Exploring economic inequality - Advocating for the bottom 50%

Nov. 20, 2021

Why our grandchildren will being moving back from the ocean and heading north

Karl Polzer – Center on Capital & Social Equity

As the fog lifts from what was achieved during last week’s international negotiations over controlling climate change, some outlines of future reality come into focus.  Layers of carbon pollution girding the Earth will continue to drive up temperatures and sea levels.  The world’s 195 countries will not be able to change human behavior enough to stop major climate change.   By later this century, billions of people will face pressure to move away from eroding seashores to higher ground and north to cooler places to live.

There are several reasons to expect this...

Nov. 4, 2021

White House’s promised childcare subsidies face a host of ‘devils in the details’

Karl Polzer, Center on Capital & Social Equity

"The $1.75-trillion Build Back Better (BBB) proposal’s  promise to cap childcare expenses at 7% of income for families earning up to $300,000 faces a series of policy hurdles regarding cost, equity, long-term impacts, and how such a program might be administered.  While subsidized childcare would meet a pressing need for many low- and modest-income working parents, providing benefits to upper-income professionals and inflationary impacts could push the program’s cost as high as $1 trillion over 10 years.  

"Some analysts warn that massive subsidies combined with costly regulatory requirements could end up reducing care choices for many low-income families, particularly those preferring to look after their children at home..."

Click here to read article

"In the bigger picture,
total national work = paid work + unpaid work - which includes raising children."

Families With Low Incomes Spend Expanded Child Tax Credit on Most Basic Needs, Education

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News, Events & Opinions

Inequality Increases Despite Jobs Growth -Axios

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Phil Saviano, clergy sex abuse survivor and whistleblower, dies at 69 - USA Today

Phil Saviano on the story that inspired the movie Spotlight - Daily Mail/youtube

The global scale of child sexual abuse in the Catholic Church - Aljazeera

Most priests accused of sexually abusing children were never sent to prison. Here's why - USA Today

Child Sexual Abuse Statistics - Darkness to Light

Risk Factors

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China's and Russia's vaccine diplomacy spans the globe

Pandemic: will the world suffer from "long Covid"? - The Economist

Rich countries will have vaccinated the bulk of their populations earlier than others

Variants like Omicron ‘haunt world’ due to vaccine imbalance between rich and poor nations - Brisbane Times

Sunday, November 28, 2021

Fans Pour Funding—and Faith—Into a Hit Drama About Jesus - WSJ

"Crowdfunding has raised millions for ‘The Chosen,’ an ambitious series exploring characters from the New Testament. Fans have already chipped in enough for three seasons—and are driving ticket sales for a Christmas special coming to movie theaters...

"Dallas Jenkins, the filmmaker who created “The Chosen,” says the show’s style is modeled more on “Friday Night Lights” than other Christian TV shows and movies. Mary Magdalene relapses into vice. The apostle Matthew is on the autism spectrum. Jesus’ miracles get back stories."

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Parable of the Farmer Scattering Seed

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Gen Z battles to bring back unions, 0ne Starbucks at a time

Starbucks baristas are on the verge of forming a union. The company is pushing back. - WaPost

"BUFFALO — Earlier this month, Howard Schultz, the man who built Starbucks into a global giant, traveled to this city for an unusual gathering of the company’s employees.

"Schultz talked about growing up poor in Brooklyn and the values that guide Starbucks. The company is about much more than coffee, he told hundreds of assembled baristas: It is about humanity, community and love.

"Right as he finished, Gianna Reeve, a 20-year-old shift supervisor, stood up and introduced herself. She held in her hand a set of voluntary principles for fair-labor organizing at the company. Schultz immediately left the room, escorted by a senior manager..."

"Employees such as Reeve say they’re just getting started. She is working at Starbucks while studying psychology and gender studies at the University of Buffalo. She never imagined she could be part of a union, believing it was only for factory workers or teachers or nurses.

" 'I never thought it was something viable for service workers,' said Reeve. 'It’s surprising in a fantastic way.' "

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Union busters: Why Starbucks executives are suddenly swarming stores - Salon

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Presidents and Labor: Harry Truman and the Taft-Hartley Act: potus_geeks —  LiveJournal

What Caused the Decline of Unions in America? - Dwyer Gunn/Pacific Standard

"Globalization, politics, and the American psyche are all to blame."

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Trade unions in the Nordic countries - John Logue/Aarhus University

"The Nordic countries continue to have the highest union density in the world. In 2016, of all blue and white-collar workers, membership of trade unions amounted to 52% in Norway, 65% in Finland, 84% in Iceland, 66% in Sweden, and 67% in Denmark. By comparison, between 20 and 30% of employees are generally unionised in most other European Union countries - the exception is Belgium, which has a similar organisational structure to the Nordics - and 10% in the United States. A much larger percentage of employees are covered by collective bargaining agreements, 80-90% in the Nordic countries."

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Which Countries Have The Highest Levels Of Labor Union Membership? - Forbes

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Teamsters United Takes the Wheel - Labor Notes

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May be an illustration

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The greediest Thanksgiving ever - Catherine Rampell/WaPost

"The left’s rhetorical response to the rising political threat of inflation continues to evolve. First they said the problem didn’t exist, and anyone who claimed otherwise was acting in bad faith or spouting Republican propaganda. Then, they said inflation is real — but President Biden’s Build Back Better plan would fix it.

"Now, they tell us, inflation might be happening — but it’s the fault of greedy corporations! And those companies must be punished."

Good to see at least one liberal commentator in the nation's capital still able to  think critically. So many of the  think tanks and scribes that adroitly analyzed Trump Administration policies are now playing the role of zombie cheerleaders for whatever the Biden folks come up with. 

(You know who you are.  Or do you?)

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The Amendment That Remade America - WSJ

"The First? The Second? No, the 14th—the basis for every claim against a state government for violating individual rights. Randy Barnett and Evan Bernick say it’s time to assert its original meaning."

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fetus 15 weeks by ultrasound scan

Ruth Bader Ginsburg Wishes This Case Had Legalized Abortion Instead of Roe v. Wade - TIME

RBG was right to argue for tearing apart the veil of privacy wrapped around abortion rights.  A 14th amendment analysis would be more transparent and honest.  It would require defining the "personhood" of an unborn fetus  and balancing its rights against the pregnant mother's, and possibly other persons involved including the father and agents of society as the  helpless child-to-be’s custodians/advocates.  A possible difficulty might be absence of federal legislation delineating or providing guidance in measuring competing rights in this context. Still, the result could be a clearer and more defensible form of common law than what we have now.

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England’s social care cap will see poorest areas lose greater share of property wealth - Guardian

"Homeowners in the poorest areas of England face losing a three times greater share of their housing wealth to pay for social care than people in the most affluent areas, Guardian analysis reveals."

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School Enrollment Restriction on Migrant Children and Human Capital Losses - VoxChina

"In China, migrant children are at a disadvantaged and sometimes cannot enroll in public schools in migration destinations due to policy restrictions. Some migrant workers then have to leave their children behind in their hometowns, which causes the left-behind children problem. This study finds that if the enrollment restriction on migrant children is relaxed, migration of parents and children will increase, and the average human capital in the society will also increase. Low-skill families from small cities benefit most."

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An artisanal miner carries raw ore at Tilwizembe, a former industrial copper-cobalt mine, outside of Kolwezi, the capital city of Lualaba Province in the south of the Democratic Republic of the Congo, June 11, 2016

Race to the Future: What to Know About the Frantic Quest for Cobalt - NYT

"The clean energy revolution is replacing oil and gas with a new global force: the minerals and metals needed in electric car batteries, solar panels and other forms of renewable energy.

"Places like the Democratic Republic of Congo, which produces two-thirds of the world’s supply of cobalt, for example, are stepping into the kinds of roles once played by Saudi Arabia and other oil-rich nations. And a race between China and the United States to secure supplies could have far-reaching implications for the shared goal of protecting the planet."

Why Cobalt Mining in the DRC Needs Urgent Attention

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Arkansas County Judge Joseph Wood recounts his road from orphanage to race for lieutenant governor - Fox
Black Distrust of Govt Is Opportunity for Crypto, GOP - Ira Stoll

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It Is a Good Day for Justice, But Also a Sad and Complicated Day - Rev. William Barber/CNN

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May be a cartoon of text

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Dear Lords Mitch, Chuck, Joe, the other 97, and Kamala (if needed):

Check out these cool work requirements imposed by your predecessors after another pandemic caused a labor shortage, demands for higher wages:

(Note: This happened before the invention of the Protestant work ethic.)

Statute of Labourers 1351

"The Statute of Labourers was a law created by the English parliament under King Edward III in 1351 in response to a labour shortage, which aimed at regulating the labour force by prohibiting requesting or offering a wage higher than pre-Plague standards and limiting movement in search of better conditions.  The popular narrative about its success and enforcement holds that it was poorly enforced and did not stop the rise in real wages.  However, immediately after the Black Death, real wages did not rise, despite the labour shortage.

"The Black Death, or Bubonic Plague killed more than one-third of the population of Europe and 30–40% of the population in Britain and caused a dramatic decrease in the supply of labour. Lords suddenly faced a sharp increase in competition for workers to work for them. Labourers had increased bargaining power and commanded higher wages. The increase in labour cost also led to inflation throughout the economy. The elite class lamented the sudden shift in economic power. In an attempt to control labour costs and price levels, Edward III issued the Ordinance of Labourers 1349. Parliament attempted to reinforce the Ordinance with the Statute of Labourers. This is one of the causes of the Peasants' Revolt. There are many other causes.

"The statute set a maximum wage for labourers that was commensurate with wages paid before the Black Death, specifically, in the year 1346. It also mandated that able-bodied men and women should work and imposed harsh penalties for those who remained idle."

English Poor Laws

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WATSON INSTITUTE FOR INTERNATIONAL AND PUBLIC AFFAIRS lecture:

The Code of Capital: How the Law Creates Wealth and Inequality

In "Capital in the 21st Century," Thomas Piketty described how wealth tends to concentrate in modern economies (r>g).  In her book, Katharina Pistor brilliantly lays out the legal tools used to package and grow private capital within nations and globally.  These tools include property, contract, trust, corporate, collateral, and bankruptcy law...Not to mention statutes and regulations.

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How polluted profits move offshore - ICIJ

Executives and investors profiting from four corporate polluters around the world used offshore companies to multiply their riches and avoid scrutiny, Pandora Papers show.

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Elon Musk explains his extremely low tax rate - The Hill

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Do Not Welcome Our New Billionaire Overlords - Jacobin

"He may be right, of course, that the scale of global wealth concentration among a handful of individuals will, in turn, enable private philanthropists to attain a level of power yet unseen — potentially binding the everyday material conditions of millions, or even billions, to the individual whims of a few capitalists. But that’s a case for a global wealth tax rather than a new age of feudalism."

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SALT Cap Repeal Below $500k Still Costly and Regressive - CRFB

Chuck n' Nancy: 'Can we please sprinkle some SALT on the turkey?'

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Chobani Is Going Public. Its ‘Anti-CEO’ Founder Won’t Be The Only Employee Who Could See A Big Payday - Forbes

"Five years ago, Chobani founder and CEO Hamdi Ulukaya—the billionaire “yogurt king” who has said he follows an “anti-CEO playbook” and is worth $2.1 billion by Forbesestimate—caused a stir when he announced the grant to employees. His some 2,000 full-time employees would be awarded shares worth up to 10% of the company’s value when it eventually went public or was sold."

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https://cdn.substack.com/image/fetch/f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F7197552d-90ba-44b3-b00a-7821d75ece0d_486x352.jpeg
Socialist enterprise power structure and the soft-budget constraint: Workplace democracy and single-party rule - Branko Milanovic

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Hospitals Could Face Steep Fines for Not Posting Prices – Maybe - Health Care News

Grift on a grander scale?

Dear idealogical pinheads:  Don't confuse capitalist with market-based economies.   Capitalism involves extracting every bit of profit possible with whatever means available including political and structural power.  Market economies require transparent pricing, competition, and rules to ensure fair practices.

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Around 80 People Ransacked The Nordstrom In Walnut Creek, California, In An "Organized Theft" - BuzzFeed

Videos showed "people running out of the store with bags and fleeing in vehicles that were parked on the street."

Attention American  shoppers!  Great prices  in SF for fenced luggage...What's  next?  Following delivery vans and grabbing what they leave on porches?

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Nearly half of all Americans expect to retire in debt, survey finds - CNBC

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Hope that 1) the free cash on the freeway isn't a misguided experiment by the SF Fed in distributing helicopter money, 2) the FDIC has good insurance, and 3) law schools enjoy the red  meat for first-year text books:

Armored truck spill on highway sparks cash-grab frenzy, two arrests - NY Post

Drivers make a cash grab after money flies out of armored truck on highway, CA cops say

Drivers went wild as a California highway was blanketed in cash. Now police want the money back.

"According to legal experts, common law allows anyone who finds an abandoned item to keep it. But the rule doesn’t apply when items are unintentionally lost by their owners, such as a wallet that falls out of someone’s pocket or, in this case, when an armored truck driving along a busy freeway inadvertently loses bags of cash.

"In one especially bizarre example of how the law works, a bargain hunter from North Carolina picked up a barbecue smoker at an auction. After taking it home, he opened the grill to find the remains of a gnarled human leg. His report made the news and its amputee owner came forward to claim his former limb. The barbecue enthusiast didn’t want to return it, and their subsequent custody battle made international headlines, and spawned a 2015 documentary: “Finders Keepers.” (Spoiler alert: A judge ordered him to return the leg.)"

