Poverty & Wealth

I Want Your Tax

Flickr/soukup
Today is tax day, the yearly opportunity for millions of Americans to shake their fists at the government and declare their contempt for the ideas of mutual concern and collective responsibility. So on this most practical of days, it's good to remind ourselves of some realities. First, the taxes we pay are, by international standards, fairly modest. Second, despite what some would have you believe, the wealthy are not crushed by the burden of taxation. And third, though nobody particularly enjoys giving part of their income to the government, taxes are the price we pay for having an advanced, democratic society. If you like living in a place where you aren't afraid of foreign invasion, if you like knowing that when you retire you'll get Medicare and Social Security, if you like living in a country with parks and roads and police and air traffic controllers and a legal system and food inspectors and water and sewage systems and schools and a thousand things you weren't thinking about...

Mr. Brooks’s Planet

Josh Haner/The New York Times
Since New York Times columnist David Brooks is the very model of the sentient conservative, his acknowledgements of social reality are often more than just personal—they signal that a particular state of affairs has become incontestable to all but the epistemically shuttered. Writing today on President Obama’s new budget, Brooks applauds the president for proposing to reduce Social Security and Medicare payments, and wishes he’d boost spending on discretionary spending programs that might stem the collapse of working- (and much of middle-) class America. Conservatives generally—over to you, Charles Murray—now acknowledge that the American working class, very much including the white working class, is imploding, citing the decline in marriage rates and out-of-wedlock births. They note as well that incomes and labor force participation are tanking, too. But they usually resist the idea that there’s a causal link between the lack of economic opportunity and the decline in the number of “...

Where's the Change?

AP Photo/Lauren Victoria Burke
AP Photo/Alex Brandon, File T he Democratic Party’s long-term prospects have dramatically improved since the November election. They will control the White House for another four years. The Republicans, who lost the total vote for the House of Representatives, remain captive of an unpopular reactionary right wing. The “Obama Coalition” of minorities and single women is growing faster than the GOP’s white male base. If demography is destiny, Democrats—and the progressive interests that they are supposed represent in the two-party system—are the wave of the future. But the American dream is about upward mobility. Ultimately, “The economy, Stupid” trumps identity politics. If the Democrats are not the champions of expanding jobs and incomes for the majority of voters who work for a living—whatever their gender, color, or sexual orientation—their claim to being the natural majority party will amount to little. So it made political sense that Barack Obama began his 2013 State of the Union...

Why Politicians Aren't Sensitive to Public Opinion on the Economy

Flickr/Alex E. Proimos
Flickr/Alex E. Proimos Who says American politics is gridlocked? A tidal wave of politicians from both sides of the aisle who just a few years ago opposed same-sex marriage are now coming around to support it. Even if the Supreme Court were decide to do nothing about California’s Proposition 8 or DOMA, it would seem only matter of time before both were repealed. A significant number of elected officials who had been against allowing undocumented immigrants to become American citizens is now talking about “charting a path” for them; a bipartisan group of senators is expected to present a draft bill April 8. Even a few who were staunch gun advocates are now sounding more reasonable about background checks. It’s nice to think logic and reason are finally catching up with our elected representatives, but the real explanation for these changes of heart is more prosaic: public opinion. The latest ABC News/Washington Post poll finds support for marriage equality at the highest in the ten...

The Runaways

Flickr/Kymberly Janisch
Flickr/ Kymberly Janisch T he first time Breanna found herself homeless, she’d left her mom’s house when she was 12 because her stepdad didn’t like her and her mom never took her side in fights. That had left her sharing a room in a Motel 6 with her father and sick grandmother near her high school in Jefferson County, Colorado. A short, slim, dark-haired Latina, she’d grown up in the area, and most of her family was there; it’s where she felt at home. In the motel, though, her dad, who was a drug addict, would occasionally beat her. “My Grandma would tell him I deserved it,” Breanna says. “I never understood why I deserved it.” Sometimes her father kept Breanna out of school because she had bruises on her arms and he didn’t want the abuse reported to authorities; sometimes Breanna missed school because she was too tired to wake up. When she finally wanted to leave for good, her father said he wouldn’t let her go unless she peed in a cup for him so he could pass a drug test; she agreed...

The Weeklies

Flickr/Steve Schroeder
Flickr/Steve Schroeder F rom the outside, it is hard to know that people live in the Ramada Inn. The parking lot is always empty. The hotel sits facing a wide suburban boulevard called Kipling Street, just off Interstate 70 in Wheat Ridge, Colorado. The interchange where Kipling meets the freeway is packed mornings and evenings with daily commuters going to or coming from Denver and with skiers heading west into the Rockies. Hotels dot I-70 as it cuts through the 764-square-mile stretch of suburbia that runs from the city into the mountains, but at the intersection with Kipling is a cluster of seven budget-savers that travel websites warn tourists away from. The hotels advertise low prices—ranging from $36 to $89 a night—on neon signs next to gigantic flags that whip in the Front Range wind. Most offer even lower weekly or monthly rates. The Ramada is farther from the frontage road than the other hotels and is harder to notice, with its plain yellow stucco and dimly lit red sign...

