Exploring economic inequality - Advocating for the bottom 50%

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?...

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News, Events & Opinions

For first time in two decades, mass protests erupt among Israel’s Arab citizens - Miriam Berger/WashPost

"Israeli police spokesman Micky Rosenfeld said 270 people were arrested Tuesday across the country in “wide-scale disturbances and riots.” In some cases, he said, Jewish residents who had armed themselves with bats and other weapons were “walking in the streets to protect themselves.”  ...

"On Wednesday, Public Security Minister Amir Ohana defended those “law-abiding citizens” who carry weapons to assist the police, and he criticized the arrest of three suspects in the Lod killing on Monday night."

Ah, love the smell of racism in the morning...Not to wax sentimental, but can't help a rush of warm memories of Jim Crow, the Klan, and the Confederacy's argument that it has a right to exist.

Israel: Jewish and Arab mobs spread violence - BBC

"We're watching a lynching in real time," the reporter said off camera. "There are no police here."

Hamas tries to seize the day - Daniel Byman/Brookings

Israel-Hamas fighting poses test for Biden and exposes rifts among Democrats - Anne Gearan and John Hudson/WaPost

 Chomsky: Without US Aid, Israel Wouldn’t Be Killing Palestinians En Masse - C.J. Polychroniou/Truthout

"Zionist policies since have been opportunistic. When possible, the Israeli government — and indeed the entire Zionist movement — adopts strategies of terror and expulsion. When circumstances don’t allow that, it uses softer means. A century ago, the device was to quietly set up a watchtower and a fence, and soon it will turn into a settlement, facts on the ground. 

"The counterpart today is the Israeli state expelling even more Palestinian families from the homes where they have been living for generations — with a gesture toward legality to salve the conscience of those derided in Israel as “beautiful souls.” Of course, the mostly absurd legalistic pretenses for expelling Palestinians (Ottoman land laws and the like) are 100 percent racist. There is no thought of granting Palestinians rights to return to homes from which they’ve been expelled, even rights to build on what’s left to them."

Restaurant labor shortages show little sign of going economy wide - Josh Bivens and Heidi Shierholz/EPI

Boston’s Combat Zone, circa 1970. (Herald file photo.)

Howie Carr: Tales from Boston’s Combat Zone when Bill Gates was in town- Boston Herald

Classic blue collar spleen from Beantown.

“The rich are different from you and me.”

The $392,000 Lifeguard: ‘Baywatch’ as Union Shop - Adam Andrzejewski/WSJ

"After 30 years of service, they can retire as young as 55 on 79% of their pay. The Los Angeles County Lifeguard Association makes all this possible. Since 1995 the union has bargained for better wages, hours, benefits and working conditions.

"Over the past five years, lifeguard captain Daniel Douglas brought home $630,000 in overtime alone. His total employment costs in 2019 were $368,668—$140,706 base bay, $131,493 in overtime, $21,760 in “other pay” and $74,709 in benefits.

"In 2009 the city of Santa Monica signed a 10-year, $25 million contract with the county for lifeguard services. In 2019 the city extended the contract for five years and $17 million. There were no identified competitors and the contract wasn’t put out for bid."

Monopolies and government agencies are fertile ground for organizing unions.  Bargainers can pass along costs to third parties paying the "rent."  Try finding a lifeguard union and high wages in a suburb with competing neighborhood swim clubs.

Colorado Democrats Are Planning The State’s Biggest Tax Reform In Years -

"Two new proposals introduced Monday are meant to deliver relief for lower-income families and small businesses by effectively raising the taxes of certain large businesses and wealthier people, lawmakers said."

Study aims to quell fears over falling human sperm count - Harvard Gazette

"In addition, they argued that the design of the 2017 study relied on racist and colonial hierarchies and assumptions because it categorized data as “Western” sperm counts or “Other” sperm counts."

Does feminist analysis result in higher   sperm counts?  More research needed.

How ‘socialism’ stopped being a dirty word for some voters – and started winning elections across America -Joshua Kluever/Informed Comment


White Liberals Watch In Amazement As Black Man Acquires ID - Babylon Bee

The Bee sharpens its wit...Competition for the Onion? 


Average $90,510 Salary and Other Traits of 2.1 Million+ Federal Employees - Ralph Smith

Plus decent benefits and job stability.  Not bad compared with working in the private sector.

Springtime for Bureaucrats - James Freeman/WSJ

Chipotle to hike wages, debut referral bonuses in attempt to hire 20,000 workers - Kate Rogers/CNBC

  • Chipotle said it will increase restaurant wages resulting in a $15 average hourly wage by the end of June, as it looks to bring on 20,000 workers.

  • Starting pay for hourly crew members will range from $11 to $18 an hour. There are opportunities to advance to general manager positions with average annual pay of $100,000.

  • Chipotle CEO Brian Niccol said the current labor market is among the most challenging he’s seen in his career in the restaurant industry. He cited a range of reasons including child care and a rethinking of work post-pandemic.

Chipotle says employees can make $100,000 after just 3 years on the job - Jordan Valin

The Fed Is Playing With Fire: Clinging to an emergency policy after the emergency has passed, Chairman Powell courts asset bubbles - Christian Broda and Stanley Druckenmiller/WSJ

Why Joe Biden Punched Big Pharma in the Nose Over Covid Vaccines - Matt Stoller

Did Biden really punch Big Pharma?  The vaccine business is a relatively small part of the pharmaceutical industry and usually not that profitable.  Only time will tell whether Biden's support of giving away patent rights for Covid vaccines and production is a watershed moment in anti-monopoly history.  If his move backfires, it could undercut efforts to control drug prices and medical hyperinflation, partly resulting from provider concentration, that has been chewing away at wages for decades. 

