No Comment — April 4, 2011, 1:33 pm

Stiglitz on the One Percent Nation

Writing in Vanity Fair, economist Joseph Stiglitz reminds us that, as crowds across the Middle East decry kleptocratic elites, a dramatic social transformation has taken place in the United States.

The upper 1 percent of Americans are now taking in nearly a quarter of the nation’s income every year. In terms of wealth rather than income, the top 1 percent control 40 percent. Their lot in life has improved considerably. Twenty-five years ago, the corresponding figures were 12 percent and 33 percent. One response might be to celebrate the ingenuity and drive that brought good fortune to these people, and to contend that a rising tide lifts all boats. That response would be misguided. While the top 1 percent have seen their incomes rise 18 percent over the past decade, those in the middle have actually seen their incomes fall. For men with only high-school degrees, the decline has been precipitous—12 percent in the last quarter-century alone. All the growth in recent decades—and more—has gone to those at the top. In terms of income equality, America lags behind any country in the old, ossified Europe that President George W. Bush used to deride. Among our closest counterparts are Russia with its oligarchs and Iran.

To those who argue that this widening discrepancy merely reflects the natural rise to the top of the nation’s most gifted and most entrepreneurial, Stiglitz has some sharp retorts. First, he argues that opportunity for advancement is falling sharply. Second, he says that these income distortions actually make the economy less efficient. Third, he links this wealth concentration to declining social investment in technology, education, and infrastructure, which are key to sustained economic growth. He also sees a process of political lock-in, with the 1 percent elite having come to control the political process, so that even what is lauded as reform rarely turns out to work meaningful change. He argues that this process will ultimately feed a backlash:

The top 1 percent have the best houses, the best educations, the best doctors, and the best lifestyles, but there is one thing that money doesn’t seem to have bought: an understanding that their fate is bound up with how the other 99 percent live. Throughout history, this is something that the top 1 percent eventually do learn. Too late.

Share
Single Page

More from Scott Horton:

Conversation March 30, 2016, 3:44 pm

Burn Pits

Joseph Hickman discusses his new book, The Burn Pits, which tells the story of thousands of U.S. soldiers who, after returning from Iraq and Afghanistan, have developed rare cancers and respiratory diseases.

Context, No Comment August 28, 2015, 12:16 pm

Beltway Secrecy

In five easy lessons

From the April 2015 issue

Company Men

Torture, treachery, and the CIA

Get access to 165 years of
Harper’s for only $45.99

United States Canada

CATEGORIES

THE CURRENT ISSUE

July 2016

The Ideology of Isolation

= Subscribers only.
Sign in here.
Subscribe here.

American Idle

= Subscribers only.
Sign in here.
Subscribe here.

My Holy Land Vacation

= Subscribers only.
Sign in here.
Subscribe here.

The City That Bleeds

= Subscribers only.
Sign in here.
Subscribe here.

El Bloqueo

= Subscribers only.
Sign in here.
Subscribe here.

Vladivostok Station

= Subscribers only.
Sign in here.
Subscribe here.

view Table Content

FEATURED ON HARPERS.ORG

Post
"We all know in France that as soon as a politician starts saying that some problem will be solved at the European level, that means no one is going to do anything."
Photograph (detail) by Stefan Boness
Post
Tom Bissell on touring Israel with Christian Zionists, Joy Gordon on the Cuban embargo, Lawrence Jackson on Freddie Gray and the makings of an American uprising, a story by Paul Yoon, and more

Freddie Gray’s relatives arrived for the trial in the afternoon, after the prep-school kids had left. By their dress, they seemed to have just gotten off work in the medical and clerical fields. The family did not appear at ease in the courtroom. They winced and dropped their heads as William Porter and his fellow officer Zachary Novak testified to opening the doors of their police van last April and finding Freddie paralyzed, unresponsive, with mucus pooling at his mouth and nose. Four women and one man mournfully listened as the officers described needing to get gloves before they could touch him.

The first of six Baltimore police officers to be brought before the court for their treatment of Freddie Gray, a black twenty-five-year-old whose death in their custody was the immediate cause of the city’s uprising last spring, William Porter is young, black, and on trial. Here in this courtroom, in this city, in this nation, race and the future seem so intertwined as to be the same thing.

Artwork: Camels, Jerusalem (detail) copyright Martin Parr/Magnum Photos
[Report]
How to Make Your Own AR-15·

= Subscribers only.
Sign in here.
Subscribe here.

Even if federal gun-control advocates got everything they wanted, they couldn’t prevent America’s most popular rifle from being made, sold, and used. Understanding why this is true requires an examination of how the firearm is made.
Illustration by Jeremy Traum
Article
My Holy Land Vacation·

= Subscribers only.
Sign in here.
Subscribe here.

"I wanted to more fully understand why conservative politics had become synonymous with no-questions-asked support of Israel."
Illustration (detail) by Matthew Richardson
Article
The City That Bleeds·

= Subscribers only.
Sign in here.
Subscribe here.

"Here in this courtroom, in this city, in this nation, race and the future seem so intertwined as to be the same thing."
Photograph (detail) © Wil Sands/Fractures Collective

Percentage of British citizens who say that Northern Ireland should remain part of the United Kingdom:

27

In the United Kingdom, a penis-shaped Kentish strawberry was not made by snails.

The Playboy mansion in California was bought by the heir to the Twinkie fortune, and a New Mexico man set fire to his apartment to protest his neighbors’ loud lovemaking.

Subscribe to the Weekly Review newsletter. Don’t worry, we won’t sell your email address!

HARPER’S FINEST

Mississippi Drift

By

Matt was happy enough to sustain himself on the detritus of a world he saw as careening toward self-destruction, and equally happy to scam a government he despised. 'I’m glad everyone’s so wasteful,' he told me. 'It supports my lifestyle.'

Subscribe Today