Let's start with this chart. You may notice some slight variation among various estimates, but the objective situation should be clear. The objective facts of US Wealth Distribution gives us a place to begin to analyze the social and economic situation, the fundamental framework for understanding politics, society, and economy in America. Rather ODD though, isn’t it, that media and political commentary seems to be avoiding the subject like the plague? Not so on top-side - the Federal Reserve and other high-level outfits are regularly discussing the problem of so radical a Wealth Gap. But, I mean it’s not “on the News” or in political parlance. When they aren’t discussing the “plague” itself, or immigration, or “woke” ideology, or a host of other extraneous “issues,” it’s all about theatrics and entertainment. Take Trump, for instance, pure theatrics.
It’s often remarked that the US has a High Standard of Living. Yet, there simply IS no STANDARD of Living. See the charts. Why should this concern even those of us in the “Middle Class”? We’re eating, driving, perhaps even vacationing? Well, because this degree of inequality is weakening our society (I use the word “society” because the academics and other commentators seem to love the word, yet it’s quite a stretch of the term). Take incarceration. The US imprisons far more than any other country in the world. According to the Prison Policy Initiative, it’s costing $182 billion per year. You may say that “cost” is misleading, since the prison system has largely been privatized, this is not only “cost,” but “earnings,” and thus contributes substantially to our Gross National Product. Similarly, the $115 billion or so spent on Policing - this “creates employment,” and thus “boosts the economy.” Well, this points to how aggregates such as GNP can mislead. Don’t get me started on the Military Budget, the Pharmaceuticals (third leading cause of death), the fake food-like products, the Media conglomerates, like the junk food but even MORE toxic, and a host of other questionable contributors to the GNP.
Another contributor to GNP are the myriad of “social scientists,” governmental and in various “think tanks” and NGOs - of questionable utility also, in my opinion - but, we might as well use some of their data. The “poverty rate” in the US is said to be at 12.5%. https://www.nasi.org/wp-content/uploads/2022/05/Fig-1-USOfficial-Poverty-Rate-2-scaled-1.jpg
China, for comparison, has raised an estimated 800 million souls out of poverty in the past 35 years, giving them a poverty rate of 0.01, according to the World Bank. Oops, I mis-spoke, the latest data has China’s poverty rate ot ZERO. Good, a nice round number. https://data.worldbank.org/indicator/SI.POV.NAHC?locations=CN&most_recent_year_desc=false
Some will say, that may be great for the INDIVIDUALS involved - but, what would that do to our own “poverty infrastructure” - as MLK pointed out - 5 of every 6 dollars goes to the administrators - so, again, don’t be hasty to draw conclusions from raw data - consider the EMPLOYMENT provided by such programs - so no poverty, no jobs! Same thing with policing and prisons - no crime, no jobs for police and jailers. Not to mention “criminologists.”
The upshot of my argument here is that, as a “society,” our system may be being WEAKENED INTERNALLY. On the surface, things are going on, not exactly “swimmingly” to be sure, but all hell hasn’t broken out either. That may be only a question of time. Consider that the rather “skewed” wealth distribution will only get more skewed. It's a LAW of Capitalist, er, society. And even today - reckon with the damage being done to the health of the lower classes. The obesity, diabetes, heart issues, etc., consequent on the aforementioned food-like products, GMOs, etc. Not to mention overwhelming “Health Care” costs, likely to cause bankruptcy.
But how in heck are we going to field an army, for example, to address our critical foreign policy challenges?? Take a look at the Chinese or Russian armies on parade, or in the field. They say that our recruiting is way down. I can imagine. So, while the Capitalist Class is thriving (to put it mildly), the underclass, “fodder” if you will, is increasingly unfit to effectively DEFEND the interests of that Capitalist Elite. You see, there are contradictions aplenty in any capitalist order.