SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
economic inequality
'Unsettling New Milestone': Top 12 US Billionaires Now Control $2 Trillion in Wealth
"The oligarchic dozen is richer than ever, and they are endowed with extreme material power that can be used to pursue narrow political interests at the expense of democratic majorities," according to the author of a new analysis.
Dec 04, 2024
Just 12 U.S. billionaires now have a collective net worth of over $2 trillion—a figure that amounts to a little less than a third of total federal spending in 2023—according to an analysis out Tuesday from Inequality.org, a project of the Institute for Policy Studies (IPS).
The $2 trillion number is also twice the amount of wealth that the top 12 US billionaires held in 2020, according to researchers at IPS, a progressive organization.
The full list of 12 billionaires includes Jeff Bezos, Bill Gates, Mark Zuckerberg, Warren Buffett, Elon Musk, Steve Ballmer, Larry Ellison, Larry Page, Sergey Brin, Jim Walton, Rob Walton, and Jensen Huang.
"This is an unsettling new milestone for wealth concentration in the United States. The oligarchic dozen is richer than ever, and they are endowed with extreme material power that can be used to pursue narrow political interests at the expense of democratic majorities," wrote the author of the analysis, Omar Ocampo, a researcher at IPS.
New to the "oligarchic dozen" is Jensen Huang, the co-founder and CEO of the tech company Nvidia. Nvidia, which became the most valuable publicly traded company this year, has seen its profits jump thanks to the world's ravenous appetite for the artificial intelligence chips that the firm produces. According to the analysis, Huang's personal wealth "has skyrocketed from $4.7 billion in 2020 to $122.4 billion—a mind-boggling 2,504 percent increase—over the last four years."
Each of the billionaires on the list "owns or is a controlling shareholder of a business that is investing billions of dollars in artificial intelligence," according to Ocampo, which raises concerns about their respective carbon footprints.
Fueling AI is energy intensive, and AI data centers in the U.S. are largely powered by fossil fuels, meaning their proliferation poses a threat to the environment and a transition to a green economy.
Ocampo also discusses the political reach of the billionaires on the list. Elon Musk and Jeff Bezos, who respectively own X and The Washington Post, "have both purchased large media platforms, which has granted them the ability to set the terms of public debate with the hopes of influencing public opinion in their favor."
Musk specifically has established himself as a major power broker within the GOP. The billionaire spent hundreds of millions helping to re-elect Donald Trump and is now poised to play a major role in the president-elect's administration, helping oversee a new advisory committee tasked with slashing government spending.
As of early December, Trump had tapped an "unprecedented" total of seven reported billionaires for key positions in his administration, according to a separate piece of analysis by Inequality.org.
"We see the effects of this growing concentration of wealth and economic inequality everywhere—plutocratic influence on our politics, wealth transfers from the bottom to the top, and the acceleration of climate breakdown," Ocampo wrote on Tuesday.
Keep ReadingShow Less
The Best Black Economy in Generations Isn’t Enough
To overcome centuries of inequality, we’ll need dedicated public policy such as Investment in quality education, access to affordable healthcare, affordable housing, job creation, and Baby Bonds.
Sep 04, 2024
As the country moves rapidly toward the 2024 elections, Black Americans are experiencing the best economic conditions they’ve had in generations. Record low unemployment rates, record low poverty rates, and record high levels of income and wealth paint a picture of Black prosperity.
Yet African Americans remain mired in great economic insecurity, reflected in their low opinion of the economy, widespread asset poverty, and ongoing economic inequality between Black and white households.
The best Black economy in generations, in short, isn’t enough. To overcome centuries of inequality, we’ll need dedicated public policy.
Black median income today is still nearly $30,000 lower than the white median—it’s not even caught up with the white median income of 1972.
Let’s look at some numbers from a new report we put out for the Joint Center and the Center for Economic and Policy Research.
From 1972 to 2022, the annual Black unemployment rate averaged 11.6%. Last year, it averaged 5.5%, a historic low. That’s good news, but it’s barely put a dent in the gap between Black and white employment.
We calculate that Black America would need an additional 1.4 million jobs for Black people to be employed at the same rate as white people. This employment gap cost Black Americans roughly $60 billion last year compared to what they’d have made if those jobless individuals were working.
So for African Americans, the racial employment divide remains quite costly. Other indicators tell a similar story.
For example, Black median household income is also at its highest point in a generation, growing from about $41,000 in 2011 to nearly $53,000 in 2022—a nearly 30% increase. That same year, median Black wealth also reached a new high of nearly $45,000, more than double the post-Great Recession low of about $17,000.
Still, Black median income today is still nearly $30,000 lower than the white median—it’s not even caught up with the white median income of 1972. And the average Black median wealth of about $45,000 means the vast majority of African Americans fall well short of the $190,000 to $570,000 estimated as necessary to reach middle-class status.
Will these disparities correct themselves on their own? Not likely.
As the Institute for Policy Studies and the National Community Reinvestment Coalition found in their 2023 “Still A Dream” report, the nation is still moving at a glacial pace when it comes to bridging Black/white economic inequality. If the country continues at the rate it’s been moving since the 1960s, it will take over 500 years to bridge the racial income gap—and nearly 800 years to bridge the racial wealth gap.
So while Black Americans are experiencing significant economic gains, these advances are insufficient to overcome entrenched inequalities. The economic progress we see today is a foundation, not a finish line. It speaks to the need for comprehensive policies that address ongoing barriers to economic security and wealth-building.
Investment in quality education, access to affordable healthcare, affordable housing, job creation targeted to high-unemployment communities, and new publicly financed asset building opportunities like Baby Bonds are essential. These measures can help ensure that the economic gains of today translate into sustained prosperity and security for future generations.
