Rich-Poor Gap Gaining Attention
Washington - The income gap between the rich and the rest of the US population has become so wide, and is growing so fast, that it might eventually threaten the stability of democratic capitalism itself.
Is that a liberal's talking point? Sure. But it's also a line from the recent public testimony of a champion of the free market: Federal Reserve Chairman Alan Greenspan.
The 'Upside-Down' Economy
Lagging Investment: The Cost of the Upside-Down Economy
The current economic recovery has been unique in many respects. It was the first "job loss" recovery since World War II. For most of the first two years of the recovery, total employment was below the levels at the start of the recovery. Total compensation growth was the lowest in any post-war recovery. After eight quarters of recovery, total compensation was less than 3 percent higher than at either the start of the recovery or the recession. Simultaneously, after-tax profit rates rose to record highs, marking this as an 'upside-down' economy, whereby corporate gains soared and labor's gains reached new lows.
Wall Street Bonuses to Hit Record $21.5 Billion in 2005
NEW YORK (Reuters) - Wall Street bonuses are expected to have hit a record $21.5 billion in 2005 from $18.6 billion in 2004 as investment banks reaped record earnings, New York State Comptroller Alan Hevesi said Wednesday.
No holiday bonus at 60% of companies
November 14, 2005
NEW YORK (CNN/Money) - Fifty-nine percent of companies say they won't be giving out holiday bonuses in any form this year. And of those that will, only 13 percent said they will be giving out bonuses in cash.
$13,700 an Hour
The New York Times recently reported that--for the first time--a full-time worker earning minimum wage cannot afford a one-bedroom apartment anywhere in America at market rates.
Markets 'are like 1987 crash'
May 21, 2006
CONDITIONS in the financial markets are eerily similar to those that precipitated the "Black Monday" stock market crash of October 1987, according to leading City analysts.
A report by Barclays Capital says the run-up to the 1987 crash was characterised by a widening US current-account deficit, weak dollar, fears of rising inflation, a fading boom in American house prices, and the appointment of a new chairman of the Federal Reserve Board.
"We are very uncomfortable about predicting financial crises, but we cannot help but see a certain similarity between the current economic and market conditions and the environment that led to the stock-market crash of October 1987," said David Woo, head of global foreign-exchange strategy at Barclays Capital.