Guest Post: The Structural Endgame Of The Fiscal Cliff

Submitted by Charles Hugh-Smith via Peak Prosperity, To understand this endgame, we need to start with the financial and political basics of wealth and power in the U.S. 1.  Wealth and thus political power are highly concentrated.  The dynamics of rising wealth disparity and the increasing concentration of wealth are debatable; the disparity is not.  Roughly 70% of all financial wealth is held by the top 5%; within this top layer of ownership, the top ½ of 1% hold an outsized share. 2.  This preponderance of wealth in the hands of a few translates into an equivalent preponderance of political power, as there are no real limits on the purchase of political influence, favors and power. 3.  The U.S. income tax is highly progressive; most Federal taxes are paid by a minority of the citizenry.  The top 1% of taxpayers reported almost 17% of all taxable i...