How inequality has soared in the US

The top 1 per cent now take home 23.5 per cent of all income.

If you want to get some idea of why the 99 per cent movement has attracted so much support in the US, just take a look at this graph. Over the last thirty years, the share of income taken by the top 1 per cent of Americans has risen from 10 per cent to 23.5 per cent. Even more remarkably, the share taken by the top 0.1 per cent (the top 14,988 US families, making at least $11.5m in 2007) has risen from 1 per cent to 6 per cent. Income inequality in the US is now at its highest level since 1928 (see this excellent Berkeley report for more data), when the top 1 per cent took home 23.9 per cent.

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As you'll notice, from the 1950s onwards, income distribution in the US remained broadly stable until the Thatcher-Reagan revolution. The neoliberal policies pursued by the Reagan administration - tax cuts for the wealthy (the top rate of tax was reduced from 50 per cent to 28 per cent), deregulation and privatisation, led to a dramatic rise in inequality.

Consequently, it's no surprise that even in the US, where the Tea Party has tilted the political spectrum rightwards, the majority of citizens support the aims of the 99 per cent movement. A recent Time/Abt SRBI poll found that 54 per cent had a "very favourable" (25 per cent) or "somewhat favourable" (29 per cent) view of the movement.

It was Alan Greenspan, a disciple of free-market guru Ayn Rand, who remarked in 2005: "This is not the type of thing which a democratic society - a capitalist democratic society - can really accept without addressing." Obama now has a huge political opportunity to win support for a renewed drive against inequality. He was memorably attacked during the 2008 presidential election for wanting to "spread the wealth" but the polls suggest that's exactly what the voters want him to do.

As for the UK, we're not doing much better. The richest 10 per cent now receives 31 per cent of national income and owns almost half of the country's personal assets, while the poorest 10 per cent takes home just 1 per cent of the total income. The coalition's decision to rely on spending cuts (which hit the poorest hardest), rather than tax rises, to reduce the deficit will inevitably widen the gap. Conservatives may criticise the Occupy London movement but they cannot deny that it reflects a grim empirical reality.

George Eaton is political editor of the New Statesman.

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Ukrainians now have more freedom of travel - but less freedom of thought

Ukraine's government is rightly concerned about Russian cyber aggression. But does that merit online censorship?

Ukrainians have sacrificed so much in their bid to be recognised as fellow Europeans. Their struggle to extricate themselves from Russian domination is written in the blood of the Euromaidan protestors and the toll of its military dead.

The slow progress of Ukraine’s emergence, into something resembling normality, passed another milestone on 17 May, when President Petro Poroshenko signed an agreement with the EU allowing for visa-free travel in 34 European countries. 

From Sunday 11 June Ukrainians with biometric passports will be able to travel in Europe and stay for 90 days within a 180 period. There are obvious economic benefits to the new agreement. Ukrainians will be free to travel and conduct business with much more efficacy. The new agreement will also reduce the insularity of Ukrainians, many of whom yearn for the cosmopolitanism they see in Western Europe. President Poroshenko was mindful of the symbolism of the agreement. He declared: "Ukraine is returning to the European family. Ukraine says a final farewell to the Soviet and Russian empire."

Perched on the periphery, Ukraine is now set to become more woven into the European mainstream. Ukrainians sense that the western door is slowly but inexorably opening, and that both recognition, and validation beckons. In this respect, it seems that there is much to celebrate.

However, as ever, Ukraine hangs uneasily in the balance between the old ways and the new. On 16 May, Poroshenko signed a decree blocking access to Russian social media websites Yandex, VKontakte and Odnoklassniki. Millions of Ukrainians sign in to these websites every day. Even Poroshenko himself uses them. Five Russian TV stations are already banned in Ukraine. Poroshenko says that "Ukrainians can live without Russian networks". And it is certainly a fact that Ukrainians have responded to the decree by turning away from the Russian platforms in great numbers. Ukrainian Facebook is growing by some 35 percent a day.

In the context of Ukraine’s continuing conflict with Russia, it is perhaps understandable that the government in Kiev wishes to limit Russian trolls, together with Russian state influence and misinformation. This is certainly also the case across the whole western world, which is keenly aware of Russian cyber aggression. Nevertheless, one must ask why countries such as Britain, France and Germany continue to allow their citizens to access Russian media platforms, when Ukraine does not. 

While the new travel freedoms for Ukrainians has unleashed optimism, the latest decree has indicated something a little darker about the future. President Poroshenko would do well to consider the actions of other European governments that he so ardently wishes to emulate. Closing down social networks is usually done by authoritarian regimes like North Korea, China and Saudi Arabia. But Poroshenko advocates democracy, and in democracy there is no place for such acts. It is surely a mark of a nation’s maturity to encourage freedom of thought, as well travel.

Mohammad Zahoor is the publisher of Ukrainian newspaper The Kyiv Post.

 

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