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Customers testing and purchasing Apple brand products at an Apple store during the launch day of the new iPhone 12 and iPhone 12 Pro phones.

Apple tells workers they have right to discuss wages, working conditions - CNBC/Reuters

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Newport News shipyard union to keep working after rejecting offer, but begins preparing for strike - Daily Press

Shipyard jobs/Norfolk - Indeed

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Behind Chinese President Xi’s populism, mounting social inequality - WSWS

Dear idealogical pinheads:  We post interesting and informative stories from all political perspectives.  This one from the far left contains no more bias than what's on the front page of the WSJ, NYT, and WaPost and offers well-documented details about China. If you don't have an open mind and prefer censored information, this probably isn't the website for you. 

Gong sounds

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Banks Make a Climate Offering - WSJ

Fixing Climate Finance -

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Opinion: There’s a lot to like in the Build Back Better bill. But there’s a lot that needs improving too. - WashPost

"Senate Democrats should roll back the state and local tax giveaway, cut the number of programs the bill aims to fund, and fully fund the ones they keep."

House Democrats finally pass a massive social spending bill - Vox

"Its future, however, hinges on the Senate."

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Sunday, November 21. 2021

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After Freddie Gray’s death in police custody in 2015, Bishop Cynthia Moore-Koikoi, then-superintendent of the Baltimore Metropolitan district, helped diffuse tension between protesters and police, calling for peace on both sides. Here she shakes hands with a police officer as community members watch.(Photo courtesy of the Baltimore-Washington Conference of the United Methodist Church)

After Freddie Gray’s death in police custody in 2015, Cynthia Moore-Koikoi, helped diffuse tension between protesters and police, calling for peace on both sides.

Bishop Moore-Koikoi leads Western Pennsylvania churches toward a more inclusive future - PublicSource

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Look inside Canton's new Harris Teeter [Pictures] - Baltimore Sun

November 20th- Virginia Grocery Store Labor Action for Paid Sick Days - Virginia Interfaith Center for Public Policy

"Two-thirds of grocery store workers in Virginia have no paid sick days."

Prediction: Pitched battle coming in Congress over paid family leave for well-off people while a few paid sick days for low-wage workers quietly disappears. Wanna bet?

BTW - Turns out managers at the store where we handed out leaflets get paid sick pays but not hourly workers. 

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Matt Davies - Newsday

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Climate Change Is Inevitable. Here's How We Must Adapt - Parag Khanna /TIME

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Biden's Build Back Better bill would add to national debt, congressional estimate says - USA Today
How Will Build Back Better Impact Inflation? - Tax Foundation

Summary of Cost Estimate for H.R. 5376, the Build Back Better Act - CBO

House bill that CBO just scored includes childcare/preschool subsidies with more means testing than in Biden’s BBB outline.  Initial scan of 2.2K-pg bill indicates the new “Birth through Five Child Care and Early Learning Entitlement Program” would:

  • Establish a Medicaid-like system with HHS making payments to states that would establish plans and lead agencies to subsidize childcare/preschool for families. Begins in 2024, but states can establish transitional programs sooner.  (States can’t be compelled to do this.)

  • States would use sliding scale for childcare: families with < 75% state median income would pay no more than 2% of income ... Those with 150% - 250% of median state income would have co-payment of no more than 7% of income.

  • Looks like federal payments for preschool subsidies would decline substantially over time from about 95% in FY 2025 to about 53% after FY  2027.

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White House offering more aid for winter heat, utility bills - AP

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Democrats Are Turning Their Big Spending Bill Into Absolute Trash - Slate

In getting to a cost estimate, the Congressional Budget Office no doubt is playing a key role in fleshing out the BBB "bill" which is a collection of talking points from various factions of the Democratic party all wanting $$$. 

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U.S.: Numbers Show Amount of People Who Moved in Last Year Plummeted, Contrary to Narratives - Newsweek

"Mobility in the U.S. has been on a downward slide since 1985 when 20 percent of U.S. residents moved. That was an era when Baby Boomers were young adults, beginning careers, getting married and starting families. In comparison, millennials, who today are in the same age range as their Baby Boomer cohorts were in the mid-1980s, are stuck in place due to high housing costs and underemployment, according to an analysis Frey did last year.

"Advancements in telecommunications and transportation have contributed to the decades-long decline in U.S. mobility. Nowadays, people can get an education, work and visit family and friends remotely. In the last half of the last century, the highway system allowed people to work 50 miles (80 kilometers) from their homes without having to move closer for work, said Cooke, a professor emeritus at the University of Connecticut.

"Rising economic insecurity over the decades also has made U.S. residents less mobile since 'when there's insecurity, people value what they already have,' he said."

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30,000+ Japan Countryside Pictures | Download Free Images on Unsplash

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BMW 7 Series PHEV in Tokyo, Japan

COVID-19 is causing the Japanese to swap city life for the countryside - World Economic Forum

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Does China’s Place-Based Land Policy Lead to Spatial Misallocation? - VoxChina

"After 2003, the Chinese central government implemented an inland-favoring land supply policy that distributed more construction land quotas to underdeveloped non-eastern regions. We investigate the effect of the policy and find that it drastically increased land and housing prices in more-developed eastern regions, which consequently created substantial spatial misallocation of land and labor. The policy seems to reduce regional output gaps; however, it hurt workers from underdeveloped regions by hindering their migration to developed regions and caused national TFP and output losses."

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Argentina Inflation Rate

Argentina inflation rate

Argentina’s far right and far left make big gains in congressional elections - Guardian

"Ruling Peronist party lost majority as Javier Milei turned notoriety into votes and a Trotskyist party got third largest vote share"

Argentina's politics offer something for almost everyone..Reasonably priced venue for a D or R party strategy retreat? Bipartisan confab on social spending legislation? Congressional junket to study high inflation?  Travel restrictions can't last forever.

By the way, not all Trotskyists agree:

Peronist government hammered in Argentine midterm elections amid record poverty - WSWS

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Stressed Out Waiter — Stock Photo, Image

This one goes out to every whiny brat restaurant customer - WaPost

"Daphne Crawford is a senior at North Oconee High School in Bogart, Ga.

"You know how, as a kid, if you were behaving like a whiny brat, your parents would say they hope you have children one day so you’ll find out what it’s like? Spoiler alert: No need to wait until parenthood. Just take a job in an American service industry...

"I live in Georgia and work at a chain restaurant, where my weekly paycheck depends on the $7.25 minimum-wage-plus-tip-share combo. With taxes and other fees taking out a depressing amount, and inflation hitting 6 percent last month, the 40-hour workweek and the stress it brings make the job seem hardly worth it."

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States Minimum Wages for Tipped Employees - U.S. DOL

Two-thirds of the states have raised the minimum wage for tipped workers above the $2.13 level set by federal law.

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Surprise! It's the No Surprises Act - National Law Review

"In January 2022, a new law goes into effect limiting “surprise” medical bills, or bills insured patients receive for out-of-network care, either in emergency settings, or from out-of-network providers at in-network facilities."

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Wall Street bonuses are set to surge at least 20% this year - CNN

Example of how proximity to the flow of capital provides  a structural advantage to reap economic rents (super profits).  In 2021, a blind horse could have made a killing by wandering through a stock exchange randomly buying shares.

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A Housing Gift for Beverly Hills - WSJ

"Just what the economy doesn’t need: subsidies for $1 million mortgages."

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Build Back Better’s Child Tax Credit Changes Would Protect Millions From Poverty — Permanently - CBPP

"Expanded EITC Extended for Adults Without Children."

Soaring inflation cranks up pressure on Democrats to reduce the price tag and associated stimulus of their social infrastructure bill.  What promised benefits might they throw off the sled?  What's likely to survive?

Surging inflation hurts low-income Americans the most, new R study shows - Fox

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What Americans should know about inflation as it hits a 30-year high - ABC News

Excellent round up.

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Climate change, covid and global inequality: Are we serious or not? Branko Milanovic

COP26 produces a climate deal - Washington Examiner

Researchers Raise The Alarm of Greenland&#39;s Ice Sheet Melting - Webby Feed

Quick Facts on Ice Sheets

"Ice sheets contain enormous quantities of frozen water. If the Greenland Ice Sheet melted, scientists estimate that sea level would rise about 6 meters (20 feet). If the Antarctic Ice Sheet melted, sea level would rise by about 60 meters (200 feet)."

Will the world ever be all underwater because of all the ice melting?

"The simple answer is no. The whole world will never be underwater. But our coastlines would be very different."

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St. Jude Hoards Billions While Many of Its Families Drain Their Savings - ProPublica

Is this fair criticism?  Non-profit hospitals and health systems in urban areas across the country are sitting on billions of $$$ in cash while providing far less free and subsidized care to low-income people.


Sunday, November 14, 2021

Clergy abuse investigation: Nebraska AG finds 258 victims, abuse by 57 church officials - KETV Omaha

"Attorney General Doug Peterson said the most troubling finding was that, on numerous occasions, those in authority chose to place the reputation of the church above the protection of the children."

Same old story...To change the ending, child abusers and supervisors who failed to stop criminal behavior and/or covered it up should be prosecuted and do jail time.

The Boston Globe's Spotlight investigation found that abusers tend to target vulnerable kids from low-income families.

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Too Big to Sail: How a Legal Revolution Clogged Our Ports - Matt Stoller

"...more than half of Americans have experienced a shortage, and politicians are panicking over inflation...

"If ultra-large ships are so bad, then why do we use them? As is often the case, this business trend started with a good idea, which then was turned horribly wrong by unregulated monopolization."

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Build Back Better 2.0 Still Raises Taxes For High Income Households And Reduces Them For Others - TPC

Or does it?

The Congressional Hypocrisy Caucus: Sanders and Warren negotiate a potential tax cut for themselves - WSJ

"The effort by congressional Democrats to shield themselves and their wealthy donors from tax hikes while inflicting them on the middle class appears to be more successful than previously reported."

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Another UAW executive charged with stealing dues money, as union announces “re-vote” on defeated Deere contract - WSWS

"Two former UAW presidents, Dennis Williams and Gary Jones, were convicted and sent to prison for embezzlement of union funds. Curry’s predecessor, Rory Gamble, had also been suspected of taking kickbacks or bribes, but he was not indicted. Investigations are pending against no less than 15 other UAW officials...

"The top-to-bottom corruption that has been exposed in the UAW is not an individual, but a social phenomenon, which cannot be eliminated by the replacement of some corrupt officers. It flows more fundamentally from the transformation decades ago of the unions into corporatist appendages of management."

Ever wonder why union corruption isn't covered much by the U.S. media or confronted by politicians?   Democratic Party catechism includes belief that resurrecting the union movement is key to leveraging higher wages and working conditions.  Cleaning up union corruption would help make this happen.  Guess it's hard to tell major campaign contributors to change their ways.

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The Federal Poverty Line Struggles To Capture the Economic Hardship That Half of Americans Face - Route 50

"Millions of Americans struggle to pay their bills each month, despite earning wages well above the federal poverty line and holding multiple jobs."

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WHY IS EUROPE MORE EQUAL THAN THE UNITED STATES?  - World Inequality Lab

"Two key findings emerge from the analysis of our new database.First, we show that, over the past four decades, inequality has increased in nearly all European countries as well as in Europe as a whole, both before and after taxes, but much less than in the United States...

"Second, the main reason for Europe’s relative resistance to the rise of inequality has little to do with the direct impact of taxes and transfers. While Western and Northern European countries redistribute a larger fraction of output than the US (about 47% of national income is taxed and redistributed in Europe versus 35% in the US), the distribution of taxes and transfers does not explain the large gap between Europe and US post-tax inequality levels. Quite the contrary: after accounting for all taxes and transfers, the US appears to redistribute a greater fraction of its national income to the poorest 50% than any European country. This finding stands in sharp contrast with the widespread view that “redistribution”, not “pre-distribution”, explains why Europe is less unequal than the US (e.g., OECD, 2008; 2011). In other words, Europe has been much more successful than the US at ensuring that its low-income groups benefit from relatively good-paying jobs."

Interesting  conclusion: Pre-distribution (higher wages and benefits) is a more important factor than government re-distribution in explaining why Europe is less unequal than the U.S.

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Treasury Secretary Mnuchin And Fed Chair Powell Testify On CARES Act Before Senate : News Photo

Off with the Fed’s Head? - Project Syndicate

"The surge in US consumer price inflation last month to a three-decade high of 6.2% risks further undermining the narrative that today’s rising prices are transitory and could destabilize long-term inflation expectations. When and to what extent should the Federal Reserve further roll back quantitative easing and increase interest rates – and should Fed Chair Jerome Powell remain in charge?

"In this Big Picture, J. Bradford DeLong of the University of California, Berkeley, fears that Powell will heed growing Republican calls for substantial, immediate monetary-policy tightening, and urges Biden to replace him with Fed Governor Lael Brainard. MIT’s Simon Johnson agrees, arguing that premature tightening would be a massively consequential policy mistake.

"Stanford University’s John B. Taylor takes the opposite view, pointing out that the Fed – despite surging inflation – is keeping the key federal funds rate in a range far below what its own monetary-policy rules would prescribe.

"But Nobel laureate economist Joseph E. Stiglitz notes that the Fed’s mandate is not only to maintain price stability, but also to ensure financial stability, and argues that Powell’s reluctance to address climate risk and his lax approach to financial-sector regulation make him the wrong man for the moment. And Columbia University’s Willem H. Buiter thinks the Fed and other leading central banks should focus more closely on how they will manage the next big asset-price correction."

