Showing posts with label Inequality. Show all posts
Showing posts with label Inequality. Show all posts

Wednesday, October 28, 2020

Wednesday, August 12, 2015

A Call To The Private Sector On Inequality

Peter Georgescu has become another member of the one percent to call for action on the inequality in our country. This time, however, he's going directly to the private sector.

Who will be courageous enough to start the ball rolling? The most obvious choice is our government. But the current Congress has been paralyzed.

Paralyzed by ideological intransigence...

Gerogescu lays out the future quite nicely.

If inequality is not addressed, the income gap will most likely be resolved in one of two ways: by major social unrest or through oppressive taxes, such as the 80 percent tax rate on income over $500,000 suggested by Thomas Piketty, the French economist and author of the bestselling book “Capital in the Twenty-First Century.”

I've said the the same thing many times on this site.

So what are the action items that the private sector can pursue?

First, invest in the actual value creators — the employees. Start compensating fairly, by which I mean a wage that enables employees to share amply in productivity increases and creative innovations.

Second, businesses must invest aggressively in their own operations, directing profit into productivity and innovation to boost real business performance. Today, too many corporations reduce investment in research and development and brand building. As a result, we see a general decline in the value of their brands and other assets. To make up for those declines and for anemic revenue, businesses buy back their stock (now at record levels), and thus artificially boost earnings per share.


Will they do it?

Saturday, January 10, 2015

The Girl Effect

If there was one clear reason why there is inequality in the world, it's this.

This would be exactly why globalization isn't the evil demon that some on the left make it out to be.

Tuesday, May 20, 2014

A Global Model For Equity

Conservatives in this country live inside of a bubble but we, as Americans, live inside one as well. I lived in Europe for a year and it honestly help me break out of the United States bubble. We have far too many notions in this country (way too many dictated by the Right) that simply aren't true. For example, democratic socialism is viewed largely with disdain. Certainly, I have my problems with it but it's not communism/Marxism/boiling pit of sewage as we are nauseatingly warned day after day by the right wing bubble.

This myth is more or less destroyed by this recent piece in the Christian Science Monitor. Let's start off with this graphic.

What kind of a life does this mean for Iceland, Norway, Denmark, Finland and Sweden?

They get comprehensive pensions, unemployment insurance, and universal health care. Losing a job, while professionally defeating, doesn’t turn into financial demise. Nor does a long-term illness. The welfare state means free university education and heavily subsidized all-day preschools. Public spending on day care and early education in the Nordic countries averages 1.4 percent of gross domestic product; it is less than 0.4 percent in the US, for example. The result is a robust middle class. All five Nordic nations rank in the top 10 most equal countries globally, according to the OECD. (The US, by comparison, sits at 31, just above Turkey and Mexico.) 

How does this happen? 

The earned income tax burden for a family of four with a single wage earner in Sweden is close to 38 percent, according to the Organization for Economic Cooperation and Development (OECD), compared with the United States at 20.3 percent (and 38 percent in Finland, 31 percent in Norway, and 28 percent in Denmark). 

So, higher taxes and everyone benefits. But does this mean that the wealthy are soaked?

There are, of course, variations in incomes in Sweden, and there is the opportunity to become wealthy – for example, Stefan Persson, chairman of H&M, is listed by Forbes as the 16th richest person in the world. A doctor might earn twice as much as a teacher and pay more taxes, but is ultimately wealthier than the teacher.

Nope. Are corporations flourishing?

All the creative output flourishing here tests assumptions about the ability of capitalism to thrive under big government. Sweden, Norway, Denmark, Finland, and Iceland, with a collective 26 million inhabitants, don’t just produce successful companies. They have a creative capacity that transcends language and cultural barriers to fascinate, humor, and entertain global markets. Think Ylvis, the Norwegian comedy duo and their viral YouTube hit “What Does the Fox Say?” Or “Nordic Noir” crime fiction like Denmark’s TV series “The Killing,” and the Swedish Stieg Larsson book and movie franchise that started with “The Girl with the Dragon Tattoo.” Or Icelandic singer-songwriter Bj√∂rk. 

And these countries have pioneered public policies, the effects of which – if not the tax burden – are the envy of the common man worldwide: from universal preschool and paternity leave to vocational training schools and voucher programs for private schools. 


In looking at this article, I have to wonder what all hysteria is about in this country when we talk about "big" government. Why can't this work here? The answers to this question seem to be rooted in fear of the unknown and that timeless fault of purely selfish greed. There is a prevailing sense in this country that's what mine is mine and fuck you if you try to take the fruits of my hard earned labors. Setting aside the idea that they are even hard earned in the first place, what kind of a country do these people want to live in? One with gated communities where the most successful businesses are either dollar stores or luxury good suppliers? Or one as described in this piece?

The first step we need to take is to torpedo the idea that governmental structures that we see in Nordic countries could never work here. Why? It pisses me off that we're getting our ass kicked in the quality of life department by the likes of Sweden, Iceland, and Finland. We can do much, much better.  Of course, getting past this step requires that we stop listening to the right and deprogram the willful ignorants inside of the cult bubble.

This is the raison d'etre of this site. 

Saturday, May 17, 2014

Minimum Wage=$25 An Hour?

Is Switzerland poised to have a minimum wage of $25  an hour? It will be interesting to find out. If they do, we could finally see exactly how much of an effect raising the minimum wage would have on unemployment and inflation. Could the effect turn out to be negligible because wage increases lead to a rise in aggregate demand that exceeds layoffs? Thus negating any layoffs and/or inflation?

Regardless, the article notes how much of an effect discussions of raising the minimum wage are having.

Supporters have something to show whether it passes or not: Some large companies such as clothing retailer H&M and supermarket chain Lidl have already agreed to raise their wages to the proposed minimum.

The same thing is happening here and will likely increase as the wealthy of the United States are realizing just how much of a destabilizing effect inequality has on our country.

Friday, February 21, 2014

The Gap Closes The Gap

It looks like retail clothing firm The Gap has joined Costco and other businesses in economic intelligence. people more money...they spend more money in the economy...businesses hire more people and earn more profit...weird how that works:)

Sunday, February 16, 2014

Saturday, February 15, 2014

Friday, February 14, 2014

Thursday, February 13, 2014

Wednesday, February 12, 2014

Tuesday, February 11, 2014

Monday, February 10, 2014

Sunday, February 09, 2014

Saturday, February 08, 2014

Friday, February 07, 2014