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:

From the April 2015 issue

Company Men

Torture, treachery, and the CIA

Six Questions October 18, 2014, 8:00 pm

The APA Grapples with Its Torture Demons: Six Questions for Nathaniel Raymond

Nathaniel Raymond on CIA interrogation techniques.

No Comment, Six Questions June 4, 2014, 8:00 am

Uncovering the Cover Ups: Death Camp in Delta

Mark Denbeaux on the NCIS cover-up of three “suicides” at Guantánamo Bay Detention Camp

Get access to 164 years of
Harper’s for only $45.99

United States Canada

CATEGORIES

THE CURRENT ISSUE

May 2015

In Search of a Stolen Fiddle

= Subscribers only.
Sign in here.
Subscribe here.

Displaced in the D.R.

= Subscribers only.
Sign in here.
Subscribe here.

The Quietest Place in the Universe

= Subscribers only.
Sign in here.
Subscribe here.

Black Hat, White Hat

= Subscribers only.
Sign in here.
Subscribe here.

Beyond the Broken Window

= Subscribers only.
Sign in here.
Subscribe here.

view Table Content

FEATURED ON HARPERS.ORG

Article
Last month, the PEN America Center announced its intention to honor Charlie Hebdo with its Freedom of Expression Courage Award at a gala on May 5. Six members of the organization have withdrawn from the gala in protest. In "The Joke," Justin E. H. Smith addressed the Anglo-American left's response to the killings.
Photo of a Charlie Hebdo editorial meeting in 2006 by Jean-Francois/DEROUBAIX
Article
In Search of a Stolen Fiddle·

= Subscribers only.
Sign in here.
Subscribe here.

“To lose an instrument is to lose an essential piece of one’s identity. It brings its own solitary form of grief.”
Violin © Serge Picard/Agence VU
Post
Driving the San Joaquin Valley·

= Subscribers only.
Sign in here.
Subscribe here.

“Don sucked the last of his drink through his straw and licked his lips. 'The coast, to me, is more interesting than the valley.'”
Photograph by the author
Article
Othello’s Son·

= Subscribers only.
Sign in here.
Subscribe here.

Fred Morton, who died this week in Vienna, at the age of 90, was a longtime contributor to Harper's Magazine and a good friend. "Othello's Son," which was listed as a Notable Essay in Best American Essays 2013, appeared in our September 2013 issue.
Photograph © Alex Gotfryd/CORBIS
Article
Beyond the Broken Window·

= Subscribers only.
Sign in here.
Subscribe here.

“By the time Bratton left the department, in 2009, Los Angeles had quietly become the most spied-on city in America.”
Illustration by Taylor Callery

Minimum number of cows whose skins are used each year for Major League baseballs:

45,000

Sleeping deer and grazing cows generally align their bodies along the earth’s north–south magnetic axis.

A study found that the goods whose costs are most frequently searched online in South Africa are cows, and, in the United States, where a two-headed cow was born, the most common items are patents.

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

HARPER’S FINEST

Subways Are for Sleeping

By

“Shelby is waiting for something. He himself does not know what it is. When it comes he will either go back into the world from which he came, or sink out of sight in the morass of alcoholism or despair that has engulfed other vagrants.”

Subscribe Today