Government and Income Inequality

cawacko

Well-known member
The article speaks about the desires of the public vs. the supposive (sp) policies that would lower inequality.



Why government probably can't close the rich-poor gap


President Barack Obama's recent comments about income inequality are providing more fuel to the debate over whether the government can really do anything to reduce it, but perhaps the bigger question is: Do voters really want them to?

"I think the president can stop it," Obama said Sunday on ABC's "This Week," when asked about the top 1 percent capturing most of the country's income gains. The problem, he said, is "you've got a portion of Congress whose policies … just want to, you know, leave things alone, they actually want to accelerate these trends."

It's easy to blame the other party for deeper economic problems, of course. But the president's comments are on the minds of economists and policymakers


Many argue inequality is an unavoidable byproduct of growth—a function of investors and entrepreneurs benefiting from successful demand for their products and value creation in financial markets. Inequality rose quickly during economic expansions (1980s and 1990s) and declined during the most recent recession. In other words, the wealthy gain more during good times and lose more during bad times.

But recent data suggest that the recovery has so far favored the rich, largely because of the run-up in stocks. New data from Emmanuel Saez at the University of California Berkeley found that the top 1 percent captured 95 percent of the gains during the recovery.

A report from The Associated Press on Monday finds that unemployment remains much higher for the middle and lower class than in higher-income groups.

(Read more: For the truly wealthy, it's not about big salaries)

In a paper titled "Why Hasn't Democracy Slowed Rising Inequality?," four political scientists asked why voters haven't forced politicians to close the gap between the rich and the rest. Adam Bonica of Stanford, Nolan McCarty of Princeton, Keith T. Poole of the University of Georgia and Howard Rosenthal of New York University cited several reasons.

First, they said, both parties have embraced free-market capitalism, which they say benefits those at the top. Second, they said, changes in immigration and voter turnout mean the voting population is now skewed toward the wealthy.

They said rising overall wealth in the country has made part of the population less reliant on government. The rich have also used their resources to "influence electoral, legislative and regulatory processes," and the political process is now distorted by gerrymandering.

The authors assume that most Americans see inequality as a leading problem. But they may not—and they may not understand the statistical extent of the problem.

A 2012 survey from GlobeScan found that 58 percent of Americans agreed with the statement that "the rich deserve their wealth." That's actually higher than it was in 2008, before the economic crisis, Wall Street bailouts and the Occupy movement.

An earlier Gallup poll found that the number of Americans who want inequality to be "fixed" has declined since 1998. In 1998, 52 percent of Americans wanted the gap between rich and poor to be fixed. Today 48 percent say so.

A majority of Americans said that inequality is "an acceptable part of our economic system," a number that has also increased since the late 1990s.

What's more, Americans dramatically understate their perceived level of inequality. When asked about the share of wealth held by the top 20 percent, most Americans were way off (they said 59 percent, it's closer to 85 percent).

So yes, government could do more to offset inequality. But voters—whether out of poor understanding or personal aspiration—don't seem to be pressing the issue as much as the president would imply.


http://www.cnbc.com/id/101037295
 
The article speaks about the desires of the public vs. the supposive (sp) policies that would lower inequality.



Why government probably can't close the rich-poor gap


President Barack Obama's recent comments about income inequality are providing more fuel to the debate over whether the government can really do anything to reduce it, but perhaps the bigger question is: Do voters really want them to?

"I think the president can stop it," Obama said Sunday on ABC's "This Week," when asked about the top 1 percent capturing most of the country's income gains. The problem, he said, is "you've got a portion of Congress whose policies … just want to, you know, leave things alone, they actually want to accelerate these trends."

It's easy to blame the other party for deeper economic problems, of course. But the president's comments are on the minds of economists and policymakers


Many argue inequality is an unavoidable byproduct of growth—a function of investors and entrepreneurs benefiting from successful demand for their products and value creation in financial markets. Inequality rose quickly during economic expansions (1980s and 1990s) and declined during the most recent recession. In other words, the wealthy gain more during good times and lose more during bad times.

But recent data suggest that the recovery has so far favored the rich, largely because of the run-up in stocks. New data from Emmanuel Saez at the University of California Berkeley found that the top 1 percent captured 95 percent of the gains during the recovery.

A report from The Associated Press on Monday finds that unemployment remains much higher for the middle and lower class than in higher-income groups.

