January - March 2012



The 99% Crowd



With many I share the guilt for having too often written, acted or spoken without having first engaged thought. Some would say that the rising tide of the various “Occupy” gatherings in our country and around the globe should be attributed to this all too common human failing.

Are the critics of the “Occupy Wall Street” movement right? Or are there more serious and substantial reasons for the uproar that has recently found mention in the media? What motivates those who are activists at the encampments or those who in other ways may be supporting these protests?

According to the US CIA: “Since 1975, practically all the gains in household income have gone to the top 20% of households.”

The US Department of Commerce tells us:

In 1980, our US National Income was 2.4 trillion dollars. The share that was paid to employees was 1.7 trillion dollars, or about 70.8%. The non-employee share of income was 700 billion dollars.

In 2003, our US National Income was 9.7 trillion dollars. The share that was paid to employees was 6.2 trillion dollars, or about 63.9%. The non-employee share of income was 3.5 trillion dollars.

In 2010, our US National Income was 12.8 trillion dollars. The share that was paid to employees was 7.9 trillion dollars, or about 61.7%. The non-employee share of income was 4.9 trillion dollars.

The increase in National Income from 1980 through 2010 was 10.4 trillion dollars. Employees got 6.2 trillion of the increase. Non-employees got 4.2 trillion of the increase.

But the Central Intelligence Agency says that the richest 20% of US households got almost all of the increase. How can that be when employees only got about 60% of the increase in National Income?

This apparent contradiction is resolved by the fact that most of the employed executives, managers, and upper-level specialists in America live in the richest 20% of US households. In addition to having received most of the increases in non-employee income, they also have given themselves most of the employee raises.

We have had a thirty year trend of keeping almost all of the increase in National Income out of the pockets of those living in 80% of US households.

This is one major cause of America’s social and economic troubles:

Dramatic increases in the cost of living for thirty years with little or no increase in income for the vast majority of citizens.