Exploring economic inequality - Advocating for the bottom 50%

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A top senator wants to tax the cash piles the wealthy are sitting on - and Biden agrees with him - Business Insider

Democrats are on the verge of failure. But there is a path through. - Washington Post

"There is a way through: substantive compromise... Negotiations should center not on how much should be spent, as they have so far, but on which programs deserve funding and on how to design them to reach those with genuine need."

We have been writing on this page  that social spending should be targeted to families most in need since the beginning of this session of Congress. 


LONDON - 31ST MAY 2020: Black Lives Matters protesters in London holding signs and marching outside American Embassy wearing masks during lockdown coronavirus pandemic keeping 2 meters social distance

BLM says de Blasio's COVID vaccine mandate in NYC targets Black people - Fox

"BLM leaders warned of 'uprising' over the mandate"

"Seventy-two percent of Black people in this city from ages 18 to 44 are unvaccinated," Newsome shouted into a megaphone. 

"So what is going to stop the Gestapo, I mean the NYPD, from rounding up Black people, from snatching them off the train, snatching Black people off the bus?" she added. 

Sometimes the race card turns out to be a joker.  Do black lives matter -- or don't they?


Final rule allows US Department of Labor to levy civil money penalties against employers who take workers’ tips - DOL

Penalties -- and enforcement -- need to be painful enough to change the behavior of employers willing to steal tips from workers making $2.13 an hour (not enough be buy a Mountain Dew at a convenience store).



Joseph Sobolewski, 38, told authorities he misunderstood a two-for-$3 deal on Mountain Dew and thought the $2 he put on the counter of a Duncannon, Pennsylvania, convenience store counter would more than pay for one bottle.

43-Cent 'Theft' Could Send Homeless PA Man To Prison For 7 Years - Patch

The law is an ass. Pennsylvania lawmakers should get off theirs and change it.

BTW, this is how the socialists reported it -- not much differently than the Washington Post, which is owned by the world's richest person.


America's billionaires pay an average income tax rate of just 8.2%, Biden administration says - CBS

"The Biden administration is pressing for changes to the tax code that they say will force the wealthiest Americans to "pay their fair share."

"Their proposal includes raising the income tax bracket for the wealthiest Americans back to 39.6% from the 37%, which currently hits taxpayers with a taxable income of more than $523,600 for single filers. It also includes taxing capital gains for households making more than $1 million each year at the same tax rate, 39.6%, instead of 20%, leveling the rate on wages versus investment returns. The president has also called for closing the loophole that allows wealthy Americans to pass gains down to their heirs. 

"However, even among Democrats there is disagreement over how to proceed in the reconciliation legislation. In the bill unveiled last week, House Democrats proposed raising the top capital gains rate from 20% to 25%, far less than President Biden's proposal, while instead including a 3% surtax on individuals making more than $5 million. It did not address wealth passed from generation to generation, a move Senate Democrats have said needs to be tackled in their final legislation."


Student Loan Debt HD Stock Images | Shutterstock

Student loans bring both opportunity and debt. Here’s what to consider before applying. - Public Source

Wisdom for Pittsburgh.


IRS says portal now open to update banking info for Child Tax Credit  payments

Earnings Requirement Would Undermine Child Tax Credit’s Poverty-Reducing Impact While Doing Virtually Nothing to Boost Parents’ Employment - CBPP

  • "In more than 95 percent of families who benefit from making the credit fully refundable, the parent or other caretaker is working, between jobs, ill or disabled, elderly, or has a child under age 2.

  • "Evidence from both the United States and Canada strongly indicates that giving the full credit to all children, including those whose families don’t have earnings in a year, won’t affect adults’ work participation to any large degree. An expert panel convened by the National Academy of Sciences projected that under a child credit policy similar to the expanded Child Tax Credit, 99.5 percent of working parents would continue to work, and few would substantially reduce their hours. And the reduction in child poverty from full refundability will likely have important long-term positive impacts on children, including on their educational outcomes and future health and earnings.

  • "Adding an earnings requirement would exclude children in the most vulnerable families, where parents are least able to meet basic needs, exposing these children to serious hardship."

Comment: Child tax credits should be more targeted to families in greatest need. They should not be denied to families with no income.  Raising more healthy kids will pay off for the country in the long run.  More workers. More productivity. More taxpayers.  More parent time with kids.  

The New Government Basic Income: The child credit has become a new trillion-dollar entitlement for the middle class, untied to work. - WSJ

"The new child entitlement will reach well into the middle class, which is part of the political goal. A couple earning $100,000 that has three children ages 7, 4 and 2 would be eligible for $10,200 in payments. The original tax-credit rationale was to defray the costs of raising young children, but the Democratic bill also creates new entitlements for a separate child-care program plus paid family leave and universal pre-K education."


More than $2 million misappropriated by union local officer, UAW audit finds - Automotive News

Cleaning up their act will do more for unions than more favorable government policies.  Unions  need to focus more on organizing low-wage workers even though they can't afford much in dues.  Loss leader?


Goldilocks Is Dying - Nouriel Roubini/Project Syndicate

Another interesting piece by Roubini on the prospect of stagflation.


ang10_XinhuaJu Peng via Getty Images_xi jinping poverty alleviation

Can Xi End China's Gilded Age? -


    The new Thrifty Food Plan re-evaluates a 50-plus-year-old design and low-income kids will benefit - Kristin Butcher/Brookings



    R. Crumb - 1987

    The  U.S. budget and obscenity?


    Congress’s Debt Limit Problem Is Toddler Fiscal Policy - Len Burman/Tax Policy Center

    "There is an alternative: Require Congress to authorize the necessary borrowing when it enacts the spending or tax legislation that causes the deficit to increase. A rule developed by then-Congressman Dick Gephardt (D-MO) did this between 1979 and 1995.

    "When Congress passes spending or tax bills, the Congressional Budget Office and the Joint Committee on Taxation already estimate their budgetary effects. They easily could add interest payments to calculate estimated effects on the debt. If deficit hawks objected to the higher debt, this would be the time to make legislators go on record—when they could actually change course—not years later when the Treasury has to borrow the additional money to pay the bills Congress created."


