America faces income inequality, political polarization, and dysfunctional governance.

Rose Prince

2018-05-17 07:41:00 Thu ET

Has America become a democratic free land of crumbling infrastructure, galloping income inequality, bitter political polarization, and dysfunctional governance? Key measures of American public engagement, satisfaction, and confidence are near historic low rates. These measures encompass voter turnout, general knowledge of socioeconomic public policy issues, and individual respect for basic government institutions.

U.S. infrastructure needs a comprehensive upgrade as income inequality soars in America. After some adjustment for U.S. CPI core inflation, the middle-class wages have been nearly frozen over the past 4 decades in America, whereas, the top 1% upper-class income triples over the same time frame.

Family stock ownership concentration also exacerbates U.S. economic inequality in comparison to OECD standards. The government bails out banks and millions of Americans lose their homes and jobs in the recent decade during the subprime mortgage crisis from 2008 to 2009.

The gradual economic recovery produces pecuniary fruits exclusively for the rich. In stark contrast, the bottom 99% population experiences an income uptick of less than half of 1%. Only the American democracy that discards its major mission of holding the social community together would produce these inadvertent results and consequences.

In a positive light, however, there are more socioeconomic opportunities available nowadays for women, non-whites, and other minorities. Technological advances and miracles happen in U.S. labs, world-class universities, and tech startups that specialize in robotic automation, medical diagnosis and treatment, data analysis and visualization, or artificial intelligence.

Despite this positive progress, the U.S. meritocratic class continues to master the old trick of passing socioeconomic advantages and privileges from one generation to the next. The resultant hereditary elite income and wealth concentration harms social mobility to the harsh detriment of many minorities and immigrants in America. Greater social mobility requires a reasonable reversal of fortune via progressive capital taxation, inclusive education, universal healthcare, ubiquitous employment, social security, and less crony capitalism (such as family ownership concentration).

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More
The Phillips curve becomes the Phillips cloud with no inexorable trade-off between inflation and unemployment.
Fiona Sydney

2019-08-02 17:39:00 Friday ET

The Phillips curve becomes the Phillips cloud with no inexorable trade-off between inflation and unemployment.

The Phillips curve becomes the Phillips cloud with no inexorable trade-off between inflation and unemployment. Stanford finance professor John Cochrane disa

+See More
Warren Buffett warns that the current cap ratio of U.S. stock market capitalization to real GDP seems to be much higher than the long-run average benchmark.
James Campbell

2019-08-24 14:38:00 Saturday ET

Warren Buffett warns that the current cap ratio of U.S. stock market capitalization to real GDP seems to be much higher than the long-run average benchmark.

Warren Buffett warns that the current cap ratio of U.S. stock market capitalization to real GDP seems to be much higher than the long-run average benchmark.

+See More
CEO overconfidence and corporate performance
Laura Hermes

2022-11-05 11:32:00 Saturday ET

CEO overconfidence and corporate performance

CEO overconfidence and corporate performance Malmendier and Tate (JFE 2008, JF 2005) argue that overconfident CEOs are more likely to initiate mergers an

+See More
Brent crude oil prices spike to $70-$75 per barrel after the Trump administration stops waiving economic sanctions on Iran.
Jacob Miramar

2019-05-13 12:38:00 Monday ET

Brent crude oil prices spike to $70-$75 per barrel after the Trump administration stops waiving economic sanctions on Iran.

Brent crude oil prices spike to $70-$75 per barrel after the Trump administration stops waiving economic sanctions on Iranian oil exports. U.S. State Secret

+See More
Apple settles its 2-year intellectual property lawsuit with Qualcomm by agreeing to a multi-year patent license.
Charlene Vos

2019-05-01 09:27:00 Wednesday ET

Apple settles its 2-year intellectual property lawsuit with Qualcomm by agreeing to a multi-year patent license.

Apple settles its 2-year intellectual property lawsuit with Qualcomm by agreeing to a multi-year patent license with royalty payments to the microchip maker

+See More
Millennials can save to make a fortune with compound interest over 40 years.
Laura Hermes

2017-07-25 10:44:00 Tuesday ET

Millennials can save to make a fortune with compound interest over 40 years.

NerdWallet's new simulation suggests that a 25-year-old millennial who earns an inflation-free base salary of $40,456 and saves 15% each year faces a 99

+See More