The Richest Rich Have Never Been Richer Than The Rest Of Us

Tyler Durden's picture

"The message for strivers is that if you want to be very, very rich, start out very rich," is the wondrous conclusion Bloomberg BusinessWeek's Peter Coy has from delving into the details of the latest data on income growth in America. The richest 0.1 percent of the American population has rebuilt its share of wealth back to where it was in the Roaring Twenties. And the richest 0.01 percent’s share has grown even more rapidly, quadrupling since the eve of the Reagan Revolution.

As the following chart shows, via Saez and Zucman's latest data, "top wealth has surged," as they dispel any belief that inequality in wealth has grown less than income inequality - it hasn't. Saez final words are perhaps the most worrisome for the richest of the rich (or not given their ability to afford the best lawyers, money-launderers, and politicians), "wealth-specific taxes become important tools to think about," just as the IMF has suggested.

 

 

The bottom nine-tenths of the 1 Percent club have about the same slice of the national wealth pie that they had a generation ago. The gains have accrued almost exclusively to the top tenth of 1 Percenters. The richest 0.1 percent of the American population has rebuilt its share of wealth back to where it was in the Roaring Twenties. And the richest 0.01 percent’s share has grown even more rapidly, quadrupling since the eve of the Reagan Revolution.

 

As Bloomberg BusinessWeek's Peter Coy notes, these figures come out of a clever analysis by economists Emmanuel Saez of the University of California at Berkeley and Gabriel Zucman of the London School of Economics, who is a visiting professor at Berkeley. The Internal Revenue Service asks about income, not wealth, which is the market value of real estate, stocks, bonds, and other assets. Saez and Zucman were able to deduce wealth by exploiting IRS data going back to when the federal income tax was instituted in 1913.

Source: Bloomberg BusinessWeek

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ebworthen's picture

Time to storm the Bastille!

ArkansasAngie's picture

By doing what they are doing they are duluting OUR share of the economy.  Gives them even more control

Screw'em

AlaricBalth's picture

"We Americans are not usually thought to be a submissive people, but of course we are. Why else would we allow our country to be destroyed? Why else would we be rewarding its destroyers? Why else would we all — by proxies we have given to greedy corporations and corrupt politicians — be participating in its destruction? Most of us are still too sane to piss in our own cistern, but we allow others to do so and we reward them for it. We reward them so well, in fact, that those who piss in our cistern are wealthier than the rest of us.

How do we submit? By not being radical enough. Or by not being thorough enough, which is the same thing."

Wendell Berry, Compromise, Hell!!!

BLOTTO's picture

Knowledge is the ultimate 'richness' on this spiritual journey...

.

The bottom feeders could easily rise to the top if they would just awake from their slumber and acquire knowledge...

TruthHunter's picture

"The bottom feeders could easily rise to the top"

 

Don't ignore the Bell curve. For everyone on the right side there is 

someone at the other end. For everyone at 99 percentile in acquisitiveness,

there is someone who can't acquire breakfast without help.

Unfortunately, being in the top 1% doesn't mean one is even 50 percentile

in empathy and compassion.

If the shoe fits wear it...If it pinches, it fits too close.

Doubleguns's picture

"....these figures come out of a clever analysis by economists Emmanuel Saez of the University of California at Berkeley and Gabriel Zucman of the London School of Economics...."

 

Clever analysis? Are we being maniupulated....some. Just curious cuz this seems to be pushing us in a certain direction. 

 

Berkeley and Economists? Really. Where were they when this shit started going down. Just saying!!

drstrangelove73's picture

Exactly.
I am wondering if by"clever analysis,"they mean"pulled it out of their respective nether regions"

Seer's picture

Just mentioning Wendell Berry gets an automatic up-vote from me.

"For the relief of the suffering ... our economy proposes, not health, but vast 'cures' that further centralize power and increase profit . . . and these of course are followed by more regulating laws and agencies to see that our health is protected, our freedom preserved, and our money well spent."

- Wendell Berry, The Unsettling of America

A person dependent on somebody else for everything from potatoes to opinions may declare that he is a free man, and his government may issue a certificate granting him his freedom, but he will not be free. He is that variety of specialist known as a consumer, which means that he is the abject dependent of producers. How can he be free if he can do nothing for himself? What is the First Amendment to him whose mouth is stuck to the tit of the "affluent society"?

- Wendell Berry

?The people will eat what the corporations decide for them to eat. They
will be detached and remote from the sources of their life, joined to them
only be corporate tolerance. They will have become consumers purely ?
consumptive machines ? which is to say, the slaves of producers?it is
impossible to mechanize production without mechanizing consumption,
impossible to make machines of soil, plans and animals without making
machines also of people.?

- Wendell Berry

And my favorite:

Whether we and our politicians know it or not, Nature is party to all our deals and decisions, and she has more votes, a longer memory, and a sterner sense of justice than we do.

