New Posts

Feb 8, 2016

Top 400 Taxpayers See Tax Rates Rise, But There’s More to the Story

As Americans were gathering party supplies to greet the New Year, the Internal Revenue Service released their annual report of cumulative tax data reported on the 400 tax r...

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Feb 4, 2016

Chlorine Bleach Plants Needlessly Endanger 63 Million Americans

Chlorine bleach plants across the U.S. put millions of Americans in danger of a chlorine gas release, a substance so toxic it has been used as a chemical weapon. Greenpeace’s new repo...

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Jan 25, 2016

U.S. Industrial Facilities Reported Fewer Toxic Releases in 2014

The Toxics Release Inventory (TRI) data for 2014 is now available. The good news: total toxic releases by reporting facilities decreased by nearly six percent from 2013 levels. Howe...

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Jan 22, 2016

Methane Causes Climate Change. Here's How the President Plans to Cut Emissions by 40-45 Percent.

  UPDATE (Jan. 22, 2016): Today, the Bureau of Land Management (BLM) released its proposed rule to reduce methane emissions...

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Critiquing the Critic

There was a time when I thought Louis Menand, an academic who writes for the New Yorker, was the smartest guy around. But I've changed my mind, because his review of Bryan Caplan's really ridiculous book is abysmal and totally misses the point. To recap Caplan's argument: Irrational voters support economic policy that makes people worse off. And government mostly messes everything up (See here for more). Menand's conclusion:

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EPI Papers Challenge The Macroeconomic Mainstream

EPI just put out two very interesting papers (on full employment and demand-led growth) that challenge the wisdom of low-impact macroeconomic policy. Two general points:
  • There doesn't have to be a trade-off between efficiency and fairness. Indeed, policies could generate demand-led growth partly by ensuring that work was fairly rewarded.
  • Government can play a constructive role in the economy- guaranteeing fair wages, promoting growth, ensuring full employment. The best it can do isn't just to "get out of the way."

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I'm Thinking of an Issue...Starts With "E"

Inclusion has put a challenge to the progressive policy community. What is an all-encompassing issue that nobody really knows exists? According to this logic, alternative and less familiar ways of framing rising economic inequality and insecurity aren't viable because they don't show up on the pollster's static list of "issues." But this ignores Perlstein's most important insight, that "the greatest politicians create their own issues, ones that no one knew existed." (An insight I couldn't help but notice that is very similar to my favorite one of the late philospher Richard Rorty: "the talent for speaking differently, rather for arguing well, is the chief instrument of cultural change.") Here's a shot: exploitation and economic fairness.

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Inequality in England?

Our neighbors "across the pond" are getting concerned about inequality, too. Check out this article from the Guardian. It also makes the point that inequality might affect housing prices. So here are reasons why it does matter. For a start, house prices have gone mad, partly because too much money is chasing too little property, not just in Mayfair but in places like Doncaster, where City tycoons are buying up whole buy-to-let streets.

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Commentary: Hamilton's Take on Inequality

We've put up an analysis of the Hamilton Project's understanding of government and inequality. If you've been tracking our blogging on the subject, the thesis of the paper will come as no surprise: their attitude about government (it's incapable of doing much good) and inequality (it's probably fair and good for everyone, mostly) isn't particularly helpful.

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Pro-Market vs. Pro-Business

Prompted Matt's harping on the Hamilton Project (see here, here, and here [but no so much here]) and my keen interest in economics, I've been trying to substantiate this thesis: There is a real and important difference between pro-market policies and pro-business policies. Although policies designed to encourage business growth may actually increase the size of the economic pie, it does not necessarily follow that those policies in fact (1) improve economic efficiency and (2) improve equity.

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Is Inequality Unfair?

A final note on the Hamilton Project paper. A little less doom and gloom, this time. Inequality, and the decoupling of productivity gains and growth in the median income, has not caused the Hamiltonians to reconsider their core beliefs about markets. They are generally concerned that living standards have not improved as much as one would expect, given productivity gains. But they do not draw from this well-known trend that there is anything either ineffective or unfair about how the market operates.

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Sorry, More on Hamilton

Boy, this Hamilton Project paper is fascinating. Here's another paragraph to examine. It's a window into the values of the centrist economist. At some point inequality in outcomes becomes so great that the quintessential American promise of equality of opportunity becomes unattainable. As Bradford DeLong (2007)

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More Meditations on the Hamilton Project

One last thought on the Hamilton Project- I believe they do not serve the cause of fighting inequality. Stay with me on this one. Take this statement: Industrial policies and direct market interventions can try to change the before-tax distribution of income. But ultimately such policies harm the economy—for example, excessively high living-wage laws can result in large job losses for low-skilled workers. Factually, I believe the statement is wrong. Government intervention in markets can promote the common good. Everything that's known about health care provision is a case in point.

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The Equality Quagmire (Made Worse) By Robert J. Samuelson

In a no-need-to-read piece in today's Washington Post, someone named Robert J. Samuelson makes a hash out of a barely-discernible thesis relating in some way to rising inequality in America and why it really isn't such a bad thing:
  • "It has not prevented most Americans from getting ahead."
  • "On the whole, the economy that produces these growing inequalities outperforms the one that created [sic] more statistical equality."
Not sure which tense that sentence was in, but it's not as mind-numbing as this one, for those who like brain teasers:

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    Pages

    Resources & Research

    Living in the Shadow of Danger: Poverty, Race, and Unequal Chemical Facility Hazards

    People of color and people living in poverty, especially poor children of color, are significantly more likely...

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    A Tale of Two Retirements: One for CEOs and One for the Rest of Us

    The 100 largest CEO retirement funds are worth a combined $4.9 billion, equal to the entire retirement account savings of 41 percent of American fam...

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    more resources