The Economic Problem, Illustrated (Infographic)

The brilliant infographic (via FJP) relates specifically to the US economy, however similar graphics could be made for nearly every western industrialized country. Actually it only represents half of the problem.

The first part of the problem is that all that 'labor saving technology' has saves a whole-lot of labor. If wages and salaries had kept place with workplace efficiency, the minimum wage would be $22/hr (US). However the extra wealth created has all gone to the very top and the very top has seen their tax rate decline dramatically which means that governments are going broke and programs to help the poor and lower middle class have been slashed.

(Of course the outsourcing of labor to developing countries hasn't helped, but that's the old thing. Automation and robotic are the new job killers.)

The graphic below shows income growth between 1966 and 2011. At the very least this shows, clearly, that 'trickle down economics' is complete bunk and that tax cuts only help those whose taxes are cut.

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