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Why won’t the Federal Reserve admit inflation is a real problem? - Desmond Lachman/AEI

"Among the factors under the Fed’s control has been the continued pursuit of an ultra-easy monetary policy in response to the pandemic. Over the past eighteen months, the Fed has increased the broad money supply by more than 25 percent or by the fastest pace in more than fifty years. Meanwhile, the Fed has kept interest rates at their zero bound despite the pick-up in inflation and it has allowed housing and equity prices to increase strongly. And it has done all of this at a time that the US economy was receiving its largest peacetime budget stimulus on record."

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Federal judge approves $626.25M settlement in Flint water litigation - Detroit Free Press/USA Today

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Inflation has taken away all the wage gains for workers and then some - CNBC

  • Real average hourly earnings when accounting for inflation, actually decreased 0.5% for the month. A 0.9% inflation increase negated a 0.4% rise in wages.

  • Consumer confidence has been sliding despite the rising wages, which are up nearly 5% nominally year over year but have declined 1.2% in real terms.

  • The Fed finds itself under increasing pressure to adjust policy accordingly.

Employer-sponsored coverage keeps getting more expensive - WaPost

"Workers pay a fraction of the total amount of the premium out of their paychecks since employers bear the brunt of the cost. 

  • A family will pay roughly $6,000 this year, while the employer pays for the rest (which is over $16,200).
  • An individual will pay nearly $1,300, while the employer picks up $6,400.

"Reality check: Health-care economists argue that it’s all essentially a hidden cost to the employee. If premiums cost less, for instance, then workers’ salaries would be higher, they say."

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Winsome Sears, a nightmare for the left - Cal Thomas/Trib Extra

"The significance of Virginia Lt. Governor-elect Winsome Sears’ victory cannot be overstated. But her victory is significant not only because she is a Black woman and the “first” of her race and gender to hold the office of lieutenant governor in Virginia, but also because she has been described as an anti-racist. Sears does not buy into a victimhood that characterizes the Democratic Party’s view of people of color."

Dems think they have a monopoly on the black vote and constantly portray poverty in terms of its impact on people "of color" while ignoring others in the same position.  This of course enrages people who feel left out.  One has to question the political IQ of the highly educated Dem elite,  especially as people "of color" discover they have political options. 

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Tulsi Gabbard Tells Democratic Leaders to Stop Dividing Americans 'by the Color of Our Skin' - Newsweek

Also see:

"Addicted to Identity Politics, Progressives May Miss a Historic Chance To Connect with America’s Working Class" - Karl Polzer

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Virginia’s wake-up call: Democrats ignore rural voters at their peril - Christian Science Monitor

Virginia nursing homes have lost more than 9,500 employees since the start of the pandemic - Virginia Mercury

"The widespread shortages are raising concerns over patient care and increasing calls for policy solutions."

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Who Has Received Advance Child Tax Credit Payments, and How Were the Payments Used - Tax Policy Center

  • About half of adults (51 percent) reported spending the credit on food. The next most common purchases included clothing (30 percent), utilities (29 percent), and schoolbooks and supplies (25 percent).

  • Compared with adults with incomes of $75,000 or more, adults with incomes below $75,000 were more likely to spend the credit on food, clothing, utilities, schoolbooks and supplies, rent, and vehicle payments and were less likely to save the credit...

  • Adults with incomes of $75,000 or more were the only group that was more likely to mostly save the credit than to either spend it or use it.

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These Billionaires Received Taxpayer-Funded Stimulus Checks During the Pandemic -Government Executive

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America Needs a Safety Net, Not a Hammock - Ben Carson/WSJ

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What’s behind the growing gap between men and women in college completion? - PEW
The relationship between school closures and female labor force participation during the pandemic - Brookings

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World leaders returning home after an inspiring climate change conference -  )

World heading for 2.4C of warming after latest climate pledges: analysts - Reuters

Glasgow climate pledges are 'lip service' without far more aggressive plans - NPR

Climate change brings irreversible harm to poor countries. At COP26, rich ones face pressure to foot the bill. - WaPost

"The people hit hardest by climate change did the least to cause it. Some want compensation for what they’ve lost."

Dear scientists, political economists, anthropologists, planners, and actuaries: 90% probability that billions of humans will be moving to higher ground, cooler areas?  What'ch'all think?

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Thousands of adverse birth outcomes in England down to ‘alarming’ inequality - The Guardian

"Study reveals scale of impact that poverty, racism and discrimination has on women and babies"

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Billionaire Elon Musk Uses Twitter Poll To Decide Whether To Pay Tax - ILFS

Elon would hardly miss the taxes on a stock sale of this magnitude and could benefit by diversifying his portfolio with the rest.  The tax revenue would be enough to put $100 in retirement savings accounts for the millions of U.S. low-wage workers who now have zero net assets...Why not give inclusive capitalism a try?

Half of Americans have no retirement savings — here’s how Congress can look out for them

How The Democrats’ New Millionaire Surtax Would Work - Tax Policy Center
The Media Got the Billionaires Income Tax Wrong - American Prospect

"Despite the media framing, a tax on billionaires’ investment income is not novel, unworkable, unconstitutional, or divisive."

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The China Shock

The China Shock How American leaders failed to help workers survive the 'China Shock' - NPR

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A cautionary tale from the streets of San Francisco - The Economist

"A new book shows how well-meaning urban policies have backfired."

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IDF building facial recognition database of Palestinians in Hebron — report - Times of Israel

Wonder if U.S. taxpayers are helping to foot the bill for this along with the Dome? ...  Or China?

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‘It’s a walkout!’ Inside the fast-food workers’ season of rebellion - WaPost

Bargaining 101:  How do you say: "Shove this job up your Golden Arches!"   Have a better option in your back pocket...

BTW, where are the unions?  Not enough pay in this sector to extract dues?

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What Squid Game Is Really About: How decades of Korean trauma have spawned a pop culture phenomenon - American Scholar

"As many have noted, stories like Squid Game and Parasite riff off of our growing societal discomfort with modern-day capitalism and the ever-widening gulf between the rich and the poor. South Korea has become particularly good at encapsulating these issues, perhaps, because of its own seemingly successful yet worrisome postwar story."

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What Apartheid Means for Israel - Tareq Baconi/NY Review

Under the Cover of War: The Zionist Expulsion of the Palestinians - Rosemarie Esber

Israel Moves to Silence the Stalwarts of Palestinian Civil Society - NYT

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The Moderna headquarters in Cambridge.

Moderna millionaires and the double-edged sword of stock market riches - Boston Globe

"The state’s thriving life sciences and tech sectors are creating fortunes, bolstering the economy — and widening the wealth gap...

"The wealthiest 1 percent of Americans owned 54 percent of corporate stock and mutual fund assets as of June 30, according to the Fed. The share for the top 10 percent is 89 percent.

"Stock market profits are driving a widening wedge between the rich and the rest of us, with the top 10 percent controlling 70 percent of the nation’s total wealth, compared with 61 percent at the start of 1990.

"The thriving tech and life sciences sectors make the Massachusetts and national economies more vibrant. The pie is growing, and that’s the good news.

"But for half the country — the bottom 50 percent by net worth — its slice of the pie is shrinking.

It’s a trend that can only end badly."

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Click here for news blog: October 3 - November 7, 2021

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Sunday, November 7, 2021

The First Great Awakening (Full Lecture) | Stormfields

What did Wesley Practice and Preach About Money? - United Methodist Church

John Wesley, who preached to the poor, made a fortune, and gave it away, offers 3 principles on money: earn, save, and give as much as you can.

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Indifference toward less affluent contributes to 2021 housing crisis- Roger Lewis/WaPost

"What specific actions are needed?

● Making affordable housing a national, state and local policy goal, as it was after WWII and before the 1980s, including enacting more substantial finance and rental subsidy programs to significantly expand housing opportunities;

● Providing sufficient financial incentives to motivate much more private sector investment in and development of affordable housing;

● Amending long-standing zoning laws to allow increased residential density and more diverse dwelling types in urban and suburban locations across metropolitan areas;

● Eliminating other counterproductive and marginally justifiable regulatory constraints that unnecessarily increase residential real estate development costs and prices."

Also see:

Working Class Americans Are Finding It Increasingly Difficult To Afford Housing - NPR

Housing Needs By State - National Low Income Housing Coalition

The State of the Nation's Housing 2021 - Harvard Joint Center for Housing Studies

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NYC will cap taxi medallion debts at $170K after driver hunger strike - NY Post

This excess profits (economic rents) once split by the city, drivers, and financiers from this government-organized monopoly turned into shared debt after  it disintegrated  into a more competitive market.

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Effects of covid-19 pandemic on life expectancy and premature mortality in 2020: time series analysis in 37 countries - BMJ

"Our findings of a comparable or lower than expected YLL in Taiwan, New Zealand, Denmark, Iceland, Norway, and South Korea underscore the importance of successful viral suppression and elimination policies, including targeted and population based public health policy interventions...A comprehensive pandemic preparedness aimed at more resilient health systems could be key to tackling the impact of future pandemics."

More prevention = More years of life

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Molnupiravir, being developed by Merck & Co Inc and Ridgeback Biotherapeutics LP.

Anti-Covid Drugs Are Coming, But At What Cost? - William Haseltine/Forbes

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Musk Says He'd Sell $6 Billion Of Tesla Stock If UN Can Prove How It'll Solve World Hunger - IFLScience

Musk has a point.  As a wise man once said: "the poor will always be with us."  Competitive societies -- particularly capitalist ones -- will almost always price out people at the bottom.  Even so, Musk could help provide hungry people with enough to eat.  Better yet, given his talents and resources, he could develop clean technology that low-income people can afford to get them to work and heat/cool their homes.  It's key to slowing global warming.

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Build Back Better Act: Details & Analysis of Tax Provisions in the $1.75 Trillion Budget Reconciliation Bill - Tax Foundation

Moving target.  Lots will change when it reaches the Senate.

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These Billionaires Received Taxpayer-Funded Stimulus Checks During the Pandemic - ProPublica

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A view of an illustration outside a wood flooring sales office next to an employment agency in Toronto, Ontario, Canada October 8, 2021. REUTERS/Chris Helgren/File Photo

Canadian wage inflation looms as 'perfect storm' hits labor market - Reuters

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Opinion: Weren’t the Democrats supposed to raise taxes on the rich? - WaPost

In the House, they’ve given in. Under the House plan, the amount of state and local taxes people can deduct would rise from $10,000 to $72,500. This would give high-income people a $23,000 tax break. The Tax Foundation, a think tank, estimates that 70 percent of the tax change would flow to the people making $250,000 or more. The Committee for a Responsible Federal Budget reckons that the plan would cost $300 billion, which would make it the third-most costly item in the bill — far more than it would devote to major anti-poverty programs...

"Well-heeled Americans have prospered while the climate has warmed, health care remains out of reach for many and national finances have deteriorated. That’s why it made sense when the Democrats promised to increase the estate tax that wealthy people have to pay and to reverse the worst of the Republicans’ 2017 tax cuts by raising corporate tax rates and income tax rates on top earners. Negotiating among themselves, they’ve already given up on all of those sensible ideas. To now grant a new tax break to the rich is beyond the pale."

Dems on Social Infrastructure = No Balls (taxes) + No Brains (benefits/spending)

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Opinion | Why It’s So Hard To Tax the Rich -

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Marine Corps reveals why 75% of Marines get out after a single enlistment

Marine Corps Commandant: Too many Marines are leaving after 4 years - Task & Purpose

“The Marine Corps is unique among the services in embracing an enlisted force model that perpetuates this remarkably high turnover rate,” the plan says. “Indeed, while the other services have matured their forces over the last few decades, the Marine Corps has remained committed to preserving its bottom-heavy grade structure and youthful character, maintaining the largest percentage of teenagers among the services.” 

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Government Childcare Subsidies: Whom Will They Help Most? - Rachel Greszler/Heritage

"Instead of focusing on lower-income families in need, the proposed subsidies would disproportionately benefit high-income families in high-cost states. These subsidies would do nothing to help the majority of families that prefer family-based childcare, and could limit options by crowding out smaller, faith-based, and more accommodating childcare providers."

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Democratic Party suffers debacle in gubernatorial elections - WSWS

"A clear warning must be made: The Democrats’ emphasis on identity politics—promoted by the Democratic Socialists of America, Jacobin magazine and the pseudo-left—is opening the door for Trump, whose political fortunes were substantially strengthened by Tuesday’s vote."

Count on Trotskyists for a sober analysis of the performance of the American left.

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Lightfoot Urges Families to Apply for Expanded Child Tax Credit as Deadline Nears for 2021 Payments - 5Chicago

Last chance to get advance child tax credit is fast approaching - WaPost

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When your rent goes up 40%. As pandemic fades, many tenants see big hikes - CNBC

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Inflation is at a 30-year high. Here's how the Federal Reserve plans to deal with it - NPR

"Workers' pay is also rising, though not as fast as prices. On average, wages and salaries in September were 4.2% higher than a year ago."

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Does External Monitoring from the Government Improve the Performance of State-Owned Enterprises? - VoxChina

"We show that enhanced external monitoring, as a key component of corporate governance, can substantially reduce managerial expropriation in procurement and shirking in production management. The results suggest that government monitoring can be an effective policy instrument to improve state-owned enterprise performance."

