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State of the Union: Obama Seeks to Narrow Income Gap

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Obama's State of the Union address in 2014 focusses on increasing the minimum wage, reducing inequality and creating opportunities for the middle class. It marks a shift to doing things by executive order wherever possible to avoid protracted debates and delays by Congress.

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America's Miserly Minimum Wage Needs an Upgrade

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Deep Poverty in the U.S. increasing from about 30% of people in poverty in 1975 to 44% in 2013

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Deep poverty is defined as income 50% below the official poverty line. Since the beginning of the recession deep poverty in the U.S. has increased from 42% to 44%. The striking change in America is the accentuation of the income differences with the rise in deep poverty. This is coupled with similiar changes in income differences for the middle class Americans with income concentrated at the higher levels.

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U.S. Poverty Rate Stabilizes

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Poverty among white Americans in 2010-2015

03/11/2009

A previous generation could count on good jobs in manufacturing with only a high school education. The last two decades of globalization have hit manufacturing jobs and wages in the U.S. hard and the impact is greatest on people without a college education. Other problems aggravating income and causing poverty is the increase of dropout rates from the labor force of young white American men, the effects of drug use and the lack of stable marraiges. This creates an underclass of whites in America, similiar to the underclass among minorities.

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Racial Wealth Gap Widened During Recession

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Jeb Bush's focus on declining social and education mobility in the the U.S. in his address to the 2013 CPAC conference

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Fragility of social cohesion in the U.S. with unemployment concentrated in the lower middle and working classes.

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Figures from the Center of Labor Market Studies of Northeastern University in Boston showing unemployment of 9% in the $40,000 to $50,000 annual household income group and going up to 31% at the lowest income group. Higher inequality as differences in education between lower income and higher income Americans grows. The problem of the long term unemployed is a serious one.

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New York Times 09/07/2013

The view that the burden of U.S. deficit reduction is falling on the elderly, the poor and the middle class

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Bernie Sanders and other leaders who see this as a problem with the plans for U.S. deficit reduction that are under discussion.

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