    The worker's job market - Sam Ro/Axios

    ShortageWatch: "Sorry. No French Fries with any order. We have no potatoes." - Matt Stoller/BIG

    "...The deregulation of the 1970s forced trucking firms to compete against each other to offer lower shipping prices, and the way they did this was by lowering pay to their drivers. Trucking on a firm-level became unpredictable and financially fragile, so for drivers the scheduling became nightmarish and unsustainable, even if the pay during boom times could be high. Today, few think trucking has a future, and even though pay is high, the scheduling is crushing drivers. And so, because we’ve allowed an unregulated trucking system for decades and treated truck drivers like crap for forty years, increasingly we can’t count on getting french fries from Burger King."


    A Data-Driven Case for the CTC Expansion in the Ways & Means Committee’s Recent Proposal - ITEP

    ITEP analyzed the state-by-state impact of permanently expanding the Child Tax Credit.


    GOP backs Defense Authorization Act that requires women to register for draft - Fox

    The bill replaces "male citizen" with "citizen."


    Recession has Ended for High-Wage Workers, Job Losses Persist for Low-Wage Workers

    The American Dream is Fading: Only half of children today grow up to earn more than their parents - Raj Chetty et. al


    Income Inequality Is Often by Choice: The latest Census data show that America is still the land of opportunity. - James Freeman/WSJ

    "Mr. Perry notes “the research of social scientists Thomas Hirschl (Cornell) and Mark Rank (Washington University) showing that as a result of dynamic income mobility nearly 70% of Americans will be in the top income quintile for at least one year while almost one-third will be in the top quintile for ten years or more”. "

    Say what? According to the Census, the lower boundary of top income quintile for households is $141,000. This seems out of reach for most American families -- especially on a sustainable basis.  The graphic below shows how family income has grown  more unequal.

    Conclusion:  While it's true that a few lower-income people who work really hard and are lucky can move up the economic pyramid, they are on a playing field increasing tilted to their disadvantage.  Freeman and company are gilding the lily.    

     Graph showing the growth of family income. The chart shows that the growth in all quintiles grew relatively evenly between 1947-1979, but between 1980 and 2007, the family income of the bottom 20% grew by 15%, the second 20% by 22%, the middle 20% by 23%, the fourth 20% by 33% and the top 1% grew by a whopping 261%


    Billionaire Peter Thiel could be forced to pull $5 billion from his retirement account, if House bill passes - CNBC

    Nearly 70% of millionaires are worried about leaving ‘too much’ money to their kids, survey finds - CNBC

    What's a millionaire these days?

    Five Benefits of Having a Taxable Brokerage Account - The Street


    Social Security retirement benefits could see big hike in 2022: What to know - Detroit Free Press

    From Project Syndicate:

    Inflation in the Shadow of Debt -

    Where Has All the Money Gone? -

    "I’s rich now, come to look at it. I owns mysef, en I’s wuth eight hund’d dollars. I wisht I had de money, I wouldn’ want no mo’."

    Jim - Huckleberry Finn

    "Jim makes this declaration in Chapter 8, while he and Huck are still on Jackson’s Island. Recently escaped from Miss Watson, Jim feels flush with pride at being free. He expresses this newfound sense of freedom in the idiom that has thus far defined his life: ownership. Whereas Miss Watson owned him previously, now he owns himself. Nevertheless, Jim also recognizes that self-ownership only goes so far without actual cash to spend."


    Antitrust Bills Risk National Security, Tech-Funded Study Says - Bloomberg

    Tech's allies say antitrust reform would help China. Critics say it's a cheap ploy. - WaPost

    "Rep. David Cicilline (D-R.I.), who is leading the House antitrust push, said those claims 'might have short-term appeal, but the reality is that when people study this issue they'll recognize that … innovation is driven by competition and a competitive marketplace. We don't have that right now in the digital space.'"

    ‘The pay is absolute crap’: Child-care workers are quitting rapidly, a red flag for the economy - Heather Long/WaPost

    American women and men maintaining professional careers need workers (mostly women) willing to work $12/hour (+-) to watch their kids.  An upside of the shortage is that many child care workers have found higher paying, less dangerous jobs.  Others are opting to spend more time raising their own kids.  The family remains the foundational unit of all political economic systems. 

    Most private insurers are no longer waiving cost-sharing for COVID-19 treatment - Peterson/KFF

    Another Folgers moment for Congress in debate over socialized medicine v.  the invisible hand?  Read the fine print. (Surprise billing?) )  :)

    The days of full Covid coverage are over. Insurers are restoring deductibles and co-pays, leaving patients with big bills. - WaPost

    Sunday, Sept. 19, 2021

    Photos: Arlington National Cemetery 'Flags In' for Memorial Day

    Support for troops in Afghanistan kept criticism muted. The cost of our quiet was too high. - Courtland Milloy/WaPost

    "...greed can prolong a war.

    "Still, it seems more fashionable these days to criticize how the war in Afghanistan ended than take a hard look at the role of money in keeping an ill-conceived conflict going.

    "Over the years, I would sometimes quote the Rev. Martin Luther King Jr., Nelson Mandela, Archbishop Desmond Tutu, Kofi Annan and other peace advocates. Some readers would respond with quotes from the Bible, 'an eye for an eye' being a favorite. I wrote a retort to that, ending a column with: 'And everybody ends up blind.' ”


    Policy Basics: How Many Weeks of Unemployment Compensation Are Available? - CBPP

    Green Welfare for the Rich: Democrats plus up the EV tax credit—and more for union-made cars. - WSJ

    "The $12,500 EV (electric vehicle) tax credit exposes a central contradiction of the vast spending bill. Democrats want to raise taxes on the affluent while at the same time subsidizing them to embrace their green priorities. The bill will be paid by middle-class workers and families."

    A Canadian Amazon Warehouse Could Soon Be the First to Unionize in North America - truthout

    "Organizing a labor union is a far easier task in Canada than it is in the U.S., since Canadian labor law has much stronger rules against employer interference. At least 40 percent of workers must sign a union authorization card in order to apply for a union election. The Alberta Labour Relations Board then holds a secret ballot election in which a union must receive a simple majority of votes to win."

    Teamsters, eh? ... In post-industrial countries, more workers are engaged in mass distribution of goods, fewer in mass production.  Why shouldn't they get a bit of Amazon's monopoly rents?


