The Fiscal Times: Opinion- Mark Thoma- Are Calls For Wealth Redistribution Based on Envy or Justice?: How to Expand Economic Wealth in America

Money, Money, Money

Wealth or income redistribution, it depends on how you define it because government at all levels does it all the time everyday. And generally when government redistributes wealth it is noncontroversial. It taxes these people who live here to fund a school or fix a road over here. Social Security taxes today’s workers to pay for today’s retirees. So for anyone who says they are against wealth redistribution they should also explain how they feel about public education and roads and so forth. Things that the public uses everyday that if anything most of us tend to take for granted.

But this post is not really about noncontroversial income redistribution because where would the fun be in that. But to talk about the controversial forms of wealth redistribution at least at the hands of government. That is calls from the let’s say so-called progressive-left or even socialist-left that says “the Federal Government should tax the superrich and perhaps just plain rich people. (Perhaps minorities would be excluded) To take care of Americans who aren’t doing very well and perhaps people who aren’t technically but have to work very hard and a lot just to pay their bills”.

If you want a society that is financially free at least in the sense that it is successful and not only able to pay their bills, but set aside money for themselves and even donate to charity and perhaps look after family members and friends who may need a little extra money, that economic success simply has to be encouraged and rewarded. Instead of essentially punishing people for making it on their own and making a lot of money to take care of people who aren’t successful.

Otherwise you will create an dependent society in America instead of that free society where wealth is discouraged and dependency on government in order to survive financially is encouraged. Because you are telling people whether intentionally or not that they shouldn’t be successful because we the government will take a lot of that money from you. And also telling people that “if you aren’t successful the wealthy will take care of you at the hands of government”.

What we should be doing instead as a society especially for struggling Americans is to empower them to become successful on their own. Either by finishing their education or furthering their education. So they can get themselves the skills that they need to be successful in life. And that means reforming public education in America, making educational and job training opportunities universal for low-skilled adults. And for the college educated who now need more skills because their good job left for another country or no longer exists. And investing a lot more in infrastructure especially in underserved communities so they have the roads, schools and business’s that they need to be economically successful.

You want more Americans to be doing well in America you don’t discourage the Americans who are doing well already to stop being successful. What you do instead is continue to encourage people to be successful in this country. As well as empower more Americans to be successful as well.
Media Spin: Milton Friedman- Redistribution of Wealth

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The Fiscal Times: Opinion- Mark Thoma- Inequality in Capitalist Systems: The Role of Social Insurance in a Capitalist System

Source: This piece was originally posted at The New Democrat

 

I would describe capitalism, or private enterprise, meaning private businesses and wealth controlled by individuals or groups of individuals, not by the state, as the worst type of economic system in the world, except for all the rest.  Actually, as has been pointed out on this blog many times, what I call liberal capitalism is capitalism designed to include everyone, where everyone has economic freedom and is not controlled by the special few or by government.  This is the worst form of capitalism, except for all the rest.

I mention that because there are several forms of capitalism, and all developed countries and rapidly developing countries, large countries like Mexico, Brazil, Russia, China, India, and Pakistan, have one form or another of a capitalist economic system. And the beauty of each of these different types of capitalist systems is the idea that your competitors cannot just outclass you but also put you out of business. So in this system, you must deliver the best services possible at the most affordable and competitive prices or be driven out of business.

The disadvantage of capitalism is that some people do very well for whatever reason, for example, starting off very rich along with getting the best education possible, or simply coming from modest roots but working very hard and productively and reaping the benefits so they are more than capable of caring for themselves and their families.

But on the other side, there are people at the bottom who, for whatever reason, either through bad personal choices, such as not finishing their education or having children before they were ready to raise them properly, or coming from a low-income family without access to a decent education, now find themselves living in poverty as adults and perhaps raising children as well.

That is where social insurance, or the safety net, jumps in to help the people at the bottom, where they are ignored by the private market or did not take advantage of the opportunities presented by the private market to make a good life for themselves. The safety net covers temporary financial assistance for people living in poverty and not currently working and provides access to education and job training, which provide the tools needed to achieve economic freedom by finding a good job with a living wage.

UMass Economics: Social vs Private Insurance

 

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Crooks and Liars: Opinion: Heather: Bill Maher Floats Notion of Maximum Wage on New Rules Segment

Crooks and Liars: Opinion: Heather: Bill Maher Floats Notion of Maximum Wage on New Rules Segment 

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This post was originally posted at The New Democrat on Blogger

This is where so-called Progressives, and I use that term loosely for a good reason, as I would call race car drivers athletes, especially when the person making fun of billionaires just happens to be worth 50 to 100 million dollars. Bill Maher didn’t get rich by being a Socialist but by working hard and having a skill, talent, and mind that have made him so successful that he could retire today in his late fifties and probably never work again. He didn’t get rich by government giving him most of the services and money he needed to be successful.