American officials call for ‘calm’ in Israel. But the U.S. is part of the problem. - Ishaan Tharoor/Washington Post

"On Saturday, Palestinians will commemorate the Nakba, or “catastrophe,” of the forced, brutal expulsion of hundreds of thousands of Palestinians from their homes and villages in 1948 in what is now Israel. The prospect of these refugees having the “right to return” — as they have long sought — is even more distant than the idea of a viable, sovereign Palestinian state and is politically taboo not just in Israel, but in the United States."

Jeez.  The Washington Post is providing space for a Palestinian perspective (despite powerful lobbies)...And the claim of land theft on a massive scale. 


No photo description available.

Some of the increase is due to aging.  Most of it a failure to control prices by employers and government purchasers. They are no match for the medical industrial complex. 

Note the contrast: Over the 12 years since the financial crisis, the U.S. consumer price index rose by an annual 1.6%.


Biden tuition plan boosts colleges, not students - Naomi Schaefer Riley/AEI

"Richer subsidies will push up costs without improving education. There’s a smarter approach..."

"Biden’s plan does include a slight increase in Pell grants, something that might actually help poor kids. Colleges would still have to compete for those students’ dollars and administrators might think twice about how much extra they want to tack on to expenses...

"There’s nothing wrong with offering a safety net for kids who want to pursue higher education and can’t afford it. But dumping piles of money on schools that have been terrible stewards of the money Americans have already given them won’t help anyone."

Proposals to spend trillions for subisidies to raise kids, free college, and child care all face the same challenge.  Unless targeted to lower-income people, they will drive up prices, thereby making it harder for lower-income to get what they need.  Also, higher debt levels will make it make it harder for the government to deal with other issues.

Top 20% don't need the help. They like to point finger at top 1%'s greed but are part of the problem.

Israeli-Palestinian clashes erupt on contentious ‘Jerusalem Day'- Steve Hendrix and Shira Rubin/WaPost

 Buried in paragraph 20 of this Washington Post story:

"The Israeli settlers moving to evict the Palestinians and bulldoze the neighborhood to make room for 200 housing units are relying on a 1970 Israeli law that gives Jewish Israelis the right to reclaim East Jerusalem properties owned by Jews before the 1948 Arab-Israeli war. Palestinians who lost their land do not have the same right."

If Palestinians had the same right to reclaim property lost in 1948, then a large part of Israel might change hands.

Sunday, May 9, 2021

“Power tends to corrupt and absolute power corrupts absolutely” - Lord Action

"Lord Acton writes to Bishop Creighton that the same moral standards should be applied to all men, political and religious leaders included."

Not “Clashes”: Israeli Security Wounds Nearly 200 Palestinians in Ongoing Ethnic Cleansing Campaign at 3rd Holiest Islamic Site - Juan Cole/Informed Comment

Close-up Of Angled View Featuring "E Pluribus Unum" In The Great Seal Of The United States Included In The Design On Back Of US One Dollar Bill

‘Not $1’: US lawmaker urges end to complicity in Israeli abuses - /Aljazeera

"Last month, McCollum introduced her latest bill, which aims to get guarantees that US aid is not used in abuses against Palestinian children, the destruction of Palestinian property, the removal of Palestinians from the occupied West Bank, or Israel’s attempts to further annex Palestinian land.

"The proposed legislation has the support of more than a dozen members of Congress, and dozens of Palestinian, human rights and Jewish organisations, including J Street – and it has drawn the ire of Israel’s supporters, who argue the massive assistance package ($3.8bn annually) is necessary to protect the US’s top ally in the Middle East."

'It Is Inhumane': Ocasio-Cortez Slams Israeli Eviction Effort in Sheikh Jarrah - Brett Wilkins/CommonDreams

U.S. Muslim population continues to grow - Besheer Mohamed/Pew Research Center

Rosemary M. Esber, Under the Cover of War: The Zionist Expulsion of the Palestinians -  Edinburgh University Press

Read her book including footnotes.  Most revealing evidence: what the Zionist leaders themselves said they were doing.


Fritz Gluckstein Reflects on the Nuremberg Race Laws - YouTube


How the Nazis Were Inspired by Jim Crow - HISTORY


Marx in Amerika - Branko Milanovic/globalinequality

"The main differences between the classical capitalist world of the 19th century and today is not however that wages are higher (Marx would not have been much surprised since he held that wages reflect “moral-historical” conditions of each country) or that the welfare state is much broader. The main differences are in the nature of the ruling class, and the effects on the middle classes in the globally dominant countries.

"Today’s top of income distribution in advanced economies consists of people who have high incomes both from labor and capital. This was not the case in the past. Landlords and capitalists were the top class under classical capitalism, and they hardly had any incomes other than what they derived from their property. Many of them would have probably found it unthinkable or even insulting to complement their incomes by wages.nd

India’s rich are not the only ones fleeing the Covid crisis on private jets, says CEO - Karen Gilchrist/CNBC

"Upper-middle class families are pooling their resources to escape to Maldives and Dubai..."

