Obama’s “Socialism” Seems to be Working Out Pretty Well for Capitalists


The overall cost and benefit equation for society can be best measured through the Gini coefficient. This coefficient can be used to measure the concentration of wealth as well as the distribution of wealth. Wealth inequality will run much higher in the USA as opposed to income inequality. An index of 0 represents perfect equality, while an index of 100 implies perfect inequality. NYU Professor Wolff places wealth inequality in the USA at 86.5!!! According to the Census Bureau, the official Gini coefficient for the United States was 46.9 in 2010 which is at odds with the OECD report at 37.0. The average pre-tax Gini index for OECD countries was 46.0. The OECD reports three different Gini coefficients for the United States and other countries placing the USA indeed at fastest rising inequality after Mexico http://www.oecd.org/els/soc/49499779.pdfand the share of top incomes increasing fastest. The interesting point here is that the countries with the least inequality (Denmark, Sweden and Germany) also saw rising inequality!! Why??

Economic logic and economic sense take into account the consequences of the central laws in economics, which, like the laws of gravity are forces of nature. These are relentless and merciless. Let me suggest that the main culprit is indeed globalisation. The distribution of market incomes (all wages, dividends, interests, salaries from abroad included) taken together, meaning highly educated, MNCs leading executives are benefiting the USA GNP (as opposed to GDP) while lower less educated and unsophisticated wage earners are left behind. This argument has been put forward by the likes of Krugman and Stiglitz. 

So is Obamas socialism working well for Capitalism? Of course it is! The global industrialists are benefiting but not so for the domestic lower-tier wage earner.  There is not discussion of inequality, which there should be. The general population should be  informed and educated on the consequences of  rising inequality, and those who might wish to sell their  self-interests to the general public.   Economic nonsense.

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