Two points with regards to things I've heard Rep. Paul Ryan say in recent days.
First, he's downplayed the increase in income inequality that's gotten a lot of play out of the new CBO study. His claim is that there's enough mobility in the American economy to offset any increase in inequality.
I examine that claim in some detail here but to summarize, imagine the income scale as a hotel with floors that improve as you go up. The basement is funky; the penthouse, sublime. Rep. Ryan's argument is that sure, the distance between the floors may have grown -- with increased dispersion of incomes, there's a greater economic distance between the top and the bottom -- but the rate at which people move between floors has accelerated.
Except for it hasn't. There is no evidence that the rate of mobility has increased -- there's some evidence that it's slowed (though other evidence shows no change). In fact, according to mobility data covering a few decades, relative to their cohort (families in the same age range), most families end up close to where they started in the income scale, i.e., either in the income fifth in which they started or in the one either above it or below it (see tables 1-2 here).
Second, in a radio interview this AM I heard Rep. Ryan claim that the Republicans on the deficit reduction super-committee were in fact putting revenues on the table. That surprised me since I'd thought they'd pledged to stonewall on that point.
Well, according to this report most of what they're calling revenues are not what the Democrats, including the president, are thinking about -- we're not exactly talking shared sacrifice here:
"...about $440 billion appears to be generated instead by increased government fees, high patient co-pays under Medicare, for example, or increased Part B premiums charged to higher income beneficiaries -- many changes that Democrats also accept but feel do not address the larger tax issue.
On the tax side, changes in the CPI would again yield some revenue, but the greater share of the tax revenue here -- about $200 billion -- is attributed to the impact of future tax reform spurring economic growth."
This kind of spinning is precisely what makes people throw up their hands in disgust re American politics. It's a main reason way Rep. Ryan's institution -- the Congress -- has a 9% approval rating. And remember, if you're all about less government, regressive tax cuts, unleashed corporate power, less regulation, more privatization, YOYO economics (you're on your own), you want people to tune out.
So I say let's piss them off and tune in!
This post originally appeared at Jared Bernstein's On The Economy blog.
Dean Baker: Supercommittee of the One Percent Won't Even Think of Taxing Wall Street
"Citigroup had to pay a $285 million fine to settle a case in which, with one hand, Citibank sold a package of toxic mortgage-backed securities to unsuspecting customers — securities that it knew were likely to go bust — and, with the other hand, shorted the same securities — thatis, bet millions of dollars that they would go bust
Our Congress today is a forum for legalized bribery. One consumer group using information from Opensecrets.org calculates that the financial services industry,including real estate,spent $2.3 billion on federal campaign contributions from 1990to2010,which was more than the health care, energy,defense,agriculture and transportation industries combined. Why are there 61 members on the House Committee on Financial Services?So many congressmen want to be in a position to sell votes to WallStreet
Capitalism&free markets are the best engines for generating growth and relieving poverty — provided they are balanced with meaningful transparency, regulation and oversight. We lost that balance in the last decade. If we don’t get it back — and there's now a tidal wave of money resisting that — we will have another crisis.And, if that happens, the cry for justice could turn ugly.Free advice to the financial services industry: Stick to being bulls. Stop being pigs."
http://www.nytimes.com/2011/10/30/opinion/sunday/friedman-did-you-hear-the-one-about-the-bankers.html?src=me&ref=general
They are neither today. They are predators.
Recession and joblessness are golden opportunities for economists and sociologists to re-set society; whose priorities are mis-aligned at national, community, corporate and individual levels.
At national level, military expenditures over four decades made us no more secure. Some may classify this as wasted financial and human resources.
In communities, well-meaning activities are wasted resources; like $2 trillion on healthcare. Yet >50% is spent treating preventable illnesses and end-of-life care.
At corporate level, Wall Street enriches those who work there and related sectors; without making economy more efficient. There is much hype and spin.
At individual level, generation ago, one was rich with $80,000 annual income (single earner). Today that's just above poverty line. Due to divorce, 50% families live in two homes. Others have large homes (compared to our parents), yet, there's no room for elderly parents or indigent relatives.
Added expense to stressful lifestyle, includes frequent eating-out with alcohol and other entertainments. This expands the economy, creates jobs but not new wealth; merely circulating existing financial resources. Such behavior makes families poorer, relying on government for catastrophes.
Spending money we don't have, creating jobs we don't need is current mantra. There are many ways to create needed jobs. Many, like healthcare or IT jobs, don't necessarily involve federal or state spending.
Having a difficult time paying bills?
Reconcile with the (divorced) spouse
Move in with parents or vice-versa
Eat at home more often.
Reduce those entertainment costs
Poor in America live better than the middle-class in most of the world
NY spends about $15,000 per student (most in the country) and its students are 48th in the country. And your solution is more teachers?
During the health care debate I was talking to a person totally opposed to any reform. He asked a simple question. Why do health care reform when we needed jobs. My answer was simple. Because people are dying. And we need jobs too. He had no answer. How could he be infavor of people dying needlessly?
I'm not a Christian but as I remember Jesus expelled the money changers from the Temple. He cared for the sick. He helped and loved everyone regardless of social position. That sounds like a good philosophy to emulate to me. If it was good enough for Jesus why isn't it good enough for the so called Christian right.
http://wonkette.com/403920/jesus-people-pray-that-false-idol-will-save-gods-economy
Well, he is somebody. A 'nobody' from Janesville.
Great, have to remember.