Income inequality results in wealth inequality. In 1980, the average large corporation CEO’s salary was 50 times that of the average worker. Today that number is anywhere between 250 to 1,000. As companies grew, the workers have not shared in the growth.
“Trickle Down” economics, a.k.a “Supply Side Economics” has proven to not work, at least for 90 percent of Americans. In the late 1800s they had an earthier name for it: “Horse and Sparrow” economics. If the horse eats enough oats, eventually there will be some oats on the road for the sparrows to pick over.
Both parties hide the fact that this theory just doesn’t work. I think that’s about to change.
Through the post-World War II era, the top one percent earned 10 percent of all income. By 2007, that figure had jumped to 23.5 percent, the most since 1928.
We can start by making the minimum wage a living wage. In the US, five percent of the workforce makes at or below the minimum wage. This is no longer just a part-time, student job thing – the average age is 26. Not doing that is, in effect, giving taxpayer dollars to subsidize the company’ profits.
Seventy percent of U.S. economy is driven by consumer spending. If consumers don’t have money to spend, the economy tanks. If we put money into the hands of consumers, the economy picks up. The Pope understands this – and in the coming elections, you will hear more about income inequality.