    Answer to U.S. labor shortage? ‘Hidden’ workforce - Harvard Gazette

    "New study says firms need to take smarter looks at job applicants excluded for the wrong reasons"

    “The biggest category is called NEET: Not in Employment, Education or Training. That’s a person who doesn’t have a job, doesn’t have a degree, is not in school. [Automated screening systems don’t] know what to do with them..”


    new york, new york   september 13 alexandria ocasio cortez l attends the 2021 met gala celebrating in america a lexicon of fashion at metropolitan museum of art on september 13, 2021 in new york city photo by mike coppolagetty images
    Despite AOC’s infamous dress, Democrats are getting cold feet on actually taxing the rich - Catherine Rampell/WaPost

    "For instance, Biden proposed raising the capital gains rate, so that income derived from wealth is treated the same as income from work. House Democrats’ bill is considerably weaker, instead raising the top capital-gains rate only a few percentage points.

    "Biden also proposed closing one of the most valuable tax breaks for the ultrawealthy, a provision called the “stepped-up basis.” Most of the time, people must pay capital gains taxes when they sell an appreciated asset, such as Microsoft stock. But there’s a death loophole: A person can bequeath that stock to his heirs without either the original owner or the heirs ever having to pay taxes on how much the stock rose during the original owner’s life.

    "This is a huge boon to anyone with dynastic-level wealth, since it means their fortunes can escape capital gains taxes. It also distorts investment decisions, since it encourages people to hold on to assets until they die. Biden proposed dealing with the loophole by taxing unrealized capital gains at death (with the first $1 million of unrealized gains exempted, plus some other exceptions). But in the face of aggressive lobbying, House Democrats scrapped his proposal."


    Can globalization be “improved”? - Branko Milanovic

    In an excellent just-published book “Six faces of globalization” Anthea Roberts and Nicolas Lamp, produce six plausible narratives of globalization and what, according to each, went wrong or right with globalization...

    "The only narrative that shows some promise is what they call (in my opinion, mistakenly) “populist” left-wing. It sees the key problems at the level of national politics, in the national political systems, and it can, at least in theory, focus on these shortcomings and try to mend them. It cannot be, I think, too optimistic on all issues because of the natural propensity of globalization, either through capital movements or trade, to favor cheaper producers, and Western middle class is most often not that producer. But that approach can reduce the political and economic power of the top 1 percent, fund public goods, increase taxes for the rich and large companies, and improve the national political climate."


    Child tax credit less likely to have been claimed by parents without high school degree, survey shows - Casey Parks/WaPost/MSN

    If the child tax credit isn't more targeted to lowest-income families, it may widen wealth inequality.  The poorest use it to buy food and day care while the upper-middle class can save the money to make sure their kids can go the best colleges or invest it in other ways.  Also, better outreach is needed to inform low-income parents about the newly refundable credit and help them apply.

    The child tax credit must become permanent. And refundable. - Robert Rubin/WaPost

    "Without refundability, the credit is helpful chiefly for middle-class families. But it does not provide equal benefits to America’s lowest-income families. Before the credit was made fully refundable earlier this year, the parents of some 27 million children received a reduced credit or no credit at all. That number included roughly half of all Black and Latino children and half of all children in rural communities."

    WHO BENEFITS FROM THE CHILD TAX CREDIT? - Jacob Goldin and Katherine Michelmore - NBER

    This paper analyzes the impact of the child tax credit before recent changes that expanded eligibility and benefits for lower-income families.


    Kentucky distillery workers launch strike after rejecting concessions contract by 96 percent - Warren Duzak/WSWS

    We're again receiving notifications from the World Socialist Web Site.  The WSWS distrusts unions almost as much as it dislikes capitalists.  Media in the U.S. often ignore union issues and gloss over union imperfections.  Not so with the Trotskyists...Life in the weeds in  my old Kentucky home.

    This bill aims to keep Social Security beneficiaries out of poverty. Here’s where efforts to improve the program stand - CNBC

    • "A bill reintroduced in Congress this week aims to prevent Social Security beneficiaries from living in poverty.

    • Even as Democratic lawmakers want to raise benefits for the lowest earners, addressing the program’s solvency issues remains a hot button issue in Washington.

    • Consequently, one other change, raising Supplemental Security Income benefits, could be an easier fix to make that would directly help the poor, one expert says."

    Also see:


    In 2020, top CEOs earned 351 times more than the typical worker - CNBC

    Coronavirus: An Unimaginable Toll - The Atlantic

    Estate Taxes Are Easy to Avoid. House Democrats Want to Change That. - WSJ

    "Some 1,900 filers paid estate tax in 2020, down from more than 50,000 two decades ago."

    5 Ways the Rich Can Avoid the Estate Tax - smartasset

    Inherited Stock - Investopedia

    As the name suggests, inherited stock refers to stock an individual obtains through an inheritance, after the original holder of the equity passes away. The increase in value of the stock, from the time the decedent purchased it until their death, does not get taxed. Therefore, the beneficiaries of the stock will only be liable for income on capital gains earned during their own lifetimes.


    Gender Differences in Medicare Payments Among Cardiologists - JAMA

    "In this cross-sectional analysis of 20 273 cardiologists who received reimbursements from the US Centers for Medicare & Medicaid Services in 2016, men received higher median reimbursements compared with women in both inpatient ($62,897 vs $45,288) and outpatient ($91,053 vs $51,975) settings. The gender difference in payments persisted after adjustment for physician experience and subspecialty, number of charges submitted, and Medicare beneficiary characteristics."

    Dear Congress & CMS:  An equitable way to lop 35% off cardio costs might be to deem male cardiologists to be female for the purposes of payment.  No  additional sex change surgeries or pronouns necessary. 


    Biggest ever study of food banks warns use likely to increase | Food banks  | The Guardian
    Today’s Census Data Show That Vigorous Policies Kept 53 Million People Above Poverty Line in 2020 - CBPP
    Poverty fell overall in 2020 as result of massive stimulus checks and unemployment aid, Census Bureau says - Washington Post

    "The official rate rose slightly to 11.4%, but the agency says that after accounting for pandemic relief aid, the poverty rate fell to 9.1%. The uninsured population also rose slightly."

    "The U.S. Census Bureau reported poverty fell to 9.1 percent in 2020 after accounting for all the government aid — the lowest rate on record and a significant decline from 11.8 percent in 2019.

    "Nearly 8.5 million people were lifted out of poverty last year, an unprecedented change in a single year that was largely attributed to the stimulus payments. Poverty in the United States is defined as a family of four living on less than about $26,250 a year."


