From hamburger to hourglass: Why a Knicks championship can’t hide America’s economic divide - by Joseph Aquino

What could be better?

The New York Knicks are NBA champions. The U.S. Open Championship is being played at Shinnecock Hills on Long Island. The FIFA World Cup is currently being played in East Rutherford, New Jersey, just across the Hudson River from Manhattan and next door to the American Dream Mall.

For sports fans, this is as good as it gets. New York is once again at the center of the sports world.

Yet when I turn on the television, I see something else.

Whether it’s a Knicks game, a news broadcast, a political debate, or social media clips replayed on the evening news, there seems to be an undercurrent of anger running through our society.

Even during celebrations, you can see it. The Knicks finally win a championship after decades of disappointment, yet when you watch the coverage of major celebrations, you still see fires, damaged vehicles, and clashes with police. Why does anger continue to surface even in moments of victory?

Think about that for a moment.

Your team just won the NBA championship. The city is celebrating. Yet some people are still so angry that they lash out at the very community they are supposed to be celebrating with.

Why?

I believe the answer goes far beyond sports.

It has to do with the growing divide between the haves and the have-nots and the disappearance of what was once the backbone of America — the middle class.

Not that long ago, the American economy resembled a hamburger. The largest portion was the middle class. Most people could afford a home, raise a family, take a vacation once in a while, and retire with dignity. There were certainly wealthy people and poor people, but the middle class dominated the landscape.

Today, the economy looks more like an hourglass.

At the top sits a growing group of wealthy Americans whose assets continue to appreciate. Their stocks rise, their real estate increases in value, and their investment portfolios generate more wealth. They are doing very well.

At the bottom are those who qualify for various forms of government assistance and subsidies. While life is not easy for them, the support systems available have remained relatively consistent.

The group being squeezed is the middle.

The school teacher, office manager, retail executive, middle manager, small business owner, salesperson, and countless others who work hard every day often find themselves falling further behind. Housing costs continue to rise. Insurance costs rise. Healthcare costs rise. Food costs rise. Taxes rise. Fuel costs rise. Yet salaries frequently fail to keep pace.

Unless you belong to a union that negotiates wages and benefits on your behalf, many workers have very little leverage.

A friend of mine recently told me that housekeepers in unionized New York City hotels can earn approximately $75,000 per year. Good for them. It demonstrates the bargaining power that collective representation can provide. Unfortunately, many management employees have no such leverage.

I have family members in management positions. They work long hours because, unlike hourly employees, management is often expected to be available whenever needed. They carry significant responsibilities and are expected to produce results year after year. Yet when compensation reviews arrive, every dollar seems to be examined under a microscope. They have fewer rights than an employee and let’s not talk about the independent agents that have “no-rights!”

Some older employees are even hesitant to ask for raises, fearing they may be replaced by younger workers willing to accept less pay.

Meanwhile, many CEOs receive compensation packages that would have been unimaginable a generation ago.

Every year, we hear stories of chief executives receiving bonuses worth $20 million, $25 million, or even $30 million on top of already substantial salaries and stock awards. Boards of directors often justify these packages by citing shareholder value, performance metrics, or competitive pressures.

Perhaps some of those executives deserve every penny.

But the question many employees ask is simple: What about the rest of the company? What about the workers who helped create that success?

Japan’s C-Suite executives do not get compensated as much as their U.S. counterparts for this very same reason.

What about the people who show up every day, manage departments, serve customers, solve problems, and keep the business operating?

When employees see executives receiving enormous rewards while their own raises barely cover inflation, resentment naturally builds.

Consider what it costs for an average family to attend one of these marquee events.

A Knicks playoff game can cost a family a small fortune — or make attending impossible altogether. $100,000 for court-side seats, really?

By the time four tickets are purchased, along with transportation, parking, food, beverages, and perhaps a souvenir for the kids, the cost can easily reach levels that many middle-class families simply cannot afford.

The same can be said for many regular season games.

The U.S. Open at Shinnecock is one of the world’s great sporting events. The FIFA World Cup is the biggest sporting event on the planet. Yet for many working families, attending either event may be beyond their reach.

That is the irony.

These events are celebrated as victories for everyone, yet many of the very people who cheer the loudest cannot afford to participate in person.

The excitement is shared, but the experience is not.

And that divide mirrors what is happening throughout our economy.

The result is a growing sense among many Americans that they are working harder, paying more, and receiving less.

The divide becomes even more apparent when you look at how differently the tax system impacts various income groups.

I remember a former boss who maintained residences in both Manhattan and Florida.

At the time, he explained that the tax savings from establishing Florida residency were so significant that they more than offset the cost of maintaining a second home and regularly flying between the two states in his private-jet.

Think about that for a moment. He said the savings was so good, it paid for the cost of his jet.

Meanwhile, many middle-class families are struggling to afford a single residence, rising insurance costs, higher grocery bills, and the escalating cost of everyday life.

That contrast says a great deal about how dramatically the economic landscape has changed.

The Knicks may be NBA champions. The U.S. Open may be at Shinnecock. The FIFA World Cup has arrived next door in New Jersey.

Those events should bring excitement, pride, and optimism to our region.

But until more Americans feel that they have a realistic opportunity to get ahead, the anger we see on television will not disappear.

Perhaps that is why a championship, a major golf tournament, and the world’s biggest sporting event are not enough.

People are not simply looking for a winning team.

They are looking for a fair shot at winning in life.

I’m starting to sound like a politician. I can say one thing for sure, I would not forget the hard-working middle-class.

Joseph Aquino is president ofJAACRES, Manhattan, N.Y.