Finally, the Fed's easy-money policies. They've pushed investors
into the stock market because bond yields are so low. On Tuesday, the
yield on the 10-year U.S. Treasury note was just 1.9%.
All of this spells widening inequality in America, because the
people who invest the most in the stock market have high incomes. Those
who rely most on wages have lower incomes.
Corporate profits are claiming a larger share of national income
than at any time in 60 years, while the portion of total income going to
employees is near its lowest since 1966.
As my colleague Immanuel Saez recently found, all the economic gains
between 2009 and 2011 (the last year for which data were available) went
to the richest 1 percent of Americans. The bottom 99 percent has
continued to lose ground.
And yet the tax code continues to give preference to capital gains over ordinary income -- a huge boon to investors.
Robert Reich
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