What’s in the New SECURE Act 2.0? - Ted Godbout/ASPPA

Lots to like for professionals and the well-off.  Not much for the bottom 50%.  Ways & Means gets a C- for capitalism, D- for socialism.  Couldn't you come up with a few hundred bucks a yearfor EVERY worker? 

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

Including all workers in our retirement savings system requires two things: a universal tax credit and a secure place to invest it. Congress should beworking on both. - CCSE

How the American Retirement Savings System Magnifies Wealth Inequality - SOA

It’s not a ‘labor shortage.’ It’s a great reassessment of work in America. - Heather Long/WaPost

"Hiring was much weaker than expected in April. Wall Street thinks it’s a blip, but there could be much deeper rethinking of what jobs are needed and what workers want to do on a daily basis."

Biden’s Vaccine IP Debacle: His patent heist is a blow to the Covid fight and U.S. biotech. - WSJ

Will reaction to its blunder on vaccines hurt the Administration's ability to rein in Big Pharma on predatory drug pricing?  The vaccine biz is a very small part of the pharma pie. Joe & Co. should be less concerned with PC optics, more with the quality of its economic advice.

Will Corporate Greed Prolong the Pandemic? - Joseph Stiglitz and Lori Wallach/Project Syndicate

Pandemic eviction protections could expire this summer - Ned Oliver/Virginia Mercury


Servers and other hospitality workers that rely on tips rally at the Massachusetts State House in Boston in 2018 to convince lawmakers to raise the $3.75 minimum wage for restaurant workers. Keith Bedford/Boston Globe

No Worker Shortage: Report Finds Low Wages Make Food Workers Want to Quit - Sharon Zhang/Truthout

"The survey of over 2,800 food service workers also found that, overwhelmingly, a “full, stable, livable wage,” would compel workers to stay at their jobs; 78 percent of respondents said as such. This was the top reason for workers to stay by nearly 30 percentage points. The next top reason — at 49 percent — was if they received paid sick leave."

IT’S A WAGE SHORTAGE, NOT A WORKER SHORTAGE - One Fair Wage/UC Berkeley Food Labor Research Center

Policies that would help food workers:

1) Raise the minimum wage with COLA and some state state flexibility.  Tipped minimum should be at least half the minimum for other wage earners.

See: "Yes, raise the minimum wage, but don't stop there."

2) Mandate at least 5 paid sick days a year. 

See: "All Workers Should Have A Few Paid Sick Days. The President And Congress Can Make It Happen"

3) Make ACA employer mandate penalties neutral with regard to hours worked. For example, employers should be fined based on total employee hours, rather than just for full-time workers (> 30 hours), for not providing, or contributing to, cost of health coverage.

We Can’t Afford to Live Anymore, and The Rich Are Gaslighting Us - Jessica Wildfire/Medium

We're starting to see how the pandemic affected US births

"Births in December — the first month when most babies born were conceived after the start of the pandemic — were down almost 8% from December 2019...

"Last year there were 3.6 million births in the United States, down 4% from the previous year. After an increase in 2014, the number of births has declined an average of 2% per year. This is the lowest number of births in the US since 1979."

Helping the Other 66% | by Kenneth Rogoff - Project Syndicate

Helping the Other 66% -

Biden’s Vaccine Patent Theft - Wall Street Journal

"Who will invest in future therapies when the White House helps other governments steal?"

Disclosure: The Poor Man's Hedge Fund, which funds this project and web site, has invested in Novavax, which is applying for approval of a promising Covid-19 vaccine technology.

In Massachusetts, 1.6 million adults are struggling to get enough to eat - Janelle Nanos/Boston Globe

"The survey also found that food insecurity rates were highest among adults with children: 42 percent of households with children were experiencing hunger, and the use of SNAP in those households had nearly doubled its rate from 2019. "

Vertical integration drives higher Medicare spending on common testing procedures - Matt Kuhrt/Fierce Healthcare


ivanna mercedes lorraine toussaint idris elba caleb mclaughlin jamil prattis and cliff method man smith in concrete cowboy

Ivanna Mercedes, Lorraine Toussaint, Idris Elba, Caleb McLaughlin, Jamil Prattis, and Cliff "Method Man" Smith in the film. - Jessica Kourkounis, Netflix

The Real-Life Fletcher Street Riders Inspired Netflix's 'Concrete Cowboy' -

Black man enslaved by South Carolina restaurant manager is owed $546,000, court rules - Jewel Wicker/Guardian

"Bobby Paul Edwards, a white man serving 10 years in prison, must double restitution he pays to ex-employee John Christopher Smith."

A French mayor was convicted of rape. He’s running his town from prison - Rick Noack/WaPost

To place in cultural context, watch the terrific series "A French Village," a tapestry of life under German occupation during WW2.  Rich with examples of Gallic creativity in expressing sexuality regardless of political regime.

Biden Wants Higher Taxes Than China’s - Mark Bloomfield and Oscar Pollock/WSJ

"The most critical comparison is between the U.S. and China, which has adopted key Western investment policies and made no secret of its desire to become the world’s leading economy. Mr. Biden has acknowledged this, calling Beijing’s intentions to displace U.S. global leadership “deadly earnest.” The top capital-gains tax rate for Chinese investors is 20%. Chinese citizens are allowed—even encouraged—to buy and own stocks in Chinese companies. They can invest and become wealthy as long as they don’t challenge the Chinese Communist Party. The Chinese model, a political dictatorship, a market economy, and low taxes for investors, continues to generate rapid economic gains."

