|
|
|
|
|
Economic Equity
Wealth inequality is vast and growing, whether measured in terms of wages, family incomes or wealth and much higher that that of other advanced countries.
According to a study by the top 10 areas of job creation for the years 2003-2005 pay on average $9000/year less than the top ten areas of jobs lost in 2001-2003.
According to the National Bureau of Economic Analysis, this expansion started in November 2001 when the average hourly pay of non-supervisory workers was $14.70.This figure was $16.62 in May of 2006 for an increase of 13.06%. Over the same period, the inflation gage increased from 177.4 to 202.5, or an increase of 14.15%. Therefore, wages for non-supervisory employees have decreased a little over 1% since this expansion began.
However, the unemployment rate dropped below 5% in December 2005, signaling "full employment". Has the decrease in labor supply increased wages? No. In December 2005 the average hourly wage of non-supervisory employees was $16.35. In May that number was $16.62 for an increase of 1.65%. Over the same period, the overall inflation measure increased from 196.8 to 202.5 or an increase of 2.89%. Therefore, since the economy hit "full employment" wages have decreased 1.25%.
Distribution of wealth is growing increasingly unequal. Because of recent changes in the tax codes (reduction in marginal income rates for highest earners, reduced rates on dividends/capital gains, estate tax reductions) have exacerbated wealth concentration.
Poverty is on the rise; more children are living in poverty, the rate increasing from 16.2 in 2000 to 17.8 in 2004. According to the Human Poverty Index, the US ranked worst among the selection of 17 wealthiest countries.
People are deeper in debt, rising to 42% over the last five years. Personal saving rate is negative for the first time since the Depression.
Rising health care costs eroding families’ income.
|
|
|