INCOME GAP WIDENS FOR AMERICANS

The Great Recession is not the great American equalizer after all. It's been
widely reported recently that this recession hit middle and low income
families the hardest, while the wealthy have continued to prosper. It may
be chic to save and everyone brags about coupon clipping, but the idea
that "we are all in this together" may not actually be the case.

According to the Associated Press, incomes have declined across all
demographics, but at a greater percentage for middle and lower income
groups. "Median income fell last year from $52,163 to $50,303, wiping
out a decade's worth of gains to hit the lowest level since 1997." In fact,
the gap between the rich and the poor has widened to the point that the wealthiest
10% of Americans earned 11.4 times those below the poverty line earning $12,000
a year. Previously, the highest earning difference was 11.22 times higher in 2003.

The unemployment rate stands at a thirty year high of 9.7. I just saw a stat that put the unemployment
rate at 10.2. A great majority of those job losses have been lower income ones, particularly in construction
and manufacturing. While wealthier Americans have had reductions in executive pay, far more of the
middle and lower income earners have lost their jobs. This disparity between the rich and the poor is more
pronounced in larger cities, like Atlanta, New York and Chicago.

The recession seems to be coming to a close with signs that the economy is finally growing. The
Commerce Department reported that the economy shrank less than expected, with gross domestic
product dipping just 0.7 percent from April to June, after dropping 6.4 percent in the first quarter of the
year (AP). Measuring the value of all goods and services, the GPD is a good barometer of the health of
the economy.

The better than anticipated numbers are attributed to businesses and consumers spending more than
expected. The better news is largely credited to the government's $787 billion stimulus package and
programs like Cash for Clunkers. What is not expected to improve anytime soon is the unemployment
rate, which analysts believe will reach 10 percent by the end of the year.

As hiring in most sectors remains stagnate and layoffs continue, the gap between the haves and
have-nots is likely to widen. Congress is considering ways to regulate executive pay.

(Kimbrough Gray, published in Broker Agent Social)

I don't believe government regulation of pay is the answer. We need manufacturing jobs.

You only need to look at the way England is struggling financially to see that a service based economy
is not what we should be aiming at.