Schumpeter was right.  Capitalism and socialism can be compatible.  They can even be complementary.  Modern governance involves a blend of approaches:

Mixing Capitalism and Socialism: Policies To Moderate Systemic Wealth Concentration in the United States

May be an image of 1 person and text that says 'Gabriel Zucman @gabriel_zucman 20% Wealth Billionaire wealth, May 1st update the top 400 wealthiest Americans (top 0.00025%) (as fraction of total US GDP) 15% May 1st, 2021 10% Mid-2020 5% 0% 980 1985 OLO7 7:37 PM 03 May 21 Twitter Web App'

Wealthy may face up to 61% tax rate on inherited wealth under Biden plan - Robert Frank/CNBC

Who’s Afraid of Tim Scott? The GOP senator forced the president and vice president to respond to him - William McGurn/WSJ

There's a least a bit of room at the top of the GOP for black men with conservative values (or tired of woke anti-male rhetoric).  Is there a place for black women?  If so, maybe D's wouldn't own the black vote.

Daniel Cameron, a candidate for Kentucky attorney general, embraced Sen. Mitch McConnell, right, following his speech during the Fancy Farm political picnic in Fancy Farm, Ky.
Aug. 3, 2019

Mitch McConnell embraces Kentucky AG Daniel Cameron during his run for state office.

The 'quagmire' facing Black Republican women who run for Congress -

Why Big Tobacco Targeted Blacks With Ads for Menthol Cigarettes - CBS News

Opinion: Banning menthol cigarettes could put Black smokers in a new kind of danger - Eugene Robinson/WashPost

"Making it illegal to make or sell Newports, Kools and other such brands will have a massively disparate impact on African American smokers, nearly 85 percent of whom smoke menthols. By contrast, only around 30 percent of White smokers and 35 percent of Hispanic smokers choose menthol-flavored varieties. Black smokers have every right to feel targeted by the planned prohibition."

Regulatory apartheid?


US Federal Budget and National Debt

Anti-Monopoly Timeline - Open Markets Institute

Terrific trip through U.S. anti-monopoly history.

Anti-Monopoly Basics: Workers & Monopoly - Open Markets Institute

"Consolidation means fewer jobs, as merged corporations tend to cut jobs after they combine. Moreover, in an economy dominated by highly concentrated industries it becomes more difficult for entrepreneurs to start successful new companies, thereby suppressing one the most important sources of new job formation. Consolidation also means there are few employers competing to hire or retain each worker, thereby putting downward pressure on wages." ...

"Monopolization also leads to a sharp decline in competition for many types of workers, especially in local markets. For instance, a study recently published in Health Affairs found that hospital ownership in 90 percent of metro areas is now so concentrated that it exceeds what antitrust regulators have historically regarded as the threshold for when action is needed to avoid inefficiency and collusion. One effect of this massive consolidation is a significant reduction in the number of hospitals competing to hire nurses and other health care professionals in most communities. This in turn has allowed hospitals to conspire in price-fixing schemes, according to several recent class action lawsuits."


Bernie Trucks on the Bluegrass

Minimum Wage and the Tragedy of the Commons - Oren Levin-Waldman/LaborPress

American middle class - Wikipedia


"The middle class by one definition consists of an upper middle class, made up of professionals distinguished by exceptionally high educational attainment as well as high economic security; and a lower middle class, consisting of semi-professionals. While the groups overlap, differences between those at the center of both groups are considerable.

"The lower middle class has lower educational attainment, considerably less workplace autonomy, and lower incomes than the upper middle class. With the emergence of a two-tier labor market, the economic benefits and life chances of upper middle class professionals have grown considerably compared to those of the lower middle class.[2][5]

"The lower middle class needs two income earners in order to sustain a comfortable standard of living, while many upper middle class households can maintain a similar standard of living with just one income earner.[10][11]"

Meet the low-wage workforce - Brookings


Sunday, May 2, 2021

Noach: From Babel to Google to A Life on Our Planet - Benjamin Shribman

Thank the Great Spirit for the First Amendment which allows competition among visions of truths that can't be fully understood.  Government-sanctioned religion can be very  harmful to your life and  health.

Meanwhile, back in on Earth...

The Big Tech Oligarchy Calls Out for Trustbusters - Josh Hawley/WSJ

"Concentrations of power in business or government endanger the popular rule envisioned by the founders."

"I propose three measures. First, break up Big Tech. The tech companies are the most powerful corporations in the country and likely in American history. They control what Americans read and what they say, what Americans share and what they buy. The Big Tech companies are the railroad monopolies, Standard Oil and the newspaper trust rolled into one, and tech CEOs are our robber barons. Congress should enact new bars on industry consolidation that will prevent the dominant tech platforms from simultaneously controlling separate industries and services. Google, for example, shouldn’t be able to own the world’s dominant web-search platform and run the cloud. That’s too much power and it’s bad for competition.

"Second, cut the other megacorporations down to size. We can start by banning mergers and acquisitions for corporations larger than $100 billion. No exceptions. There is no good reason for a corporation to buy its way to the size of a small country. Vertical integration, in which one company buys up an entire supply chain—think Amazon marrying Whole Foods with its Prime shipping network—should also receive antitrust scrutiny.

"Third, give courts a new standard to evaluate anticompetitive conduct. For years, courts have asked whether an alleged monopolist harms consumer welfare. In other words, does the business behavior in question drive up consumer costs? That’s a fine question, but trustbusting isn’t about consumer prices alone. The tech companies insist that most of their services are free, even as they extract monopoly rents in other ways, like taking private consumer data without consent."

