boutons_deux
12-13-2013, 02:47 PM
How Institutional Gridlock in U.S. Politics Benefits the Rich
In 1976, as President Jimmy Carter was inaugurated, the share of all income in the United States going to the richest one percent reached an historic low. Back in 1929 just before the Great Depression, the richest one percent of Americans claimed of 24 percent of income—close to one of every four dollars—but the top one percent’s share dropped to just under 9 percent by the mid-1970s. But this was an unprecedented and momentary level of egalitarianism in the U.S. economy. Since then, America has been on a path toward ever greater income inequality.
Many factors contribute to changes in what is called “income concentration” over time, including major economic and demographic shifts. College-educated people now make more than they used to, compared to those with just high school degrees; and an aging population means there are fewer people in the workforce. The long-term decline of U.S. unions has shifted the balance of bargaining power away from workers and toward corporations; and a more globalized economy puts downward pressure on middle class wages. The rise of the finance sector has produced eye-popping incomes for executives, compared to what used to be made by stodgy bankers. But factors such as these are only part of the story, as I have discovered in research done with several colleagues. The U.S. political system also encourages concentration of income at the very top—specifically the aspect of the system that produce blockages to policy changes.
Institutional stasis also tends to feed on itself, we argue. That is, hurdles to policy-making exacerbate inequality to a greater extent as the gap between the rich and the poor grows. If incomes were becoming more equal, then doing nothing new would matter only to actors who want greater inequality. But when inequality is increasing, stasis allows the process to accelerate.
The fewer important laws Congress enacts, the more income flows to those at the very top. The difference between a Congress that enacts relatively few laws and a Congress with average output is associated with a six point increase in income going to the top.
As the top share of the economic pie grows, the filibuster and Congressional foot-dragging do even more to boost income flows to the top one percent.
The findings discussed here show that U.S. institutions and rules do indeed make it difficult to limit or reverse sharply rising economic inequalities in the present era. The upshot is clear. If Americans want democracy to promote a more equal division of the national economic pie—closer to 1976 rather than 1929—then we must consider reforms to make it easier for new policies to be enacted. Only the very rich benefit from today’s anti-majoritarian, gridlocked government.
http://www.democracyjournal.org/arguments/2013/12/how-institutional-gridlock-in-us-politics-benefits-the-rich.php
the VRWC dominates America now, sucking up the wealth, increasing its power and privilege,
that's why they will fight, and spend, like hell to CONSERVE their status quo, hiring politicians to block all PROGRESS.
In 1976, as President Jimmy Carter was inaugurated, the share of all income in the United States going to the richest one percent reached an historic low. Back in 1929 just before the Great Depression, the richest one percent of Americans claimed of 24 percent of income—close to one of every four dollars—but the top one percent’s share dropped to just under 9 percent by the mid-1970s. But this was an unprecedented and momentary level of egalitarianism in the U.S. economy. Since then, America has been on a path toward ever greater income inequality.
Many factors contribute to changes in what is called “income concentration” over time, including major economic and demographic shifts. College-educated people now make more than they used to, compared to those with just high school degrees; and an aging population means there are fewer people in the workforce. The long-term decline of U.S. unions has shifted the balance of bargaining power away from workers and toward corporations; and a more globalized economy puts downward pressure on middle class wages. The rise of the finance sector has produced eye-popping incomes for executives, compared to what used to be made by stodgy bankers. But factors such as these are only part of the story, as I have discovered in research done with several colleagues. The U.S. political system also encourages concentration of income at the very top—specifically the aspect of the system that produce blockages to policy changes.
Institutional stasis also tends to feed on itself, we argue. That is, hurdles to policy-making exacerbate inequality to a greater extent as the gap between the rich and the poor grows. If incomes were becoming more equal, then doing nothing new would matter only to actors who want greater inequality. But when inequality is increasing, stasis allows the process to accelerate.
The fewer important laws Congress enacts, the more income flows to those at the very top. The difference between a Congress that enacts relatively few laws and a Congress with average output is associated with a six point increase in income going to the top.
As the top share of the economic pie grows, the filibuster and Congressional foot-dragging do even more to boost income flows to the top one percent.
The findings discussed here show that U.S. institutions and rules do indeed make it difficult to limit or reverse sharply rising economic inequalities in the present era. The upshot is clear. If Americans want democracy to promote a more equal division of the national economic pie—closer to 1976 rather than 1929—then we must consider reforms to make it easier for new policies to be enacted. Only the very rich benefit from today’s anti-majoritarian, gridlocked government.
http://www.democracyjournal.org/arguments/2013/12/how-institutional-gridlock-in-us-politics-benefits-the-rich.php
the VRWC dominates America now, sucking up the wealth, increasing its power and privilege,
that's why they will fight, and spend, like hell to CONSERVE their status quo, hiring politicians to block all PROGRESS.