    Where Are Families Most at Risk of Missing Out on the Expanded Child Tax Credit? - Tax Policy Center

    "The American Rescue Plan Act significantly expanded the child tax credit (CTC) for 2021, but according to the Treasury Department, as many as 2.3 million children might miss out on benefits because their families did not file income taxes in 2019 or 2020. Many of these families earned too little to file a tax return and thus have the most to gain from the expanded CTC. This tool maps where children in these families are most likely to live, which can help inform policymakers and community advocates working to connect eligible families to needed benefits."


    He was reading at 1 and doing fractions by 2. At 13 years old, he's majoring in aerospace engineering at Geo. Tech. - CBS


    US workers need better skills and more power - Harry Holzer/The Hill

    "We all know that U.S. workers have suffered stagnant earnings and great inequality for several decades.

    "Since 1979, median U.S. worker wages have risen only 10-20 percent (depending on how we measure inflation), while profits have grown dramatically. Inequality between workers has also risen, especially between high school and college-educated workers. Pay for corporate execs or financial managers has skyrocketed, and the pandemic has only widened these gulfs..."


    A worker assembles a box for delivery at the Amazon fulfillment center in Baltimore, Maryland, U.S., April 30, 2019. REUTERS/Clodagh Kilcoyne/File Photo

    Amazon hikes starting pay to $18 an hour - Reuters


    Are workers finally starting to get some respect? - Kate Cohen/WaPost

    "A worker’s slightly increased power to say 'no, thank you' forced employers to try harder. In the past year, wages have risen at a faster rate than they have in a decade. And the tight labor market has given some workers the courage to insist that they be treated with respect in the jobs they do take...

    "Something fundamental is shifting in Americans’ relationship to work, and it goes beyond the Hiring Crisis and the Great Resignation. Americans seem to be reconsidering an essential question: not just how much work should pay, but how much it should cost.  How much should work cost your home life, your health, your family? How much should it cost your dignity?..."



    Key findings include:

    • Inequality in the ownership of financial assets both persists and deepens over time. The top five percent of Baby Boomers by net worth owned a greater percentage of that generation’s financial assets in 2019 (58%) than in 2004 (52%).

    • Inequality in the ownership of financial assets is also consistent across generations. In 2019, the top 25 percent by net worth of Millennials, Generation X, and Baby Boomers owned three-quarters or more of their generation’s financial assets...

    • A range of potential solutions exist to address this stark inequality including strengthening and expanding Social Security, protecting pensions, increasing access to plans for low-income workers, and reforming retirement tax incentives.


    Boeing’s Fatal Flaw - PBS

    Airs on Frontline September 14, 2021 / Watch the Trailer


    Facebook Says Its Rules Apply to All. Company Documents Reveal a Secret Elite That’s Exempt. - Jeff Horwitz/WSJ

    "A program known as XCheck has given millions of celebrities, politicians and other high-profile users special treatment, a privilege many abuse."

    Turns out some FB users are more equal than others.  Wonder if the "whitelisted" elite generate more revenue...Should anti-trust regulators break the company into  parts: 1) right-wing morons, 2) left-wing morons, and 3) rich and famous morons?  Should Congress provide a public option?  What would Hamilton and Burr have said on FB?   :) 


    The COVID-19 surge is overwhelming emergency rooms across Virginia - Virginia Mercury

    Fire and smoke billows from the north tower of New York's World Trade Center on Tuesday, Sept. 11, 2001. (AP Photo/David Karp)

    What Difference Did 9/11 Make? -

    'Children of the same foul spirit.' George W. Bush compares violent domestic extremists to 9/11 terrorists - USA Today

    There's truth in  President Bush's sentiments.  But how might tomorrow's Dick Cheneys interpret his words and implement them?  Who will profit and who will suffer?

    Sunday, September 12, 2021

    Let the Mystery Be - Iris DeMent


    Sol and Ben Colon with their daughters, Alexis (bottom) and Shayla, on New Year's Eve 1999.

    My mother died on 9/11. Every year, her absence feels larger. -


    "This sapling planted in memory of the precious souls lost on Sept. 11"  -  Matt Davies


    Corporate Lobbying Campaign Against Biden Tax Proposals Is Inaccurate, Unpersuasive - CBPP

    Understanding Biden’s and Democrats’ Tax Plans: Individual & Pass-through Business Taxes - Tax Foundation


    Counterfeit Capitalism: Why a Monopolized Economy Leads to Inflation and Shortages - Matt Stoller

    "From railroads to plastic bags to semiconductors to ice cream, Wall Street and monopolists are creating shortages and exploiting them." ...

    "A lot of people look at the economy over the last year and a half, and see the shortages that we’re having as a result of the pandemic and the resulting supply shock. But while Covid provided the spark, it also leveraged pre-existing fragilities existing all over the economy, including some shortages that were longstanding before the disease emerged. What all of these examples I offered have in common is the basic idea that when a monopolist concentrates power, that monopolist also concentrates risk."

    Though many economic models taught in universities consider it as an overlay to a "free market," monopoly power is a constant force in all societies and their political economies.  Its impact varies by degree.  It has been this way since humans began trading goods and services and established claims to exclusive use of land, resources, and access to mates and the responsibility and benefits of raising children.

    Milwaukee schools roll out vaccine mandate for staff and a $100 incentive for students

    Who will get the money - the kids or their parents?  .. Gamers want to know.

    How the Video Game Industry Is Changing - Investopedia

    "People are playing games both earlier and later in life, and the gender mix is nearing par. The top-level gamers competing in the eSports leagues have gained enough recognition that they can apply for the professional athlete visa when entering the U.S. Gaming has a wide appeal, and it is still growing."


    China’s cultural crackdown: few areas untouched as Xi reshapes society - Guardian

    Dear Mr. Xi:  What about a retro sit-com about a family living through Mao's Cultural Revolution (no commercials especially about food products)? 

    Uncovering the Cultural Revolution’s Awful Truths - Atlantic

    Why Beijing Wants BlackRock but Not Capitalism - Joseph Sternberg/WSJ


    Political cartoon US Donald Trump racist Mexicans women


    “Parity in Everything”: What Mexico Can Teach Us About Women’s Representation - Jennifer Piscopo/Ms.