How Big Tech got so big: Hundreds of acquisitions - Chris Alcantara, Kevin Schaul, Gerrit De Vynck and Reed Albergotti/WashPost


How Your Race and Gender Could Impact Your Injury Settlement - Kim Hayes/Enjuris

"A black female school teacher facing multiple surgeries after a car accident and a four-year-old Hispanic boy with brain damage from lead paint in a rented apartment.

"Both lives forever changed by the carelessness of others.

"And both lives valued less than a white male’s when it came time to calculate their projected future earnings in personal injury claims...

"43.6 percent of forensic economists use race and gender when projecting lost wages."

The use of race- and sex-based data to calculate damages is a stain on our legal system - Ronen Avraham and Kimberly Yuracko/WaPost

In the court house hallway haggling, wonder if Asian kids with educated parents ever get a higher estimate of future earnings?  Will white kids' values trend downward in the future?  Is the value of white kids' future earnings based on data for white adults or the entire population?  Lots of ways to put a thumb on the scale?

The True Face Of Racism - Derek Hunter/Townhall

No one can make you categorize yourself by race on a U.S. government survey.  You can choose any shade of  color you like or none.  Perpetuating apartheid in this country requires public participation.  Perhaps all low-income workers should answer with the word "colored" regardless of their particular  dermal pigmentation.

A Graying China May Have to Put Off Retirement. Workers Aren’t Happy. - Vivian Wang and /NYT

"State pension funds are at risk of running out. And China has some of the lowest retirement ages in the world: 50 for blue-collar female workers, 55 for white-collar female workers, and 60 for most men...

"...workers with blue-collar or physically demanding jobs like Mr. Meng’s, who still make up the majority of China’s labor force, say they’ll be worn down, left unemployed or both."

As in the U.S., low-income workers have shorter life spans than higher-skilled, higher-income workers.  Raising the age at which they can receive retirement benefits disproportionately impacts low-paid workers:

A Widening Gap in Life Expectancy Makes Raising Social Security’s Retirement Age a Particularly Bad Deal for Low-Wage Earners - Karl Polzer/Society of Actuaries

Will Growing Inequality Make Social Security & LTC Financing Fixes Harder?

Population Aging, Retirement Income Security, and Asset Markets in China - Hanming Fang/NBER

"The Chinese pension system faces many challenges, including weak participation incentives, regional as well as urban/rural disparity in benefits, low benefits, and fiscal unsustainability. Various pension reform proposals are being discussed. One obvious proposal is to raise retirement ages.

"In on-going research projects, my coauthors and I examine two issues related to this proposal. First, we study its distributional consequences, recognizing that life expectancy differs significantly between blue-collar and white-collar workers. Second, we critically evaluate the presumption that the elderly would be able to find employment if retirement ages were raised, focusing on the potential labor rationing of elderly workers caused by rapid cohort-to-cohort productivity growth and mechanisms for wage compressions."

Healthy Life Expectancy in China - Han Li, Katja Hanewald and Shang Wu/VoxChina

"We find substantial regional health disparities, with healthy life expectancy varying by up to 10 years between different provinces for both men and women."

Chinese living in lower-income provinces have significantly shorter average  life spans.


Br'er Rabbit and the Tar-Baby, drawing by E. W. Kemble from "The Tar-Baby", by Joel Chandler Harris, 1904

Psychiatry Confronts Its Racist Past, and Tries to Make Amends - Judith Warner/NYT

Is this story another example of how focus on race becomes a tar baby that distracts from economic inequality.  Try finding a psychiatrist if you are a low-income person of any color in the United States.  In many metro areas, they are scarce and most don't take insurance.  What about the professional association, or government, requiring them to serve a certain percentage of Medicaid patients to be licensed?

How Much Does A Psychiatrist Cost? - Electronic Health Reporter

Around here, they charge about 30 times the minimum wage.  BTW, the headline of the above story is misleading -- possibly racist.  One doesn't buy a psychiatrist, but rather his or her (or other pronoun's) time or services. 

The Man They Couldn’t Cancel - Barton Swaim/WSJ

"Mobs have targeted Jordan Peterson, but he hasn’t lost his university job and his publishers have stuck by him. What’s his secret?"

'...what put Mr. Peterson in the crosshairs of North America’s cultural arbiters was his vocal opposition to identity politics, and specifically the totalitarian methods of militant transgenderism. In 2016 he ran afoul of Bill C-16, legislation in the Canadian Parliament (later enacted) that added “gender identity or expression” to the list of prohibited grounds of discrimination. In the course of that controversy Mr. Peterson remarked that he would refuse to use contrived pronouns in his classes. “I regard these made-up pronouns, all of them, as neologisms of a radical PC authoritarianism,” he said in 2016. “I’m not going to be a mouthpiece for language I detest.” '

Yes, this web site, while primarily focusing on economic inequality, has a libertarian streak.  If you don't like it, you have choices.  We don't depend on your money to operate.

Biden testing Democratic appetite for taxing the wealthy with capital gains proposal - Zachary Halaschak/WaExaminer

"Biden wants to pay for his American Families Plan, a $1.8 trillion package focused on childcare and families, by increasing the top individual income tax rate to the pre-2017 level of 39.6% and taxing capital gains for households making more than $1 million as ordinary income...

