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>Date: Wed, 16 Aug 2000 19:39:21 -0400 (EDT)
>From: Robert Weissman <[EMAIL PROTECTED]>
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>Subject: [corp-focus] The Billionaire Mindset and Wealth Inequality
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>The Billionaire Mindset and Wealth Inequality
>By Russell Mokhiber and Robert Weissman
>
>Surely one of the most amusing developments of the 2000 presidential
>election campaign is the emergence of Billionaires for Bush (or Gore).
>
>With chants and slogans like "Vote for Bush (or Gore)  Because Inequality
>is Not Growing Fast Enough" and "Who needs day care, hire an au pair!" the
>Billionaires have highlighted not only the big money corruption of
>politics, but problems of growing income and wealth inequality in the
>United States.
>
>(For more on the Billionaires for Bush (or Gore), a project of the
>Boston-based activist group United for a Fair Economy, see
>www.billionairesforbushorgore.com)
>
>Far less entertaining, but somewhat more surprising is a recent report
>from the Conference Board that also highlights how the current economic
>boom times have left low-wage workers behind.
>
>The Conference Board's answers the question in its report title, "Does a
>Rising Tide Lift All Boats?" with a telling subtitle: "America's Full-Time
>Working Poor Reap Limited Gains in the New Economy."
>
>The report is important for two reasons.
>
>First, it shows that distribution of the gains from the information
>economy have been extremely skewed, with benefits heavily concentrated
>among the wealthy and not shared among the bottom of the income and
>distribution curve.
>
>"Poverty has risen in both the number and share of those employed
>full-time and year-round since 1973," the report finds. While the number
>of full-time workers making poverty wages declined dramatically in the
>1960s and early 1970s (from just under 5 percent in 1966 to 2 percent in
>1973), there have been no gains since then. In fact, the proportion of
>full-time workers making poverty wages rose to 2.9 percent in 1998, the
>most recent year for which such data is available.
>
>The number of full-time workers earning poverty wages does not indicate
>the number of people in poverty, because it does not register the poverty
>rate among those without full-time work, nor does it take into account the
>effects of taxes, tax credits (including the important Earned Income Tax
>Credit) or government assistance for poor people.
>
>But by focusing on wages rather than ancillary government support and
>taxation programs, the Conference Board offers a unique insight into the
>failure of the current wage distribution to enable families to escape from
>poverty. (The numbers would appear far worse had the analysis focused on a
>living wage level, which is significantly above the artificially low
>poverty level.)
>
>The second reason the Conference Board report is important is because of
>what the Conference Board is.
>
>The New York-based organization is a business-backed research enterprise
>best known for its monthly Leading Economic Indicators and Consumer
>Confidence Index. It is viewed as a dispassionate research agency, not a
>front group for the corporations that fund it.
>
>Its trustees and officers represent a segment of the enlightened corporate
>class, those who are aiming to protect corporations' long-term interests.
>Among those corporations represented: Bestfoods, Phillips Petroleum, J.C.
>Penney, Excel, Texaco, Martha Stewart Living, Fidelity Management and
>Research, Goldman Sachs, British Airways, Unisys -- and yes, we know many
>of these may not seem "enlightened." But the point is that in their
>concern to head off social unrest before it develops, they may be willing
>to make significant concessions in an attempt to quiet social movements.
>
>In a description of its historical origins, the Conference Board says it
>"was born out of a crisis of industry in 1916" when "declining public
>confidence in business and rising labor unrest had become severe threats
>to economic growth and stability."
>
>The decision to focus a report on the failure of the new economy to
>provide above-poverty wages to millions of full-time workers suggests that
>there may be, perhaps, an emerging concern with income and wealth
>inequality among foresighted business leaders.
>
>"For too long, we've only counted our money, but today we stand up and
>count ourselves. Billionaires, stand up and be counted!" proclaimed Phil
>T. Rich at the Million Billionaires March outside the Republican
>convention in Philadelphia on July 30.
>
>The Conference Board may not be ready to join such mocking efforts, but
>these and other stirrings of discontent do seem to be worrying the
>Conference Board's corporate members.
>
>Are the Conference Board members ready to support unionization and living
>wage regulations, among the obvious solutions to the problems highlighted
>in the organization's recent report?
>
>Without a bit more of the "unrest" which led to the Conference Board's
>founding, probably not. But the publication of the report, the emergence
>of the Billionaires for Bush (or Gore) and aggressive union organizing of
>low-wage workers by some U.S. unions may in different ways signal that
>such unrest is now, slowly but finally, growing.
>
>
>Russell Mokhiber is editor of the Washington, D.C.-based Corporate Crime
>Reporter. Robert Weissman is editor of the Washington, D.C.-based
>Multinational Monitor. They are co-authors of Corporate Predators: The
>Hunt for MegaProfits and the Attack on Democracy (Monroe, Maine: Common
>Courage Press, 1999).
>
>(c) Russell Mokhiber and Robert Weissman
>
>
>
>_______________________________________________
>
>Focus on the Corporation is a weekly column written by Russell Mokhiber
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