It's Official: America Is Now A Banana Republic

11-08-2010 • Businessinsider.com/

One of the hallmarks of banana republics, says the NYT's Nicholas Kristof, is income inequality. In some countries, the wealthiest 1% of the population takes home 20% or more of the national income. And now the same is true in America: The richest 1 percent of Americans now take home almost 24 percent of income, up from almost 9 percent in 1976. As Timothy Noah of Slate noted in an excellent series on inequality, the United States now arguably has a more unequal distribution of wealth than traditional banana republics like Nicaragua, Venezuela and Guyana. C.E.O.’s of the largest American companies earned an average of 42 times as much as the average worker in 1980, but 531 times as much in 2001. Perhaps the most astounding statistic is this: From 1980 to 2005, more than four-fifths of the total increase in American incomes went to the richest 1 percent. How does that make you feel?