    "Mexico is the first country in the world to implement gender parity so thoroughly and effectively. The journey has not been easy—and is far from over."

    Mexico’s bold break with machismo: Congress is now half female, and gender parity is the law - WaPost


    Blood Brothers: the friendship and fallout of Malcolm X and Muhammad Ali - Guardian review


    Andrew Johnson's reconstruction and how it works/Thomas  Nast

    Cartoon showing Andrew Johnson as the deceitful Iago who betrayed Othello, portrayed here as an African American Civil War veteran. Includes scenes of slave auction, whites attacking African Americans in Memphis and New Orleans, and "Copperhead" and "C.S.A." snakes wrapped around African American man while Andrew Johnson and others watch.

    An abolitionist’s hope meets a president’s hypocrisy - WaPost book review


    Support appears to be building for targeting subsidies to help raise kids to lower-income families:

    Kid Slingshot Images, Stock Photos & Vectors | Shutterstock

    Recovery Package Should Permanently Include Families With Low Incomes in Full Child Tax Credit - CBPP

    Democrats ready $450 billion plan to expand child care, pre-K as broader economic package hits new political snags - WaPost

    "Under the proposal, Democrats would devote some the new spending toward helping every child ages 3 and 4 obtain two years of universal prekindergarten, with additional sums set aside for expanding other child-care access and affordability. Much of it is stems from a state-focused block grant program that helps subsidize parents’ access to services including day care.

    "The new benefits for families would be parceled out on a sliding scale, with those making below 75 percent of a state’s median income receiving new subsidies that cover the costs of child care for children under age 5. At the top, families who earn up to 200 percent of their state’s income average would have their costs capped at 7 percent. Democrats have proposed phasing in the support over six years, meaning families who earn more may have to wait longer to see the effects of the bill."


    20 Years Later: The True Costs of our Post-9/11 Wars - Brown University

    "I call these wars the ‘credit card wars’…People in America – apart from those serving in the military – have not felt the pain of these wars because we haven’t paid for them yet.”

     – Professor Linda Bilmes - Harvard Kennedy School (1:02:28 of video conference)

    $8 trillion = about half of what's needed to bring Social Security into long-term solvency...Not chump change.

    Noam Chomsky: The US-Led “War on Terror” Has Devastated Much of the World - truthout

    Vice - YouTube


    World Inequality Lab Launches New Web Site featuring Interactive Tools, Events and Projects

    See where you stand on the income distribution scale.

    How much does each country lose  or attract because of tax avoidance?

    Create your own plan to tax the wealthiest.


    Doctors Join the Climate Lobby - WSJ

    "Don’t they know that poverty kills far more people than heat does?"

    "Extreme cold kills many more people each year (1.3 million) than extreme heat (356,000), according to a study published in the Lancet last month. Deaths from cold weather have increased at a slower rate than the population, no doubt in part because more of the world’s poor now have heating.

    "But facts are beside the point since the editorial’s intent is to scare people before the global climate gabfest in November and lobby for more income redistribution. Many Western countries have already committed to phasing out fossil fuels, but the editorial says these “promises are not enough.”

    "It’s true that wealthy countries could eliminate almost all emissions, and it wouldn’t matter if China, India and low-income countries continue to industrialize. China’s greenhouse gas emissions in 2019 exceeded those of all countries in the developed world combined."


    The new Thrifty Food Plan re-evaluates a 50-plus-year-old design and low-income kids will benefit - Brookings


    I was a homeless high school student. America’s laws don’t do enough to help kids like me. - Timothy Scalona/WaPost

    "Multiple studies have demonstrated that existing federal protections do not provide homeless children educational or material stability as they face worsened educational and mental health outcomes. While the Biden administration committed nearly $600 million in American Rescue Plan funds to support homeless children and youth, Congress can and must go further by increasing funding for the McKinney-Vento Homeless Assistance Program and Emergency Solutions Grants — as some in Congress have already suggested — and restructuring the program to ensure that schools provide trauma-informed services and a welcoming environment to homeless youth."


    The Housing Shortage Is Significant. It's Acute For Small, Entry-Level Homes - NPR


    Outward FDI and Domestic Input Distortions: Evidence from Chinese Firms - VoxChina

    "The model shows that Chinese private firms pay higher costs when borrowing money and renting land in the domestic market, because of government interventions in financial markets and the national ownership of land in China. However, when private firms produce abroad, at least part of the gap in input prices ceases to exist as the financial and land markets in foreign economies are not controlled by the Chinese government.

    "As a result, there is an extra incentive for private firms to invest and produce abroad, since they can circumvent the input market distortion that exists only domestically by becoming multinational companies (institutional arbitrage)."

     Xi Jinping’s talk of “common prosperity” spooks the prosperous - Economist

    "IN A SPEECH in 2016 Xi Jinping, China’s president, explored the roots of an idea that is now troubling the country’s tycoons and depressing the stockmarket—an idea that may be motivating China’s crackdown on private tutoring, its antitrust fines on internet firms, its new guidelines on the treatment of gig workers and its steps towards a property tax, as well as inspiring large charitable donations from some of the country’s most prominent enterprises. That idea is common prosperity.

    "Common prosperity, Mr Xi pointed out, has been an ideal of the Chinese people since ancient times. It was espoused by his predecessors as Communist Party leader. (Even Deng Xiaoping, who was famously happy to let some “get rich first”, insisted that they then help others to catch up.) The ideal appears not just in Marx but also in Confucius, Mr Xi said. He quoted a well known line from “The Analects”, which says something to the effect that a wise leader worries not about poverty but about inequality; not that his people are too few, but that they are too divided. (It is snappier in the original Chinese.) ..."

     The Very Rich Already Have a Plan to Escape Biden’s Tax Increase - Bloomberg

    "A strategy called private placement life insurance is a loophole that one policy expert says is ‘entirely legal, easy to exploit, and politically very hard to close.’ "

    Capital Gains Tax Hike And More May Come Just After Labor Day - Forbes


    Time to recognize caregiving as part of infrastructure - Martin Walsh and Marilyn Strickland - Seattle Times

    Why America has 8.4 million unemployed when there are 10 million job openings - Washington Post

    "The economy is undergoing massive changes. There’s a big mismatch at the moment between the jobs available and what workers want."


    Robert Reich @RBReich

    "Welcome to America, where lawmakers chose to kick 9 million jobless Americans off unemployment benefits on Labor Day, during a global pandemic."