"The Wharton School at the University of Pennsylvania released a report that predicted that increasing the top statutory rate on capital gains to the level Biden has proposed would decrease tax revenue by $33 billion over the next decade. Though, if the stepped-up basis were eliminated, its model found that the capital gains change would raise $113 billion in revenue. This is because research indicates that when taxes on capital gains increase, realizations of capital gains fall."

Katrina Spade, the co-founder and chief executive of Recompose, monitoring the temperature of a mound of wood chips that contains a human body. Her company offers human composting services in Washington State.

The Departed Could Soon Become Compost in Colorado - ryan Pietsch/NYT

"If the governor signs the bill, Colorado would be the second state to legalize the composting of human remains."

Dear mom and dad: Thanks for helping make the garden flourish. So grateful to you both for your hard work and sacrifices...And for living in a country in which I can inherit your stock portfolio tax free.

Fiddler on the roof - If I were a rich man (with subtitles)

Not rich? Good news: You’re probably getting a tax cut. - Brian Faler/Politico


GOP Sen. Tim Scott accuses Left of attacking 'color of my skin' - Jack Durschlag/Fox News

Graph showing current tobacco use among African American adults—2019: Cigarettes - 14.9% Cigars/Ciagarillos – 4.4% Pipe/Waterpipe/Hookah – 1.1% E-Cigarettes – 3.4% Smokeless Tobacco – 0.5%CDC: Tobacco Use Among African American Adults—2019 

US vows again to ban menthol flavor in cigarettes, cigars -

African Americans and Tobacco Use - CDC

Menthol makes cigarettes easier to smoke and harder to quit - truth initiative

Black market?  Something like 1 out of 8 black adults in the U.S. smokes menthols.  Interesting see how many will quit, switch or substitute. Perhaps a few might complain.

The rich eat, the poor starve and die - Jika/Brazilian Report

Why the COVID-19 outbreak in Brazil has become a humanitarian crisis - Marcia de Castro/Harvard Gazette

"I wish there was a single factor to explain this crisis, but there are many factors behind the outbreak in Brazil, which is a large, unequal, and complex country. There is the issue of inequality, not just income inequality, but local inequalities reflected in unequal access to both health services and ICU beds, and the presence of comorbidities that disproportionately affect people who are more vulnerable. All of that matters because inequalities are a real challenge for any country when it comes to responding to a pandemic.

"However, an important factor was the lack of a unified response at the federal level. Brazil has a universal health system, which operates at the federal, state, and municipal levels. Municipalities are in charge of implementing measures, but they do so by following federal and state guidelines and protocols. But what we saw in this pandemic was a complete rupture of this structure." ...

"Due to the pandemic, Brazil has lost about two years of life expectancy at birth. In the U.S., experts say the loss in life expectancy is about 1.13 years."

Despite universal health coverage, a well-developed public health infrastructure and experience with pandemics, inequality and a shortage of leadership and vaccines has put Brazil behind 8 ball.


Dump truck bed hits highway sign : gifs

The pros — and cons — of President Biden’s historic expansion of government - Washington Post

"Mr. Biden pledged not to raise taxes on anyone making less than $400,000 per year. Meantime, the federal government is running huge deficits, even as new census numbers show that the United States is aging and population growth is slowing, which will strain already expensive federal old-age programs. Climate change, future recessions and other issues may require emergency spending on a scale policymakers cannot anticipate. Though many in Washington have set aside concerns about the debt, the nation is still entering uncharted fiscal territory.

"Mr. Biden can keep his tax pledge or create a strong, sustainable federal safety net. He probably cannot do both."

Options to Pay For the American Jobs Plan - Committee for a Responsible Federal Budget

Here's what's in Biden's $1.8 trillion American Families Plan - CNN

Biden’s Tax Plan Includes Paid Leave and Reducing Child-Care Costs for Parents - Julia Carpenter/WSJ

"The $1.8 trillion American Families Plan could save some families money"

On leave, what would help the working class the most is a guarantee of at least 5 paid sick days per year.  Prediction: Leading with family leave, which is much more expensive, will not result in legislation in this session of Congress.  While the federal government and many large corporations can afford parental leave, most small businesses and many employers of low-wage workers can't.  So look for them to be carved out  of any mandate.  Hope I'm wrong. 

Start with what's needed most: a few paid sick days.

All Workers Should Have A Few Paid Sick Days. The President And Congress Can Make It Happen - Karl Polzer/Health Affairs


May be an image of 1 person

Liberation of the Peon - Diego Rivera (1931)


Virginia’s Minimum Wage Increases to $9.50 per hour on May 1, 2021 - VA Interfaith Center for Public Policy

"Overwhelming Evidence That Schizophrenia is a Heterogeneous Neurological Syndrome" - Henry Nasrallah, MD/Session from Brains on Broadway

Interesting findings and perspective...Hard to put brain disorders in diagnostic and payment buckets.


Businessman draws a statistical trend line

My Worst Forecasting Mistake -

"In the end, the confluence of science, politics, and the indomitable human spirit left my out-of-consensus double-dip call in tatters. It wasn’t my first forecasting mistake, but it is probably the most glaring. Mea culpa is an understatement. Back to the ivory tower."

Hard times for fortune tellers.


Economics of two of the oldest professions:

How Josh Hawley and Marjorie Taylor Greene Juiced Their Fundraising Numbers - /ProPublica

Congress Spends More Time Dialing for Dollars Than on Legislative Work - Stacey Selleck/US Term Limits


"Outside the sex sold legally in Nevada, prostitution in the United States transpires in the shadows of an underground economy. There are no accounting records to trace, no receipts to scrutinize, and no legal records to analyze."


