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Drudge Retort: The Other Side of the News
Friday, October 08, 2021

After years of declines, America's middle class now holds a smaller share of U.S. wealth than the top 1%.

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...The middle 60% of U.S. households by income -- a measure economists often use as a definition of the middle class -- saw their combined assets drop to 26.6% of national wealth as of June, the lowest in Federal Reserve data going back three decades. For the first time, the super rich had a bigger share, at 27%....

The GOP's strategy to transfer wealth from the middle class to the Top 1% seems to be working.

#1 | Posted by LampLighter at 2021-10-08 02:01 PM | Reply

Thanks Reagan between you Bush and Trump it's amazing we even have a middle class.

And the rich like to pretend like they deserve it but most know it's not true.

That's why so many get involved with poorly run charities.

#2 | Posted by Tor at 2021-10-08 02:27 PM | Reply

..... because their investments [company's stocks, etc,] have gone up in value and mostly due to the middle class buying their goods and services.

#3 | Posted by MSgt at 2021-10-08 03:07 PM | Reply | Funny: 2 | Newsworthy 1

@#3

More likely due to the favorable financial treatment the Top 1% have received from the GOP administrations (e.g., the Trump tax cut).

For example, why might those stocks have gone up? Well, corporate taxes have dropped over the past 20 or 30 years. Lower taxes means more profits, more profits means higher prices for those investments your comment cites as a source of their increasing wealth...


#4 | Posted by LampLighter at 2021-10-08 03:18 PM | Reply | Newsworthy 3

In a bad flu season we loose c. 52,000 in the first covid "season" we lost c. 375,000.

Can you see the difference yet?

#5 | Posted by Tor at 2021-10-08 03:23 PM | Reply

#4 | POSTED BY LAMPLIGHTER AT 2021-10-08 03:18 PM | FLAG: So what's your point?

#6 | Posted by MSgt at 2021-10-08 03:24 PM | Reply

@#6 ... So what's your point? ...

Same as the one I made in #1: The GOP's strategy (of favorable financial treatment for the Top 1%) to transfer wealth from the middle class to the Top 1% seems to be working.



#7 | Posted by LampLighter at 2021-10-08 03:58 PM | Reply

Allowing the rich to spend huge amounts of money in politics and expecting a different result is the new definition of insanity. If most Americans really had a good understanding about how money in politics is ruining America then America would probably do something about it. Til we do it will just continue to get worse.

#8 | Posted by danni at 2021-10-08 04:47 PM | Reply | Newsworthy 2

#8 | POSTED BY DANNI AT 2021-10-08 04:47 PM | FLAG: AGREE is the majority of the wealthy monies are going to the dimmies.

#9 | Posted by MSgt at 2021-10-08 05:52 PM | Reply

#4 | POSTED BY LAMPLIGHTER AT 2021-10-08 03:18 PM | FLAG: Disagree as the majority of their stocks are going up due to increased sales of their products and services, and also, people like me, are buying into the successful companies stocks. The tax breaks went into affect years ago and are tertiary to the current profit line.

FYI: When more people buy a stock than sell, it goes up - simple ECON 101.

#10 | Posted by MSgt at 2021-10-08 05:58 PM | Reply

The graph is a symptom of the fact that "Since 1975, practically all the gains in household income have gone to the top 20% of households."

#11 | Posted by snoofy at 2021-10-08 05:59 PM | Reply

yeah...that sounds fair...

So when is 'open season' on the rich?
Do you need a hunting license?

#12 | Posted by earthmuse at 2021-10-08 06:08 PM | Reply

@#10 ... The tax breaks went into affect years ago and are tertiary to the current profit line.

So you agree that the favorable tax treatment given to the Top 1% over the years still has an effect.

...FYI: When more people buy a stock than sell, it goes up - simple ECON 101. ...

Also part of ECON 101 is supply and demand.

The Trump Tax cuts gave corporations a very significant tax cut[1], [2], e.g., 35% to 21% reduction in corporate tax rate. The lower tax payments resulted in more profits and as a result, as you noted, the stock price would rise.

