<p>^^ my theory is that flattening of the earth is a prime cause. We have a repeat of the blue collar exodus in a lot of meat-and-potatoes WC jobs that we always assumed were safe - if someone overseas can balance your books or fix a software bug for half the cost, why would a company hire here?</p>
<p>Dad- I believe you are correct. I think kids should look to work in areas of personal services- at least as a way to supplement any job/career they have. It is tough to off shore personal services.</p>
<p>“Half of the American population can’t raise $2,000 in cash in a month”</p>
<p>I read that article, and that is more of a commentary upon how foolish people are to not save when they have the ability to, not about how tough times are.</p>
<p>“The net worth of the population compared to its needs.” </p>
<p>Interesting statement. Makes me think how one sees many people who probably have a zero/negative net worth, but have a couple of iphones in their family, nice cars, smoke or drink, spend plenty of money on activities and items they enjoy. And that is not a statement reflective of how bad things are, but merely how poorly some are managing their money and going into debt for the friviolities of life, not the neccessities.</p>
<p>If People don’t buy the frivolities of life, how are businesses going to make money?</p>
<p>Apple needs people to actually buy their products. As well as Apple does, the company won’t thrive without customers.</p>
<p>It doesn’t bother you that most of the income gains over the last 30 years has gone to a small segment if the population? Most of the wealth is concentrated in a few hands?
You think that is a good thing?</p>
<p>Do you think governments should intervene in the markets?</p>
<p>After all, the firms that are in trouble engaged in reckless speculation.
The firms borrowed more than they could handle. They not only bought IPhones which cost several hundred, they bought over a trillion dollars of worthless paper. They booked profits and paid their top people
very well, and those profits are phony.</p>
<p>The things that you complain about people that can’t gather 2,000…were very similar to the things that were done by people at the top financial institutions…just different products…and done bigger.</p>
<p>But the people who you complain about haven’t seen their incomes go up for 30 years. The people who run the financial firms have done slightly better.</p>
<p>"We have a repeat of the blue collar exodus in a lot of meat-and-potatoes WC jobs that we always assumed were safe - if someone overseas can balance your books or fix a software bug for half the cost, why would a company hire here? "</p>
<p>I watched this last night. It is the 8/18/11 Daily Show, now online. It does an hysterical satire of Faux News portrayal of the poor. Over and over.</p>
<p>It explains why some people think like they do.</p>
<p>I am sure they are very scared. They are going to be the poor soon, if they aren’t already.</p>
<p>Smart, compassionate people don’t watch Faux News. They aren’t that worried about their jobs.</p>
<p>Yes, it bothers me that a huge amount of wealth is concentrated in 3% of the population.
It bothers me that those people have “duped” many of the rest. Pathetic.</p>
<p>If my salary is frozen for years, but my insurance deduction goes up, my check is less today than several years ago without even thinking about inflation. So it will be necessary to cut back someplace to stay even. Most nail salons are very small businesses. If I only have my nails done once a month instead of once a week, that will make up the difference in take home pay. If all the customers do that, does that business stay open? I doubt most people working in nail salons were able to save any kind of cushion for the bad times.</p>
<p>I don’t understand the big picture but I do think I see what is happening locally. </p>
<p>“It doesn’t bother you that most of the income gains over the last 30 years has gone to a small segment if the population? Most of the wealth is concentrated in a few hands?
You think that is a good thing”</p>
<p>I believe that it would be a better thing if everyone had an increased standard of living (and could pay for it, not by debt), and a higher income. But I do not think that because some people at the top of the ladder had higher gains than others, is at the expense of others. Dad<em>of</em>3’s flattening earth theory is a much greater issue in the lowering of incomes, along with illegal aliens willing to do work for half the market price, bringing wage scales down in certain industries. Anyone in construction knows that is true.</p>
<p>“Yes, it bothers me that a huge amount of wealth is concentrated in 3% of the population.
It bothers me that those people have “duped” many of the rest. Pathetic.”</p>
<p>I’m not sure how much money it takes to be in the top 3%, but I’d guess many of those people are retired, and not paying a whole lot in income taxes anymore. Maybe had some profitable housing sales, great investments and lived conservatively. Awful how they duped the rest of us fools, because if the money wasn’t theirs, it would be ours, right?