    Couldn't say it better...But gotta' go back to work some time...

    This Labor Day, We Remember Our Essential Workers - Capital & Main

    Americans' approval of labor unions hits near 60-year high: Gallup - The Hill


    May the favor [1.] of the Lord our God rest on us;
        establish the work of our hands for us—
        yes, establish the work of our hands.

    1. Psalm 90:17 Or beauty

    Sunday, September 5, 2021

    Paul Gauguin, Where do we come from? What are we? Where are we going?, 1897-98, oil on canvas, 139.1 x 374.6 cm
    (Museum of Fine Arts, Boston)

    Where do we come from? What are we? Where are we going? is a huge, brilliantly colored but enigmatic work painted on rough, heavy sackcloth. It contains numerous human, animal, and symbolic figures arranged across an island landscape. The sea and Tahiti’s volcanic mountains are visible in the background. It is Paul Gauguin’s largest painting, and he understood it to be his finest work.

    Where are we going? represents the artist’s painted manifesto created while he was living on the island of Tahiti. The French artist  transitioned from being a “Sunday painter” (someone who paints for his or her own enjoyment) to becoming a professional after his career as a stockbroker failed in the early 1880s. He visited the Pacific island Tahiti in French Polynesia staying from 1891 to 1893. He then returned to Polynesia in 1895, painted this massive canvas there in 1897, and eventually died in 1903, on Hiva Oa in the Marquesas islands.

    Mix and Match:

    The Beginning of Everything: A Brief Description of the Origin and Very Early History of the Universe -  Dr. Steve Barrett/ University of Liverpool    slides
    The Story of Creation - BibleGateway

    Note the scientific method: The creator doesn't log the first day until the light comes back after the first night.

    The strange race to track down a missing billion years - BBC
    'Bloodthirsty Beings': CA Dept. of Ed. Sued for Curriculum That Has Students Pray to Aztec Gods of Human Sacrifice - CBN News

    Wonder if the Aztecs paid their chest cutters as much as they get in the U.S.

    sacrifice scene - Apocalypto


    Feds expand Pell Grant program for prisoners working on college degrees - Daniel Vock/Virginia Mercury

    "Ultimately, we all benefit"


    The $26 an Hour Minimum Wage - Dean Baker/CEPR

    "Think of what the country would look like if the lowest paying jobs, think of dishwashers or custodians, paid $26 an hour. That would mean someone who worked a 2000 hour year would have an annual income of $52,000. This income would put a single mother with two kids at well over twice the poverty level...

    "Don’t Try This at Home

    "The $26 an hour is useful as a thought experiment for envisioning what the world might look like today, but it would not be realistic as policy for local, state, or even national minimum wage without many other changes to the economy. A minimum wage this high would almost certainly lead to large-scale unemployment, and that would be true even if it were phased in over five or six years.

    "The problem is that we have made many changes to the economy that shifted huge amounts of income upward, so that we cannot support a pay structure that gives workers at the bottom $52,000 a year."

    Higher Pay for Low-Income Workers Undercut by Years of Wage Stagnation and Rising Inflation - Capital & Main

    Nabisco strike across four states continues with wide support - World  Socialist Web Site

    Nationwide Nabisco Strikes Demonstrate Growing Strength of the Labor Movement - truthout


    What Trump’s Disgraceful Deal With the Taliban Has Wrought - Kori Schake/NYT

    "America would be more secure today if Congress exerted its prerogatives more forcefully — both when Mr. Trump agreed to the Taliban deal, and when Mr. Biden continued it."

    Interesting perspective from conservative think tank...Where are workhorse congressmen like Jack Brooks and Wright Patman when you need them?  


    A vintage photo of a woman relaxing in front of a window-mounted air conditioner in her home.

    It’s time to rethink air conditioning -

    "Air conditioning warms the planet. Here’s how to break a vicious cycle."


    The Stagflation Threat Is Real - Nouriel Roubini/Project

    Back to the Seventies? - Kenneth Rogoff


    The Battle of Blair Mountain Was the Largest Labor Uprising in U.S. History  | Teen Vogue

    Battle of Blair Mountain offers cautionary tale about decline of unions upon centennial - Mike Tony/ Charleston Gazette-Mail

    A century after the Battle of Blair Mountain, protecting workers’ right to organize has never been more important - EPI

    BMHA on Twitter: "Interesting account of the historical context for the  Battle of Blair Mountain: http://t.co/w4XsFOie6M"


    Walgreens to raise wages for hourly workers to $15 by November 2022 - CNBC

    "This comes as retailers sweeten wages and benefits in an effort to stay competitive in what has become a tight labor market."


    Congress Returns To Capitol Hill After Weekend

    How Much Is Senator Mitch McConnell Worth? - Forbes


    Day of the Unicorn Comes for Politico - Ira Stoll/NY Sun


    This map shows where Americans are actually using their child tax credit money - Business Insider

    Should be targeted to families and kids most in need.




    2021 Social Security and Medicare Trustees’ Reports Show Modest Effect of Pandemic and Recession - Paul Van de Water/CBPP

    "Because Social Security benefits are modest and are the principal source of income for most beneficiaries, policymakers should improve the program’s fiscal outlook primarily by increasing Social Security’s tax revenues. Social Security will require an increasing share of our nation’s resources in the coming decades as the population ages, and polls show a widespread willingness to support it through higher tax contributions. Revenues could come from increasing the share of earnings subject to the Social Security payroll tax (which has eroded due to growing earnings inequality), expanding the types of compensation subject to the payroll tax, or raising the payroll tax rate in small steps."


    To avoid Social Security benefit cuts, Congress still needs to find about $17 trillion (net present value).


    The Natural Interest Rate in China - Daniel M. Rees, Guofeng Sun/VoxChina

    The "natural interest rate" can't be natural by definition.  (For one thing, absent inflation, there would be less motivation to take investment risk.) Nor can it be precise.  It can help to fathom the underlying rate of return on investment in the recent past.

    There's no such thing as an independent central bank - Axios


    Your 401(k) is pocketing fees on your investment. Many people don’t realize it.- Michelle Singletary/WaPost

    "Fee disclosures aren’t good enough. The GAO found that 64 percent of plan participants don’t believe they are paying any fees or are unsure whether they are."

