It is difficult to select a single human behavior responsible for much of the misery we suffer from, both societally and individually, but one comes close — greed. Greed is defined as “a selfish and excessive desire for more of something than is needed.” Today, like the Gilded Age, wealth is concentrated at the top of the socioeconomic ladder with expanding political corruption, and we have reached a tipping point.
The Federal Reserve Board reports in 2024 the United States had a $29 trillion economy — more than a quarter of the world’s total — and the net worth of all U.S. households was nearly $160 trillion. The top half of Americans control about 98% of that wealth. The top 1% control $49 trillion, and the top 0.1% (about 136,000 households) control nearly one-half of that $49 trillion.
Looking closer at corruption, the Economic Policy Institute reports that the CEO-vs-worker pay ratio peaked in 2021 at 399:1 [290:1 in 2023]. It has increased by over 1,000% since 1978 as compared to average worker pay, which has increased by only 24%. In 1965 the CEO-vs-worker pay ratio was 21:1.
This is directly due to the leverage that CEOs hold over corporate boards, not due to their skills or contributions made to their firms.
The top tax rate in the U.S. was 70% in 1981, then cut to 50% by the Economic Recovery Tax Act. The Tax Reform Act of 1986 cut it to 28%. It increased to 39.6% in the 1990s, but it was reduced to 35% in the 2000s. Currently it is 37%, with an effective rate of 13% as of 2020. In 1950 it was 91%, with an effective rate of 50%. Both will be reduced further if the current administration is successful with their budget proposal.
Changes in deductions against taxes over the past 40 years, including the 2017 Tax Cuts and Jobs Act, enable many Fortune 500 companies and individuals to pay little or nothing in taxes despite near-record profits. Food conglomerate Archer Daniels Midland, delivery giant Fed Ex, shoe manufacturer Nike, cable provider Dish Network, and software company Salesforce paid no federal taxes in 2020 despite near-record profits.
The complexity of the federal income tax code is mind-boggling, and its favoritism towards the wealthy is well-documented. Inflation is a direct result of greed, whether it be corporate, individual, or governmental in nature. Greed is an issue that is bipartisan in nature and threatens our country and way of life.
Daniel Herbert-Voss, White City
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