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June 27, 2015

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Posted: 27 Jun 2015 12:06 AM PDT

'Most of America's Poor Have Jobs'

Posted: 26 Jun 2015 10:31 AM PDT

I want to highlight this article in today's links:

Most of America's poor have jobs, study finds, EurekAlert!: The majority of the United States' poor aren't sitting on street corners. They're employed at low-paying jobs, struggling to support themselves and a family.
In the past, differing definitions of employment and poverty prevented researchers from agreeing on who and how many constitute the "working poor."
But a new study by sociologists at BYU, Cornell and LSU provides a rigorous new estimate. Their work suggests about 10 percent of working households are poor. Additionally, households led by women, minorities or individuals with low education are more likely to be poor, but employed. ...
BYU professor Scott Sanders says the findings dispel the notion that most impoverished Americans don't work so they can rely on government handouts.
"The toxic idea is if we clump all those people together and treat them as the same people, then we don't solve the real problem that the majority of people in poverty are working, trying to improve their lives, and we treat them all as deadbeats,"...
"It's been the push, that if we can get people working, then they'll get out of poverty," Sanders said. "But we have millions of Americans working, playing by the rules, and they're still trapped in poverty."

'Lunch with the FT: Thomas Piketty'

Posted: 26 Jun 2015 10:18 AM PDT

A small part of an interview of Thomas Piketty in the Financial Times:

... Piketty says his interest in inequality crystallised after the collapse of the Berlin Wall and the first Gulf war. He recalls visiting Moscow in 1991 and being struck by "the lines in front of shops". He came back vaccinated against communism — "I believe in capitalism, private property, the market" — but also with a question central to his work: "How come those people had been so afraid of inequality and capitalism in the 19th and 20th century that they created such a monstrosity? How can we tackle inequality without repeating this disaster?" ...

And a point I've been making for a long time about taxes and incentives:

... Though Piketty concedes that the global wealth tax he recommends is a "utopian" dream, he also says a confiscatory tax rate of more than 80 per cent on earnings exceeding $1m would work. In fact, he continues, such a rate was in place for five decades before the presidency of Ronald Reagan, and would curb exuberant executive pay without hurting productivity. "It did not kill US capitalism then — productivity grew the fastest during that time," he notes. "This idea, according to which no one will accept to work hard for less than $10m per year . . .  It's OK to pay someone 10, 20 times the average worker's salary but do you really need to pay them 100 or 200 times to get their arses in gear?" ...

Paul Krugman: Hooray for Obamacare

Posted: 26 Jun 2015 09:24 AM PDT

Health care reform is succeeding:

Hooray for Obamacare, by Paul Krugman, Commentary, NY Times: Was I on the edge of my seat, waiting for the Supreme Court decision on Obamacare subsidies? No — I was pacing the room, too nervous to sit, worried that the court would use one sloppily worded sentence to deprive millions of health insurance, condemn tens of thousands to financial ruin, and send thousands to premature death.
It didn't. ...
The Affordable Care Act is now in its second year of full operation; how's it doing? The answer is, better than even many supporters realize.
Start with the act's most basic purpose, to cover the previously uninsured. Opponents of the law insisted that it would actually reduce coverage; in reality, around 15 million Americans have gained insurance. ...
What about costs? In 2013 there were dire warnings about a looming "rate shock"; instead, premiums came in well below expectations. ...
And there has also been a sharp slowdown in the growth of overall health spending, which is probably due in part to the cost-control measures, largely aimed at Medicare...
What about economic side effects? One of the many, many Republican votes against Obamacare involved passing something called the Repealing the Job-Killing Health Care Law Act... But there's no job-killing in the data: The U.S. economy has added more than 240,000 jobs a month on average since Obamacare went into effect, its biggest gains since the 1990s.
Finally, what about claims that health reform would cause the budget deficit to explode? In reality, the deficit has continued to decline, and the Congressional Budget Office recently reaffirmed its conclusion that repealing Obamacare would increase, not reduce, the deficit.
Put all these things together, and what you have is a portrait of policy triumph...
Now, you might wonder why a law that works so well and does so much good is the object of so much political venom — venom that is, by the way, on full display in Justice Antonin Scalia's dissenting opinion, with its rants against "interpretive jiggery-pokery." But what conservatives have always feared about health reform is the possibility that it might succeed, and in so doing remind voters that sometimes government action can improve ordinary Americans' lives.
That's why the right went all out to destroy the Clinton health plan in 1993, and tried to do the same to the Affordable Care Act. But Obamacare has survived, it's here, and it's working. The great conservative nightmare has come true. And it's a beautiful thing.

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