More evidence of the rich getting richer while the rest of us are left behind
Romney and the Forbes 400
By JOE NOCERA, NYT
Last week, sandwiched between Monday’s leak of the video in which Mitt Romney dismissed “the 47 percent” and Friday’s release of the Romneys’ 2011 tax returns — showing that they had paid an effective tax rate of 14 percent — Forbes magazine published its annual list of the 400 wealthiest Americans.
There weren’t a lot of surprises on the Forbes 400. Bill Gates, with an estimated net worth of $66 billion, remains the wealthiest man in the country. He is a whopping $20 billion richer than his pal Warren Buffett, who came in at No. 2, according to Forbes. All the usual suspects were there: Michael Bloomberg; George Soros; the Koch brothers; various descendants of Sam Walton, the founder of Walmart; and on and on.
What was illuminating was not so much who was on the list but what they collectively told us about the state of the richest of the rich. Thirty years ago, when Forbes published its first Forbes 400, a net worth of $75 million would get you on the list. Today it takes $1.1 billion. In the last year alone, the cumulative net worth of the wealthiest 400 people, by Forbes’s calculation, rose by $200 billion. That compares with a 4 percent drop in median household income last year, according to the Census Bureau. One would be hard pressed to find a clearer example of how powerfully income inequality has taken root.
Like Romney, Forbes magazine is a little defensive about this — and, like Romney, Forbes has adopted a self-justifying narrative. Luisa Kroll, one of the magazine’s “wealth editors,” nods toward “concerns” about income inequality in her introduction to the list, but she goes on to write that “a deeper analysis instills confidence that the American dream is still very much alive.” In fact, it does nothing of the sort.
(More here.)
Last week, sandwiched between Monday’s leak of the video in which Mitt Romney dismissed “the 47 percent” and Friday’s release of the Romneys’ 2011 tax returns — showing that they had paid an effective tax rate of 14 percent — Forbes magazine published its annual list of the 400 wealthiest Americans.
There weren’t a lot of surprises on the Forbes 400. Bill Gates, with an estimated net worth of $66 billion, remains the wealthiest man in the country. He is a whopping $20 billion richer than his pal Warren Buffett, who came in at No. 2, according to Forbes. All the usual suspects were there: Michael Bloomberg; George Soros; the Koch brothers; various descendants of Sam Walton, the founder of Walmart; and on and on.
What was illuminating was not so much who was on the list but what they collectively told us about the state of the richest of the rich. Thirty years ago, when Forbes published its first Forbes 400, a net worth of $75 million would get you on the list. Today it takes $1.1 billion. In the last year alone, the cumulative net worth of the wealthiest 400 people, by Forbes’s calculation, rose by $200 billion. That compares with a 4 percent drop in median household income last year, according to the Census Bureau. One would be hard pressed to find a clearer example of how powerfully income inequality has taken root.
Like Romney, Forbes magazine is a little defensive about this — and, like Romney, Forbes has adopted a self-justifying narrative. Luisa Kroll, one of the magazine’s “wealth editors,” nods toward “concerns” about income inequality in her introduction to the list, but she goes on to write that “a deeper analysis instills confidence that the American dream is still very much alive.” In fact, it does nothing of the sort.
(More here.)
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