- Wendell Berry

Greenskeeper_Carl's picture

no, time to end the fed. This is attempt to incite class warfare, without actually acknowledging the real problem.

ArkansasAngie's picture

The real problem is those who failed and should be bankrupt right now aren't because they were bailed out.

And now the fed is spoon feeding them money to keep the zombies alive at our expense.  

Vote out Congress.  End the Fed.  Bring in the cops.

db51's picture

Bring in the cops?  LMFAO....That was a good one.  Eric Holder to lead the charge.  We're fucked.

Bob's picture

True dat.  But maybe a new congress . . .

Damn, the rogue Obama gurl just saw beyond that! 

Then again, only a lunatic would imagine a world free of .gov of some sort.  Without that, we're back to a world controlled by Warlords, albeit armed only with mind-boggling money and a system meritoriously defined in those very same terms. 

I think simply removing "private" money--now known as "speech," lol--from politics could go a long way in righting this sinking ship. 

Sorry 'bout the sordid "populism" that would likely follow, eventually, but I guess I'm really just a conservative at heart. 

Even removing their money would not hamstring the Mighty Rich in their quest for control. Of everything.

'Cuz they've earned it.

Galt Gone Wild. 

Seer's picture

"Then again, only a lunatic would imagine a world free of .gov of some sort.  Without that, we're back to a world controlled by Warlords, albeit armed only with mind-boggling money and a system meritoriously defined in those very same terms. "

It might be that you are incapable of thinking outside the box.

Note that the historical norm for human structures is NOT based on some large instututionalized govt (nor a "small" one), but on tribes/clans.  People are so thoroughly programmed to think in terms of disgust when these things come up that they are dismissed outright, and never mind that the "sane" means of governing are temporary (all) and end violently.  Pay now or pay later.  Don't fall into the trap of believing that "together" we can eliminate risk.

"Even removing their money would not hamstring the Mighty Rich in their quest for control. Of everything."

The "Mighty Rich" are only "rich" because we enable them through their System.  But...

A person dependent on somebody else for everything from potatoes to opinions may declare that he is a free man, and his government may issue a certificate granting him his freedom, but he will not be free. He is that variety of specialist known as a consumer, which means that he is the abject dependent of producers. How can he be free if he can do nothing for himself? What is the First Amendment to him whose mouth is stuck to the tit of the "affluent society"?

- Wendell Berry

Do people demand a really just system? Well, we'll arrange it so that they'll be satisfied with one that's a little less unjust ... They want a revolution, and we'll give them reforms -- lots of reforms; we'll drown them in reforms. Or rather, we'll drown them in promises of reforms, because we'll never give them real ones either!!

- DARIO FO, Accidental Death of an Anarchist

"You never change anything by fighting the existing. To change something, build a new model and make the existing obsolete."

- Buckminster Fuller

 

CH1's picture

But maybe a new congress

That was sarc, right?

Global Observer's picture

And now the fed is spoon feeding them money to keep the zombies alive at our expense.

The first part about the Fed keeping the zombies alive is true but the "at our expense" part is not, unless you are someone outside the US/West. For over 4 decades now the populations of the US/West have been enriching themselves at the expense of the rest of the world. After the 2007-8 collapse, it has been restricted to just the ultra-rich in the West. After the next collapse when the ultra-rich in the West can no longer siphon off wealth from the rest of the world simply by printing currency, it is then that the actual looting of resources in the West to benefit the elite at the expense of the rest of the population will begin.

To put it in another way, the common people of the West stopped receiving a share of the loot after 2007-8 collapse. After the next collapse, they will be in the same position that the common folks in the rest of the world have been for decades now.

Harbanger's picture

Yep, it's leftist class warfare tripe.  What's happening is the entire country is becoming poorer, people with more wealth are better able to protect themselves against the currency rape by the Fed.

TheReplacement's picture

No those at the top are not just able to protect themselves from the Fed they are meant to directly benefit from the Fed's actions.  This is a criminal action - plunder and theft, not class warfare.

Harbanger's picture

Those that "directly" benefit from the Fed's actions are those that belong to the Banker cabal.  It's a very small group of people, not defined by wealth but by criminality.

James_Cole's picture

Those that "directly" benefit from the Fed's actions are those that belong to the Banker cabal. 

No, it would be the wealthy - folks who make decent amount of their cash from capital gains. Nothing to do with criminality. 

http://filipspagnoli.files.wordpress.com/2012/01/wages-vs-capital-gains....

Seer's picture

The "ciminality" is that of perpetuating highly unsustainable practices.  It is done at the expense of others (to-date mostly the distant) and at the expense of the future.  These are not "laws" that TPTB have on their books, nor are they the "laws" passed down by the "founders." (there is no notion of Seventh Generation in our culture)

James_Cole's picture

What's happening is the entire country is becoming poorer, people with more wealth are better able to protect themselves against the currency rape by the Fed.

