What about the one percent?

Thanks to Truthout for reposting  this excellent analysis by Mike Konczal of New Deal 2.0. What Konczal shows is the way that income has been redistributed over the past 30 years in a way that favors executives, managers, and stock traders.

     There’s a reason the protests ended up on Wall Street: The top 1% and top 0.1% comprises all the senior bosses and the financial sector.

      One of the best things about Occupy Wall Street is that there is no chatter about Obama or Perry or whatever is the electoral political issue of the day. There are a lot of people rethinking things, discussing, learning, and conceptualizing the kinds of world they want to create. Since so much about inequality is a function of the legal structure known as a “corporation,” I’d encourage you to check out Alex Gourevitch on how the corporate is structured in our laws.

      The paper notes that stock market returns drive much of the manager’s income. This is related to a process of financialization, something JW Mason has done a fantastic job outlining here. The “dominant ethos among managers today is that a business exists only to enrich its shareholders, including, of course, senior managers themselves,” and this is done by paying out more in dividends that is earned in profits. Think of it as our-real-economy-as-ATM-machine, cashing out wealth during the good times and then leaving workers and the rest of the real economy to deal with the aftermath.

In other words, the reason for increasing inequality in our society is not because some people have worked harder or smarter than the rest of us. It's because the very few people with the most wealth also have accumulated the political power to rip off the rest of us.