For Immediate Release
Wealth Gaps Will Soar If Taxes Remain the Same, Sociologist Says
In the 2017 documentary “Inequality for All,” President Bill Clinton is shown thanking Secretary of Labor Robert Reich, who was standing behind him on the White House grounds, for his service to the country.
The year was 1996, at the end of Clinton’s first term in office.
Reich had just resigned from his position partly to spend more time with his family. But that wasn't entire reason. Reich, an economics professor who had spent much of his life promoting economic equality, was frustrated that administration officials would not reinvest budget surpluses into programs that would have helped reduce economic inequality.
“[T]here wasn't the political will to do that,” Reich says to the camera. “Bill Clinton did preside over one of the best economies we’ve had in this country in living memory. The wages of most people went up. Poverty actually declined. But we didn’t do enough. We didn’t really alter the underlying trend.”
A short time later, in a heartfelt moment, he says: “I — I do ask myself whether I’ve been a total failure. I’ve been saying much of the same thing for 30 years and some of the trends have grown worse. Inequality has become worse. The danger to the economy and democracy have become worse.”
Reich was right.
So what happens to wealth gaps if America continues down this path?
In his book Falling Behind: How Wealth Gaps Are Preventing You and Half of America from Getting Ahead, sociologist David Demers predicts that over the next 13 years show that the wealthiest 1 percent will see their wealth double, from about $18 million today to $34 million in 2037 (inflation-controlled increases). The 1 percent will have 1,533 times more wealth than the bottom 50 percent ($34 million vs. $20,836).
The super rich (top 1%) will continue to acquire wealthier faster than the rich (top 10%), who in turn will continue to acquire wealth faster than the bottom 90 percent of all Americans, who will become poorer in relative but not absolute terms. Their incomes will increase slightly, but they will get less and less of the total wealth pie.
By 2050 the wealth gap will soar to 1,749.
The top 1 percent will have average assets of $53,527,284, while the bottom 50 percent will have only $30,599. The percentage of wealth held by the top 1 percent will grow from about 30.3 percent to 38.1 percent.
The bottom 90 percent’s share will decline from 77.3 percent to 69.7 percent. In relative terms, the bottom 90 percent will continue to fall behind the top 10 percent.
Wealth Gaps Will Soar If Taxes Remain the Same, Sociologist Says
In the 2017 documentary “Inequality for All,” President Bill Clinton is shown thanking Secretary of Labor Robert Reich, who was standing behind him on the White House grounds, for his service to the country.
The year was 1996, at the end of Clinton’s first term in office.
Reich had just resigned from his position partly to spend more time with his family. But that wasn't entire reason. Reich, an economics professor who had spent much of his life promoting economic equality, was frustrated that administration officials would not reinvest budget surpluses into programs that would have helped reduce economic inequality.
“[T]here wasn't the political will to do that,” Reich says to the camera. “Bill Clinton did preside over one of the best economies we’ve had in this country in living memory. The wages of most people went up. Poverty actually declined. But we didn’t do enough. We didn’t really alter the underlying trend.”
A short time later, in a heartfelt moment, he says: “I — I do ask myself whether I’ve been a total failure. I’ve been saying much of the same thing for 30 years and some of the trends have grown worse. Inequality has become worse. The danger to the economy and democracy have become worse.”
Reich was right.
So what happens to wealth gaps if America continues down this path?
In his book Falling Behind: How Wealth Gaps Are Preventing You and Half of America from Getting Ahead, sociologist David Demers predicts that over the next 13 years show that the wealthiest 1 percent will see their wealth double, from about $18 million today to $34 million in 2037 (inflation-controlled increases). The 1 percent will have 1,533 times more wealth than the bottom 50 percent ($34 million vs. $20,836).
The super rich (top 1%) will continue to acquire wealthier faster than the rich (top 10%), who in turn will continue to acquire wealth faster than the bottom 90 percent of all Americans, who will become poorer in relative but not absolute terms. Their incomes will increase slightly, but they will get less and less of the total wealth pie.
By 2050 the wealth gap will soar to 1,749.
The top 1 percent will have average assets of $53,527,284, while the bottom 50 percent will have only $30,599. The percentage of wealth held by the top 1 percent will grow from about 30.3 percent to 38.1 percent.
The bottom 90 percent’s share will decline from 77.3 percent to 69.7 percent. In relative terms, the bottom 90 percent will continue to fall behind the top 10 percent.