Politics | Michael R Lewis, ASJA

October 21, 2013January 3, 2024

Income Inequality in America

Warren Buffett, number 2 on the Forbes 400 List of The Richest People In America, said, “There’s class warfare, all right – but it’s my class, the rich class, that’s making war, and we’re winning.” Certainly, the disparity between the wealthy minority and the rest of Americans has widened considerably over the past 40 years. In 1973, the top 1% of earners collected 7.7% of all U.S. income; by 2013, their share had grown by two and a half times to 19.3%. Even more astounding, the top 10% of earners collected almost half of the nation’s total income (48.2%), the greatest disparity between the rich and the rest of the American population since the Roaring Twenties.

That decade, following the close of World War I, ended in the worldwide Great Depression. It also saw curbs on immigration with the passage of the Immigration Act of 1924, the rise of radical political movements including communism and fascism, and the reemergence and national spread of the Ku Klux Klan.

Should You Purchase Health Insurance or Pay the Penalty?

Obamacare is right around the corner, with most of the Affordable Care Act policy changes taking place in early 2014. But one recent change to the ACA could drastically affect many individuals who thought their employer would provide the requisite coverage.

A major component of the ACA is the requirement of organizations with 50 or more employees to provide health insurance benefits to their full-time staff. However, this component was postponed until January 1, 2015. That means that the employees of companies who fall into this category may not immediately receive health benefits through their employer or coverage that is sufficient to meet the criteria, and will be required to either purchase individual health insurance by March 31, 2014 or pay a fine that will be collected when filing 2014 income taxes.

The National Debt Ceiling Deja Vu

The circus is coming back to town, seemingly an annual occurrence following the 2010 Congressional elections. Republicans gained control of the House of Representatives with the most House seats since 1938 (242 Republicans, 193 Democrats), while Democrats retained control of the Senate with 53 seats. And even though Democratic President Barack Obama won reelection in 2012, Congress remains divided between the Republican-controlled House and the Democratic-controlled Senate.

It’s not just a divided Congress that contributes to the annual political circus. The 2010 elections also introduced an ultra-conservative movement into the Republican Party – a unique coalition of politicians combining anti-tax, reduced government spending, libertarian, social conservative, and anti-immigration groups centered in rural areas and the Deep South. Aided by years of gerrymandering by both political parties to create safe seats, 87 freshman House Republicans came to Washington committed to the tea party movement, reflecting the group’s influence on Congressional elections and party primaries, pushing the Republicans to the right and further embracing a “no compromise” stance.