If the US Senate really is the world’s greatest deliberative body, it ought to consider consequential questions. That does not happen often in a Senate where trivia tends too frequently to triumph over issues of substance. But Senator Bernie Sanders, I-Vermont,raised what might just be the most substantial issue of all Wednesday, at a Joint Economic Committee hearing where Federal Reserve board chair Janet Yellen was testifying.
The senator began with the facts: “In the US today, the top 1 percent own about 38 percent of the financial wealth of America. The bottom 60 percent own 2.3 percent. One family, the Walton family, is worth over $140 billion; that’s more wealth than the bottom 40 percent of the American people. In recent years, we have seen a huge increase in the number of millionaires and billionaires, while we continue to have the highest rate of childhood poverty in the industrialized world. Despite, as many of my Republican friends talk about ‘the oppressive Obama economic policies,’ in the last year Charles and David Koch struggled under these policies and their wealth increased by $12 billion in one year. In terms of income, 95 percent of new income generated in this country in the last year went to the top 1 percent.“
Sanders then introduced an academic study, by Martin Gilens and Benjamin Page, thatconcludes, “The central point that emerges from our research is that economic elites and organized groups representing business interests have substantial independent impacts on US government policy, while mass-based interest groups and average citizens have little or no independent influence.”
That sounds like an oligarchy.
So Sanders asked Yellen: “In your judgment, given the enormous power held by the billionaire class and their political representatives, are we still a capitalist democracy or have we gone over to an oligarchic form of society in which incredible enormous economic and political power now rests with the billionaire class?”