Most of my friends are in the top 3% of income, though that doesn’t mean they have wealth (because of course, when you work for an employer you can’t hide from taxes). Are these doctors, lawyers, pilots, tech industry workers and real estate investors duping people because their incomes have grown? Many people have seen income increases because they work in highly specialized fields that require a decade or more of training and education, and don’t even make much of an income until they are in their thirties or older. Yeah, they really duped the other 97%, didn’t they? I can see being annoyed at those who profitted at the expense of others in the bailouts and banking scams, and CEO’s who made millions while their companies were laying people off and losing money. But to be resentful at people because they have acquired a particular amount of money or earn a high income? Pure jealousy.</p>
<p>You are confused about wealth distribution in the US. Google it. !% of the US owns 40 % of the wealth. To break it down further, here are some good links.</p>
<p>The biggest wage discrepancy is among those within the top 1%. If the top 1% is family AGI of at least $250,000, then there is a difference of 250K between them and the people who make nothing, at the lowest 1% of AGI. </p>
<p>However, within the top 1%, the income ranges from a low of 250K, to a high of more than $86 million per year. That’s huge. Yet those within that range all pay the same tax rate on income which is taxable.</p>
<p>Busdriver11, I think doctors and Pilots are not making a lot more money than they used to make years ago.</p>
<p>Lawyers and real estate investors are going to be in trouble if the population keeps getting poorer.</p>
<p>Do you think rules and taxes have an affect on wealth?Do you see that lowering tax rates on capital gains and increasing social security taxes has an affect?</p>
<p>That flattening the earth theory can explain some of the discrepanies…</p>
<p>Maybe…instead of CEOs making 300 times what an average worker makes…and the 40 times it used to be…it should be 60 times today.</p>
<p>There is always going to be wealth inequality…but today’s rivals the dark ages…or the 20’s.</p>
<p>“Busdriver is talking about not wanting to pay SS and Medicare tax - the rest a good tax advisor could take care of.”</p>
<p>Not quite sure what you mean. If you are an employed worker, the company reports your wages. Good luck hiding it. I don’t know that any good tax advisor can hide reported income, unless they are doing something fraudulent. You pay full tax with few deductions. High income limits almost all deductions, the amt takes care of the rest.</p>
<p>“Busdriver11, I think doctors and Pilots are not making a lot more money than they used to make years ago.”</p>
<p>They may not be making what the doctors and pilots were twenty years ago, adjusted for inflation, but many have gotten large increases in their own personal income from many years ago (ie 20 years out of med school, you’ve probably make a heck of alot more than you did just after you graduated…me and my husband make about 13X what our starting salary was 20 years ago, because starting salary is low). Most people in highly specialized career fields that I know have seen their incomes improve over the years, though some have taken huge cuts because their companies weren’t making a profit, or lost their jobs.</p>
<p>“Do you think rules and taxes have an affect on wealth?Do you see that lowering tax rates on capital gains and increasing social security taxes has an affect?”</p>
<p>"The biggest wage discrepancy is among those within the top 1%. If the top 1% is family AGI of at least $250,000, then there is a difference of 250K between them and the people who make nothing, at the lowest 1% of AGI. </p>
<p>However, within the top 1%, the income ranges from a low of 250K, to a high of more than $86 million per year. That’s huge. Yet those within that range all pay the same tax rate on income which is taxable."</p>
<p>Exactly. Quite a difference there, that’s for sure. 250K in NYC, with a couple of kids in college may not make you feel so rich. 86 million? Okay, you’d be feeling rich just about anywhere!</p>
<p>As far as intervening, specifically, how? Choosing what industries prosper or which are punished? Giving breaks to certain favored groups, penalty taxing others? That is a fairly open ended question.</p>
<p>busdriver, the tax code does choose winners and losers. Look at the oil industry. They are positively coddled by the tax code, at the same time they are making record-breaking profits, and charging us an arm and leg for their product.</p>