I can understand people having a problem with the extremely rich having so much compared with the people who are very to extremely poor. But the answer should be about empowering people at the very bottom, close to the bottom, or barely in the middle so they can be successful and not worry about how they will cover their basic necessities, let alone bills, simple things like paying for dinner and so forth instead of putting down people for being successful. You become successful through marketable talents and skills.

Someone worth 50 to 100 million dollars pouncing on billionaires is like compulsive liars deriding spin doctors for being dishonest or alcoholics deriding narcotic addicts. The hypocrisy is as obvious as knowing water is wet, not to put your finger in a moving fan, or not to jump in front of a moving truck, etc.  A blind person could see that if you make an argument like that, perhaps Bill should admit he makes too much money and should either give a lot of it back or donate all of it to charity or to Uncle Sam.

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Lord Rothschild: Video: The Situation Room: Michelle Bachmann Debates Bernie Sanders

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This post was originally posted at The New Democrat on Blogger

I don’t know why anyone takes Representative Michelle Bachmann seriously on anything. Except when it may come to satire or what is stupid in the world today. I could just concentrate on the fact that she spends her time repeating Tea Party talking points that are completely false. The Obama War on Women to use as an example, the Obama War on Success or the Obama War on Energy. Are just a few examples and the fact that CNN brings her to debate someone as serious as knowledgeable as Senator Bernie Sanders whose also a gentleman and let’s people speak, is beyond me.

You want to know why CNN’s ratings are down and they are actually losing viewers to that joke called a news network MSNBC, I’ll tell you anyway. Because Wolf Blitzer and other’s at CNN bring on Michelle Bachmann and people just as ignorant and rude as she is. And just basically let her talk the whole time and when they have what they call debates with her there, she not only get’s to speak as long as she wants to, but get’s to take the person’s she’s debating with time as well. Not stopping her awful interruptions and as a result viewers have to listen to all of her garbage. That doesn’t get questioned or turn to another channel.

As far as poverty in America, I actually watched the entire video of the interview of the poor single mom. And what she was said was that she needs additional skills and education so she can get herself a good job and not need public assistance at all. Because she knows she simply can’t support herself on public assistance or working a minimum wage job with public assistance. Which has been one of my main points when it has come to the so-called War on Poverty in America.

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The McLaughlin Group: Video: The State of The Union, Economic Mobility, Syria, Liberal vs Progressive

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This post was originally posted at The New Democrat on Blogger

As far as the State of the Union if I’m President Obama or he could hear my advice for him, I would say use this speech to kickoff the 2014 Campaign to Save Congressional Democrats. Keeping the Senate majority and keeping the House Democratic Caucus at about where it is right now. “And this is how we are going to do that by making 2014 all about the economy and the Liberal Democratic vision to move the country forward economically.” If he’s successful in doing that, he could take sixty percent of the country with him who tend to like Democrats more on these issues than Republicans.

Economic mobility is about making 2014 about the economy. Again the Liberal Democratic vision.

1. Extend Unemployment Insurance so people struggling so hard just to go back to work at least have some income while they are doing that. And what we are also going to do is expand job training for these unemployed workers, but also for low-income low-skilled workers. So they can get the skills they need to either go back to work at a good job, or get an even better job from what low-income low-skilled workers are doing right now.

2. We are going to create a ten-dollar an hour minimum wage to make work pay more than not working. And so these workers can purchase more which will help drive consumer spending and economic growth.

3. We are going to create a National Infrastructure System and actually add to that. With a national public/private corporation or National Infrastructure Bank with the simple task of prioritizing infrastructure projects that either have to be rebuilt or built. That would reward contracts to private construction companies to do the work and bring in private investors to pay for the projects.

What President Obama could say to Congress that is the Republican House that isn’t really interested in doing anything that may need Democratic support to pass. And a Democratic Senate that has a Republican minority that is only interested in winning back the Senate. “I’m offering my hand and if you want to be my partner in helping to put Americans back to work and jumpstart the economy. You can either work with me on this, or I’m going to do as much as this by myself as I can. In case you try to stonewall me with the Republican House not doing anything. Or Senate Republicans trying to block anything that the Senate Leader Harry Reid brings to the floor to address these issues.”

As far as Syria the United States lost whatever opportunity it had a year ago or two years ago to knock out the Assad Regime. And at least give the Syrian Opposition a fighting chance to not only defend themselves, but to try to do the job themselves. And now as a result we are at a point where we are trying to prevent the worst from happening with Bashar Al-Assad still as President of Syria. And both sides already know this.

