Yes, I know Paul Krugman, like the NY Times for which he writes, is a target for conservatives who believe he is a muddle-headed socialist. But in today's column he cites statistics that, even if you are a free market person - or even a libertarian like the much feted Alan Greenspan - might make your eyes roll.
The column was sparked by testimony by the new fed chair, Bernanke, saying the income discrepance in the country - which Greenspan has said is a threat to democracy - is best addressed by more investment in the education - particularly the tech education - of more Americans so we can better compete in the fast growing global technical economy.
Krugman says he is wrong, about the source of the inequality and about its remedy. Bernanke's analysis, says Krugman, comes from the long popular notion that our economy is divided between the 20% of us who manage to get a good education to make us competitive, and the 80% who do not. That assumes that, while there is undeniable inequality in the nation, it can be remedied through education, merit and hard work. And, that 20% of us enjoy growing affluence.
Krugman cites these startling statistics. He doesn't even reach down as far as the 20%, but starts with the top 10%, those who supposedly are rocking along finacially. Between 1972 and 2001, the income of the top 10% of Americans rose 34%, or about 1% a year.
The incomes of the top 1% however, rose 87%. And the top .01 - 1/10th of 1% - rose 497%.
Krugman's point is that these numbers are generated not by merit or education but by various forms of favoratism generally associated with an oligarchy that has the power to reward itself. It is a practice for which we scold dictators in Latin America and Africa.
We seem to have a lottery mentality in the United States. When we see someone flaunting great wealth, we think, "With some good luck that could be me."
But the reality is that economies which are so heavily loaded at the pinaccle are sustained by corruption and graft. They not only finally demoralize people who see they can never have access, but they dedicate vast sums to people who are not providing commensuurate value to the economy.
Strikes me that since Ronald Reagan days, we have as a nation adopted the notion that making it possible for a few to become wildly wealthy is the best way to guarantee better lives for all of us. But the numbers in Krugman's column do not support that picture.
You don't need to be a socialist or poverty stricken to think perhaps there is a better way to run an economy; just be excluded from that top 1%. If we have a semblance of democracy left is us, surely we 99% can out vote them.