C'mon seriously.. you don't think the Fed is a tool of the very rich to enrich themselves further? Banks being the same? The whole modern concept of debt is solely to usurp power (globaly especially).

Power / debt / money are synonymous, don't get how people miss this simple architecture of global power systems..

Harbanger's picture

"C'mon seriously.. you don't think the Fed is a tool of the very rich to enrich themselves further?"

No I don't.  Ophra is rich, is she out to get you?  I think the very rich in Hollywood are out to get all of us.  You have to do some soul searching and see why you believe that wealth is always gotten through ill means.

James_Cole's picture

You have to do some soul searching and see why you believe that wealth is always gotten through ill means.

Depends on your definition of 'ill gotten,' fed res is a perfectly legal institution.

When you have a group of people with similar interests / objectives it's not surprising to see them working together to those ends...literally that's the inception / history of the fed res to a t re working for the extremely wealthy. 

The objectives / interests of the 0.1% are not likely to be compatible with the general population obviously.

Seer's picture

"No I don't.  Ophra is rich, is she out to get you?"

She doesn't have to spend the energy.

It's about CONTROL.  PERIOD.  Having others do the hard work.

It's the great feat by the System, to sucker people into supporting it because people want to be just like their oppressors (though, as the article notes, the chance is extremely low- kill "death taxes" so that the ruling clans can continue to spread their genes).

sessinpo's picture

 ebworthen     Time to storm the Bastille!

---

Unless it's your bastille, right?

ebworthen's picture

Don't have one; I'm eating moldy bread in a hovel - down with the King(s)!

sessinpo's picture

ebworthen   Don't have one; I'm eating moldy bread in a hovel - down with the King(s)!

---

You miss the point. People attack those that have more then themselves. Until they are those that are attacked. BTW. I eat Ramen Noodles regularly so I am one of those under the rich. Yet, I aspire (like I suspect most of us) to be rich. So why would we attack the rich while aspiring to be one of them?

Lebensphilosoph's picture

Oh, right, because as we all know, the French Revolution was an uprising of 'the people' and not a coup instigated by the rich bourgeoisie to seize the power of the state for themselves and enslave the peasantry to industrial capitalism.

TBT or not TBT's picture

Those with first access to the river of newly created money get the most benefit out of it.

Dr. Engali's picture

Hmmmm 1913...... That year rings a bell. What else happened in 1913 that might funnel wealth upwards? What other illegal creature was ushered in under the cover of night? Oh well...... The answer eludes me. Back to eating my monosodium glutamate filled Cheetos and watching WWF. Hey bitch bring me another beer, and kick the dog for me on your way in here!

Greenskeeper_Carl's picture

yes, the creation of the fed. but lets not forget the other things that came out of 1913. The income tax, and the direct election of US senators, who used to be under the conrol of the state legeslators. repealing the entire year would be a nice stsrt

FeralSerf's picture

Barry has been good to those on top. Does anyone doubt who owns him?

Skateboarder's picture

"End the Fed."

Three magic words everyone likes to say, but it takes an entire willing nation to do that, especially now that they have their own armed Fed Police at every branch.

One does not simply walk into Mordor, but one million can.

The best you can hope for is that individual people will not submit when bullied.

Seer's picture

"The best you can hope for is that individual people will not submit when bullied."

I like wise people.

Ending the Fed does nothing to resovle the issues about our debt levels (which are impossible to repay) nor does it magically create non-existent physical resources that would be necessary to pump up "growth."  The Fed is a symptom, a nasty looking sore for sure, but it's not THE problem (which is our inability to realize perpetual growth on a finite planet).

Dexter Morgan's picture

The Fed is the problem, period.

Kina's picture

They all be King Louis XVI....

Lebensphilosoph's picture

Actually, they all be the same class - and in many cases the very same families - that instigated the French Revolution and murdered France's sovereign.

Caviar Emptor's picture

It'll treeckle down...if you become a butler!
Domestic servants of the roaring twenties will make huge come back: valet, groomsman, stable boy, scullery maid, lady in waiting, footman, char woman .
These are the quality jobs of the future!

nasa's picture

The lucky ones will.  The rest will be sent to the fields to return full circle to their place in the natural order of things.  Welcome to the New World Order...

Colonel Klink's picture

Just like Warren Buffet said so eloquently, it's class warfare, and his class is winning.

Wake up America and turn the tables.  Do something, anything, that fights the corporations, government, and the uber wealthy.  Or embrace your slavery on bent knee.

Bunga Bunga's picture

Not long and there will be nothing to win anymore. These rich fuckers will then start to fuck up each other.

Colonel Klink's picture

That's already started to happen, think Lehman and Bear Sterns.  Only thing propping this shit show up is the Feral (sic) Reserve.

