Quantcast
Connect with us

These startling new statistics show just how bad Trump’s policies are for most of America

Published

on

Thanks for your support!
This article was paid for by reader donations to Raw Story Investigates.

This article was paid for by Raw Story subscribers. Not a subscriber? Try us and go ad-free for $1. Prefer to give a one-time tip? Click here.

David Cay Johnston
David Cay Johnston

If you are in the 99% here is how well you are faring under Trump policies compared to the 1%—for each dollar of increased income that you earned in 2018, each One-Percenter got $88 more income.

Huge as that ratio is, it’s small change compared to the super-rich, the 0.01% of Americans with incomes of $10 million and up. That ratio is $1 for you and $2,215 for each super-rich American household.

ADVERTISEMENT

The slice of American income pie going to the poor shrank under Trump by the same amount that it grew for the super-rich.

Ponder that for a moment. For each additional dollar that you earned in 2018 compared to 2016, each of the wealthiest taxpayers got an additional $2,215.

The bottom line: with Trump as president it’s good to be rich

The average super-rich American enjoyed $7.1 million more income under Trump in 2018 than in 2016, the last year that Barack Obama was president. For the Ninety-Nine-Percenters, in contrast, average income rose just $3,360 with most that gain among those making $200,000 to $500,000.

Not Widely Reported

One-Percenters Donald and Melania Trump in their Florida home, Mar-a-Lago.

ADVERTISEMENT

You haven’t heard these numbers on the nightly news or read them in your morning newspaper because no one announced them. I distilled them from an official government report known as IRS Table 1.4, a task I’ve repeated annually for a quarter-century.

At DCReport we don’t attend press conferences, we don’t rewrite press releases and we don’t depend on access to officials because other journalists do that just fine. Instead, we scour the public record for news that oozes, news that no one announced.

Last week I reported my preliminary analysis of Table 1.4, showing that 57% of American households were better off under Obama. That contradicted Trump’s naked claim, repeated uncritically and often in news reports, that he created the best economy ever until the pandemic.

ADVERTISEMENT

This week’s focus is on the big changes in how the American income pie is being divvied up.

More for the Top

The rich and super-rich are enjoying a bigger slice of the American income pie.

ADVERTISEMENT

On the other hand, this is a truly awful time to be poor. Trump policies are narrowing the pockets of the poor, the third of Americans make less than $25,000. In 2018 their average income was just $12,600, a dollar a day less than in 2016.

Trump & Co. has numerous plans afoot to reduce incomes of the poor even more and take away government benefits, as we have been documenting at DCReport.

Less for the Bottom

The poor saw their slice of the national income pie shrink by 1 percentage point from 6.5% to 5.5%. In a mirror image of that change, the super-rich saw their share of income pie grow by the same 1 percentage point, from 4.5% to 5.7% of all income.

ADVERTISEMENT

That means the richest 22,122 households now collectively enjoy more income than the poorest 50 million households.

What these huge disparities make clear is that the sum of all Trump policies not only makes the poor worse off, but their losses are transformed into the gains of the super-rich.

The economic growth that began in early 2010 when Obama was president continued under Trump, albeit at a slower pace as DCReport showed last year. Pre-pandemic Trump underperformed Reagan, Clinton, Carter, and the last six years of Obama, who inherited the worst economy in almost a century.

The continuing upward trajectory for the economy meant that overall Americans made more money in 2018 than in 2016 even after adjusting for inflation of 4.1% over two years. Total income grew by almost $1 trillion to $11.6 trillion.

ADVERTISEMENT

Half-Trillion for the One-Percenters

Almost half of the increase went to the 1%.  They enjoyed $487 billion more money. The rest of America, a group 99 times larger, divvied up $511 billion.

The big winners, though, were the super-rich, the $10 million-plus crowd. That group consists of just one in every 7,000 taxpayers yet they captured every sixth dollar of increased national income, a total gain of $157 billion.

So, if you are among the 152 million American taxpayers in the 99% ask yourself whether Trump administration policies are good for you. Do you want a government of the rich, by the rich and overwhelmingly for the rich? Or would you prefer a government that benefits all Americans?

And see what you can do to make sure more Americans know about the big shifts in the way America’s income pie is being sliced up.

ADVERTISEMENT

This article was paid for by Raw Story subscribers. Not a subscriber? Try us and go ad-free for $1. Prefer to give a one-time tip? Click here.


Report typos and corrections to: [email protected].
READ COMMENTS - JOIN THE DISCUSSION
Continue Reading

Breaking Banner

Matt Gaetz accuses GOP’s Kelly Loeffler of bribing Trump with $50 million to push out her opponent

Published

on

On Thursday, The Daily Beast reported that Rep. Matt Gaetz (R-FL) is accusing Sen. Kelly Loeffler (R-GA) of offering President Donald Trump money for his re-election in return for helping her push opponent Rep. Doug Collins (R-GA) out of the race.

“This is what the Loeffler team went to the Trump team with,” said Gaetz at a campaign event for Collins. “They went and said, ‘Look, you guys gotta get Doug Collins out of this race’ ... She said, ‘I have $50 million for this project, and I can either spend my $50 million getting new voters and helping the Trump campaign, or I can spend that $50 million taking out Doug Collins.’”

Continue Reading

2020 Election

Foreign hackers cripple Texas county’s email system with a simple malware attack

Published

on

Last week, voters and election administrators who emailed Leanne Jackson, the clerk of rural Hamilton County in central Texas, received bureaucratic-looking replies. “Re: official precinct results,” one subject line read. The text supplied passwords for an attached file.

But Jackson didn’t send the messages. Instead, they came from Sri Lankan and Congolese email addresses, and they cleverly hid malicious software inside a Microsoft Word attachment. By the time Jackson learned about the forgery, it was too late. Hackers continued to fire off look-alike replies. Jackson’s three-person office, already grappling with the coronavirus pandemic, ground to a near standstill.

Continue Reading
 

Breaking Banner

Fox News built an ‘alternative reality’ to allow Trump to steal the election — and get away with it: Political scientist

Published

on

Fox News has laid the groundwork for President Donald Trump to steal the election -- and get away with it, according to a political scientist.

Rachel Bitecofer, an election analyst and senior adviser to the Lincoln Project, told MSNBC's "Morning Joe" that right-wing media had created an alternate reality that gave Trump's allies permission to believe he was saving democracy by stealing the election.

"Here's the thing you guys need to understand and America needs to understand," Bitecofer said. "I've been talking about this for a while, you can see this if you watch any of the congressional testimonies. In Republican world, it is they that are defending the institutional purity [and] Bill Barr is American hero, okay?"

Continue Reading
 
 
Democracy is in peril. Invest in progressive news. Join Raw Story Investigates for $1. Go ad-free. LEARN MORE