Poverty in the US continues to rise
The census bureau released new statistics showing that the poverty rate has risen in the US to 12.7, the fourth straight year that poverty has increased.
This bears out that the current economic "recovery", and economic trends in general in the US, are mostly benefiting the wealthy elite in the United States, while for most of us the economy continues not to do particularly well.
Paul Krugman wrote on August 26 about the fact that, despite a growing GDP, most Americans don't feel very satisfied with the economy. As Krugman put it, "American families don't care about G.D.P. They care about whether jobs are available, how much those jobs pay and how that pay compares with the cost of living." And therein lies the crux of the matter. As long as the US continues its inexorable march towards globalization, as long as the new employment that is being created are in the form of low-income, non-unionized Wal-Mart style jobs, then we will simply see more of this trend continuing. The economic rug is being pulled out from under us; what will remain will be greater economic insecurity for most of us, lots of wealth for a few. As Krugman points out,
Krugman further explains:
So while the combined compensation of the chief executives of America's 500 largest companies rose 54 percent last year, poverty has also increased for the fourth year in a row. What does this tell us about American capitalism?
This bears out that the current economic "recovery", and economic trends in general in the US, are mostly benefiting the wealthy elite in the United States, while for most of us the economy continues not to do particularly well.
Paul Krugman wrote on August 26 about the fact that, despite a growing GDP, most Americans don't feel very satisfied with the economy. As Krugman put it, "American families don't care about G.D.P. They care about whether jobs are available, how much those jobs pay and how that pay compares with the cost of living." And therein lies the crux of the matter. As long as the US continues its inexorable march towards globalization, as long as the new employment that is being created are in the form of low-income, non-unionized Wal-Mart style jobs, then we will simply see more of this trend continuing. The economic rug is being pulled out from under us; what will remain will be greater economic insecurity for most of us, lots of wealth for a few. As Krugman points out,
Because employers don't have to raise wages to get workers, wages are lagging behind the cost of living. According to Labor Department statistics, the purchasing power of an average nonsupervisory worker's wage has fallen about 1.5 percent since the summer of 2003. And this may understate the pressure on many families: the cost of living has risen sharply for those whose work or family situation requires buying a lot of gasoline.
Krugman further explains:
You may ask where economic growth is going, if it isn't showing up in wages. That's easy to answer: it's going to corporate profits, to rising health care costs and to a surge in the salaries and other compensation of executives. (Forbes reports that the combined compensation of the chief executives of America's 500 largest companies rose 54 percent last year.)"
So while the combined compensation of the chief executives of America's 500 largest companies rose 54 percent last year, poverty has also increased for the fourth year in a row. What does this tell us about American capitalism?
It's unfortunate to see poverty rise so high and health care costs rising so quickly. Health insurance is a major aspect to many and I hope something can be done to help many in need.
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10:40 AM
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