    The simple tricks that turned one investor’s $70,000 retirement account into a $264 million fortune - Allan Sloan/WaPost

    "Ted Weschler says that starting early and taking full advantage of his employer’s match were key to his success."


    If We Soak the Rich, Will Everyone Get Wet? - Stephen Moore/Townhall

    Moore makes good points about  the impacts of redistribution and benefits of workers having skin in the game, but they don't necessarily support his conclusion to move to flat taxes.  The country would be better off with more progressive taxation, not just on billionaires but also high-income professionals and managers.  Spending could be tempered by targeting benefits to people in greatest need.  More people in the bottom 50% could afford to pay higher taxes -- all pay taxes for Social Security and Medicare --  if they made a living wage and were directly included in the profits of the  capitalist system.   The U.S. Constitution and political economy are deliberately designed to protect the interests of the wealthy minority.  They are light years away from being helpless.



    Union affiliation by U.S. state - Wikipedia

    What's mostly blue at the top, red at the bottom, and purple in between?

    Median weekly earnings of full-time wage and salary workers by union affiliation and selected characteristics


    Talon Metals and Steelworkers Union Partner to Advance the Tamarack Nickel Project for US EV Battery Supply Chain - Junior Mining Network

    The "creative destruction" of new technology can be an opportunity for collaboration between company managers and unions.  Employee inclusion in workplace decisions and profits can be win-win. 

    Labor-Management Cooperation - IEduNote


    Another example of labor and management collaboration (not a recommendation for a particular consulting firm).


    Ronald Reagan Headshot

    "Trust, but verify." -- Ronald Reagan


    Fewer Families With Children Didn’t Get Enough to Eat

    After Child Tax Credit Payments Begin, Many More Families Have Enough to Eat - CBPP


    The harm the Fed wants to avoid - Axios


    rodrik186_BORIS HORVATAFP via Getty Images_francestudentprotest

    Inequality and the Macron Commission - Dani Rodrik and Stefanie Stantcheva

    "One reason France has been able to avoid a rise in overall inequality is the country’s high levels of social benefits and minimum wages. But these create their own problems. Absent a commensurate rise in productivity, government-mandated increases in wages at the bottom can create a trade-off between incomes and employment, especially for those just entering the labor market. France’s excessively high youth unemployment rate, nearly 20%, is indicative of this tension."

    posner18_BRENDAN SMIALOWSKIAFP via Getty Images_trumpcovidmask

    COVID and the Conservative Economic Crack-up - Eric Posner/Project Syndicate

    How the United States Immigration System Works - Immigration Council


    A Taliban fighter stands guard as acting higher education minister Abdul Baqi Haqqani (not pictured) addresses a gathering on the Taliban's higher-education policies Aug. 29 at the Loya Jirga Hall in Kabul. (Aamir Qureshi/AFP/Getty Images) ... University pronoun policy?

    Fear and anticipation on the streets of Kabul as Afghans adapt to Taliban rule - WaPost

    Taliban Move to Ban Opium Production in Afghanistan - WSJ

    Without opium and the US military occupation, what will the Taliban do for cash and capital?


      Celebrating Bird: The Triumph  of Charlie Parker - WETA

    Sunday, August 29, 2021

    Giving Up on God: The Global Decline of Religion - Ronald Inglehart/Foreign Affairs

    Less worship - or different gods? ... Devil may be in the details.

    Harvard University’s new chief chaplain is...an atheist - Guardian

    Paul and the Athenians - Acts: 16-23

    "16 While Paul was waiting for them in Athens, he was greatly distressed to see that the city was full of idols. 17 So he reasoned in the synagogue with both Jews and God-fearing Greeks, as well as in the marketplace day by day with those who happened to be there. 18 A group of Epicurean and Stoic philosophers began to debate with him. Some of them asked, “What is this babbler trying to say?” Others remarked, “He seems to be advocating foreign gods.” They said this because Paul was preaching the good news about Jesus and the resurrection. 19 Then they took him and brought him to a meeting of the Areopagus, where they said to him, “May we know what this new teaching is that you are presenting? 20 You are bringing some strange ideas to our ears, and we would like to know what they mean.” 21 (All the Athenians and the foreigners who lived there spent their time doing nothing but talking about and listening to the latest ideas.)

    "22 Paul then stood up in the meeting of the Areopagus and said: “People of Athens! I see that in every way you are very religious. 23 For as I walked around and looked carefully at your objects of worship, I even found an altar with this inscription: to an unknown god. So you are ignorant of the very thing you worship—and this is what I am going to proclaim to you."


    The death of the job: What if paid work were no longer the centerpiece of American life? -

    How Nixon Changed U.S. Economic Policy Forever - Bruce Bartlett/Big Picture

    "Once businesses were free to invest abroad by the abolition of capital controls, which followed from the elimination of fixed exchange rates, workers lost enormous leverage. Globalization destroyed the private sector labor unions and allowed businesses to exploit workers throughout the world, creating a race to the bottom in terms of wages."

    Terrific article.


    The Federal Reserve Building In Washington DC, USA The Federal Reserve Building in downtown Washington DC, USA at night.  HDR image. federal reserve stock pictures, royalty-free photos & images

    It’s time for the Fed to rethink quantitative easing - Larry Summers/WaPost

    It’s time to let the U.S. economy stand on its own two feet - WaPost


    Alignable's Rent Survey for August 2021 -- Industry Issues

    45% Of Restaurants Can't Pay August Rent, Up 5% - Alignable


    Cutting unemployment insurance benefits did not boost job growth - EPI

    "July state jobs data show a widespread recovery."


    Racial wealth gaps shrink when defined benefit pensions, Social Security are considered - Boston Fed

    All the more reason to strengthen Social Security, pensions, and retirement savings for low-income workers.


    K, a 16-year-old child-sex-trafficking victim, stands handcuffed after being arrested for solicitation by the Las Vegas Metropolitan Police Department.

    Sex-trafficked kids are crime victims. In Las Vegas, they still go to jail. - WaPost

    Las Vegas Breaks Record In July With $794 Million In Gambling Revenue - Forbes


    The Swamp’s Favorite Tax Break - James Freeman/WSJ

    "Democrats plan trillions in tax hikes but guess who’s getting relief."