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A Historic Decrease in Poverty - Jason DeParle/NYR

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Chomsky: Build Back Better Fiasco Exposes How Both Parties Serve Corporate Power - truthout

"It’s often been observed that the U.S. has a one-party political system — the business party — with two factions, Democrats and Republicans. In the past, the Republican faction has tended to be more dedicated to the concerns of extreme wealth and the corporate sector, but with the resurgence of the one-sided class war called “neoliberalism” under President Ronald Reagan, the leadership has been going off the rails. By now they barely resemble a political party in a functioning democracy.

"Since the late President Jimmy Carter years, the Democrats have not lagged far behind, becoming a party of affluent professionals and Wall Street donors with the working class handed over to their bitter class enemy."

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Millionaires urge Democrats to include billionaire tax in spending bill - The Hill

BTW, is a 65-year-old with $1 million in a retirement account a millionaire?  That's enough to yield about $50,000 a year in retirement income (give or take health and long term care expenses).

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The Billionaires Tax Isn’t New - ProPublica

"Taxing billionaires on their wealth may sound novel, but the ideas behind it are already frequently used in the tax code."

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Squid Game Cast and Character Guide: Who Are the Players?
Don’t Be Fooled Squid Game Fans, the United States is More Unequal Than South Korea on Several Measures - CEPR

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President Biden is promising free preschool nationwide, lower-cost child care for millions of families - CBS17

Child Care Costs By State 2021

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Issues at Fields Apartments Brought to Housing Commission -

"Karl Polzer from the Center on Capital and Social Equity told the News-Press “Falls Church and Northern Virginia are among the wealthiest places in the country. Political leaders here tend to focus on real estate and business development and growing the revenue base. As reflected by the gubernatorial campaigns’ responses to our questionnaire on specific plans to help struggling families, the needs of low-income workers are not a priority for them – even though these voters make up a large part of the population.

"He added, “Elected officials here respond most to monied interests including high-income residents whose property is appreciating in value. Unfortunately, as the price of housing rises faster than wages, fewer people who provide services in Falls Church can afford to live here. They include essential workers and many young adults raised here entering the workforce. Many young people can’t afford local rents and end up living in their parents’ basements. The rising cost of living makes it harder for many middle-income people including teachers to live here as well. Affordable housing is especially needed for people with disabilities and suffering from serious mental illnesses.”

"He said “a one bedroom apartment here is estimated to cost about $16,000 to $20,000 a year. That’s unaffordable for workers like waiters and home health workers making $25,000 a year – especially if they are single parents. According to economists at MIT, a ‘living wage’ in Fairfax County covering the needs of a single parent with one child would be $38.77 an hour. That’s more than $80,000 a year!”

"The current conditions at the Fields Apartments put residents at risk and unfortunately many of them do not have any other options to find affordable housing."

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 Miami commissioners pass controversial new rule banning homeless encampments on public property - Fox

"Commissioners also passed a resolution requiring the Miami city manager to create a new 'Adopt-A-Homeless Person' program"

Kick them out now. Have the city manager mull over providing help - maybe later. 

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Sunday, October 31, 2021

The Obsolete Science Behind Roe v. Wade - Grazie Pozo Christie/WSJ

"My youngest patients are unborn babies, and today’s ultrasounds show they are fully alive and human."

Why Ruth Bader Ginsburg Wasn’t All That Fond of Roe v. Wade - NYT

RBG argued abortion rights should hinge on arguments of gender equity based on the 14th amendment instead of an implied right to privacy.  This more intellectually honest approach could result in courts weighing the competing rights of pregnant women, unborn children, fathers, and society more explicitly and transparently

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A Sea Change for Wages v. Capital?

Addicted to Identity Politics, Progressives May Miss a Historic Chance To Connect with America’s Working Class

Karl Polzer – Center on Capital & Social Equity

 New research affirms what has been known for centuries.  In the wake of a pandemic, a smaller, more risk-averse work force is often in position to demand higher wages.  After the Black Death ripped through Europe, for example, peasants, shop workers and craftsmen realized they had gained bargaining power.  Wages rose and the return on capital fell.

Though the impact of the current pandemic probably will be much milder, millions in the American working class suddenly deemed to be “essential” may come to a similar realization.  People working with their hands in nursing homes, grocery stores, meat packing plants, or as home health aides, might ask whether they are getting a fair deal.  Why, they might ask, are we expected show up to work and risk contagion for wages that barely cover the rent, while millions in the professional, management, and bureaucratic classes can shelter at home and still pull down a good salary?  Why don’t we get paid sick days, health insurance, and other basic benefits like they do?  Why can’t we spend more time raising our kids to help them get ahead?

In just two months, the Covid virus has upended the American workforce.  Incomes have crashed.   Unemployment has rocketed.   Whatever new normal emerges will be different and probably more unequal.  A larger portion of the workface – and the electorate -- may well be unemployed or working for low wages.  Jobs that can support a middle-class lifestyle may be harder to find. 

This is the perfect time for elected officials to talk to all American workers about how to improve their lives. Unfortunately, many Democrat leaders are deeply rutted in rituals of race and gender politics.  The Democratic party may be blowing its chance to regain working class support -- once its bread and butter -- in two important ways.   First, its policy agenda largely reflects upper-middle class priorities.  Second, the party’s world view and messaging for many years has presumed that low-wage work is exclusive to blacks and Hispanics.  To many Democratic leaders, pale-skinned poor people seem to have no standing.  It’s almost as if they don’t exist...

Making Sure We Get to Universal Coverage: a letter to Sen. Bernie Sanders

Feb. 23, 2020 

Dear Sen. Sanders,

Among all candidates for president, we think you are the most committed to making sure that ALL Americans have health insurance and access to comprehensive health care.  We commend you for your leadership on this issue.

Unfortunately, it is hard to see how the Medicare-for-all legislation you propose could gain Congressional approval in the foreseeable political future.  As a longtime member of the U.S. Senate, you must be able to understand the grounds for this concern.

Please answer this question:  If, during your presidency, Congress could agree to pass a universal coverage bill using a different, perhaps more traditional, approach, would you sign it?

Getting ALL Americans affordable coverage as soon as possible is an important part of our policy agenda.  We cannot wait until a political moment in the unforeseeable future in which a Medicare-for-all system can gain approval.  We also recognize that any universal system put in place will need to enjoy long-lasting acceptance spanning the ebbs and flows of partisan politics.

Our question is of deepest sincerity.  Your answer could be key to broadening your base of support and winning the presidency.

Thank you again for your leadership. 

Karl Polzer, Center on Capital & Social Equity

A Widening Gap in Life Expectancy Makes Raising Social Security’s Retirement Age a Particularly Bad Deal for Low-Wage Earners

Essay - Karl Polzer   

"Social Security’s long-term financial problems result in part from an increase in average life expectancy driven by wealthier people living longer, and, thereby, collecting more benefits.  Policymakers should not use funding shortfalls attributable these trends as an excuse to cut monthly benefits alike for those who have gained (high earners) and for those who haven’t (low earners)."

February 2020

Will Growing Inequality Make Social Security & Long Term Care Financing Fixes Harder?

2020 Society of Actuaries Living to 100 Symposium

June 2019

Mixing Capitalism and Socialism

Policies To Moderate Systemic Wealth Concentration in the United States

Karl Polzer/Center on Capital & Social Equity

This essay explores two basic questions.  The first is the extent to which capitalism, which emphasizes the rights of individuals to pursue their interests, and socialism, which focuses on group needs, tend to function in tandem as much as they do in conflict. As many agree that the political pendulum in recent decades has swung in favor of capitalism, the paper also discusses a range of public policies that can be used to reduce its imbalances and risks, with particular emphasis on moderating capitalism's tendency toward systemic inequality. Policy options range from programs to help the poorest, social insurance, higher taxation of income and wealth, and re-channeling to all citizens a portion of profits from private exploitation of public assets and business activities enabled by public laws and infrastructure.

Quick Links

Including all workers in our retirement savings system requires 2 things: a universal tax credit and a secure place to invest it.

Congress should be working on both.

Almost half of Americans have no net assets and little or no retirement savings.  Many have no money to save, and if they did, and no retirement account to put it in.  Meanwhile, Americans at the top of the economic heap get generous tax breaks for retirement savings – and capital gains from these assets widen the wealth gap.

Establishing a national retirement savings system and reshaping tax policy to provide every American worker a modest tax credit to put in a retirement account could improve economic security, help people prepare for old age, and facilitate saving for emergency expenses.  This type of inclusive capitalism would make every American worker an owner of assets generating income.  Such a system could be funded via a relatively small sacrifice to high earners without increased federal spending.  

Include Everyone in the Retirement Savings  System

Related initiatives and proposals:

If you know of other proposals along these lines or would like to comment, please go the "Contact Us" page on this site and send us an email. 

CCSE Proposes Universal Starter IRAs

Australia as a Model?

Australia’s “superannuation” system  requires employers to contribute a percentage of employees’ income into diversified retirement funds managed by trustees.  By 1999, 97 percent of Australia’s full-time employees and 76 percent of part-time employees were covered by the superannuation system.  Over the years, Australia has increased required contributions and continued to refine the system, which has been credited with raising levels of capital accumulation and improving retirement security.

According to a July 2016 report, the Australian superannuation system continues to broaden coverage, but may be contributing to growing wealth inequality in its current form.

Research shows dramatic growth of upper middle class, major shift in economic resources

An Urban Institute report published in June 2016 found that since 1979 the percentage of wealthy and upper-middle-class Americans have grown dramatically while the middle- and lower-middle class has become smaller.  The study found that "the proportion of the population in the upper middle class went from under 13 percent in 1979 to over 29 percent in 2014."

The report documents a major shift in the distribution of economic resources. "In 1979, the bottom three income groups controlled 70 percent of all incomes, and the upper middle class and rich controlled 30 percent. By 2014, this distribution shifted to 37 percent for the bottom three groups and 63 percent for the upper middle class and rich groups. The middle class alone saw its share of income decline from 46 percent in 1979 to 26 percent in 2014."   

The study divides the population into five classes. The poor and the near-poor had annual incomes from $0 to $29,999; the lower middle class, from $30,000 to $49,999; the middle class, from $50,000 to $99,999; the upper middle class, from $100,000 to $349,999; and the rich, $350,000 and up. 

Pew study shows long-term decline in size of middle class, rise in number of poor

After more than four decades of serving as the nation’s economic majority, the American middle class is now matched in number by those in the economic tiers above and below it, according to a study released in December. In early 2015, 120.8 million adults were in middle-income households, compared with 121.3 million in lower- and upper-income households combined, according to the Pew Research Center analysis of government data.  Highlights include the following:

"While the share of U.S. adults living in both upper- and lower-income households rose alongside the declining share in the middle from 1971 to 2015, the share in the upper-income tier grew more.

"Over the same period, however, the nation’s aggregate household income has substantially shifted from middle-income to upper-income households, driven by the growing size of the upper-income tier and more rapid gains in income at the top. Fully 49% of U.S. aggregate income went to upper-income households in 2014, up from 29% in 1970. The share accruing to middle-income households was 43% in 2014, down substantially from 62% in 1970.

"And middle-income Americans have fallen further behind financially in the new century. In 2014, the median income of these households was 4% less than in 2000. Moreover, because of the housing market crisis and the Great Recession of 2007-09, their median wealth (assets minus debts) fell by 28% from 2001 to 2013.

"Meanwhile, the far edges of the income spectrum have shown the most growth. In 2015, 20% of American adults were in the lowest-income tier, up from 16% in 1971. On the opposite side, 9% are in the highest-income tier, more than double the 4% share in 1971. At the same time, the shares of adults in the lower-middle or upper-middle income tiers were nearly unchanged.

"These findings emerge from a new Pew Research Center analysis of data from the U.S. Census Bureau and the Federal Reserve Board of Governors. In this study, which examines the changing size, demographic composition and economic fortunes of the American middle class, ‘middle-income’ Americans are defined as adults whose annual household income is two-thirds to double the national median, about $42,000 to $126,000 annually in 2014 dollars for a household of three. Under this definition, the middle class made up 50% of the U.S. adult population in 2015, down from 61% in 1971."


Impact of Raising the Minimum Wage

Increasing the minimum wage would have two principal effects on low-wage workers, according to an analysis by the Congressional Budget Office.  Most of them would receive higher pay that would increase their family’s income, and some of those families would see their income rise above the federal poverty threshold. But some jobs for low-wage workers would probably be eliminated, the income of most workers who became jobless would fall substantially, and the share of low-wage workers who were employed would probably fall slightly.

  • Five Facts about the Minimum Wage.
  • Living Wage Calculator:  The cost of meeting basic needs varies widely depending on where you live. MIT offers an on-line tool to help determine such costs and the living wage in each county and metropolitan area in the U.S.  The site also has articles on related issues.
  • State Minimum Wage Levels:  Federal minimum wage law supersedes a state's minimum wage law if the state level is lower. In those states where the state minimum wage is greater than the federal level, the state minimum wage prevails. Two states have a minimum wage set lower than the federal minimum wage. In 29 states and DC, the state minimum wage is higher than the federal minimum. Fourteen states have a minimum wage that is the same as the federal requirement. The remaining five states have not established a minimum wage.

The Economics of Inequality

Deaton Wins Nobel Prize

"The award comes at a time when there is rising academic and popular interest in the study of inequality. Several economists, including Anthony Atkinson of the London School of Economics (who was among the leading contenders for a Nobel prize this year) and Thomas Piketty of the Paris School of Economics (who is still a bit too young for one), have published widely-read volumes on the subject over the last two years. Mr Deaton published his, The Great Escape: Health, Wealth, and the Origins of Inequality, in 2013. In it, he argued that while most people in the world have gained in terms of health and well-being from GDP growth over the last few decades, there are many groups that have missed out, particularly if on measures beyond those most commonly examined."

