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“When you take the time to research and analyze the wealth that has gone to the economic top one percent, you begin to realize just how much we have been robbed.”

Despite the economic crisis, the ultra-rich seem to be making off quite well, even increasing their incomes while the rest of us worry about unemployment, foreclosure, and bankruptcy.

Crooks and Liars recently posted an article, “Richest 400 Americans See Incomes Double, Tax Rates Halved,” which has the latest statistics on income inequality, but to fully understand the widening gap between rich and poor, check out the following essay from David DeGraw.

How long will we permit this to go on? [alex]

The Richest 1% Have Captured America’s Wealth — What’s It Going to Take to Get It Back?

The U.S. already had the highest inequality of wealth in the industrialized world prior to the financial crisis — and it’s gotten even worse.

By David DeGraw / February 19, 2010

Originally published by Alternet. Recovered from The Rag Blog.

“The war against working people should be understood to be a real war… Specifically in the U.S., which happens to have a highly class-conscious business class… And they have long seen themselves as fighting a bitter class war, except they don’t want anybody else to know about it.” — Noam Chomsky

As a record amount of U.S. citizens are struggling to get by, many of the largest corporations are experiencing record-breaking profits, and CEOs are receiving record-breaking bonuses. How could this be happening, how did we get to this point?

The Economic Elite have escalated their attack on U.S. workers over the past few years; however, this attack began to build intensity in the 1970s. In 1970, CEOs made $25 for every $1 the average worker made. Due to technological advancements, production and profit levels exploded from 1970-2000. With the lion’s share of increased profits going to the CEO’s, this pay ratio dramatically rose to $90 for CEOs to $1 for the average worker.

As ridiculous as that seems, an in-depth study in 2004 on the explosion of CEO pay revealed that, including stock options and other benefits, CEO pay is more accurately $500 to $1.

Paul Buchheit, from DePaul University, revealed, “From 1980 to 2006 the richest 1% of America tripled their after-tax percentage of our nation’s total income, while the bottom 90% have seen their share drop over 20%.” Robert Freeman added, “Between 2002 and 2006, it was even worse: an astounding three-quarters of all the economy’s growth was captured by the top 1%.”

Due to this, the United States already had the highest inequality of wealth in the industrialized world prior to the financial crisis. Since the crisis, which has hit the average worker much harder than CEOs, the gap between the top one percent and the remaining 99% of the U.S. population has grown to a record high. The economic top one percent of the population now owns over 70% of all financial assets, an all time record.

As mentioned before, just look at the first full year of the crisis when workers lost an average of 25 percent off their 401k. During the same time period, the wealth of the 400 richest Americans increased by $30 billion, bringing their total combined wealth to $1.57 trillion, which is more than the combined net worth of 50% of the US population. Just to make this point clear, 400 people have more wealth than 155 million people combined.

Meanwhile, 2009 was a record-breaking year for Wall Street bonuses, as firms issued $150 billion to their executives. 100% of these bonuses are a direct result of our tax dollars, so if we used this money to create jobs, instead of giving them to a handful of top executives, we could have paid an annual salary of $30,000 to 5 million people. Read the rest of this entry »

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