(Read more: For the truly wealthy, it's not about big salaries)

In a paper titled "Why Hasn't Democracy Slowed Rising Inequality?," four political scientists asked why voters haven't forced politicians to close the gap between the rich and the rest. Adam Bonica of Stanford, Nolan McCarty of Princeton, Keith T. Poole of the University of Georgia and Howard Rosenthal of New York University cited several reasons.

First, they said, both parties have embraced free-market capitalism, which they say benefits those at the top. Second, they said, changes in immigration and voter turnout mean the voting population is now skewed toward the wealthy.

They said rising overall wealth in the country has made part of the population less reliant on government. The rich have also used their resources to "influence electoral, legislative and regulatory processes," and the political process is now distorted by gerrymandering.

The authors assume that most Americans see inequality as a leading problem. But they may not—and they may not understand the statistical extent of the problem.

A 2012 survey from GlobeScan found that 58 percent of Americans agreed with the statement that "the rich deserve their wealth." That's actually higher than it was in 2008, before the economic crisis, Wall Street bailouts and the Occupy movement.

An earlier Gallup poll found that the number of Americans who want inequality to be "fixed" has declined since 1998. In 1998, 52 percent of Americans wanted the gap between rich and poor to be fixed. Today 48 percent say so.

A majority of Americans said that inequality is "an acceptable part of our economic system," a number that has also increased since the late 1990s.

What's more, Americans dramatically understate their perceived level of inequality. When asked about the share of wealth held by the top 20 percent, most Americans were way off (they said 59 percent, it's closer to 85 percent).

So yes, government could do more to offset inequality. But voters—whether out of poor understanding or personal aspiration—don't seem to be pressing the issue as much as the president would imply.


http://www.cnbc.com/id/101037295
That's why it "pays" to be an informed voter.
 
Would "informed" voters like less free market capitalism more European like social democracy?


Not the informed voters, only the parasites that sell their votes for goodies....and we know who they are.

the gov. can't make everyone successful....that part is up to the individual.
 
they would like markets that don't undulate.


want me to go get you the history of recessions in this country?
 
they would like markets that don't undulate.


want me to go get you the history of recessions in this country?

Yes I know Desh. Everything good in this country happened because of Democrats and everything bad happened because of Republicans.
 
its the truth you idiot


how did recessions become less frequent and less deep?


glass steagal and regulation of the power brokers
 
Yes I know Desh. Everything good in this country happened because of Democrats and everything bad happened because of Republicans.

Glad you realize it.

Who put in the office of consumer protection? DEMS

Who is trying to reinstate glass-steagal? DEMS

Yeppers, Dems are good, repubs bad. At least in the last 20 years or so
 
they would like markets that don't undulate.


want me to go get you the history of recessions in this country?

More evidence of what an ignorant buffoon you are. It's not undulate you moron; it's called cycles. All economies have cycles and it cannot be controlled by well intentioned Government legislation. These tend to cause wider swings in the vpusiness cycle causing severe unintended consequences.

So where did you get your degree? The school of asshattery?
 
http://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States


study this like you actually want to understand facts.

then realize why this pattern was ended and the middle class GREW.


because Dems were in control is why

Dear asshat; more evidence that you are an incredible moron. If you think this Wikipedia history of recessions supports your buffoonish partisan claims about Republicans, you illustrate that your reading comprehension is as lacking as your concept of economic principles.

But you are an uber Liberal partisan; the DNC needs ignorant miscreants like you to stay in political power and get elected.

What a moron. That you continually try to remove all doubt is evidence of a serious mental condition.
 
Glad you realize it.

Who put in the office of consumer protection? DEMS

Who is trying to reinstate glass-steagal? DEMS

Yeppers, Dems are good, repubs bad. At least in the last 20 years or so

LMAO... The Dems are the ones that put in place Dodd/Frank rather than simply reinstating Glass Steagall. Dodd/Frank is a piece of crap that has hurt small banks to the benefit of the too big to fail, that have only gotten bigger under Obama and the Dems reign.
 
http://www.rightwingnews.com/column-2/minimum-wage-madness/

Most Americans living below the government-set poverty line have a washer and/or a dryer, as well as a computer. More than 80 percent have air conditioning. More than 80 percent also have both a landline and a cell phone. Nearly all have television and a refrigerator. Most Americans living below the official poverty line also own a motor vehicle and have more living space than the average European — not Europeans in poverty, the average European.

Why then are they called “poor”? Because government bureaucrats create the official definition of poverty, and they do so in ways that provide a political rationale for the welfare state — and, not incidentally, for the bureaucrats’ own jobs.


EDIT: wasn't that washer, dyer line quoted by somebody else here earlier? Who and what source?
 
Back
Top