Talking Points for the 99%

by Deborah Gang

If someone asked you to explain the ideas behind the concept of "The 99% vs the 1%," could you do it? If they asked, "Is this just a slogan or does it have facts to back it up?" could you give a good answer? We looked for some easy-to-understand, trustworthy numbers to have ready.

• Economist Joseph Stiglitz tell us that 25 years ago, the richest 1% of Americans owned 33% of the national wealth. Today, the top 1% owns 40% of the nation's wealth.
  
  
• Economist and New York Times columnist Paul Krugman says that the now-famous slogan is actually too optimistic and that "a large fraction of the 1 percent's gains have actually gone to an even smaller group, the top 0.1 percent – the richest one-thousandth of the population." He calls this group the "super elite," whose wealth has come from a combination of higher income along with significant tax cuts that favor the rich, especially the lowered tax on capital gains from stocks, bonds and other investments. Do we all benefit from this historically low capital gains tax rate? Keep reading to find the answer to that.
  
  
• Mr. Krugman has more numbers for us: adjusting for inflation, between 1979 and 2005, the adjusted after-tax income of Americans in the middle of the income distribution went up 21% -- which sounds pretty good until he tells you that the income for the richest 0.1% rose 400%.
  
  
• In 1976 the top 1% took home 9% of the national income. Today it's 24%.
  
  
• Wealthy people in the top 1% own 50% of the nation's stocks and bonds, while the 50% of Americans at the lower end of the wealth distribution own 0.5% of these kinds of investments--so the very low capital gains tax rates do help many of the wealthier half of the population but hurt the lower 50%.
  
  
• And if you're wondering about all those credit card offers still coming to your mailbox, take note that as of 2007, sociologist William Domhoff tells us that the bottom 90% of Americans hold 73% of the total personal debt while the top 1% holds 5% of the debt.

So if someone asks you about "the 1% thing" you can say to them, "1%. That's nothing. Let me tell you about the one-thousandth %!" Make your day. Make someone angry.

Election 2012 Talking Points: As we enter 2012, consider getting ready to talk rationally, forcefully and factually with those who believe differently, e.g., Republicans and Independents. Sure, some may be moderate people who just hold different views. But be ready to confront those who glean their "facts" and ideas from Fox News — the "truthiness" of which must be challenged! Here is a start on some talking points you may find helpful as you meet others or knock on doors throughout the campaign. More to come!

This article appears in the January 2012 newsletter.