Inequality Is About Access to Public Goods, Not Income. Image: Jonathan Haeber Fixing inequality is about more than addressing the income gap.
Corporations in the Age of Inequality. Latest Digital Article The future of capitalism depends on fixing it.
Was the Rise of Neoliberalism the Root Cause of Extreme Inequality? Complexity Economics Shows Us Why Laissez-Faire Economics Always Fails. By Eric Liu and Nick Hanauer During 2007 and 2008, giant financial institutions were obliterated, the net worth of most Americans collapsed, and most of the world’s economies were brought to their knees.
At the same time, this has been an era of radical economic inequality, at levels not seen since 1929. Over the last three decades, an unprecedented consolidation and concentration of earning power and wealth has made the top 1 percent of Americans immensely richer while middleclass Americans have been increasingly impoverished. Get Evonomics in your inbox To most Americans and certainly most economists and policymakers, these two phenomena seem unrelated. How Markets Magnify the Role of Luck and Create the Illusion of Meritocracy. By Robert H.
Frank Why do hardworking people with similar talents and training often earn such dramatically different incomes? And why, too, have these earnings gaps grown so much larger in recent decades? Almost no other questions have proved more enduringly fascinating to economists. The traditional approach to these questions views labor markets as perfectly competitive meritocracies in which people are paid in accordance with the value of what they produce. Don’t Tell Your Friends They’re Lucky. Cornell professor of economics Robert Frank says he’s alive today because of “pure dumb luck.”
In 2007, he collapsed on a tennis court, struck down by what was later diagnosed as a case of sudden cardiac death, something only 2 percent of victims survive. Frank survived because, even though the nearest hospital was 5 miles away, an ambulance just happened to be responding to another call a few hundred yards away at the time. Since the other call wasn’t as serious, the ambulance was able to change course and save Frank.
Paddles were put on him in record time. Inequality and Skin in the Game – INCERTO – Medium. In this chapter I will propose that effectively what people resent –or should resent –is the person at the top who has no skin in the game, that is, because he doesn’t bear his allotted risk, is immune to the possibility of falling from his pedestal, exiting the income or wealth bracket, and getting to the soup kitchen.
Again, on that account, the detractors of Donald Trump, when he was a candidate, failed to realize that, by advertising his episode of bankruptcy and his personal losses of close to a billion dollars, they removed the resentment (the second type of inequality) one may have towards him. There is something respectable in losing a billion dollars, provided it is your own money. Extreme Inequality Is Not Driven by Merit, but by Rent-Seeking and Luck.
By Didier Jacobs and Sam Pizzigati Defenders of our deeply unequal global economic order had to put in a bit of overtime last month.
They had to explain away the latest evidence — from the global charity Oxfam — on how concentrated our world’s wealth has become. Joseph Stiglitz Says Standard Economics Is Wrong. Inequality and Unearned Income Kills the Economy. By Joseph Stiglitz In the middle of the twentieth century, it came to be believed that ‘a rising tide lifts all boats’: economic growth would bring increasing wealth and higher living standards to all sections of society.
Nobel Prize Economist Says American Inequality Didn’t Just Happen. It Was Created. By Joseph E.
Stiglitz American inequality didn’t just happen. It was created. Market forces played a role, but it was not market forces alone. In a sense, that should be obvious: economic laws are universal, but our growing inequality— especially the amounts seized by the upper 1 percent—is a distinctly American “achievement.” America’s current level of inequality is unusual. Inequality: Capital in the long run.
Henry Ford, When Capitalists Cared. IN the rancorous debate over how to get the sluggish economy moving, we have forgotten the wisdom of Henry Ford.
In 1914, not long after the Ford Motor Company came out with the Model T, Ford made the startling announcement that he would pay his workers the unheard-of wage of $5 a day. Not only was it a matter of social justice, Ford wrote, but paying high wages was also smart business. When wages are low, uncertainty dogs the marketplace and growth is weak.