-- The Economist

Milanovic Explores Dynamics of Income Inequality in Age of Globalization

In “Global Inequality: A New Approach for the Age of Globalization,” Branko Milanovic identifies five forces pushing up inequality in the United States:

1. The increasing share of national income that accrues to owners of capital.

2. Very high and rising concentration of incomes from capital.

3. People holding high-paying jobs also often have high capital income.

4. The tendency of high-income individuals to marry each other.

5. The rising political power of the rich.

Revisiting the work of American economist Simon Kuznets, Milanovic describes how global income economy waxes and wanes in "waves" driven by economic and political forces. 

 

CBO report analyzes impact of government transfers, taxes on rising U.S. income inequality

According to the June 2016 report

"Between 1979 and 2013, all three measures of income examined in this report—market income, before-tax income, and after-tax income—became less equally distributed, based on a standard measure of inequality known as the Gini index. The increase in inequality in both before-tax and after-tax income over the 35-year period stemmed largely from a significant increase in inequality in market income, mostly because of substantial income growth at the top of the market income distribution.

"Because government transfers go predominantly to lower-income households, before-tax income (which is equal to market income plus government transfers) was more evenly distributed in each year than market income. And because higher-income households pay a larger share of federal taxes than lower-income households do, after-tax income was more evenly distributed than before-tax income.

"In each year between 1979 and 2013, government transfers reduced income inequality significantly more than the federal tax system did."


 View from the Paris School of Economics


 

Lecture Highlights:

  • The return of a patrimonial (or wealth-based) society in the Old World (Europe, Japan).
  • Inequality in America: Is the New World developing a new inequality model that is based upon extreme labor income inequality more than upon wealth inequality? Is it more merit-based, or can it become the worst of all worlds?
  • In all nations with capitalist economies examined, the poorest half of the population owns virtually no assets or is in debt.
  • In general, when the rate of growth of capital exceeds the rate of growth of the overall economy, wealth tends to concentrate.  There is no natural market mechanism to counter this tendency; a nation's degree of wealth concentration in large part is a function of public policy.

"The Spirit Level: Why Greater Equality Makes Societies Stronger"

In this book, Richard Wilkinson and Kate Pickett present data making the case that countries with greater income inequality tend to have more health and social problems.  Furthermore, there is evidence that the negative effects of inequality impact not just the poor, but people at all social levels.  The Equality Trust provides slides of some of the supporting data.


This short Wall Street Journal video describes competing views of the wealth inequality issue and how to address it.

Thomas Piketty reviews Anthony Atkinson's book, Inequality: What Can Be Done? , and evaluates its prescription for Great Britain's economy.

Economists Discuss Atkinson's Ideas on Reducing Inequality

Robert Solow, the Russell Sage Foundation’s Robert K. Merton Scholar and Institute Professor Emeritus at MIT, joined New York Times columnist Paul Krugman and moderator Janet Gornick (Director of the Luxembourg Income Study Center and a former RSF Visiting Scholar) at the Foundation for a conversation on Inequality: What Can Be Done?, a new book by British inequality scholar Anthony B. Atkinson. In the book, Atkinson argues that economic inequality has reached unacceptable levels in many countries and lays out an agenda for reducing inequality. His policy proposals span five areas: technology, employment, the sharing of capital, taxation, and social security.

Columbia's Joseph Stiglitz takes on "The Great Divide"

Click on highlighted words to hear interview.

Hayek Revisited: Is Compromise Possible?

Is Friedrich Hayek's classic defense of individual liberty and economic freedom, rooted in moral tradition, just as relevant today as during World War II?  Click here to read a summary of Hayek's "The Road to Serfdom," published by Reader's Digest as that war came to an end and a new international economic order was developed. 

Today, how can monopoly power, whether wielded by corporations or government agencies, be checked while expanding economic opportunity and inclusion for all including the young, old, and those with few assets?  If Hayek could have foreseen the ability of  modern corporations to concentrate wealth and power, what policies would he recommend?       

"...Where, as in the case of sickness and accident, neither the desire to avoid such calamities nor the efforts to overcome their consequences are as a rule weakened by the provision of assistance -- where, in short, we deal with genuinely insurable risks -- the case for the state's helping to organize a comprehensive system of social insurance is very strong. ...

"(T)here is no incompatibility in principle between the state's providing greater security in this way and the preservation of individual freedom."

 --  F. Hayek, The Road to Serfdom, Chapter 9/Security  and Freedom

Oct. 26, 2021

Responses received from Virginia campaigns for governor

Last week, the Center on Capital & Social Equity, which operates from Northern Virginia, sent a short list of questions to policy and press people working on the two Virginia campaigns for governor.  We are pleased that both campaigns sent responses but would have liked to see more specific answers to many of the questions.

Our motivation in asking these questions is to help focus the next governor on the needs of low-income people who make up a large portion of Virginia’s population.  Their everyday challenges are often ignored by their political representatives.  Attention to detail and commitment will be keys to developing and implementing policies that will help improve their lives on issues including adequate wages, paid sick days, access to mental health, the cost of living,and affordable health care.  We look forward to working with the next administration on these and other matters.

Do U.S. Expats Need to File Virginia State Taxes? | MyExpatTaxes

November 20th, 2021 Grocery Store Labor Action - All Workers Deserve Paid Sick Days - Virginia Interfaith Center for Public Policy

"Grocery store workers are one of the best examples of why Virginia needs a paid sick day standard.  Two-thirds of grocery store workers have no paid sick days. Virginians for Paid Sick Days is partnering with UFCW Local 400 to hold actions outside grocery stores on the Saturday of November 20, 2021 (the Saturday before Thanksgiving) highlighting the need for all grocery store workers to have paid sick days."

 

July 12, 2021

"Congress could do many relatively inexpensive things to improve working people’s lives.  At spending levels near the bottom of what’s being now debated, all workers – including the lowest-paid -- could have additional funds to raise their kids, paid sick days, more job training, and some savings for retirement and emergencies.  Millions more could have higher wages and health care coverage.  And millions more disabled and elderly people could move above the poverty line.  Much of this could be done by modifying existing programs and policies."

Social ‘infrastructure’ improvements for the working class

  • Target subsidies for families (child tax credits, daycare, college) to people most in need.
  • Raise the minimum wage and index it for inflation.  Give states reasonable flexibility to adjust the minimum.  All workers get paid sick days.
  • Repair and improve SSI.
  • Establish a universal retirement savings system.
  • Incentivize states to expand Medicaid.  Hold Medicare spending increases to general inflation or less.
  • Improve Social Security benefits for the bottom 50%. Achieve long-term solvency through higher taxes mostly on the top 20%.
  • Improve the unemployment insurance system and job training.

Click here to read essay.

Jeff Bezos (left to right), Elon Musk and Richard Branson are in a neck-and-neck battle to see who can win the trio’s own space race.

Thanks to the Washington Post for publishing most of our letter:

"Push the pain of taxes into the afterlife"

Really don't think that a particular billionaire (hint: cojones enough to be shot into space) would have objected to being mentioned as in the letter submitted:

"A Smart Way To Tax the Rich: Let Sleeping Billionaires Lie"

Thanks to the Washington Examiner for featuring this.

capital spending - government waste - government debt stock illustrations

Biden’s spending spree could destabilize Social Security - Karl Polzer

"President Joe Biden’s plan to inject $4 trillion of social and capital infrastructure spending into a $21 trillion economy could help many people take care of their families. But there are also major economic and political downsides. These risks could be reduced, and the proposal’s value increased, by putting Social Security on the table and targeting new social spending to people most in need..."

Click here to read the op-ed

Where's Social Security?

How much can we tax the wealthy to finance long-run social and physical infrastructure needs?

 Karl Polzer, Center on Capital & Social Equity

A government, already paying interest on more than its people produce each year (hint: $22 trillion), now proposes to tax its wealthiest citizens in the vicinity of $3 trillion more to finance a growing list of social and physical infrastructure needs.  Like families paying off mortgages, indebted governments should know that each major purchase narrows its ability to raise capital for future needs... 

So, what do we need and how can the wealthy be tapped to pay for it? What's missing?...

Click here to read the paper

 

Thanks to the Washington Examiner for timely publication of this op-ed. 

Yes, raise the minimum wage, but don't stop there

March 1, 2021

"...States could be given flexibility. Congress could set the national minimum at the high end of current proposals, say at $15 or $16, and allow states to adjust it downward by a certain margin, say 20% or 25%, but no lower. A national minimum wage corridor, rather than a line, could help California and New York build up and adjust down from a higher platform. Poorer states could choose lower levels in the corridor, say $12 to $13 an hour.

"Policymakers also should consider how changes to the earned income tax credit and child tax credit can complement wages for working-class families. Members of both parties support higher subsidies to raise children. Such payments should be targeted to help the poorest the most. Yet the current child tax credit provides the most money to higher-income families."

Click here to read the op-ed.

Feb. 17, 2021

Analysis: Ways To Raise the U.S. Minimum Wage To Help Workers, Families, While Minimizing Negative Impacts

Karl Polzer, Center on Capital & Social Equity

A recent Congressional Budget Office (CBO) analysis reinforces the case that raising the national minimum wage is long overdue. But it also provides reasons for caution.  Dialing up wages at the bottom up too fast and too much could increase the magnitude of negative side effects including job loss and price increases.

This paper examines potential impacts of raising the federal minimum wage nationally and in selected states and local areas. It ends with suggestions to temper negative side effects resulting from a higher minimum wage and discusses the need to fill income gaps that are too large for a higher minimum wage to address adequately, especially for some types of families.  Options include setting a national corridor in which states can choose a minimum wage best fitted to them and supplementing low wages with more support for raising children.        

Click here to read the paper.

Thanks to the Washington Examiner for running this op-ed and its openness to air a variety of views including our work exploring inequality and advocating for the bottom 50%.  The Examiner's audience includes conservative members of Congress whose votes are needed to pass and sustain  legislation advancing  working class interests.

Biden's stimulus risks sending aid to those who don't need it - Karl Polzer/Washington Examiner op-ed

Who exactly will get the enhanced cash aid, and who won't, in the stimulus package the Biden administration will soon negotiate with Congress? This is the first of many distributional challenges awaiting lawmakers on both sides of the aisle. Choices on targeting increasingly scarce public funds will reveal which income groups both parties are committed to represent.

Details of the relief proposal had not been released as of this writing. But it is likely that the administration has been working from the distribution template in legislation Democrats introduced at the end of December. That bill, the Cash Act of 2020, would increase the $600 COVID-19 cash relief authorized last month to a total of $2,000 ($4,000 for couples). It also would send billions of dollars to well-off people that don’t need the money. As with previous COVID-19 cash aid legislation, an argument can be made that the distribution scheme shortchanges millions of people who need money to pay for food and rent.

Click here to read full article

The Center on Capital & Social Equity explores and promotes ways to include all workers and families in the output of capitalist economies. (See chart above.)  All should have the opportunity to own shares of working capital.  One way to mitigate the negative effects of monopolies, which antitrust regulation cannot entirely control, is through widespread profit sharing.  This can be done by setting up a universal retirement savings system.

Economy of India - Wikipedia

Missionary being eaten by a jaguar  (Noé León, 1907)

Thanks to the Washington Post for publishing this as leaders in Congress negotiated changes to Covid-19 relief legislation:

Low-income Americans are left out of covid stimulus - Center on Capital & Social Equity

Dec. 11, 2020 at 4:31 p.m. EST

Sens. Mark R. Warner (D-Va.) and Susan Collins (R-Maine) said in their Dec. 8 op-ed, “We can’t afford inaction on the covid-19 compromise package,” that their compromise “would help Americans at least get through the next four months.” With due respect to their bipartisan efforts, that was dead wrong. 

Very little in the coronavirus relief package would help low-income Americans make it through even one month. What’s needed most is rent relief and money to cover food and utility bills. Yet no direct payments to low-income individuals similar to the checks issued under the Cares Act in the spring are to be found. The bipartisan proposal mainly would benefit interests with access to Congress: businesses (via cheap or free money, plus a liability shield), nonprofits/associations/churches, state governments, and professional classes including doctors, lawyers and accountants.  

The D.C. government’s decision to send $1,200 checks to people among the hardest hit sets a good example for states and the federal government. Congressional leaders, many perched in the nation’s wealthiest strata, need to understand that about half of the U.S. workforce earns low wages or is out of a job. Viewed from the bottom up, the United States is becoming a much more impoverished nation.   

Karl Polzer, Falls Church

The writer is founder of the Center on Capital & Social Equity.

Interesting evidence on how CARE Act stimulus helped low-income people get through the summer, despite large job losses, and why we need more stimulus now.

Center on Capital & Social Equity

Policy Goals: Increase economic inclusion at reasonable public cost 

  • Raise minimum wage with annual COLA (option: give states some leeway to adjust ↓ to reflect cost of living/labor).
  • Five PAID sick days annually for ALL workers.
  • 100% of Americans with health coverage by 2025 - with strong cost controls (any number of payers will work).
  • Universal retirement savings system with minimum $500 annual government contribution (so, all Americans own working capital, have stake in market economy).
  • No surprise medical bill >$500.
  • Cut cost of college/expand apprenticeship programs.
  • Improve Social Security benefits for bottom 50%. Achieve long-term solvency through higher taxes mostly on top 20%.
  • Increase refundable child tax credit.