Biden to raise minimum wage for federal contractors to $15 an hour -

Biden to propose capital gains tax increase for Americans earning over $1M -

The Dumbest Tax Increase: Biden’s capital-gains rate of 43.4% would reduce federal revenue. - WSJ

What about these changes?:

  • increase amount of losses that can be deducted.

  • tax asset gains based on a measure that accounts for inflation.

  • first $20K in gains taxed under current law, gains above that at higher levels.

  • Proceeds used to shore up Social Security's finances and help low-income people meet basic needs.

Just sayin' ...

Why Democrats are getting bolder on tax hikes - Christa Case Bryant/Christian Science Monitor
“Generous” Billionaires Are Part of the Problem By  -  Luke Savage/Jacobin

Elite philanthropy in the United States and United Kingdom in the new age of inequalities - Mairi Maclean, Charles Harvey, Ruomei Yang and Frank Mueller/International Journal of Management Reviews

End welfare as we know it — for the upper middle class - Richard Reeves and Christopher Pulliam/WaPost

"The most formidable political class in the United States now is not the oligarchic 1 percent. It is not the struggling middle class. It is not the suffering poor. It is the upper middle class, strong in number, loud of opinion and fiercely determined to protect its interests."

Right on...After years of hunting for the middle class, Brookings reverts to trifocals :)   (Don't forget: 44% are low-wage.)  Watch the how $$$ flow to and from the tiers when the WH rolls out big spending plans this week. ... Extra credit: which think tank recently published the smallest book in academic history?

Break Up the Ivy League Cartel: The Ivy League vs Democracy - Sam Haselby and Matt Stoller

"Harvard, Yale, and the other top schools descended from an elitist Puritan tradition are wrecking the great post-World War II democratization of education..."

"Fundamentally, the anti-monopoly movement to break up large corporations involves restructuring our society so that communities and families have more control over their lives and sovereignty. The regional divide we’re seeing, with a few gilded cities and their educational castles, must be broken to have a free self-governing people. That means making education work not just for an elect, but for everyone."

Harvard has wielded monopoly power for a long time.  In 1640 the legislature of the Massachusetts Bay Colony gave Harvard College permission to run a ferry between Boston and Charlestown. Harvard operated the ferry until 1785 after the commonwealth gave Charles River Bridge Company permission to build a bridge and collect tolls for 40 years. During those 40 years the company would have to pay 200 pounds (or ~$670) to Harvard College annually in order to make up for the profits the college would lose from the ferry. (Wonder if the Charles River Bridge Co. had any Harvard men on its board of directors?)

Massachusetts' later decision to charter another bridge nearby which would eventually be toll-free triggered litigation culminating in the landmark Supreme Court decision denying Charles River Bridge Co.'s claim that the state had wrongly  infringed on its exclusivity to profit from bridge traffic.  The government, it turned out, had the power to diminish the value of private property to facilitate transportation and commerce for the community.  How would the Taney Court view government attempts to regulate information, communication, and trade flowing through networks under the control of Big Tech today?

Howie Carr: What you didn’t read, yet, about the Martha’s Vineyard porn suit/Boston Herald

Blue collar spleen from one of Boston's finest...

"Martha’s Vineyard, of course, is one of the wokest, richest places on earth.

"At least for MV’s summer residents, especially the newer ones, everything is about political correctness, which is why Alan Dershowitz became persona non grata overnight when he foolishly insisted that the Bill of Rights applies to Donald Trump as well as to antifa.

"Judging from her court filings, Ms. Bassett, the plaintiff, remains quite distraught about her home being used in such an underhanded fashion. But what happened to her could have been worse, at least from the standpoint of political correctness.

"I mean, it wasn’t hetero porn, it was gay porn being shot at her house. Isn’t that protected speech now? How can any Social Justice Warrior billionaire hedge funder from New York be offended by gay porn?

"Who hangs out on Martha’s Vineyard? The Obamas, the Clintons, John Forbes Kerry, Carly Simon, Spike Lee, David Letterman, Chris Wallace, Diane Sawyer, etc. Jackie Onassis had a big estate there. It’s where Ted Kennedy drowned Mary Jo Kopechne.

"For decades the Vineyard was represented in Congress by the late Rep. Gerry Studds, who was censured 420-3 by the House for his seduction of a teenaged male page.

"More recently Studds has been named in lawsuits and a report by his former employer (St. Paul’s School, alma mater of John Kerry) as a crotch-grabber who held nude meetings for his all-male prep-school dorm in the 1960s."

Sunday, April 25, 2021

Tribal myth and toil...Songs of innocence and experience.

Canadian railroad trilogy live in concert - Gordon Lightfoot

"A dollar a day and a place for my head
A drink to the livin' a toast to the dead
Oh, the song of the future has been sung
All the battles have been won
On the mountain tops we stand
All the world at our command
We have opened up this soil
With our teardrops and our toil
There was a time in this fair land when the railroad did not run
When the wild majestic mountains stood alone against the sun
Long before the white man and long before the wheel
When the green dark forest was too silent to be real
When the green dark forest was too silent to be real
And many are the dead men
Too silent to be real"

The dark history of "I've Been Working On The Railroad"

"The "someone's in the kitchen with Dinah" section is actually from the 1830's, written in London, and was inserted into the song using yet another tune..."Goodnight Ladies" from 1847.

