Toastmasters Speech - Distribution of Wealth - Speech #6

Distribution of Wealth by Steven Levy

Copyright 2010, All rights reserved.

How bad is it?

Using data from Wealth, Income, and Power, by G. William Domhoff, Sociology Department, University of California, Santa Cruz

• Wealthiest 20% own 85% of the assets
• Since 2007, the median family in the US has lost 36% of their wealth, while the top 20% has lost only 11%
• The concentration of wealth today is similar to what it was during the depression, about 1% owning 33% of the wealth
• Of the western nations, the concentration of wealth is only exceeded by Switzerland with 71% for the top 10%, while ours is 70%. Bear in mind, that European countries have a better Safety net than the US. The concentration of wealth in the US would have more impact on the lower classes.

Another source is the Survey of Consumer Finances, sponsored by the Federal Reserve Board,  that does provide data from 1983.

• The bottom 40% own 0.2% of the wealth
• The next 40% own 15%
• The top 20% own 85%

If 100 people were going to dinner according to their wealth, the top 20% would be going to a fine French restaurant, the next 40% would be going to McDonalds, and the bottom 40% would be going to the Quickie Mart for a 5 cent Tootsie Roll.

What is the impact?

• Wealth can be used to shape the cultural and political environment through tax deductible donations
• Ownership of stock gives voting rights and control of corporations
• Influence leads to wealth, and more concentration
• Since 1975 expenditure on criminal justice has gone from 33 to 216 billion dollars. We now imprison 25% of the worlds inmates.
• All media is controlled by the very rich. For the past 30 years Americans have been bombarded with propaganda that is against their own self interest.
• No new taxes, help the small business, Obama Care, Government cannot run health care efficiently.

What could be done? Three Ideas:

Redistribution of Wealth: Tax the Rich

• Excise tax
• Estate tax, taxation of special trusts
• More progressive income and real estate taxes
• No cap on payroll taxes
• National VAT tax

Health Care: Shift from Cure to Prevention

• Provide additional funds to state and local departments of public health. They have programs that address prevention and could be easily expanded.
• Prohibit health insurance companies from selling anything but insurance. Do not let them sell a buying club. How expensive would your oil change be if Blue Cross paid for it?

Adult Education

• Adults with better skills can obtain and improve their employment
• Improved self-esteem
• More demanding of their children’s school work and teachers
• Examples
• Better return on investment that educating children.