Life expectancy has not increased for the lowest-paid workers - National Academy of Sciences

Race-neutral, progressive economic policies deliver $$ to minority communities

"Although much of it may turn out to be pre-election packaging, legislation unveiled last week by Democrats to help racial minorities is a poorly conceived policy approach that fails to treat the nation’s low-wage workers fairly or equally.  Senate leadership is billing the Economic Justice Act as a “major new legislative proposal to make $350 billion in immediate and long-term investments in Black communities and other communities of color.”  However, policies that reward or punish citizens based on skin color not only rest of shaky legal and ethical ground.  If enacted, they may ignite a political backlash that will set minority communities back rather than helping them move forward."   

Click here to read article.

July 1, 2020

Letter to U.S. Political Leaders and Media

It’s past time the White House, Congress required - and funded - Covid testing in nursing homes

What wasn’t said at last week’s Congressional hearings on Covid-19 should raise alarm.   Federal officials testified the CDC plans to issue “more targeted” testing "guidelines" for states and nursing homes.  More advice is not enough.  After five months and more  than 120,000 virus deaths, lack of federal and state action -- and adequate funding -- for testing in nursing homes is homicide by negligent policy...

July 14, 2020

CMS to deliver ‘point-of-care’ COVID-19 test kits to all nursing homes

Yes!  Credit to CMS Administrator Verma and the Administration. We've been calling on the feds to deploy rapid, comprehensive testing for nursing home residents and staff for 4 months.  This is a major step toward reducing deaths from the pandemic.  Now, make sure to include long term care providers not directly regulated by CMS, such as assisted living facilities, in the testing program. About 1.5 million live in nursing homes and one million in assisted living.

June 15, 2020

Op-ed:Upgrade Medicaid, don't gut it

Thanks to the Washington Examiner for running this article.

"The current Medicaid regime is a mixture of bad and good. It often renders low quality nursing home care. But Medicaid does provide universal long-term care coverage, a rarity in American social policy. That’s a good thing. Medicaid needs to be upgraded – not gutted. Long-term care insurance and personal savings simply can’t fill the gap cutting Medicaid would leave." ...

"Witness the Trump administration’s delegation of most of the responsibility for the COVID-19 nursing home policy to the states. It recommended, for example, that states make sure COVID-19 testing gets done in nursing homes rather than having CMS require it nationally. Washington’s failure to take the lead on testing can’t bode well for nursing home quality and mortality rates."

Detroit Industry - Diego Rivera

The World Inequality Lab Newsletter - July 2020

Thomas Piketty - Why Capitalism Must Be Reformed | The Daily Social Distancing Show

Capital Gains and U.K. Inequality - Arun Advani and Andy Summers

Three policy recommendations include: "Capital gains tax rates need to be aligned more closely with marginal income tax rates, since large gaps lead to repackaging of income, reducing the redistributive effects of tax, creating horizontal inequity, and biasing measures of vertical inequality."

The Missing Profits of Nations: How much each country loses or attracts because of tax competition - Thomas Torslov, Ludvig Wier and Gabriel Zucman

June 2020

Opposing Racism and Human Bondage in the United States

 Center on Capital & Social Equity

Awakening Slaves - Michelangelo

"Capital and Ideology": Notes and Figures - Thomas Piketty, 2020

"In this talk, I present some of the figures & tables gathered in my book Capital and Ideology (2020) - an economic, social & political history of inequality regimes, from trifunctional and colonial societies to post-communist, post-colonial hyper-capitalist societies. As compared to Capital in the 21st Century  (2014): Capital and Ideology is less western-centered, more political and focuses on the fragilities and the transformation of inequality ideologies. A much better book (I believe!)"

The Saving Glut of the Rich and the Rise in Household Debt - NBER

Comment: Excellent new paper. Remember Macro 101: national savings = national investment?  This takes Keynes one step further. Instead of being invested, savings glut at top generates rents, increases systemic inequality, through increased lending to bottom 90%.  Who pays high credit card interest and transaction fees, and who profits, e.g.?

Great Flower Moon - Richard Coleman

Letter to the Washington Post, Other Media - April 3, 2020

U.S. news media should make coronavirus coverage available to everyone


The Washington Post and other newspapers have done yeoman work in covering the coronavirus outbreak. Getting reliable and thoughtful information to the public quickly plays a critical role in helping to coordinate responses and saves lives. Unfortunately, the normal practice of restricting access to paid subscribers slows down dissemination of critical information, particularly to lower-income people.

Until this national emergency is over, the Post and other media should "ungate" all coverage related to the pandemic. That way people and organizations that subscribe can quickly get the word out about latest developments. This would be a great service to the public.

Karl Polzer/Center on Capital & Social Equity

March 3, 2020   -   Letter to the Washington Post 

A wealth tax could be both fair and enforceable

 The Post’s March 3 article “Bernie Sanders and Elizabeth Warren want a wealth tax. Wealthy Swiss say their model could work for America” raises key issues of tax fairness and enforcement.

 Why would it be unfair to tax the super wealthy on total net assets when middle-class homeowners already are taxed on the value of homes largely financed through debt on which they pay interest to banks (whose profits flow disproportionately to the wealthiest)?   Existing American wealth taxes -- state and local property taxes -- now finance most K-12 education.  A national wealth tax could be used to make school funding more equitable and lessen the tax burden on the middle class.  We already tax the middle class on property it partially owns.  So why not tax the wealthiest on the value assets they own lock, stock and barrel?

 Incentives are key to enforcement.  A progressive wealth tax -- rising in increments from point A to point B -- could be enforced by applying the maximum rate to all households with wealth over a given threshold, and leaving it up to filers to document to the IRS that the lowest allowable rate is appropriate.  Finally, a reasonable tax rate could provide an incentive for investment that spurs economic growth.  A high rate could stifle it.

Karl Polzer/Center on Capital & Social Equity

A full time worker paid the federal minimum wage earns 13% of the average national income per worker in the US -- the lowest level since the creation of the minimum wage in 1938.

   Source: Gabriel Zucman.

"Fastest way to cut carbon emissions is a 'fee' and dividend, top leaders say," Washington Post, 2/14/20

The article above is an example of how the virtue of economic analysis can't be measured by the pound or aggregate number of titles. The insight of a single analyst can contain more wisdom than collective opinion of 100.

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How to make carbon taxes more equitable - letter to the Washington Post

Jan. 28, 2020 at 5:40 p.m. EST

The Jan. 25 news article “At Davos, enthusiasm for trees but not a carbon tax” did not mention an important reason political leaders might balk at levying higher carbon taxes. Carbon taxes, including those on gasoline, are highly regressive, affecting lower-income people much more than higher-income. For example, if gas taxes were doubled in the Washington area, most well-paid professionals would have enough capital (or access to credit) to easily switch to a hybrid vehicle. Over the life of the vehicle, their savings in fuel and taxes would probably cancel out any initial expense. In contrast, for lack of capital, a person driving a used gas guzzler to two low-paying jobs would be stuck driving the gas guzzler along with higher fuel costs.

Hiking fuel taxes would make it even harder for the growing share of the U.S. population working low-paying jobs to make ends meet and raise families. Carbon taxes would be more equitable and politically feasible if governments also made sure that workers struggling to pay their bills could afford the switch to clean-energy technology. 

Karl Polzer, Falls Church

The writer is founder of the Center on Capital & Social Equity.

Response to WaPo  dialogue stemming from our letter on carbon taxes

Dear Washington Post Editors:

Sabrina S. Fu made excellent points in her Feb. 4 letter “Quit saying ‘carbon tax.’ It’s a fee and dividend” addressing concerns I raised in a letter last week.  Her proposal, however, would work best an ideal political world where one can control opponents' and skeptics' language used to frame an issue.   My concern over tax fairness would remain because in the legislative bargaining process -- including a last-minute deal in conference committee -- the redistribution part of the proposal could easily be watered down, or eliminated, while the regressive "tax" or "fee" would become law.

Why don’t we start by applying her proposal to the current gasoline tax?  If it survives the legislative process and works for current energy taxes, then move on to carbon writ large.  Bottom line: advocates for low- and middle-income people trying to survive today need to keep a sharp eye on idealistic proposals coming from the better-situated trying to save the planet in the next century.

 Karl Polzer

Center on Capital & Social Equity

 

Aug. 7, 2019

By letting banks charge excessive credit card fees, US raises prices for all, shifts billions of $$$ to the wealthier

Karl Polzer

There are many mechanisms through which the financial establishment systematically drains money from workers struggling to pay their bills.  Some hum along in plain sight while regulators and members of Congress barely take notice.  Such is the case with the $80 billion in fees that banks will extract from credit and debit card transactions this year.  

While other countries have lowered credit card transaction costs, either through non-bank market innovation (in China) or regulation (in the European Union, Australia, and other nations), U.S. policymakers empower banks and credit card networks to levy what amounts to a doubly regressive national sales tax...

(Also see the note on excessive credit card interest rates beginning on p. 6.)

A winner for the poor? Soda machine offers lower price for cash in Poulsbo, WA

Photo by Tom Hahler

Letter to Washington Post - Nov. 17, 2019

The Post’s call for vigorous debate on capitalism raises issue of its role as honest broker

Today’s lead editorial (“Capitalism itself is on the 2020 ballot: Every billionaire is not a policy failure, but each can afford to pay more”) begins by defending core values of capitalism. It then endorses higher taxes on the super wealthy to temper growing inequality.  On the critical issue of how much more wealthy people should pay toward government operation and programs, the editorial is silent.  It ends with a call for vigorous and informed debate over these critical issues during the 2020 election.

Along the way, by carefully acknowledging that its current owner, Jeff Bezos, bought the Post from the “civic minded” Graham family six years ago, the editors raise another important issue.  That is whether one of the world’s most influential sources of news and public opinion can maintain both neutrality and vigor in the debate over capitalism if owned by one of the world’s richest people.  As the debate deepens, this potential conflict of interest may become more awkward and harder to explain. 

Karl Polzer, Founder, Center on Capital & Social Equity

Saez/Zucman's "The Triumph of Injustice: How the Rich Dodge Taxes and How To Make Them Pay"

Branko Milanovic's "Capitalism, Alone"

Map of golf clubs in and around San Francisco

Ways To Replace the "Cadillac" High-Cost Health Plan Tax

click below

Warning: Read the article above at your own risk. Author declaims any responsibility for variation in sense of humor. Note that some links in this article are intended to provide useful information, others irony.


NRA HQ in the Northern Virginia suburbs.

States strike back in federal court on AHPs

CCSE asked to co-sign amicus brief opposing U.S. Labor Dept.'s AHP rule, which increases risk of stripped-down benefits (e.g. no mental health coverage), healthplan insolvency, and consumers being defrauded.

Effects of Raising the Federal Minimum Wage

Congressional Budget Office - July 2019

Findings: "In an average week in 2025, the $15 option would boost the wages of 17 million workers who would otherwise earn less than $15 per hour. Another 10 million workers otherwise earning slightly more than $15 per hour might see their wages rise as well. But 1.3 million other workers would become jobless, according to CBO’s median estimate. There is a two-thirds chance that the change in employment would be between about zero and a decrease of 3.7 million workers. The number of people with annual income below the poverty threshold in 2025 would fall by 1.3 million." … Similar, but smaller effects for minimum wage of $12 … Ditto for $10 minimum wage.

MIT Living Wage Calculator Provides Powerful Tool for State and Local Policymakers

Many U.S. households earning less than a living wage: MIT analysis

"Across all family sizes, the living wage exceeds the poverty threshold, often used to identify need. State minimum wages provide for only a portion of the living wage. For two adult, two children families, the minimum wage covers 73.0% of the living wage at best in the District of Columbia and 41.8% at worst in Virginia. This means that families earning between the poverty threshold ($25,298 for two working adults, two children on average in 2018) and the living wage $67,146) on average for two working adults, two children per year before taxes), may fall short of the income and assistance they require to meet their basic needs."

Example: Maryland is one of the wealthiest states in the U.S., but income varies widely by region. This has made it difficult for the legislature to set a uniform minimum wage.

Possible option: Set a statewide minimum wage at $15/hour (or other level) and let local governments reduce it up to a fixed percentage (say 30%) to account for regional differences. It's important to index any minimum to inflation.

Joseph Stiglitz discusses his new book and "progressive capitalism" plan to rebuild America’s middle class on SalonTV.

If crimes against children can’t be stopped from within, the Vatican & its subsidiaries need purging from the outside: Letter to Washington Post

Every Catholic and every U.S. citizen should carefully read The Post’s Feb. 20 front-page article “ ‘The tragedy that keeps playing out.’ ” It is the latest in an endless stream of detailed evidence that the church power structure is incapable of changing from within to protect children in its care from sexual abuse. Senior church officials should be charged with criminal negligence for failing to remove predators they employ from positions from which they could injure children. Billions of dollars should be removed from the Vatican and its subsidiaries through the courts and distributed to victims. Still, would they change their ways?

Until this systemic problem is forcibly corrected, every church, school and other Catholic facility whose employees come into contact with children should undergo thorough inspection every year on the presumption that abuse may be occurring. If this cannot be corrected from within, then the Catholic Church should be broken up and reorganized. The same should happen with any church operating this way. Jesus commands that those in power do not harm those in their care, particularly children.

