US Economy Excels at One Thing: Producing Massive Inequality
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(Image by Sparkx 11 / wikimedia)
To solve the extreme inequality of US capitalism requires systemic change, an end to capitalism pitting employers against employees.
By Richard D. Wolff
To grasp the sheer magnitude of US economic inequality in recent years, consider its two major stock market indices: the Standard and Poor (S&P) 500 and Nasdaq. Over the last 10 years, the values of shares listed on them grew spectacularly. The S&P 500 went from roughly 1,300 points to over 3,800 points, almost tripling. The Nasdaq index over the same period went from 2,800 points to 13,000 points, more than quadrupling. Times were good for the 10% of Americans who own 80% of stocks and bonds. In contrast, the real median weekly wage rose barely over 10% across the same 10-year period. The real federal minimum wage fell as inflation diminished its nominal $7.25 per hour, officially fixed and kept at that rate since 2009.