Inequality in the US by Zip Code

Economic Distress

No Gravatar

I remember when candidate Ronald Reagan would prance about asking “Are you better off today than you were four years ago?”  It was his effective mantra to become the US President.

I won’t go into the methods he used to insure that the rich would always be better off- and the poor would be stranded.  But, it wasn’t as clear then as it is now how his goal was also to decimate the middle class.

Because once he became President- and ever since- the US middle class has been losing ground, year by year.  And, since the Great Recession, that gap between the rich and the poor, as well as between the top 2% and the middle class has been widening ever still.

Change In INcome

Yes, I know these are political statements.  But, when it comes to the economy, our political parties have been playing Russian Roulette with our lives.  Because they both make tax reform a big talking issue- but do nothing about it.  We let corporations scoot about virtually tax free – because we don’t tax them based upon the value and benefit they obtain from their sales (and presence) in the US, mostly because our Senators, our Congressfolks, and our President are beholden to the truckloads of dollars these firms invest- not in the US citizenry, but in the campaign coffers of these office holders.

And, one of the best ways we can reverse this trend is to adopt a corporate tax plan like I have been proposing.  Because, this program would force corporate executives to recognize the value they obtain from America- for it’s sales and it’s staff.  It will remove the incentive for companies like Carrier to close it’s plant in Indianapolis, as it just recently anounced.  ( By the way, Carrier pays reduced wages [compared to historical factory wages] to about $23 an hour; moving the production to Mexico will let them drop the wages to $10 a day.  And, they won’t drop their prices they charge us consumers by a penny!)  We need to have a tax system that works for the American worker, and not against him or her.

But, the issue of wages and employment is not universally gloomy.   That’s why some folks (hello, DC area residents) can’t understand why people are complaining about their wages- or the lack of jobs.  It turns out some parts of America have recovered some since the Great Recession.  But, not very many.

This new examination of the data was released by the Economic Innovation Group (EIG), a new entity to the American scene. It’s mission is to render entrepreneurs and investors able to create and develop our economy- through entrepreneurial efforts.  And, the EIG is a non-partisan, pro-business group. Because the EIG recognizes that it still is the small businesses that drive employment growth in our economies.

But, the EIG realizes that the American Dream is at best chimeric right now.  (I’ve written about this often [here’s but one example]- and I have also authored a book describing this problem!)

The promise- the American Dream-  is that anyone from anyplace (in the world) can come to the US (legally, of course), from any religion, from any background, and climb to the top of the economic ladder.  The American reality is vastly different- if you live in a distressed community (especially as a child), your chances to improve your lot are evanescent.  (Yes, there are exceptions.  But, that doesn’t support the dream as a reality- it just makes it possible for one party to proclaim it still exists.)

Here’s some things that EIG discussed in their report. Since the Great Recession, those who live in the more prosperous neighborhoods (again, they’ve checked the US by zip code- as long as the zip code has 500 residents or more) recognize that their employment rate has increased by 20%.  Less than 6% drop out of high school and 65% of the residents are employed in these zones.  (Remember- this is residential census, which includes all adults over 18- whether in school or retired.)

Inequality in the US by Zip Code

What about the situation in those less prosperous neighborhoods?  Oops- employment dropped and 10% of the area businesses disappeared. About ½ the residents lack jobs.  Getting a high school diploma is a most difficult task (only 75% graduate).

Income Disparity in the US

And, as I’ve written often, mostly because I am amazed how often these affected folks vote for parties that stand diametrically opposed to their best interests- the most (52%) distressed communities are in the US South.   (And, you guessed it, Texas has the most number of distressed zip codes.)

I don’t hold out much hope for the recovery of the American Dream- or the American infrastructure- if we don’t reform our corporate tax code.  Because the incentives for businesses are currently all wrong.

Maybe folks should consider voting for candidates who really value America and its citizens.  Not for ones that proclaim they do, while they pocket all those bribes.  Oops.  Sorry, those campaign contributions.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter
Share

8 thoughts on “Economic Distress”

  1. I’m terrified of what’s going to happen in this year’s election. I don’t like any of the candidates and I’m worried that the economy is going tank (from where I’m standing, if feels like it already has!)

  2. It amazes both me and my spouse how the most distressed areas tend to be the ones most supportive of policies that worsen their lives. We’ve lived in what people now call “red” states. There is so much anger in our country today – I can only hope we can climb out of what we are facing now. There are too many parallels to a certain time in history in a couple of European countries.

Comments are closed.