But there was another aspect of the Trump tax cut... it was touted by the GOP at the time it was passed to lead corporations to use the increased money to make investments that would benefit the workers of the companies. For example, the GOP promised that corporations would give employees $4,000 raises. Instead corporations gave out one time bonuses.

Unfortunately, most companies used the money saved from the tax law, not to invest to benefit workers, but to do stock buybacks. Stock buybacks result in a lower supply of stock therefore, according to ECON 101, increasing the price of the shares. Increasing stock prices, as you have noted previously means more money for the Top 1%.

But the Trump tax cut for corporations was only one tactic in the GOP's strategy to transfer wealth from the middle class to the Top 1%.

Over the years there have been others, from trickle down economics to the present.


1- How Big Companies Won New Tax Breaks From the Trump Administration (
www.nytimes.com )
2- Twice as many companies paying zero taxes under Trump tax plan ( www.nbcnews.com )

#13 | Posted by LampLighter at 2021-10-08 07:22 PM | Reply

Eat the rich!

#14 | Posted by a_monson at 2021-10-08 07:50 PM | Reply

"Instead corporations gave out one time bonuses."

And usually before the new law took effect...since the new law disincentivized worker bonuses (as well as training, raises, equipment, and, well...workers).

No wonder almost no CEO said he'd reinvest the money in the company.
www.marketplace.org

#15 | Posted by Danforth at 2021-10-08 08:00 PM | Reply

China disappears their billionaires when they get out of hand.

Makes sense.

a little reeducation... mucking in the fields to remind them what life is like for the poor.

#16 | Posted by RightisTrite at 2021-10-08 11:36 PM | Reply

A bigger problem is the .1% instead of the top 1%.

I'm sure the top .1% love being lumped in the top 1% so the real truth gets lost in statistics.

The top .1% has more wealth than the rest of the top 1% all put together.

#17 | Posted by BillJohnson at 2021-10-09 06:52 AM | Reply

Capitalism at its best, making the rich richer, and the worker class, kind of irrelevant, until the advent of the robot class, when we all will be seen as refugees.

#18 | Posted by Hughmass at 2021-10-09 07:11 AM | Reply

Capitalism is a gateway drug to communism. Class division and economic disparity spark revolutions. So when the heads start rolling they have no one to blame but themselves.

The rich eventually lose... and it takes a nation decades to recover. Mexico, China, Russia are all recent examples.

China learned its lesson... it disappears its greedy goons. We need to do that here. Go ahead run to another country... they let the fecking Cayman islands defend you and your assets with their enormous superpower military.

The rightwingnuts are seriously outnumbered. I think it's time for the beatings to commence.

#19 | Posted by RightisTrite at 2021-10-09 10:00 AM | Reply

Hugh,

"Capitalism at its best, making the rich richer, and the worker class, kind of irrelevant"

You have that all wrong.

That is capitalism at its worst.

There are millions of hard working capitalists out there who are bettering mankind.

Just like Socialism, it's not the system but the abuses of the system and people who are willing to take advantage.

Currently there is massive wealth hording in the hands of few and too many people choosing to be dependent on the government.

From the looks of things both Capitalism and Socialism may be well on their way to reaching critical stages of breakdown where both are feeding on the system to the point of killing the host.


#20 | Posted by BillJohnson at 2021-10-09 01:02 PM | Reply

Currently there is massive wealth hording in the hands of few and too many people choosing to be dependent on the government

#20 | Posted by BillJohnson

So many people wouldnt be dependent on the government if the rich weren't hording the wealth idiot.

You complain like it's one problem for the rich one problem for the poor. It's not - the poor's problem is a result of the rich's problem.

#21 | Posted by SpeakSoftly at 2021-10-09 01:30 PM | Reply

"There are millions of hard working capitalists out there who are bettering mankind."

The purpose and goal of Capitalism has never been the betterment of mankind.

#22 | Posted by snoofy at 2021-10-09 01:44 PM | Reply

"Currently there is massive wealth hording in the hands of few and too many people choosing to be dependent on the government."

