The U.S. class divide deepens under Bush

[deutsey]

Sorry if this is a dupe...I just read the article in my copy of In These Times and thought it might be of interest here.

http://www.inthesetimes.com/site/main/article/2335/


While pundits expressed shock at the fate of the poorest inhabitants in Katrina’s wake, the U.S. class divide is not breaking news. But several new studies reveal the chasm separating those living in abject poverty from those with unimaginable fortunes is growing fast.

Big earners were the focus of “Executive Excess 2005,” a study published in September by the Institute for Policy Studies and United for a Fair Economy. The study found that the ratio between CEO and worker pay now stands at 431-to-1. In real numbers, this adds up to $11.8 million in earnings for the average CEO compared to $27,460 for the average worker.

The most significant revelation of “Executive Excess” concerned the growth in profits by companies involved in providing services, goods and military “expertise” to the U.S. wars in Iraq and Afghanistan. Since 9/11, CEOs heading defense contractor firms have seen their pay increase by 200 percent.

SNIP

Meanwhile, according to the latest Census Bureau data, the percentage of Americans living in poverty now stands at 12.7 percent, the high point of a steady four-year increase. From 2003 to 2004 alone, the number of people living in poverty increased by 1.1 million to 37 million. And, as critics of the Census Bureau’s approach to poverty data collection point out, the number is likely conservative because the figures do not account for regional differences in housing costs—nor are they adjusted for the rising costs of childcare and health care.

MORE...

[harlinnchi]

1. Our Vice President called the shots that caused this to be.

The most significant revelation of “Executive Excess” concerned the growth in profits by companies involved in providing services, goods and military “expertise” to the U.S. wars in Iraq and Afghanistan. Since 9/11, CEOs heading defense contractor firms have seen their pay increase by 200 percent.


Our Vice President recommended how to adjust the military post-Cold war. He recommended the manner in which military down-sizing would occur. He fostered the growth of companies such as Halliburton and Blackwater, two of the biggest devils in our evolving military-industrial complex. Weren't there threads yesterday detailing how the Veep saw his apparently 20/20 vision-having trust grow by over 3200%? Thirty-two hundred percent represents a degree of sightedness so far from blind as to be almost hawk-like.

How he was able to persuade ostensibly intelligent decision-makers that it would be cheaper and more efficient to pay private contractors than privates to deliver mail, laundry and food to troops in areas considered unsafe. How could he have convinced folks that it'd be better to use special operators than specialists for convoy security, site security and individual security in an area where pissed-off bad guys had loads of lethal materials and were inclined to use them. After a few IED experiences, private contractors might be inclined to call in sick. Food and ammo might not get delivered (Hey, that happened, didn't it?). Privates are obliged by law to perform their duty, and do it much more cheaply.

If someone could explain to me the concept of a 'cost-plus' contract, I would appreciate it. I thought the purpose of bidding was to ascertain which qualified company could provide goods or services at the lowest cost. I'm not clear why no-bid, cost-plus contracts are acceptable to our legislators, or why I hear no persistent questioning of the practice. I mean, I read about it here and on the smirkingchimp but I hear nothing about it from the Kennedy's and Edward's and Kerry's and Clark's (I throw him in there 'cause he's my guy for 2008).

I'm a pretty lazy guy but even I'd be interested in taking some action to urge our guys to speak more frequently about the problems inherent in outsourcing tasks to the private sector which were well-done by the military. It's hard to order someone to lay their life on the line out a sense of patriotism; it should be harder to pay enough for someone to do it for greed.