America: Build This Wall! :)

 The stand off over building a border wall sadly embodies the narrow-mindedness of America’s leaders and disrespects the creative potential of American capitalism.  It’s an undeniable fact that Donald, Chuck and Nancy are thinking way too small to discern the proper dimensions of a win-win agreement that could profit the United States for centuries...

Distribution of Household Income before/after Transfers and Taxes: CBO

Summary of slides released November 2018

In 2015, household income was unevenly distributed: Households at the top of the income distribution received significantly more income than households at the bottom of the distribution.

Before accounting for the effects of means-tested transfers and federal taxes:

  • Average income among households in the lowest quintile (or fifth) of the income distribution was about $20,000.
  • Average income among households in the highest quintile was about $292,000.
  • Within the highest quintile, income was highly skewed toward the very top of the distribution: Among households in the bottom half of the highest quintile (the 81st to 90th percentiles), average income was $157,000; among the 1.2 million households in the top 1 percent of the distribution, it was $1.9 million.

The combined effect of means-tested transfers and federal taxes in 2015 was, on average, to increase income at the bottom of the income distribution and decrease income at the top of the distribution.

After accounting for the effects of means-tested transfers and federal taxes:

  • Average income among households in the lowest quintile of the income distribution was about $33,000.
  • Average income among households in the highest quintile was about $215,000.
  • Among households in the bottom half of the highest quintile, average income was $125,000; among households in the top 1 percent, it was $1.2 million.

Below: Taxes, transfers resulted in significantly more income growth from 1979-2015 for the bottom income group than the middle three, while the top income group was held harmless.

Would Adam Smith favor policies creating a more inclusive economy?

Karl Polzer Center on Capital & Social Equity

In a recent op-ed, I suggested that Congress establish a universal retirement savings system, possibly funded by a tiny tax on financial market transactions. In another, that growing income and wealth inequality has shrunk Social Security’s revenue and that taxing capital gains and high earnings could help the program stay solvent without cutting benefits.  What would Adam Smith, the father of modern economic analysis, think of taxing financial transactions and capital gains?  The notion of including all workers in saving and ownership of working capital?  Helping correct the tendency of modern capitalism to concentrate wealth?  Although conservative economists often cite Smith as a siren of an unfettered market, he might give these proposals serious consideration.  Times have changed.  Yet his manner of reasoning remains vital in addressing issues we face today.

Growing inequality has shrunk Social Security’s tax base. Revitalizing it could restore solvency without cutting benefits.

As the graying and outsized baby boom generation claims Social Security benefits, Americans increasingly doubt whether the program can pay all that it has promised – or even continue to cut checks at all.  In their annual report released June 5, Social Security’s Trustees warn that, unless Congress acts to restore the program’s long-term solvency, by 2034 it will only have sufficient funds to pay 77 cents of each dollar currently promised. By then, the Social Security trust fund will be empty and the program will lack legal authority to pay out more than it can bring in through earmarked taxes. An adjustment this size in 2018 would drop the average annual  Social Security payment of $16,848 to $12,973. Most older Americans depend on Social Security for all or most of their income. 

The longer Congress plays chicken on this issue, the greater the risk that changes such as tax increases or benefit cuts, or a combination, will have major economic impacts on retirees and workers. The trustees’ report emphasizes the growing ratio of retirees receiving benefits to workers contributing payroll taxes as a major force impinging on the program’s solvency. Underlying factors include the size of the baby boom generation and a lower birth rate.  But other forces are at work.  Growing wealth and income inequality have significantly eroded Social Security’s tax base.    

First, wealth inequality: As Americans at the top of the economic spectrum continue to amass equities, bonds, and other assets, the portion of national income from capital investment has increased significantly, pushing down the portion earned through labor.  In the United States, labor’s share of earnings fell about eight percentage points between 1995 and 2013 (compared to a bit over three percentage points in other Organization for Economic Co-operation and Development countries).  Since Social Security relies primarily on a tax on labor for its sustenance, the relative growth of capital income gradually is choking off a source of revenue.  

Second, income inequality: As part of its structure to promote fairness between economic classes, Social Security replaces relatively more lifetime income for lower-wage workers than those with higher wages – but also caps wages subject to its payroll tax, in part to increase the net value of Social Security in the eyes of higher earners.  The wage cap for 2018 is $128,400.  Over the past several decades, wages of lower-income Americans have stagnated, while those at the top have grown significantly.  As a result, the trustees note that portion of wage income taxed by Social Security has dropped by about six percentage points (see p. 144). In agency jargon, the “taxable ratio” of payroll fell from 88.6 percent in 1984 to 82.6 percent in 2000, and has fluctuated near the latter level since then. Social Security Administration (SSA) actuaries assume the ratio will remain about 82.5 percent over the next decade.  In summary, unless the tax cap on earnings keeps up with the growing prosperity of those at the top, Social Security’s tax base shrinks as a portion of national income.

America's Inequality and What To Do about It

The Poor Will Always Be with Us. Will the Middle Class?

Why the Wealth Gap Hits Families the Hardest - NYT

"The top 1 percent saw their wealth increase by 156 percent (from 1989 to 2013), while parents in the bottom half saw their wealth shrink by 260 percent. About a third of all families with children in 2013 had no wealth, only debt."

"Rising Inequality and the Changing Structure of Political Conflict" - Piketty lecture at the Kennedy School

Extreme Income Inequality: Brazil, India, the Middle-East and South Africa

This paper presents findings about inequality dynamics in Brazil, India, the Middle-East and South Africa by combining tax data, household surveys and national accounts.

In all of these four regions, top 10% earners receive more than 50% of national income. These societies are characterized by a dual social structure, with an extremely rich group at the top whose income levels are broadly comparable to their counterparts in high-income countries, and a much poorer mass of the population. The authors highlight the importance of the historical legacy of social segregation and of modern institutions in shaping income disparities.

Which Way Is Your Country Headed?

Analysis including Housing Assets Finds Piketty May Have Underestimated Wealth Gap

The Rate of Return on Everything - CEPR

"One of the most intensely debated economic questions in recent years is the relationship between real returns on wealth, and the real rate of growth. In his influential book, Piketty (2014) argued that if the return to capital exceeded the rate of economic growth, rentiers would accumulate wealth at a faster rate than incomes grow. Comparing returns to growth, or “r minus g'' in Piketty's vernacular, we uncover that in fact “r >> g” for more countries, more years, and more dramatically than Piketty himself reported."

These two figures show that the only exceptions to “r>>g” happen in very special periods: the years in or right around wartime. In the pre-WW2 period, r minus g was on average 5% per annum (excluding WW1). As of today, this gap is still quite large – in the range of 3%–4% – and it narrowed to 2% during the 1970s oil crises, before widening in the years leading up to the Global Crisis.

 

"We show that income inequality has increased in nearly all world regions in recent decades, but at different speeds. The fact that inequality levels are so different among countries, even when countries share similar levels of development, highlights the important roles that national policies and institutions play in shaping inequality."

How Humans Extract Rent from Nature's Gifts

"As soon as the land of any country has all become private property, the landlords, like all other men, love to reap where they never sowed, and demand a rent even for its natural produce. The wood of the forest, the grass of the field, and all the natural fruits of the earth, which, when land was in common, cost the labourer only the trouble of gathering them, come, even to him, to have an additional price fixed upon them. He must then pay for the licence to gather them, and must give up to the landlord a portion of what his labour either collects or produces. This portion, or, what comes to the same thing, the price of this portion, constitutes the rent of land, and in the price of the greater part of commodities, makes a third.” 


― Adam SmithWealth of Nations

This chart shows that collective income accruing to India's “middle 40” rose to just over 45 percent by the early 1980s, while that of the top 10 percent declined from about 37 percent in 1951 to 30 percent. After 1990 the two trends reverse. The top 10 percent garnered more than 55 percent of all income in 2014, almost double its share in the early 1980s, while the middle 40 percent’s share fell to just over 30 percent.

U.S. Tax Policy Should Boost Retirement Savings for All Workers, Not Just the Wealthiest

Center on Capital & Social Equity - October 2017

Current tax breaks for retirement savings mainly subsidize the top half of the income distribution, leaving almost half the workforce out of the system. Part of the federal tax subsidy for 401(k)s should be rechanneled into a retirement savers tax credit that all workers get ($500 to $1,000 a year).

In 2017 employees can put up to $18,000 in tax-deferred defined contribution plans (e.g., 401(k)s) and those 50 or older can put aside an additional $6,000. Total employee and employer contributions are limited to $54,000. The Tax Policy Center estimates that in 2016 the tax savings from all tax-qualified pension and defined contribution accounts averaged about $1,040 per taxpayer. (No kidding: 1040.) These tax savings, however, were extremely tilted toward the well-off. Only 4.4 percent of workers in the lowest fifth of the income distribution received any tax benefit and their average tax savings in 2016 was $20. In contrast, 82 percent of the highest-paid quintile received a tax benefits with an average benefit of $4,750. About 48 percent of the middle fifth received a tax benefit with an average savings of $580.

The result of this tax policy? About half the American population has put aside virtually nothing for retirement, while many wealthy people are being paid to save money they would have saved anyway. It’s clear that retirement savings tax breaks could be better targeted.  For more information see:

Atlas freed?

"Worry not at all about inequality if it is achieved by smart betterment....But do worry about inequality if it is achieved by using the government to get protection for favored groups.  It is what a large government, worth capturing to get the protection, is mainly used for, to the detriment of most of the people off-stage."

Are Workers Receiving the EITC Being Shortchanged on Social Security?

updated October 2017

..."Under the current system, a person whose highest earnings averaged $15,000 a year over 35 years would end up with about $10,542 in annual Social Security benefits – the same as a worker averaging $15,000 wages plus various amounts of EITC.  A worker averaging $20,000 in wages would end up with $1,600 (15%) more in annual Social Security benefits compared with another with the same total income but instead averaging $15,000 wages and taking home $5,000 in EITC.  Similarly, someone averaging $25,000 in wages would end up with $3,200 (30%) more in Social Security benefits than a counterpart averaging $15,000 and receiving $10,000 in EITC."

Green lines: current law    Purple: proposed increases 

D's Push for Major EITC Expansion

September 2017

Two members of Congress are teaming up to bring much-needed relief to low-wage workers and their families through an expanded Earned Income Tax Credit (EITC).

Senator Sherrod Brown (D-OH) and Representative Ro Khanna (D-CA) introduced the  Grow American Incomes Now (GAIN) Act in both the House and Senate. Currently, a family of three can receive a maximum EITC of $6,318, while workers without dependent children can receive at most a $510 credit.  The legislation would roughly double the EITC for eligible workers raising children and increase the credit for workers without dependent children nearly six fold. The bill also lowers the qualifying age for the EITC from 25 to 21.

CCSE comment:

Expanding the EITC is a good idea. However, as the share of workers' income provided by government subsidies rises, the case becomes stronger for the federal government to begin making corresponding payments to Social Security.  Also, a way to simplify tax policy might be to coordinate the EITC and Child Tax Credit (CTC) in the following way: the EITC could be based solely on income, not family structure. The refundable component of the Child Tax Credit could be expanded to provide additional income for low- and middle-income families.

September 2017 - Karl Polzer

Expanding Use, Scope of the EITC & Child Tax Credit: a Win-Win for Workers and Employers

This paper makes the case that helping employees access the Earned Income Tax Credit and Child Tax Credit – along with supporting bipartisan legislation to expand these programs – can help industries with large numbers of low-to-middle wage workers. In the long-term care field, such a strategy can improve worker income through government wage supplements, thus encouraging more to enter the workforce. Increased labor supply would dampen employer wage costs – all while expanding the range of affordable services providers can offer. This could result in hundreds of millions of dollars of added value in worker earnings as well as provider and customer savings.

From Soviets to Oligarchs: Inequality and Property in Russia 1905-2016

"...(T)op  income  shares  are  now  similar to (or  higher than) the levels observed in the U.S.  ... inequality  has  increased substantially more in Russia than in China and other ex-communist countries in Eastern Europe. ...the wealth held offshore by rich Russians is about three times larger than official net foreign reserves, and is comparable in magnitude to total household financial assets held in Russia."


High earnings of labour are an advantage to the society - Adam Smith

“Is this improvement in the circumstances of the lower ranks of the people to be regarded as an advantage or as an inconveniency to the society? The answer seems at first sight abundantly plain.  Servants, labourers and workmen of different kinds make up the far greater part of every great political society.  But what improves the circumstances of the greater part can never be regarded as an inconveniency to the whole.  No society can surely be flourishing and happy, of which the far greater part of the members are poor and miserable.  It is but equity, besides, that they who feed, cloath and lodge the whole body of the people, should have such a share of the produce of their own labour as to be themselves tolerably well fed, clothed and lodged.”

-- The Wealth of Nations (originally published in 1776)

A Life Lived in Truth

For the last eight years of Liu Xiaobo’s life, the Chinese authorities robbed him of his liberty and his dignity. But in the state-enforced silence surrounding Liu’s stage-managed death, the words of his Nobel Prize lecture ring out even louder: “Freedom of expression is the foundation of human rights, the source of humanity, and the mother of truth.”

Warren Buffett: Government Should Do More on Income Inequality - short video

"Natural forces of a market economy and capitalism will drive that disparity unless government does things to help." Buffett says EITC should be expanded so workers can have decent lives. (See CCSE article on this site about relationship of EITC and Social Security.)

Capital Accumulation, Private Property and Rising Inequality in China, 1978- 2015

Thomas Piketty, Li Yang, Gabriel Zucman

Researchers find that the share of public property in China'snational wealth has declined from about 70% in 1978 to 30% in 2015...

