The invisible elephant is this:
In 1980 the top 1% of the population received 9% of total incomes. In 2008, this same 1% received 23.5% of total income (an increase of 14% to 15 % over a couple of decades). The top 5% of the population now receives about 60% of total incomes, the top 10% about 70% of total income... Which means the rest of us... All of those of us with a family incomes of $99,000 and below... That's 90% of us, must share the remaining 30% of incomes.
Jumping to another statistic, US based corporations,
not including the financial sector, are currently sitting on $1.8 trillion in loose un-invested liquid cash.
Yet one cannot talk about these facts (yes, they are facts); they are not acknowledged in government or major media circles. If somebody did mention these statistics on a national stage, there would be an hysterical roar from the Republicans and their corporate sponsors, "You're starting a class war, you can't do that!!!" And the Democratic Party, not knowing what or who they stand for would shut up and comply.
The upshot is, there is and has been since the end of FDR's administration an implicit agreement going through Washington D.C. (both sides of the aisle) and top media reporters that issues around distribution of income and economic structure will never be mentioned. These subjects are "black hole" subjects on the national stage, and that's why the ludicrous arguments against removing tax breaks for the top 2% are getting the traction they are.
"Trickle-Down" is America's official economic ideology:"Trickle Down" says this: When America's rich gain, so do the rest of us. According the the principles of trickle-down, it is in every citizen's best interest to help the rich get even richer. The way it's figured is that if the rich get richer, the rest of us will get bigger crumbs. The current sad state of affairs is that trickle down has moved well beyond a hypothesis and theory and has instead been enshrined with full bi-partisan support as an article of faith never to be questioned. This is why the above mentioned elephant remains invisible and will continue to remain invisible.
Trickle-down is known by a number of different names. Around most of the rest of the globe, trickle-down economics are known as "neo-liberal" economics. Here in the US, trickle-down often goes under the name of laizzes-fair capitlism, or neo-conservative economics. Regardless of the title, this trickle-down article of faith relies on the same basic economic policies.
These policies include systematically deregulating economies; everything from occupational health and safety to minimum wage protections to any trade barriers which might interfere with international capital penetration. These policies also rely on massive tax cuts and massive cuts to safety net protections, including even the most basic protections such as unemployment insurance. Under trickle-down, government actions are used to drive down wages and benefits in the private sector as well. Thus, trickle-down economies rely heavily on state repression to silence worker and poor peoples' rights to protest and take direct action in their own behalf.
"Trickle-Down's" real track record:If one looks at the period from 1980 to 2008 one will notice that the top 1% share of the national income has increased by roughly 15%. During this same period of time, the lowest 20% of the population has seen their share of national income fall into the abyss. The next 40% to 60% of the population has been able somewhat to hold their own over this same two and a half decades by significantly increasing a family's total hours of work. Remember, this is the period when working class (often referred to as the "middle class") families moved from a one wage earner household to two wage earner households. With household incomes essentially flat, this same 40% to 60% were the same folks that took advantage of America's expensive but easy credit in order to fool themselves that they were participating in the American Dream. Of course we now know where this expensive but easy credit has taken us...
Trickle-down has an even more extensive track record on the international scene. The International Monetary Fund (IMF) has been forcing trickle-down policies down the international throat as a pre-condition for any IMF loan. Thus trickle-down has been a forced policy for most Latin-American states, what used to be the old Eastern-Bloc, and significant chunks of Asia, including Iraq in the Middle East.
This track record is not a pretty one. Universally and in virtually every case trickle-down economic policy has lead to massive unemployment, often at the 40% to 50% level; incredible spikes in poverty levels often including mass starvation; violent political repression; and the destruction of internal industries and manufacturing. At the same time, trickle-down has lead to massive gains for the richest segments of an IMF-attached society with the biggest benefits going to the financial speculators and those attached to international capital.
How big chunks of the rest of the world feels about trickle-down comes down to this interesting little fact. In 2005, the IMF had 80% of its loans in South America. In 2010, the amount "invested" in South America has decreased to 1%. Most South American countries have been working like mad to pay off the IMF, and they're not inviting the IMF back. As every South American government now knows, the price of an IMF loan is a willingness to tear one's own society into shreds.
The future of trickle-down:All facts considered, trickle-down should be a dead and deeply discredited economic theory; that is unless you buy the proposition that it is only the top 5% of any population that matters. But this seems not to be the case. Trickle-down is alive and well. While thrown out of Latin America, trickle-down has been given a new lease on life in nations such as Britain and Germany and the EU in general as they apply "austerity" economics on their own citizens. Trickle-down remains the dominant economic ideology in the old Eastern-Bloc too, thanks to new post-communist highly repressive governments.
Here in America, trickle-down is alive and well with a radical version of this tainted theory being adopted wholesale by the Republican Party. With absolutely no doubt, the Republicans, if in power, would cut unemployment insurance in spite of an official 9.6% unemployment rate (an unofficial 20% is more accurate). They would deregulate the economy regardless of recent mining disasters, the BP oil spill, and Wall Street's destructive speculative obsessions. They would holler about the deficit while maintaining a state of constant warfare and would conveniently forget about the deficit when it comes to tax cuts for the rich.
All of the above Republican positions sound ludicrous except that they might very well win on November 2. That such ludicrous positions could win is largely because we have a national cultural muzzle on when it comes to issues of economic structure and who the winners and losers really are (like, you know, the facts). So, the elephant remains invisible and big, giant chunks of the foundation of our society remain off-limits and unacknowledged as existing.
Final thoughts:I was talking to a friend yesterday who was telling me about a conversation he had with some real estate agent bozo while manning the Working Families Party booth at the State Fair. The conversation with the bozo ended when Bozo said with a sneer, "You don't believe in profits, do you?", and my friend said, "WFP is OK with profits. Personally no, I'm not OK with profits".
I'm with my friend 100%. I don't "believe" in profits. As I see it, profits are about getting something more for nothing. The whole basis of profit is to get more out of the transaction than you put in. The extra that one gets as profit had to come from someplace, and that's the part that is usually taken from somebody else. So, yeah, profit is theft and every piece of the Republican platform, for instance, does indeed boil down to a wider opening for even bigger robberies.
The truth of the matter is this: Civilization works because millions and billions of people make it work; yup, even in our semi-barbaric society. Economies are created and re-created every day when the millions and billions of people go to work and make and provide the services and products that we use; good or bad. Each one of these small wheels connects to larger wheels with the whole thing, called society, working because each of the parts is working. Interestingly each wheel and each bigger wheel is made up of live human beings, each with their own life, family, own subjectivity, etc. etc. These are the people I am for...