Economist Want To Know How Equal Do We All Want To Be In A Democracy
A recent study by Princeton University is going to change the way the nation looks at the political system in America. Researchers discovered that the United States is not a democracy anymore. It is an Oligarchy. Yep, the rich have the power and the money and the people have squat. Democracy is falling apart before our eyes, and most of us think it’s okay. Some people say that’s the way a democracy should work because most of the wealth is distributed in such an unequal fashion.
Economists constantly study this phenomenon, and they discovered that people believe the bottom 20 percent of the population has about 2.9 percent of the wealth. They also perceive that the next 20 percent has 6.4 percent, the next 20 percent has 12 percent, the next 20 percent has 20 percent of the wealth, and the richest 20 percent has 58 percent of the wealth. But according to Christian Broda, an economics professor and managing director of Duquesne Capital management those figures are not correct. The bottom 20 percent of the population has just 0.1 percent of the nation’s wealth. The next 20 percent has 0.2 percent, and the next 20 percent has 3.9 percent. Broda says 60 percent of the population accounts for 4.3 percent of the nation’s wealth.
The top 40 percent has the rest of the wealth, and it is divided like this: The wealthiest 20 percent has 84 percent, and next wealthiest 20 percent has 11.7 percent. The question Broda and other economists ask is: Do those numbers reflect the real values of a functioning democracy? What Broda and other economists discovered is people have a definite perspective when it comes to the distribution of wealth in a democracy. Here’s what American people think is a level economic playing field in terms of wealth distribution. The people say the bottom 20 percent should have 10 percent of the wealth. The next 20 percent should have 14 percent, and the next 20 percent should have 21 percent. The top two 20 percent groups should have the balance or 54 percent. The people say the wealthiest group should only have 32 percent of the nation’s wealth, and the next wealthiest should have 22 percent of the wealth.
Based on those numbers socialism is not the answer for most people, although some form of democratic socialism may be needed to get the current numbers in sync with the perceived numbers. The fact is Democracy as the founding fathers envisioned it is changing, and economists aren’t sure what this democracy is going to look like in another 50 years.