As making the rounds of late, a devastating graph of rising income inequality in America, “post-trickle-down”. “This isn’t a totally new story. But it is a vivid and visceral illustration of what we’ve basically known to be true for a while.”
Along the same lines, Mother Jones is posting a new chart on income inequality every day this week. “In the past few years, we’ve heard a lot about overtaxed ‘job creators’ and freeloading ‘takers.’ But consider this: As the income rates for the wealthiest have plunged, their incomes have shot up.”
If it’s any consolation, presumptive 45th president Hillary Clinton has recently “talked to friends and donors in business about how to tackle income inequality without alienating businesses or castigating the wealthy.” Er…sorry, that’s not going to get it done.
A day before the big show, Joshua Keating’s consistently funny If It Happened There column at Slate looked at the State of the Union. “Members of the opposition typically do not applaud, though they occasionally join in with approval of paeans to the nation’s powerful military, the leaders of which typically sit stone-faced in front of the gallery.”
Which, of course, is exactly what happened. There are innumerable things Congress could be doing right now to create jobs, spur opportunity, expand the frontiers of knowledge, and generally make life better for families in America. Some of them — raising the minimum wage, ensuring equal pay for women, investing in infrastructure and early childhood education, admitting climate change is happening and proceeding accordingly — were even mentioned in Obama’s remarks, not that we can expect much in Year Six of this presidency (and an election year to boot.)
But with all due respect to Sgt. Remsburg’s sacrifice, when the only thing all of our nation’s legislators can get effusive about is venerating Americans wounded in battle, the republic is in a bad way indeed. As James Fallows put it: “[W]hile that moment reflected limitless credit on Sgt. Remsburg…I don’t think the sustained ovation reflected well on the America of 2014…the spectacle should make most Americans uneasy.” That it should – The last refuge of scoundrels and all that.
ICYMI, If It Happened There has aptly covered the Superbowl also. “The ethics of such an event can be hard for outsiders to understand. Fans, who regularly watch players being carted off the field with crippling injuries, are unbothered by reports of the game’s lasting medical impact on its players. Nevertheless, fans and the national media can become extremely indignant if players are excessively boastful at the game’s conclusion.”
Speaking of the handegg finals — as usual, also not lacking for tawdry paeans to militarism — congrats to the Seahawks on a convincing Superbowl XLVIII win. As I said on Twitter, I had no real dog in this fight – I was just happy to see the two states with sane marijuana laws karmically rewarded for their forward thinking.
Karl Marx? Try Goldman Sachs. Their chief economist, Jan Hatzius, recently argued that “strength (in profits) is directly related to the weakness in hourly wages“. In fact, 2012 saw the highest corporate profits and lowest wages and salaries ever recorded, as a percentage of GDP. But, please, let’s hear more whining and ridiculously overheated Holocaust metaphors from the top 0.1%.
After four years of inaction, CEPR examines the costs of a stagnant minimum wage. Conversely, raising the minimum to $10.10 an hour — as supported by 80% of Americans — would create an estimated 300,000 jobs and add $33 billion to the economy. So you’d think Congress would get on that, yes? Umm…
In very related news, a new AP poll finds that, as a result of stagnant wages, income inequality, and a deteriorating job market, fully 80% of Americans experience poverty, unemployment, and deprivation at some point in their lives. “By 2030, based on the current trend of widening income inequality, close to 85 percent of all working-age adults in the U.S. will experience bouts of economic insecurity.” The American Dream, now with Vegas casino odds.
In very related news, the Dow reaches a new high — 14,164 — even as household income hits a decade low. “As a percentage of national income, corporate profits stood at 14.2 percent in the third quarter of 2012, the largest share at any time since 1950, while the portion of income that went to employees was 61.7 percent, near its lowest point since 1966.”
“Mr. Sinegal, whose father was a coal miner and steelworker, gave a simple explanation. ‘On Wall Street, they’re in the business of making money between now and next Thursday,’ he said. ‘I don’t say that with any bitterness, but we can’t take that view. We want to build a company that will still be here 50 and 60 years from now.’“
This article is seven years old now, so I don’t know if their admirable corporate policies have survived the Great Recession. (Update: Apparently, they have.) Nonetheless, from 2005 and as seen floating around on Facebook of late, the NYT’s Steve Greenhouse explains how CostCo became the anti-Wal-Mart. “[N]ot everyone is happy with Costco’s business strategy. Some Wall Street analysts assert that Mr. Sinegal is overly generous not only to Costco’s customers but to its workers as well. Costco’s average pay, for example, is $17 an hour, 42 percent higher than its fiercest rival, Sam’s Club.” Oh, yeah, let’s nip that in the bud, then. Assholes.
A brand-spankin’ new CBO report concludes what we all already know: Income inequality has surged since 1981, and government, post-Reagan, has consistently failed to address the problem. “‘The equalizing effect of federal taxes was smaller’ in 2007 than in 1979, as ‘the composition of federal revenues shifted away from progressive income taxes to less-progressive payroll taxes,’ the budget office said.” But, hey, let’s sweat that deficit.