As we approach the presidential election, let’s not make this election a contest between individuals but of policies that can heal our deep wounds of racial and economic inequality.
Addressing these issues with urgency and commitment will not only improve the economic outlook for Black Americans—it will create the basis for a more united country.
Keep ReadingShow Less
A Note on Noam Chomsky and Climate Collapse
As Noam once said, “if you assume there is no hope, you guarantee there will be no hope.”
Aug 11, 2024
In many of his recent writings, Noam Chomsky has warned that humanity has reached a very dangerous point because we are now living in a world of cascading crises. Indeed, when we look around us, we see a global web of crises. Economic inequality is destabilizing democracies and making a mockery of the vision of a decent society; armed conflicts continue to mark human existence; and nuclear weapons and global warming threaten humanity’s survival. Meanwhile, we must feel aghast over the fact that cynicism and irrationality continue to define the mindset of the powers that be. This is precisely the reason why Chomsky has always seen activism as our only hope.
What’s happening in Gaza is an abomination, one that the leaders of this world are watching coldly from a distance. The same can be said about climate collapse, which is as real as the daily slaughtering of scores of innocent women and children in Gaza by Israel’s military. Our global institutions are incapable of doing anything meaningful about these crises. Real power is in the hands of the most powerful nation-states and their leaders have opted to turn a blind eye to both disasters so as not to disrupt business as usual. Profits and geostrategic interests take priority over human lives and the environment. This is as clear as day, and it has always been so since at least the emergence of capitalism and the rise of the nation-state.
The current conflict in Ukraine began on February 24, 2022, and peace remains as elusive as ever. The U.S. wants peace in Ukraine as much as Netanyahu wants to see a ceasefire deal in Gaza. The continuation of the war in Gaza is vital to the continuation of Netanyahu's political career. In fact, Netanyahu will most likely celebrate by uncorking a bottle of champagne if an all-out war exploded in the Middle East. He knows he can’t possibly lose with the U.S. backing Israel. The cost of an all-out war in terms of human lives, either Israeli or Iranian or Arab lives, is simply irrelevant to him--or to Washington. Or what another war might do to the environment. The war in Gaza is also a war on the environment; in fact, it is “a widespread and deliberate act of ecocide,” according to a study by Forensic Architecture.
Profits and geostrategic interests take priority over human lives and the environment. This is as clear as day, and it has always been so since at least the emergence of capitalism and the rise of the nation-state.
As Chomsky has pointed out, “ history is all too rich in records of horrendous wars, indescribable torture, massacres and every imaginable abuse of fundamental rights.” But the great man has gone to great lengths to stress that the climate crisis is “unique in human history” and, like nuclear weapons, can destroy organized human life as we know it. Yet, humanity spends annually trillions of dollars on weapons and the military but finds it economically unrealistic to devote the necessary funds to protect the earth.
So much for rationality.
Indeed, consider the global implications of the melting of the Antarctica sea ice. It may be winter in the Southern Hemisphere, but the Antarctica is experiencing a major heat wave that has made temperatures rise 50 degrees Fahrenheit above normal. This is the second major heat wave in Antarctica in the last two years. The entire planet has experienced more than 1.5 Celsius of warming in the 12-month period between July 2023 and June 2024, but Antarctica warms twice faster than the rest of the world, according to latest observations. If all the ice vanished, sea levels might rise by more than 150 feet.
It is no longer an issue of if but when major coastal cities will go under.
We already know that the super-rich and powerful don’t care about the rest of us, but it seems they also don’t care about the future of their own children and grandchildren. As Chomsky has underscored in some of the email exchanges that we’ve had, their self-gratification is even greater now that they know that the climate crisis is speeding toward catastrophe.
Indeed, as Copernicus Climate Change Service Director Carlo Buontempo recently said in connection with the new record set for the daily global mean temperature “we are now in truly uncharted territory…”
We already know that the super-rich and powerful don’t care about the rest of us, but it seems they also don’t care about the future of their own children and grandchildren.
And this brings us to the question of activism, which, as already pointed out, Chomsky sees as our only hope to save the planet. It’s our only way to stop carnages; our only way to stop the criminal negligence of climate collapse. We need the greatest possible degree of public mobilization for the purpose of exerting influence on policymakers. But without thoughtless methods like destroying works of art that turn the public against climate activism.
Moreover, Chomsky believes that we have the knowledge, money, and technology to transition from fossil fuels to alternative sources of energy that are clean, affordable and sustainable. This is why he feels that the Green New Deal is exactly the right idea and finds the Global Green New Deal initiative laid out by the progressive economist Robert Pollin particularly attractive.
As far as the link between capitalism and the climate crisis goes, suffice to say that Chomsky understands better than most the forces behind environmental degradation and climate collapse. The economic system of capitalism, especially during its neoliberal phase, drives climate breakdown. Global temperatures started increasing at an alarming rate after neoliberalism became the dominant economic force. Nonetheless, Chomsky is also fully aware of the fact that time is running out and we cannot wait for the end of capitalism before the planet can be saved. This is why he finds it so vital that we find ways to get the world off fossil fuels quickly and fairly. We must reach carbon neutrality no later than 2050. And do so in a just manner. For Chomsky, a just transition is imperative to building the political power that would bring about a shift from the fossil-fuel economy to a regenerative economy. Because, again, social activism is our only hope, according to what many have described as the “ world’s conscience keeper for nearly half a century.”
And, no, hope is not an option. As Noam once said, “if you assume there is no hope, you guarantee there will be no hope.”
Keep ReadingShow Less
Most Popular