. But there has also been a change in the nature of that inequality in recent years, at least for those at the top—which is not due to escalating wage inequality, but to a boom in income from the ownership of stocks and bonds. They’ve now joined the ranks of the “coupon clippers,” who are able to use their accumulated wealth to get their share of the surplus.
The owners of capital at the very top are mirroring the structure of inequality last seen during the first Gilded Age.Read more
While Wall Street celebrates yet another stock market record—surpassing 20,000 on the Dow Jones industrial average—most Americans have little reason to cheer. That’s because they own very little stock and therefore aren’t sharing in the gains. A much better alternative for American workers would be to look toward a radically different model: enterprises that are owned and managed by their employees.Read more