    Reviewing Benefits of the State and Local Tax Deduction by County in 2018 - Garrett Watson/Tax Foundation


     Virus Outbreak Holiday Travel

    Delta Air Lines Will Charge Unvaccinated Employees $200 Per Month More For Health Insurance, CEO Says - Forbes

    Delta Air Lines' new penalties to spur vaccination probably won't work for companies with many low-wage workers.  A large share of front-line employees in restaurants and nursing homes, for example, are not offered company health benefits and many are uninsured.  A cash bonus or mandate to get the jab would work better. (Disclosure: the Poor Man's Hedge Fund, which covers the cost of this web site, owns Delta shares.)

    Health Insurance Status and Risk Factors for Poor Outcomes With COVID-19 Among U.S. Health Care Workers: A Cross-Sectional Study

    "Among nursing personnel in nursing homes and home care, 12.0% (CI, 8.4% to 15.6%) of licensed practical nurses were uninsured, as were 5.1% (CI, 3.6% to 6.5%) of registered nurses and 315 000 aides (CI, 285 000 to 345 000 aides)—more than one sixth of all aides in these settings."

    Health Care Coverage and the Health Care Industry

    Study Shows Employee Benefits Helps Retain Staff at Nursing Homes


    Effects of the COVID-19 Recession on the US Labor Market: Occupation, Family, and Gender - Stefania Albanesi and Jiyeon Kim/Journal of Economic Perspectives

    "The economic crisis associated with the emergence of the novel corona virus is unlike standard recessions. Demand for workers in high contact and inflexible service occupations has declined while parental supply of labor has been reduced by lack of access to reliable child care and in-person schooling options. This has led to a substantial and persistent drop in employment and labor force participation for women, who are typically less affected by recessions than men."

    Gender Differences in Reactions to Failure in High-Stakes Competition: Evidence from the National College Entrance Exam Retakes - Le Kang, Ziteng Lei, Yang Song, and Peng Zhang/VoxChina

    "Taken together, our findings provide evidence on gender differences in reactions to failure that are consistent with previous studies, but in a setting with higher stakes and for a much larger population. Our estimates suggest that if females are equally likely to retake as males, females would have better exam performances and be substantially more represented in the high-quality universities, which may in turn, have important implications for the gender equality in the labor market."

    Republicans are Wrong; Doubling the Pell Grant Is Good Policy - Phillip Levine/Inside Higher Ed

    Plenty of room for political compromise that would help more low-income families pay for education.

    89% of federal rental assistance remains unspent as potential evictions crisis looms - USA TODAY

    "The department announced new guidelines to try to expedite the release of the money.

    "That includes allowing applicants to self-attest, rather than providing documents, to prove their financial hardship, risk of homelessness or housing instability, and income. States and cities can also partner with nonprofits to offer advance money to households at risk of evictions and make additional payments to landlords who take on tenants facing major barriers to secure a lease."

    What States Can Learn from the District of Columbia’s EITC Expansion - Tax Vox

    How Unemployment Insurance Fraud Exploded During the Pandemic -

    "Bots filing bogus applications in bulk, teams of fraudsters in foreign countries making phony claims, online forums peddling how-to advice on identity theft: Inside the infrastructure of perhaps the largest fraud wave in history."


    Uninsured Americans Are Half As Likely To Get The Covid-19 Vaccine Even Though It’s Free - Deb Gordon/Forbes

    One can find hundreds of articles and studies on the relationship between vaccination and race, color, and political orientation.  That's what the study funders want.  There's a lot less research into the obvious: no health plan + no primary care + no reminders + no time off = fewer vaccinations.

    Key Facts about the Uninsured Population - KFF

    Vaccine hesitancy in nursing homes isn’t all politics - Brookings

    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


    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

    Posted April 16, 2020 and updated as noted

    Pinpointing Disease Pathways, Treatments: Which (If Any) of The Dots Connect?

    Changes in blood chemistry - hypoxia - bloods clots - organ damage


    COVID-19: Attacks the 1-Beta Chain of Hemoglobin and Captures the Porphyrin to Inhibit Human Heme Metabolism -ChemRxIV (April 13)

    Heme in pathophysiology: a matter of scavenging, metabolism and trafficking across cell membranes

    Hypoxia, such as encountered at high altitude, promotes deep vein thrombosis in mice

    A Possible Explanation for the COVID-19 Racial Disparity — And a possible solution (posted April 19)

    Doctors try to untangle why they're seeing 'unprecedented' blood clotting among Covid-19 patients (posted April 23)

    New link between hypoxia and blood clot risk (posted April 23)

    15 Children Are Hospitalized With Mysterious Illness Possibly Tied to Covid-19 (posted May 7)

    Blood thinners may improve survival among hospitalized COVID-19 patients (posted May 8)r

    COVID Hypoxemia: Finally, an Explanation — Mt. Sinai team uncovers a compelling mechanism (posted Sept. 9)

    Full-Dose Clot Prophylaxis Improves Outcomes in Moderate COVID-19 (posted Jan. 23, 2021)

    General Info

    What Does It Mean to be Oxygen Deprived

    U.S. races to stock up on dialysis supplies as kidney failure ravages virus patients – Politico  Approximately 20 percent of coronavirus patients in intensive care around the city need the kidney treatment, often for weeks.

    Coronavirus destroys lungs. But doctors are finding its damage in kidneys, hearts and elsewhere

    Doctors keep discovering new ways the coronavirus attacks the body (posted May 11)

    Obese COVID Patients More Likely to Have Pulmonary Embolism, Even Outside the ICU (posted June 3)

    Cheap drug has been helping to save lives of COVID-19 patients (posted June 18)

    More Data Suggest Proning Helps COVID-19 Patients (posted June 18)

    More covid-19 patients are surviving ventilators in the ICU (posted July 4)

    RECOVERY: Steroid Benefit in Severe COVID-19 Holds Up -- Sickest patients helped the most, drug already added to NIH guidelines (posted July 18)

    Common steroids reduce deaths among critically ill Covid-19 patients, new analysis confirms - CNN (posted Sept. 3)

    The Contagion Year: What we learned about treating COVID-19 in Year One of the pandemic -


    Autopsies Turn Up Strange Feature of COVID-19 Lungs — Study finds more thrombi and a new puzzle in the vessels (posted May 27)


    Hypoxia: The Force that Drives Chronic Kidney Disease

    Sense of Smell

    The Effects of Hypoxic Hypoxia on Olfactory Sensitivity in Humans

    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.


    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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