One More Reason America Is Fucked-- Horrific Economic Injustice
UPDATED-- see below
“Over the last generation,” the authors write, “more and more of the rewards of growth have gone to the rich and superrich. The rest of America, from the poor through the upper middle class, has fallen further and further behind.”
As if to underscore this theme, it was revealed last week (by David Cay Johnston, a Pulitzer Prize-winning former reporter for The New York Times), that the incomes of the very highest earners in the United States, a small group of individuals hauling in more than $50 million annually (sometimes much more), increased fivefold from 2008 to 2009, even as the nation was being rocked by the worst economic downturn since the Great Depression.
Last year was a terrific year for those at the very top. Professors Hacker and Pierson note in their book that investors and executives at the nation’s 38 largest companies earned a stunning total of $140 billion — a record. The investment firm Goldman Sachs paid bonuses to its employees that averaged nearly $600,000 per person, its best year since it was founded in 1869.
My column on Tuesday incorrectly described the situation of the small group of Americans earning $50 million or more annually. Their incomes declined by 7.7 percent between 2008 and 2009; they did not quintuple. The incorrect information came from a report based on flawed Social Security Administration data. An inspector general is investigating after two individuals filed false W-2 forms that led to the skewed data.