Who Rules America?

(Prologue) - The following information shows the disparity in income between the wealthiest sector of the U.S. Economy versus those in the bottom 80%. You need to understand how the Power structure works in this country. That is what has led to the growing disparity of income and subsequent loss of status of the regular citizens of this nation. This is the reason why no one follows the will of the American people. The bottom 80% have no influence over the direction of the country. Money Talks!

George William (Bill) Domhoff (Wikipedia) - (born August 6, 1936) is a research professor in psychology and sociology at the University of California, Santa Cruz. His first book, Who Rules America?, was a controversial 1960s bestseller which argued that the United States is dominated by an elite ownership class both politically and economically.

He was born in Youngstown, Ohio, the son of George William and Helen S. (Cornet) Domhoff. He received a B.A. in Psychology at Duke University, a MA in psychology at Kent State University, and a Ph.D. in psychology at the University of Miami.

In the early 1960s, Domhoff served as an assistant professor of psychology at Los Angeles State College. In 1965, he became an assistant professor at the University of California, Cowell College, Santa Cruz, where he is now professor of psychology and sociology.

Domhoff is the author of Who Rules America? (1st ed. 1967, most recent edition 2009) and many other well-known books in sociology and power structure research, as well as Finding Meaning in Dreams (1996) and The Scientific Study of Dreams (2003)

The Wealth Distribution - Wealth, Income, and Power - Updated in December 2010 - (Link to William Domhoff's website)



In the United States, wealth is highly concentrated in a relatively few hands. As of 2007, the top 1% of households (the upper class) owned 34.6% of all privately held wealth, and the next 19% (the managerial, professional, and small business stratum) had 50.5%, which means that just 20% of the people owned a remarkable 85%, leaving only 15% of the wealth for the bottom 80% (wage and salary workers). In terms of financial wealth (total net worth minus the value of one's home), the top 1% of households had an even greater share: 42.7%. Table 1 and Figure 1 present further details drawn from the careful work of economist Edward N. Wolff at New York University (2010).

Table 1: Distribution of net worth and financial wealth in the United States, 1983-2007

	Total Net Worth
	Top 1 percent	- Next 19 percent	- Bottom 80 percent
1983	33.8%	47.5%	18.7%
1989	37.4%	46.2%	16.5%
1992	37.2%	46.6%	16.2%
1995	38.5%	45.4%	16.1%
1998	38.1%	45.3%	16.6%
2001	33.4%	51.0%	15.6%
2004	34.3%	50.3%	15.3%
2007	34.6%	50.5%	15.0%
	Financial Wealth
	Top 1 percent	- Next 19 percent	- Bottom 80 percent
1983	42.9%	48.4%	8.7%
1989	46.9%	46.5%	6.6%
1992	45.6%	46.7%	7.7%
1995	47.2%	45.9%	7.0%
1998	47.3%	43.6%	9.1%
2001	39.7%	51.5%	8.7%
2004	42.2%	50.3%	7.5%
2007	42.7%	50.3%	7.0%

Total assets are defined as the sum of: (1) the gross value of owner-occupied housing; (2) other real estate owned by the household; (3) cash and demand deposits; (4) time and savings deposits, certificates of deposit, and money market accounts; (5) government bonds, corporate bonds, foreign bonds, and other financial securities; (6) the cash surrender value of life insurance plans; (7) the cash surrender value of pension plans, including IRAs, Keogh, and 401(k) plans; (8) corporate stock and mutual funds; (9) net equity in unincorporated businesses; and (10) equity in trust funds.

Total liabilities are the sum of: (1) mortgage debt; (2) consumer debt, including auto loans; and (3) other debt. From Wolff (2004, 2007, & 2010).