Liberal vs. Progressive or even Social Democrat as I prefer to call it. Is really about the two Democratic economic visions coming from the Left. Liberals want to empower Americans who need it to be able to create their own freedom for themselves. Which is why President Obama is going to focus so much on education, job training and infrastructure. Today’s so-called Progressives are essentially saying that, “the wealthy have too much and what we really need to do is take a lot of money from them so the Federal Government has enough money to take care of everyone else.”

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PBS: Video: NewsHour: Shields and Brooks on Bob McDonnell, Income Inequality and Hillary Clinton

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This post was originally posted at The New Democrat on Blogger

The so-called income inequality issue or what I prefer to call it the education gap that leads to the income gap, has to do with professional skills or the lack of them. People at the top or even upper middle class tend to be well-educated and the people at the bottom not so much. I would love to see an official statistic about the percentage of minimum wage or low-wage workers who even have high school diplomas. And I bet it is much lower than people even making fifty-thousand dollars a year who are not collecting public assistance at all.

The Bob McDonnell story is funny in a way just because of how stupid Governor McDonnell was. Just to be involved in something like this. He was the governor of one of the biggest states in the union that both parties try to win during the presidential election. A successful governor who was on course to a promising national political career. One of maybe two Republicans who has both the respect of the Far-Right and the mainstream economically oriented Center-Right. And that is all gone for him even if he doesn’t end up in prison.

Hillary Clinton will get a challenge from at least one Center-Left Democrat in 2016. The party wants that and quite frankly she needs that to get her out of this, “I’m going to be the first female President of the United States and I’m the most electable Democrat. Therefore I don’t have to offer a national agenda for the country and have strong positions on any of the key issues mode.” Which is where she is right now and that won’t get her to the White House. If the GOP puts up a real challenger.

Bad Job Bob

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PBS: Video: NewsHour: Shields and Brooks Discuss Addressing Economic Inequality

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This post was originally posted at The New Democrat on Blogger

David Brooks even though he’s a Conservative, ha, ha is dead right. When he says that it is not capitalism or economic freedom that is the problem in America or that is unpopular, but the fact that not enough Americans have access to economic freedom. And to the tools that they need to live well in America. And that what we need to do is invest more in education and job training for low-income adults in America. And education reform so more Americans can get themselves the skills that they need to be successful in America. And that these are mainstream center-left liberal issues that Democrats should be pushing.

Isn’t David Brooks supposed to be getting big government off my backs Conservative. Yet he’s taking a position about marijuana that says the state knows best what Americans should put in their own bodies and government should be making these decisions for people instead. And his position just doesn’t have much intelligence around it when he says that we shouldn’t legalize marijuana. Because people getting stoned all the time is not a good idea. Well no joke David! To keep the language clean here. But neither is getting drunk all the time good for society either. But we don’t see a lot of Americans doing either, now do we.

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Chicago Tribune: ‘How to Combat Inequality’

Source:Chicago Tribune– money, money, money.

Source:The New Democrat 

“If you’re a low-income African-American with a talent for braiding hair, you might have the idea of making money that way. You could start out doing it for relatives and friends and gradually build a clientele that could provide a decent income without a lot of capital. It could offer a way out of poverty and into the middle class.

But in many states, including Illinois, it’s not so simple. If you want to braid hair professionally, you must be a licensed cosmetologist. And to get that license, you have to get 1,500 hours of training. A poor woman who wants to pick up a little cash off the books can usually get away with it. But if she hopes to earn a living and can’t afford the training, she’s out of luck.

That’s one of the ways in which the American economic system hinders those at the bottom of the income scale. Many of them grew up with bad schools, crime-ridden neighborhoods and boarded-up shopping centers. Lots of the auto and steel plants that used to provide a middle-class lifestyle on a high school education (or less) have closed. So even as America has grown wealthier, many Americans have not.”

From the Chicago Tribune

“Income inequality has been on the rise for decades. In the last 30 years, the wages of the top 1% have grown by 154%, while the bottom 90% has seen growth of only 17%. As the rungs of the economic ladder move further and further apart, conventional wisdom says that it will become much more difficult to climb them. Opportunities for upward mobility-the American dream-will disappear as the deck becomes stacked against the middle class and the poor. But others see inequality as a positive, a sign of a dynamic and robust economy that, in the end, helps everyone. And contrary to public opinion, mobility has remained stable over the past few decades. If the American dream is dying, is it the result of income inequality? Or is disparity in income a red herring where more complex issues are at play?”

Source:IS Debates– debating what’s called income inequality in America.

From IS Debates 

I agree with a lot of what was said in this Chicago Tribune editorial about the problems of why people at the bottom of the American income scale are at the bottom and why the people at the top are at the top. And as much as so-called Progressives (or Social Democrats) in America like to try to make the so-called income inequality argument in America about the rich stealing from the poor, it is not true at least in most cases.

