We do not simply need economic fixes; we need a dramatic redistribution of wealth.

[Writer]

The best way to accomplish this is through a temporary tax raise of anywhere from 45-50% on the upper 1% of the country for at least 1 year.

Why propose this?

Because as middle class wages stagnated over the last thirty years, middle class families turned to the credit market to make up the difference, whether through credit cards or through home equity loans. Instead of earning more money, the middle class simply went into more debt, reducing their overall wealth dramatically in order to maintain a middle class standard of living. The interest that middle class families paid on the credit cards and loans they acquired became increased revenues for the top 5% of wage earners. So, essentially, the upper class was absorbing wealth from the middle class through the debt market. The middle class has been able to stay ahead of the curve because household wealth increased from the 1970's to the 1990's, but as we can see in the below chart, the 2000's saw a 4% DROP in household wealth:


http://www.washingtonpost.com/wp-dyn/content/graphic/2010/01/01/GR2010010101478.html

The middle class could no longer sustain the upward wealth redistribution through the debt market. Essentially, the upper class tapped the middle class dry. For this reason, as the housing market crashed, the financial and derivatives markets crashed as well.

We need to level the top-sided distribution of wealth so that the middle class is even again. One obvious means is to dramatically raise the wages for middle class workers. Another way is, of course, taxing the upper class in order to literally give the middle class real financial help with paying down their debt.

Is this politically feasible? No. Is it necessary for the survival of the middle class? Yes!

[Hannah Bell]

1. +100

[indepat]

2. Link for graph?

[elocs]

3. Since it is politically unfeasable, yet necessary for the survival of the middle class,

that means the middle class will not survive.

My bet is that this is the century that the American empire collapses (aided by massive military spending and misadventures) and falls apart. We will remain a pseudo-superpower only because of our nuclear capabilities and little else.

[indepat]

4. The goose that laid the golden egg has been killed by the gipper's version of voodoo economics and

what followed/was continued under GHWB and junior and what was correctable, but not rectified wherein possible, by BHO. May the American dream rest in peace and may the benefactors of the largess of a corrupt an venal Congress and successive administrations luxuriate in boundless opulence as this nation inexorably falls to/near the bottom among industrial nations in almost all quality-of-life measurements for the huddled masses. :banghead:

[golfguru]

5. What we really need is Clintonomics

The 8 years of Clinton created more jobs, reduced the national debt,
and as a bonus no shooting wars. Best 8 years in my lifetime.

[WHEN CRABS ROAR]

6. We need to cut our military spending in half and to stop using

our resources for such unproductive uses. We need to come together with other countries to save our asses for coming fish stock, food crop, fresh water, forests and overpopulation crises that will need every scrap of new technology that we can develop, to save our asses. And yes this will have to paid for with taxes on the very people and corporations that are benefiting the most from the currant looting of our system.

[Lucky Luciano]

7. A bit aggressive...top 0.1% sounds better. nt`

[Writer]

8. More information on income disparity.

http://www.slate.com/id/2266025/entry/2266026

[inna]

9. too late to rec, but a kick at least