Global Observer's picture

May be Americans are not sleeping and have accepted "slavery on bent knee"? What will it take for you to acknowledge that?

Seer's picture

I'll take another option: walk away.  Start seeing them as irrelevant and they become irrelevant.  There's a saying in the entertainment industry: "it's not what they're saying about you that matters, it's that they're talking about you" (or similar).

chindit13's picture

Speaking of rich...

In 1990 the Burmese Government top ticked the Japan Bubble and sold its embassy in Tokyo, in a two part deal, for $600 million.  Burma funded its government for a year just off of that sale.

Today, owing to Burma's "frontier market" status (that means they are/were a debt outlier), the Japanese Government could sell its embassy in Yangon for $600 million.  Of course that's only about 22 seconds of Abenomics.  What is truly startling is that in 1990, Japanese per capita GDP was probably $35-40K, while in 2014 in Burma, per capita income is still less than $500.  Qini Coefficient is approaching infinity.

Land in the toniest (a relative term) residential areas of Yangon is now among the most expensive on the planet, rivaling Lutyen's Delhi in India, Knightsbridge or Kensington in the UK, or the Peak in Hong Kong, while dwarfing Greenwich or the Hamptons.  (Dependable power, potable water, and sewerage are extra.)  What would have sold for $100K an acre in 2000 is now on the market for $53 million (Pyay Road, Lanmadaw/Hledan area).  Absolute madness.  They're playing Musical Chairs with no band and one-legged stools.

james.connolly's picture

So when Uncle Marc Faber tell's us all to "INVEST IN MYANMAR", you think maybe he a little late?

Just joking, I like it up in north of Myanmar, but those Malaysia Airline flights flying low over the jungle kill the sleeping time.

I find the SHAN State fascinating, there is so much CIA money and Goldman Sack's investing, and MURDER, and they're still working hard to DAM every river up north, once upon a time when the JAP's held BURMA in WW2 the jap's planned to DAM the last free running rivers in ASIA and pump the hydro up to JAPAN,... since then the CIA has taken that plan, but the locals non to keen about getting pushed out of the BUSH in the areas to be flooded have put up a fight for some 40+ years, leading to zillion's murder & rape,.. all orchestrated by CIA.

I agree with you that Prices have gone MAD, but let's also be honest to say that MYANMAR is Colonel Kurtz's (apocolypse now) paradise, even now still as we speak, ... its all murder and rape,... and its all paid for by the CIA. Eventually everybody will be dead, and then GOLDMAN-SACKS can get their ROI.

>>>

What goes on in YANGOON (WEALTH) and the level of MURDER (Industrial Slaughter) up north, is a model of how USA should be where WASH-DC is Yangoon, and the North Myanmar is the Rest of America.

 

chindit13's picture

The killing is all done or abetted by your current landlords.  China money, China weapons, China poison gas artillery shells killing Kachin....plus the PLA is stealing Kachin and Wa girls to sell to the lovelorn One Male Policy surplus of China.  Near you (Kunming?) is where the PLA runs their arms onward to Burma, the Naxalites in India, and the Marxists in Nepal.

Once Burma let in the World Bank and IMF---which to some extent obviated the 'renegade province' China had made of the entire country (China still has the northeast)---the USG and all its alphabet groups (who at most had one person in country, and that person did liaison re terror) lost interest in the place.  I think your info, if it was ever accurate, is about fifty or sixty years old.

james.connolly's picture

Funny how two people can look at a situation and see a completely different villain.

While I concur that you may feel my observation's are dated, and see plenty of Refugees coming and going in Myanmar, and I speak decent SHAN, and I have rarely ever met a little girl who hasn't been raped or had a brother murdered.

The war is still on, and its STILL financed by GOLDMAN-SACKS/JPM, and its still the CIA in control of the MURDER, but now the customer for the HYDRO is CHINA and no longer the Jap's.

>>>

Have you lived here in the SHAN state, do you ever come here and hang out and get high with these people and live with them in the jungle?

Glad that you mentioned KUNGMING, but I have also mentioned that to get to KUNMING it takes me 2-4 days by bus, if I'm lucky. I live just over the border.

Allow me to say also, that SHOULD a little SHAN girl find a China that would marry her and take her back to CHINA, and get her out of HELL, that little GAL would have won the lottery.

I don't know where you live CHINDIT, me think BKK, but I can tell you first hand here in the North of Myanmar these little girls are still fucking for $1, not that I want to have anything to do with that shit,... I'm just pointing out that like you said, the price of human tissue is still very low in this part of the world, and if is even worth less.

Lastly, I repeat its all financed by the WEST ran by the CIA, and yes CHINA is the customer, and WEST has TOO MUCH FUCKING INVESTED to walk away from the JAP WW2 dream of making MYANMAR one big fucking HYDRO supply.