But when pay is high and steady, Ford asserted, business is more secure because workers earn enough to become good customers. They can afford to buy Model Ts. This is not to suggest that Ford single-handedly created the American middle class. Riding the dynamics of the virtuous circle, America enjoyed its best period of sustained growth in the decades after , from 1945 to 1973, even though income tax rates were far higher than today. Profits At High, Wages At Low. Nick Hanauer. Our Gardenbrain Economy. WE are prisoners of the metaphors we use, even when they are wildly misleading. Consider how political candidates talk about the economy. Last month President Obama praised immigrants as “the greatest economic engine the world has ever known.”
Mitt Romney says that extending the will “fuel” a recovery. Others fear a “stall” in job growth. The Ignorance of Nick Hanauer's TED Speech. The Income-Inequality Myth. As we listen to President Obama, Occupy Wall Street, and much of the mainstream media working themselves into a lather over inequality in America, one thinks of Harrison Bergeron, the 1961 short story by Kurt Vonnegut that posited a society based on perfect equality, “not only equal before God and the law … equal every which way.” The government employed a “Handicapper General” to ensure that no one was smarter, more athletic, or more productive than anyone else. Beautiful people were forced to wear masks, athletic people had to carry weights, and intelligent people wore radios in their ears to interrupt their thoughts with loud noises.
Yet for all the sound and fury — and beating drums in Zuccotti Park — almost everything that people presume about inequality in America is wrong. Index.pdf (application/pdf Object) We Are The One Percent. David Graeber: “Spotlight on the financial sector did make apparent just how bizarrely skewed our economy is in terms of who gets rewarded” An Investment Manager's View. Beyond the charts and warnings from economists and investors, perhaps the most disturbing commentary on income inequality in America was written by an investment manager in 2011. "In my view, the American dream of striking it rich is merely a well-marketed fantasy that keeps the bottom 99.5% hoping for better and prevents social and political instability," the manager wrote in an email to Professor G. William Domhoff of the University of California at Santa Cruz. Swimming in Money. In the week since eastern Ukraine's pro-Russian separatists withdrew from Slavyansk on July 5, ceding control of their de facto capital to Ukrainian armed forces, their allies in Russia have begun to turn on them.
The rebels repaired to Donetsk, some 70 miles to the south, where they burrowed into the civilian infrastructure and, more or less, vowed to use residents as human shields against a feared Ukrainian invasion. "Who lost Slavyansk? " has become the question on the lips of every proponent of the revanchist project to establish and expand "Novorossiya," the once Russian-conquered lands of the Black Sea region, of which east and southeast Ukraine are crucial constituents. Accusations of betrayal and cowardice leveled against the separatists have been met by counter-accusations that Russian President Vladimir Putin egged on a movement he did not sufficiently support militarily and now seeks to abandon.
Just Deserts? Do the 1 Percent Deserve their Wealth? 6 Things Rich People Need to Stop Saying. Two bombshell documents that Citigroup's lawyers try to suppress, describing in detail the rule of the first 1% Untitled. Leaked Citibank Memo The Plutonomy Symposium Rising Tides Lifting Yachts. INEQUALITY FOR ALL - Clip. Michael Moore - Capitalism: A Love Story. A Threat to American Democracy. Bill Moyers Essay: The United States of Inequality. Joseph Stiglitz: No, Spiraling Inequality Isn't Inevitable. Economist Joseph E. Stiglitz. (Screen grab via Vimeo) As levels of inequality increased in wealthy countries over the past 30 years — especially in the US — some economists argued that it was a subject their discipline shouldn’t worry about. Why Inequality Matters and What Can Be Done About It. (Image: Unbalanced scales via Shutterstock)Roosevelt Institute Senior Fellow and Chief Economist Joseph Stiglitz will speak before the Senate Budget Committee today on the topic of "Opportunity, Mobility, and Inequality in Today's Economy.
" His prepared remarks are below. Inequality and the Modern Culture of Celebrity. The WhatsApp Deal Is Everything Wrong With The US Economy. If you ever wonder what’s fueling America’s staggering inequality, ponder Facebook’s acquisition of the mobile messaging company WhatsApp . According to news reports today, Facebook has agreed to buy WhatsApp for $19 billion.
That’s the highest price paid for a startup in history. It’s $3 billion more than Facebook raised when it was first listed, and more than twice what Microsoft paid for Skype. 'The Cuckoo's Calling' Reveals A Lot About Publishing.