The ruling elite, the financial CEOs pay is soaring:
The Bush-Obama Wall Street bailout has resulted in the deepening financialization of the US economy: Finance has displaced the technology industry as the profitable sector of the US economy.
While the US economy stagnates and the European Union wallows in recession and with over 50 million unemployed, US financial corporations in the Standard and Poor 500 index earned aggregate profits of $49 billion in the second quarter of 2013, while the tech sector reported $41.5 billion.
For 2013, Wall Street is projected to earn $198.5 billion in profits, while tech companies are expected to earn $183.1 billion.
Within the financial sector, the most
‘speculative sectors’, i.e. investment banks and brokerage houses, are
dominant and dynamic growing 40% in 2013. Over 20% of the S&P500 corporate
profits are concentrated in the financial sector.
The recovery and boom of corporate profits since
the crises turns out to be concentrated in the same financial sector which
provoked the crash a few years back.
The White House and Congress have slashed public spending on health, education and social services. They have cut funds for the food stamps program (food subsidies for poor families), day care centers, unemployment benefits, social security inflation adjustments, Medicare and Medicare programs.
As a result the gap between the top 10% and the
bottom 90% has widened. Wages and salaries have declined in relative and
absolute terms, as employees take advantage of high unemployment (7.8%
official) underemployment (15%) and precarious employment.
Outside of North America, especially in the European periphery, mass unemployment and declining living standards has led to mass protests and repeated general strikes.
The bi-polar world of rich bankers in the North racking up record profits and workers everywhere receiving a shrinking share of national income spells out the class basis of "recovery" and "depression", prosperity for the few and immiseration for the many.
By the end of 2013, the imbalances between finance and production foretell a new cycle of boom and bust.
Emblematic of the demise of the "productive economy" is the city of Detroit’s declaration of bankruptcy: with 79,000 vacant homes, stores and factories the city resembles Baghdad after the US invasion - nothing works.
The Wall Street-devastated city, once the cradle
of both the auto industry and the organized industrial workers’ leap into
the middle-class, now has debts totaling $20 billion.