One of the big topics of conversation at the World Economic Forum last week was the same one that the President of the United States will talk about in his State of the Union tomorrow:
Specifically, the fact that the richest 10% of Americans — and especially the richest 1% of Americans — are now capturing all of the income growth in the country, while the rest of America, some 300 million people, are treading water or losing ground.
How bad has inequality gotten?
The richest 10% of Americans now take home a staggering 50% of all the income earned in the country, the highest level ever. This wealth gap exceeds the extremes reached in the brief “Gilded Age” portrayed in the The Great Gatsby that led to the Great Crash and Great Depression.
The rich can keep on getting richer, but until some more money gets into the hands of the people who actually drive most consumer spending, the economy will continue to struggle.
There is one easy way they can begin to fix the problem: Pay people more.
Yes, that’s right. Pay people more. Stop being so selfish and voluntarily share more of the value that successful companies create with the people who create it — the rank and file workers who dedicate their working lives to the company and its customers (and, in so doing, to increasing the wealth of the senior executives and investors who own the company).
[ Re-Posted from Business Insider | Henry Blodget ]