"The top 10% income share rose from 27% to 41% of national income between 1978 and 2015, while the bottom 50% share dropped from 27% to 15%. China’s inequality levels used to be close to Nordic countries' and are now approaching U.S. levels."

Robin Hood Tax Reform - May 2017

How Modest Changes in Health, Retirement Tax Breaks Could Produce Major Gains in US Health Access, Financial Security – at Little or No Added Government Cost

..."The positive impacts of two such changes discussed below could include 1) lowering the rate of health care cost inflation; 2) providing revenue to help subsidize health insurance for the unemployed; 3) creating seed money and a low-cost infrastructure for a universal retirement savings system; and 4) increasing retirement security for low- and middle-income people; and 5) helping people save for long-term care costs. Looking at benefit tax exclusion is already on the table as Congress faces the unsavory chore of developing a fix for the Affordable Care Act’s clumsily designed “Cadillac” health plan excise tax. Most importantly, these changes could result in greater economic fairness and inclusion."

Eyes on the Prize: Universal Health Insurance Is the Goal

Letter to the Washington Post:

Charles Krauthammer’s March 31 op-ed, “The road to single-payer health care,” was largely on point. However, it is important to separate the concepts of “single-payer,” which is a means toward a goal, and “universal coverage,” which should be the primary goal. Universal coverage can be achieved without having the government cover every citizen. Even if government programs cover most citizens, there will always be multiple payers, including individuals and taxpayers; a universal system also could allow employer plans to operate. Ironically, creating a larger government role in sponsoring and subsidizing health insurance could result in a more competitive market for providing services.   Karl Polzer - April 2, 2017

Reformed Tax Incentives Among Tools Needed To Boost Retirement Saving

David Kamin of NYU law school presents proposed changes at the Aspen Institute.

Obama Signs Bipartisan Bill To Speed Miracle Cures to Market.  Who Will Have Access to the New Technology?  Who Won’t?

In a city that’s witnessed trench warfare between Congress and the White House during the last six years of the Obama Administration, this was a rare moment: a bipartisan love fest.  On Dec. 13, 2016, President Obama signed the "21st Century Cures Act," which includes expanded funding to push medical technology through the development pipeline. “We are bringing to reality the possibility of new breakthroughs to some of the greatest health-care challenges of our time,” Obama said. “It is wonderful to see how well Democrats and Republicans in the closing day of this Congress came together around a common cause.”

The legislation was backed by a coalition of interests, including the powerful pharmaceutical industry, academia, and consumer groups supporting speedier medical research.  Its few critics have mainly argued that the popular funding provisions “mask a worrisome loosening of regulations at the Food and Drug Administration that could put patients at risk.”

Hardly anyone, however, is asking the million-dollar question:  Which Americans will end up having access to new miracle cures, many of which promise to be extremely expensive?  And, who will not?  The country’s patchwork of health insurance already is rationing expensive new technology to some populations, particularly low-income people.  Congress, meanwhile, has begun a fractious debate over repealing, and possibly replacing, the Affordable Care Act (ACA).  So, while lawmakers have just put their collective foot on the technology gas pedal, they may soon slam the brakes on funding for expanded coverage, potentially throwing millions of Americans into the ranks of the uninsured...              

Traditions of Democracy

    "The tradition of Jefferson and Jackson might recede, but it could never disappear.  It was bound to endure in America so long as liberal capitalistic society endured, for it was the creation of the internal necessities of such a society.  American democracy has come to accept the struggle among competing groups for the control of the state as a positive virtue -- indeed, as the only foundation for liberty.  The business community has been ordinarily the most powerful of these groups, and liberalism in America has been ordinarily the movement on the part of other sections of society to restrain the power of the business community.  This was the tradition of Jefferson and Jackson, and it has been the basic meaning of American liberalism."  

Excerpt from Chapter 37, "The Age of Jackson," Arthur M. Schlesinger, Jr.

June 30, 2016

Reflections on American Wealth Concentration – and What To Do About It

Just over one year ago, the Center on Capital & Social Equity (CCSE) began exploring the phenomenon of growing wealth concentration and inequality, while advocating for a more inclusive form of capitalism. Following are some general observations.

Over the past year, the issue of economic inequality in the United States has moved from the backburner to center stage. Much credit for this goes to Sen. Bernie Sanders’ attack on the “top one percent” in his run for the Democratic nomination. While there is ample reason to question many details of his proposals, Sanders’ call for an increased role for government in providing opportunity and essential services resonated with many Americans who feel they have been left out of the economic mainstream. Yet the problems posed by rising economic inequality are deeply rooted and go well beyond the disproportional gains of the top one percent. They will be harder to address than portrayed in election rhetoric and require judicious use of public resources.

Three observations can be made about economic inequality in the United States. First, income and wealth inequality have grown steadily since the 1980s, suggesting that some of the causes are structural in nature. Second, high levels of inequality increase the risk of political and economic instability. Finally, moving toward an economy that is less unequal and offers opportunity to more Americans will require major changes in public policy and shifts in spending.

Life Expectancy Gap is Large - and Expanding

The gap in life expectancy between the richest 1% and poorest 1% was 14.6 years for men and 10.1 years for women.  A study published in the Journal of the American Medical Association also found that inequality in Americans' life expectancy is growing over time.

How the U.S. Retirement Savings System Magnifies Wealth Inequality

Karl Polzer, Center on Capital & Social Equity 

Economic inequality and wealth concentration have have emerged as central issues in the U.S. presidential race. While these concerns appear to have risen to the forefront quite suddenly, forces driving wealth concentration have been building for decades. As analysts probe the dynamics beneath these trends, they may find that America's shift to a defined contribution retirement system is playing an increasing role in the concentration of wealth... 

So, What Does Jesus Say about Wealth Concentration and Inequality?

Karl Polzer 

In recent years, the tendency for wealth to concentrate in the hands of a powerful few has come under scrutiny, prompting concern about growing inequality from political and religious leaders, most notably Pope Francis. While excessive wealth concentration is likely lead to greater social ills and unrest, how to rein in growing inequality is a more difficult question.  Should we move away from capitalism and the market system?  Develop a more socialist model?  Reform capitalism from inside to benefit people more equitably? ... 


Virginia's push to end veteran homelessness faces steep challenges

On Nov. 11, 2015, Virginia Gov. Terry McAuliffe announced that the state was the first to "functionally" end homelessness among veterans of the U.S. armed forces.  To assist two veterans living on the street not aware of the program, the Center on Capital & Social Equity contacted the governor's office, asking how veterans can gain access to housing and other services under the collaboration involving state, federal, and local government agencies.

The Virginia Department of Veterans Services provided information (click on the button below), including contact points at the local and state levels where veterans and their advocates can begin the process of finding temporary or permanent housing.

To follow up, we contacted three Northern Virginia jurisdictions and found an array of barriers to functionally ending veteran homelessness.  These problems include lack of  knowledge on the part of local officials of the state's initiative; lack of affordable and subsidized housing resources; high housing prices; lack of shelter space (for example, Fairfax County has 1 million residents but only three homeless shelters that can't meet wintertime demand); unwillingness by many street people to seek help (for a variety of reasons); coordination issues between state and local, local and local, and federal and state and local agencies; bottlenecks like having to go through shelters to gain access to housing, when shelter space is limited; and many other factors.

While helping one of the veterans gain access to temporary shelter and services, we reported these issues back to the state officials who said they will take steps to increase awareness of the governor's initiative, including posting information about the program on a state website.  For more detail, see our correspondence with state and local officials, which can be accessed by clicking the second button below.

Let’s sell health insurance “across states lines” – through Medicare

Republicans, stop with being the party of “no.” It’s time to step up to the plate and seize the initiative on health policy...

Playing Immigration Piñata

Deception and hypocrisy are no strangers to politics. This seems particularly true in recent incantations about illegal immigration. Republican presidential candidates – other than Jeb Bush – mostly want to round up illegals and dump them into Mexico. Donald Trump wants to spend billions to build a massive wall in the wrong place...

How Can U.S. Policy Reduce Financial Risk for the Very Old?

CCSE explores ways to reduce retirement risk and pay for long term care in Society of Actuaries monograph.

Finding:  401(k)rule changes including new "sub-accounts" could help seniors better save for needs in very old age.

Retirement Strategy:  When Should I Start Receiving Social Security Checks?

Americans can begin taking Social Security between ages 62 and 70. Waiting to take Social Security can increase the amount on your check significantly.  Collecting Social Security benefits early has the opposite effect. 

When to start depends on many factors including your life situation,  needs and plans.  Most Americans begin taking Social Security early.

The U.S. Consumer Financial Protection Bureau offers this planning tool and other information to help people work through this decision.   

Baltimore 2015

A Dream Deferred

by Langston Hughes

What happens to a dream deferred?

Does it dry up
like a raisin in the sun?
Or fester like a sore--
And then run?
Does it stink like rotten meat?
Or crust and sugar over--
like a syrupy sweet?

Maybe it just sags
like a heavy load.

Or does it explode?

Still I Rise

You may write me down in history
With your bitter, twisted lies,
You may tread me in the very dirt
But still, like dust, I'll rise.

Does my sassiness upset you?
Why are you beset with gloom?
'Cause I walk like I've got oil wells
Pumping in my living room.

Just like moons and like suns,
With the certainty of tides,
Just like hopes springing high,
Still I'll rise.

Did you want to see me broken?
Bowed head and lowered eyes?
Shoulders falling down like teardrops.
Weakened by my soulful cries.

Does my haughtiness offend you?
Don't you take it awful hard
'Cause I laugh like I've got gold mines
Diggin' in my own back yard.

You may shoot me with your words,
You may cut me with your eyes,
You may kill me with your hatefulness,
But still, like air, I'll rise.

Does my sexiness upset you?
Does it come as a surprise
That I dance like I've got diamonds
At the meeting of my thighs?

Out of the huts of history's shame
I rise
Up from a past that's rooted in pain
I rise
I'm a black ocean, leaping and wide,
Welling and swelling I bear in the tide.
Leaving behind nights of terror and fear
I rise
Into a daybreak that's wondrously clear
I rise
Bringing the gifts that my ancestors gave,
I am the dream and the hope of the slave.
I rise
I rise
I rise.

Maya Angelou

Easter Essay: Is the Golden Rule Enough? Mathematics of the Two Great Commandments

Whether people see themselves as Christians, followers of other faiths, or atheists, all are pulled by the power of many gods: the god of money, the god of technology, the nymph of new electronic gadgets, satyrs of TV and the worldwide net, and so on. In adoration of possessions, money, and power, atheists and believers are equal -- even deeply religious in the way that Paul sarcastically described the polytheistic statuary of Athens as evidence of its faith. Some of today’s humanists and atheists are more Christian in spirit and behavior than nominal Christians. And, unlike some Christians, many have thought through their views on religion and feel they need to have moral justification they can explain. The conventional morality of good people often is a humanism expressed by the Golden Rule.

Jesus taught the Golden Rule two thousand years ago, as one of two great principles. But to Jesus the Golden Rule, while essential, is incomplete without a first principle. Jesus preached the Golden Rule in the Sermon on the Mount. "Therefore, whatever you want men to do to you, do also to them, for this is the Law and the Prophets." (Mat 7:12 NKJV).) Here he is speaking to a large crowd that can't hear him that well and needs a simple guideline.

Later, speaking to religious leaders, he aligns the Golden Rule with the first commandment. In Matthew 22:34-40, "hearing that Jesus had silenced the Sadducees, the Pharisees got together. One of them, an expert in the law, tested him with this question: ‘Teacher, which is the greatest commandment in the Law?’ " To this audience, Jesus provides more context: "'Love the Lord your God with all your heart and with all your soul and with all your mind.' This is the first and greatest commandment. And the second is like it: 'Love your neighbor as yourself.' All the Law and the Prophets hang on these two commandments."

The interaction of the two great commandments shows why the second commandment is not sufficient and why God -- an overarching Spirit that connects individual people -- is necessary, even for a functional morality. For example, if we only love our neighbor as ourselves -- and we happen to be filled with hate and rage for ourselves -- then we won't treat our neighbors very well. The Golden Rule can remedy part of this problem by changing the focus from "loving" to "treating" neighbors as we would have them treat us -- thereby imposing our view of ideal behavior and not raw emotion as the standard. But that won't work for some people either, especially those who lack a model of ideal behavior. So, these folks still might act destructively to people around them.

The idea of a single God, or life force, connecting all people creates a vertical pull toward a connecting spirit (the first commandment) to accompany the horizontal equity of the second commandment. Mathematically, the second commandment is nothing more than a simple equation: Love for me = Love for you. The first commandment is a command to maximize Love to the limit of capacity. Without the first commandment, the potential of a person's love would be limited by inherited and culturally absorbed defects and injuries. The two commandments can be seen as consistent with scientific theories of evolution. The first commandment reflects the biological imperative that no individual can carry on life on his or her own. Individuals must interact and communicate with others to continue the stream of life. The Golden Rule suggests that individuals have the freedom to choose the way they interact and communicate with others. Perhaps those with greater faith and sense of fairness are more likely to pass along their genes. --

Karl Polzer, Easter 2017 

"In God We Trust" was adopted as the official motto of the United States in 1956 as an alternative or replacement to the unofficial motto of E pluribus unum, which was adopted when the Great Seal of the United States was created and adopted in 1782. Secularists have expressed objections to its use and have sought to have the religious reference removed from the currency.  Wikipedia, 2015

 

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