"So there you have it. Your cute, cuddly "I've Been Working On The Railroad" is actually a racist, pirated, jammed together mess of Americana. In some ways, it kind of makes me love it more. Much like Grimm's fairy tales, if you go back to the original there is always more than meets the eye."

Dinah - Wikipedia

Who was she anyway? ... When does retributive justice cross the line into re-distributive murder and stealing?  Who is your neighbor?


What to know about the India c-virus variant causing worries - David Hogberg/WashExaminer
Covid: 'Israel may be reaching herd immunity' - Rachel Schraer/BBC News

What came after the Spanish flu (which was a lot more deadly)?  Hint: Roaring 20s.

With most adults now vaccinated, Israelis are busting loose - Steve Hendrix and Shira Rubin/WaPost

"Health officials are quick to note that the pandemic is not over. Infections continue to rage in countries around the world and next door in the Palestinian territories of the West Bank and the Gaza Strip. Variants of the virus, some of which may be more resistant to vaccines, require strict surveillance."


May be an image of 1 person and text that says '"I find it revealing when people mock where came from, saying they' going to 'send me back to waitressing, as if that is bad or shameful. It' as though they think being a member of Congress makes you intrinsically "better" than a waitress. But our job is to serve, not rule." -Alexandria Ocasio-Cortez'

Alexandria Ocasio-Cortez: Being a waitress is as good as being lawmaker - Nikki Schwab/NY Post

What a new report gets wrong about economic inequality - Scott Winship/AEI

"The latest from American Compass uses less than ideal data and overstates the increase in inequality, among other problems."

As their political counterparts court the working class, Conservative scholars hone their analytic skills in slicing the inequality salami...Just how many low-paid workers can one put on the head of a pin? ... And, BTW, how many does it take to make one?

Fair Share: How Wealth Tax and Progressive Taxation Can Create Equity - Roosevelt Institute

Sen. Warren and think tank allies make their case for greater wealth taxation at the very top.  That's only half the equation.  How much of the revenue generated would go to people at the bottom and how much recycled to elites in the professional class and special interests?

It's hard for the government to separate money from the wealthiest and most powerful. Watch where it goes.

HOW TO MEASURE AND VALUE WEALTH FOR A FEDERAL WEALTH TAX REFORM - David Gamage, Ari Glogower and Kitty Richards/Roosevelt Institute

Angus Deaton on the Under-Discussed Driver of Inequality in America: “It’s Easier for Rent-Seekers to Affect Policy Here Than In Much of Europe” - Asher Schechter/Promarket


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.

CBO report shows growing divergence of wealth between those at the top and bottom

The distribution of wealth among the nation’s families was more unequal in 2013 than it had been in 1989, according a Congressional Budget Office report released August 2016. "For instance, the difference in wealth held by families at the 90th percentile and the wealth of those in the middle widened from $532,000 to $861,000 over the period (in 2013 dollars). The share of wealth held by families in the top 10 percent of the wealth distribution increased from 67 percent to 76 percent, whereas the share of wealth held by families in the bottom half of the distribution declined from 3 percent to 1 percent."

In 2013, CBO reported that families in the top 10 percent of the wealth distribution held 76 percent of all family wealth, families in the 51st to the 90th percentiles held 23 percent, and those in the bottom half of the distribution held 1 percent. Average wealth was about $4 million for families in the top 10 percent of the wealth distribution, $316,000 for families in the 51st to 90th percentiles, and $36,000 for families in the 26th to 50th percentiles. On average, families at or below the 25th percentile were $13,000 in debt.

Over the period from 1989 through 2013, family wealth grew at significantly different rates for different segments of the U.S. population. In 2013, for example: The wealth of families at the 90th percentile of the distribution was 54 percent greater than the wealth at the 90th percentile in 1989, after adjusting for changes in prices. The wealth of those at the median was 4 percent greater than the wealth of their counterparts in 1989. The wealth of families at the 25th percentile was 6 percent less than that of their counterparts in 1989.

While average wealth of the bottom quarter of the distribution dropped steeply over this time period, its amount of indebtedness grew significantly.


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


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

Anchored Boats (1919) by Jonas Lie

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.

Milanovic previews 'Capitalism, alone'

Policy ideas:

  • "Improved quality of education and much easier access to education for all—that is, investing for stronger public education rather than the opposite trend of ever stronger private education.
  • "Deconcentraton of ownership and income from capital through the use of tax incentives, a long and arduous process.
  • "Employee stock ownership plans.
  • "Higher taxation of inheritance (not current income).
  • "Change in the rules re. financing of political campaigns (especially in the United States)."
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.

updated Dec. 14, 2016

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.

Federal Reserve researchers probe economic inequality, policies that could spread U.S. income gains

The increase in U.S. income inequality since 1970 has generated large welfare gains for households in the top 20% of the income distribution and significant welfare losses for those in the bottom 80%, according an analysis published by the Federal Reserve Bank of San Francisco.  The modeling found that some of the impact of this upward income shift was mitigated by "the dramatic rise in government redistributive transfers, which have doubled as a share of U.S. output over the same period."

The analysis concludes:  "Alternative simulations imply that a relatively modest boost in the historical growth rate of government redistributive transfers, accompanied by modestly higher average tax rates, could have achieved small but equal welfare gains for all households. Overall, our results suggest that there is room for policy actions that could offset the negative consequences of rising income inequality."

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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