Richer and Poorer: Accounting for inequality

“Chelsea and her family live in a large white home with a wide porch overlooking the lake,” Putnam writes, introducing another of his younger characters. Chelsea was the president of her high school’s student body and editor of the yearbook. Her mother, Wendy, works part time; her father, Dick, is a businessman. In the basement of their house, Wendy and Dick had a “1950s-style diner” built so that Chelsea and her brother would have a place to hang out with their friends. When Chelsea’s brother got a bad grade in school, Wendy went all the way to the school board to get it changed. Chelsea and her brother are now in college. Wendy does not appear to believe in welfare. “You have to work if you want to get rich,” she says. “If my kids are going to be successful, I don’t think they should have to pay other people who are sitting around doing nothing for their success.”

.. In American politics, Democrats are more likely to talk about both kinds of inequality, while Republicans tend to confine their concern to inequality of opportunity. According to Putnam, “All sides in this debate agree on one thing, however: as income inequality expands, kids from more privileged backgrounds start and probably finish further and further ahead of their less privileged peers, even if the rate of socioeconomic mobility is unchanged.”

.. “Quantification is a technology of distance,” as the historian of science Theodore Porter has pointed out. “Reliance on numbers and quantitative manipulation minimizes the need for intimate knowledge and personal trust.” It’s difficult to understand something like income inequality across large populations and to communicate your understanding of it across vast distances without counting. But quantification’s lack of intimacy is also its weakness; it represents not only a gain but also a loss of knowledge.

.. Fraser argues that while Progressive Era muckrakers ended the first Gilded Age by drawing on an age-old tradition of dissent to criticize prevailing economic, social, and political arrangements, today’s left doesn’t engage in dissent; it engages in consent, urging solutions that align with neoliberalism, technological determinism, and global capitalism: “Environmental despoiling arouses righteous eating; cultural decay inspires charter schools; rebellion against work becomes work as a form of rebellion; old-form anticlericalism morphs into the piety of the secular; the break with convention ends up as the politics of style; the cri de coeur against alienation surrenders to the triumph of the solitary; the marriage of political and cultural radicalism ends in divorce.” Why not blame the financial industry? Why not blame the Congress that deregulated it? Why not blame the system itself? Because, Fraser argues, the left has been cowed into silence on the main subject at hand: “What we could not do, what was not even speakable, was to tamper with the basic institutions of financial capitalism.”

.. paraphrases Stephen Hawking: “Every equation halves the number of readers.”

.. Above all, he disagrees with the widespread assumption that technological progress and globalization are responsible for growing inequality. That assumption, he argues, is wrong and also dangerous, because it encourages the belief that growing inequality is inevitable.

.. Then they counted the number of veto players in each of those twenty-three governments. (A veto player is a person or body that can block a policy decision. Stepan and Linz explain, “For example, in the United States, the Senate and the House of Representatives are veto players because without their consent, no bill can become a law.”) More than half of the twenty-three countries Stepan and Linz studied have only one veto player; most of these countries have unicameral parliaments. A few countries have two veto players; Switzerland and Australia have three. Only the United States has four.

.. the United States had the highest score: it has the most malapportioned and the least representative upper house. These scores, too, correlated with the countries’ Gini scores for income inequality: the less representative the upper body of a national legislature, the greater the gap between the rich and the poor.

 

Brooks: Inequality: Power vs Education

The redistributionists seem to believe that modern capitalism is fundamentally broken. That growth has permanently stagnated. That productivity should no longer be the focus because it doesn’t lead to shared prosperity.

But their view is biased by temporary evidence from the recession. Right now, jobs are being created, wages are showing signs of life. Those who get more skills earn more money. Today’s economy has challenges, but the traditional rules still apply. Increasing worker productivity is the key. Increasing incentives to risk and invest is essential. Shifting people into low-productivity government jobs is not the answer.