Income

Bailouts for the Banks and Cake for the 99%

A blog post by Mark Price, originally published at Third and State.

What is good for the financial sector is good for the 99% 1%.

For the financialization of America wasn’t dictated by the invisible hand of the market. What caused the financial industry to grow much faster than the rest of the economy starting around 1980 was a series of deliberate policy choices, in particular a process of deregulation that continued right up to the eve of the 2008 crisis. Not coincidentally, the era of an ever-growing financial industry was also an era of ever-growing inequality of income and wealth. Wall Street made a large direct contribution to economic polarization, because soaring incomes in finance accounted for a significant fraction of the rising share of the top 1 percent (and the top 0.1 percent, which accounts for most of the top 1 percent’s gains) in the nation’s income. More broadly, the same political forces that promoted financial deregulation fostered overall inequality in a variety of ways, undermining organized labor, doing away with the 'outrage constraint' that used to limit executive paychecks, and more.

The Pittsburgh Post-Gazette reviews employment law in Pennsylvania and notes that there are two sets of rules, the rules for the rest of us (we are employed at will and rarely get a severance) and the rules for top executives.

Census Data: For Record Number of Americans, Recession Is Far From Over

Poverty has been rising for much of the last decade
View more charts
from the Center on Budget and Policy Priorities, interpreting the Census data

National poverty rate hit 15.1% last year, the highest level since 1993

As the recession took its toll last year, more Americans fell into poverty, saw their incomes decline and joined the ranks of the uninsured, according to new data from the U.S. Census Bureau.

The Census Bureau released the results of its annual Current Population Survey today in a new report — the first to include a full year of data from the Great Recession.

During 2010, the poverty rate increased to 15.1%, the highest level since 1993, with a record-breaking 46.2 million American adults and children living in poverty. Median household income also declined, and the number of individuals without health insurance increased again, now approaching 50 million.

Public programs continued to play an important role in blunting the full force of the economic downturn. An estimated 3.2 million Americans were kept out of poverty through unemployment insurance coverage, while public health programs such as Medicaid and the State Children's Health Insurance Program (SCHIP) helped to fill the gap as employment-based coverage declined once again.

More Americans Drawing Income from Unemployment, Social Security

A blog post from Emma Lowenberg, originally published on Third and State.

The fact that the economy is still struggling is not news to anyone. The national unemployment rate has increased steadily since February. Now, at 9.2%, it is not too far from its peak of 9.9% in December 2009.

Nationally, the personal income of 20% of Americans comes from the government through programs like Social Security and unemployment benefits, according to a report in The New York Times. The percentage is even higher in the economically worst-off states – like Florida, Michigan, Ohio, and Arizona.

Those who depend on this assistance are running out of luck, though, and so is the economy at large. Extended jobless benefits are set to expire at the end of the year, leaving nearly 7.5 million unemployed Americans without an important lifeline and risking greater damage to an all too fragile recovery. The still tentative agreement in Washington, D.C. to raise the debt limit appears to rule out any additional extensions of unemployment insurance for workers in 2012.

The ratio of job growth to job seekers remains dismally low. In Arizona, for example, there are 10 job seekers for every job opening. According to economist Mark Zandi of Moody’s Analytics, the amount of transfer dollars being paid out has increased by 35% since 2007.

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