So let's say being dependent on Capitalism isn't as good a deal as being dependent on Government.

Which would you choose, the good deal or the bad deal?

#23 | Posted by snoofy at 2021-10-09 01:46 PM | Reply

Snoofy,

"So let's say being dependent on Capitalism isn't as good a deal as being dependent on Government."

There lies the problem.

#24 | Posted by BillJohnson at 2021-10-09 04:06 PM | Reply

Tell me how the Democrats don't own half the problem. Then tell me how the Democrats are going to fix the problem. Show your math.

#25 | Posted by BellRinger at 2021-10-09 04:30 PM | Reply

Tell me how the Democrats don't own half the problem. Then tell me how the Democrats are going to fix the problem. Show your math.

#25 | Posted by BellRinger

here's a hint stupid - dems have been for higher taxes on the rich for decades. Repubs have been trying to give the rich more for decades. Even if they have to take away healthcare to do it.

Idiot.

#26 | Posted by SpeakSoftly at 2021-10-09 06:06 PM | Reply

@#25 ... Tell me how the Democrats don't own half the problem. ...

How many Democrats voted for the Trump Tax bill that did a massive transfer of wealth to the wealthy?

Here's a hint..
en.wikipedia.org

...
Notable supporters

Leading Republicans supported the bill, including President Donald Trump and Vice President Mike Pence, and Republicans in Congress, such as:[213]

Paul Ryan, Speaker of the United States House of Representatives (R-WI)
Kevin Brady, United States Congressman (R"TX)
Mitch McConnell, Senate Majority Leader, United States Senator (R"KY)
Kevin McCarthy, House Majority Leader (R"CA)[214]

In the Senate, Republicans "eager for a major legislative achievement after the Affordable Care Act debacle ... have generally been enthusiastic about the tax overhaul."[215]

...

Notable opponents

Democrats opposed the legislation, viewing it as a giveaway to corporations and high earners at the expense of middle class communities.[219] Every House Democrat voted against the bill when it came to the House floor...



#27 | Posted by LampLighter at 2021-10-09 06:53 PM | Reply

Don't forget, if you just work hard enough, you can be a one percenter too!

#28 | Posted by SunTzuMeow at 2021-10-09 07:07 PM | Reply

The purpose and goal of Capitalism has never been the betterment of mankind.

#22 | Posted by snoofy

Funny you say that, no other system has brought more people and nations out of poverty.

#29 | Posted by boaz at 2021-10-09 10:29 PM | Reply

So many people wouldnt be dependent on the government if the rich weren't hording the wealth idiot.

People wouldnt be so dependent on the government if they took care of themselves and planned instead of looking for "income justice".

And no one "hordes" wealth. Wealth is property. It BELONGS to someone. It's private property. It's freedom.

Socialists dont like freedom. They dont like private property. They cant steal it.

#30 | Posted by boaz at 2021-10-09 10:34 PM | Reply

Morons like systems that create poverty and inequality.

#31 | Posted by Brennnn at 2021-10-10 02:33 AM | Reply

People wouldnt be so dependent on the government if they took care of themselves and planned instead of looking for "income justice".

And no one "hordes" wealth. Wealth is property. It BELONGS to someone. It's private property. It's freedom.

Socialists dont like freedom. They dont like private property. They cant steal it.

#30 | Posted by boaz

People would be able to take care of themselves if the rich weren't sucking all the wealth out of society. Schools would be better, healthcare would be better - people would be smarter and healthier and therefore earn more for themselves.

But the rich MAKE the poor need assistance, by sucking all the money out of the things that would enable them to stand on their own.

Wealth is property someone earns WITH THE HELP OF THE STATE. Therefore part of it is OWED TO THE STATE.

And you're just another broke chump, too stupid to see you're fighting for the rich to have more while your life and everyone else's gets worse.

#32 | Posted by SpeakSoftly at 2021-10-11 12:28 PM | Reply

"Tell me how the Democrats don't own half the problem."

What problem?
Show your math.

#33 | Posted by snoofy at 2021-10-11 01:11 PM | Reply

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