The wealthy in America tend to be wealthy, because they have a wealth of education and marketable skills that they have used to create their success. And have either gotten those skills by having wealthy parents who were able to send them to good schools including college, or came from strong middle class families. And went to good middle class schools and ended up going to and graduating from a good college by either getting a scholarship, student loans or working really hard and going to school at the same time. Or a combination of all of those, or some of those factors.

But there are also very successful people in America who didn’t come from wealth or even a middle class family. But had strong enough parents to make sure they not only stayed in and finished school, but got themselves a good education. Even if that meant one or both parents working multiple jobs to make that happen. So if you come from a good foundation even one with not a lot of money, but a lot of love and parents who’ll do whatever they can to see that you have a good shot at succeeding in life and you take advantage of those opportunities, you’ll do well in America.

The poor in America whether they are working or not, tend to have gotten off to a bad start in life. Dad walks out, mom left to raise their kid or kids by herself. Or dad in prison and mom not prepared to raise her kids in a proper way without the skills to do so. And then these kids make it worst for themselves by not finishing school and getting whatever education that they can. Having kids before finishing high school and essentially leaving their mother to raise her grandchildren for them.

And of course kids from both poor and rough neighborhoods falling into the wrong crowd as adolescents. Getting in trouble, not finishing high school and now looking at having a juvenile record and doing time. To go along with not having a high school diploma, having kids to take care of too early in life. Without much hope of giving their kids what their parents couldn’t give them. Which is a good start at life coming with a good education and a good shot at doing well in life.

So these are the main reasons for what I call the income gap in America as opposed to income inequality. So then it is about what should be done about these issues. And for me as a Liberal it always gets to opportunity and empowerment coming from education and job training. Having a public education system in this country that is not run by the Federal Government, but where everyone in the country can go to a school that is best for them.

Instead of being forced to going to a school based on where they live. Which is a big reason for the income gap in America with students not getting the skills that they need in life because they live in a low-income neighborhood. And the Federal Government can help with additional resources to our public schools so all of our public school students would be able to go to a good school.

And then with our low-income workforce whether they are currently working or not for our non-employed low-income workforce, it shouldn’t be about just getting them to work, but getting them good work experience as well as the skills that they need to get themselves a good job. Instead of just putting them to work in low-skilled low-income jobs without the ability that they need to get themselves a good job.

This is why job creation with our low-skilled workforce needs to also be about job training as well so this population can get themselves the skills that they need to get themselves a good job. And that means at least getting a degree at a junior college or a vocational school. So they have the skills they need to do well in life. And the Federal Government and private sector with private job training programs can help provide the resources for this.

If you want to do well in America it takes marketable skills and education to make that happen. Without that you are looking at a life of poverty and living in rough neighborhoods dependent on public assistance for your economic survival. And even if you are working dead-end low-skilled low-income jobs with not much if any hope for advancement and making a good living. But with a good education and job skills, you can do as well in life as your talents and you applying your talents will allow which will benefit the country as a whole.

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The Undercover Economist: ‘Why the Rich are Rich, the Poor are Poor and Why You Can Never Buy a Decent Used Car’

Source:Amazon– from the self-described Undercover Economist.

“An economist’s version of The Way Things Work, this engaging volume is part field guide to economics and part expose of the economic principles lurking behind daily events, explaining everything from traffic jams to high coffee prices.

The Undercover Economist is for anyone who’s wondered why the gap between rich and poor nations is so great, or why they can’t seem to find a decent second-hand car, or how to outwit Starbucks. This book offers the hidden story behind these and other questions, as economist Tim Harford ranges from Africa, Asia, Europe, and of course the United States to reveal how supermarkets, airlines, and coffee chains–to name just a few–are vacuuming money from our wallets. Harford punctures the myths surrounding some of today’s biggest controversies, including the high cost of health-care; he reveals why certain environmental laws can put a smile on a landlord’s face; and he explains why some industries can have high profits for innocent reasons, while in other industries something sinister is going on.

Covering an array of economic concepts including scarce resources, market power, efficiency, price gouging, market failure, inside information, and game theory, Harford sheds light on how these forces shape our day-to-day lives, often without our knowing it.

Showing us the world through the eyes of an economist, Tim Harford reveals that everyday events are intricate games of negotiations, contests of strength, and battles of wits. Written with a light touch and sly wit, The Undercover Economist turns “the dismal science” into a true delight.”

From Amazon

To put it simply: the reason why the rich are rich and the poor in America or anywhere else in the world, has to do with education.

The rich tend to be well-educated which allows for them to have the skills to be successful in life. To work for a successful business or run a successful business or non-profit organization. Or have a good job with one of these organizations.

While the poor simply lack the education and skills to do well in life. And are left with jobs that do not pay enough for the to survive and that’s even if they work at all, let alone live well and end up having to depend on public assistance and private charity in order to survive.

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