Take Social Security and Medicare Off the Bargaining Table

Flickr/Adam Fagen
P rominent Democrats—including the president and House Minority Leader Nancy Pelosi—are openly suggesting that Medicare be means-tested and Social Security payments be reduced by applying a lower adjustment for inflation. This is even before they’ve started budget negotiations with Republicans—who still refuse to raise taxes on the rich, close tax loopholes the rich depend on (such as hedge-fund and private-equity managers’ “carried interest”), increase capital gains taxes on the wealthy, cap their tax deductions, or tax financial transactions. It’s not the first time Democrats have led with a compromise, but these particular pre-concessions are especially unwise. For over thirty years Republicans have pitted the middle class against the poor, preying on the frustrations and racial biases of average working people who can’t get ahead no matter how hard they try. In the Republican narrative, government takes from the hard-working middle and gives to the undeserving and dependent needy...

Cyprus's Big Bluff

AP Photo/Petros Karadjias
The Cyprus banking crisis presents, in microcosm, everything that is perverse about the European leaders’ response to the continuing financial collapse. And bravo to the Cypriot Parliament for rejecting the EU’s insane demand to condition a bank bailout on a large tax on small depositors. If this crisis threatens to spread to other nations, it’s a good object lesson. Here is the punch line of this column: It's time for Europe’s small nations, who are getting slammed into permanent depression by the arrogance of Berlin and Brussels, to think about abandoning the euro. At least the threat would strengthen their bargaining position, and if they actually quit the euro, the result could hardly be worse than their permanent sentence to debtors’ prison. More on that in a moment. The back story: Cyprus, with just over a million people, is not a poor country. Its per capita GDP is actually above the European Union average. Cyprus has only used the euro since 2008. Once Cyprus was in the...

The Making of the "Other" Chicago

AP Photo/M. Spencer Green
AP Photo/M. Spencer Green A makeshift memorial at the site where 6-month-old girl Jonylah Watkins and her father, a known gang member, were shot on March 11. The girl, who was shot five times, died Tuesday morning. Her father, Jonathan Watkins, remains in serious but stable condition. J anuary was the deadliest month in Chicago in more than a decade. Forty-two people lost their lives on the city’s streets, most of them to gun violence. For 2012, the total number of homicides was 509, of which 443 involved firearms. While most of the shootings could be attributed to gang feuds, innocent people were caught in crossfire that often erupted in broad daylight and on public streets. Hadiya Pendleton’s shooting death, which took place only a week after the 15-year-old honors student performed at the presidential inauguration, is the latest tragedy to reinforce the perception that Chicago is the murder capital of the nation. Pendleton was killed when a gunman opened fire on a group of high-...

Forty Years Behind on Sick-Leave Policy, But Catching Up

AP Photo/Mary Altaffer
AP Photo/Mary Altaffer Emilio Palaguachi, center, speaks at a rally at New York's City Hall to call for a vote on paid-sick-days legislation, which has been held up by I t’s too late for Tonisha Howard , the mother of three in Milwaukee who was fired for leaving work to be with her hospitalized two-year-old. And for Felix Trinidad , who was so afraid of losing his job at Golden Farm fruit store in Brooklyn that he didn’t take time off to go to the doctor—even after he vomited blood. Trinidad, a father of two who had stomach cancer, continued to work until just days before his death at age 34. But for workers in Portland and perhaps Philadelphia, paid sick days just got much closer to becoming reality. Last Wednesday, the city council in Portland, Oregon, voted unanimously for a bill granting most employees up to 40 hours of paid sick leave per year. On Thursday, the Philadelphia City Council passed a similar law—and, with only one vote short of a veto-proof majority, advocates are...

Healing a Broken Catholic Church

Flickr/Doug88888
Because of its sins, the Roman Catholic Church is broken. The capital C in church is important; it signifies the institution, not the faithful. A wise Jesuit, the late Cardinal Avery Dulles, once wrote that the church can be viewed in different ways: as a herald, as a mystical communion, as an institution. It is the institution I am talking about. The Catholic Church is my church, and what it has done saddens me. The institution has protected pedophile priests. It has lifted the excommunication of bishops in an ultra-conservative society that seeks to undo the reforms of the Second Vatican Council. One of the bishops is a Holocaust denier. Members of the Roman Curia, the governing body of the institution, have engaged in corruption, intrigue, and struggles for personal power that would shame Machiavelli. At the same time, the Vatican Bank has failed to meet Council of Europe standards on fighting financial crimes, including money laundering and tax evasion. If that weren’t enough, the...

Why We Still Need Section 5

AP Photo/Harold Valentine
With the Supreme Court expected to strike down a key piece of the Voting Rights Act later this year, now is a crucial moment for discussing Section 5's inarguable successes both in terms of civil rights and in improving the economic lives of Southern blacks. Gavin Wright, a professor of American economic history at Stanford, has spent his career studying the economics of slavery, segregation, and the historical Southern economy. His recent book, Sharing the Prize , documents the economic impact that the civil rights acts of the mid-1960s had on Southerners, black and white. Presentations of Wright’s work are available here and here , and a summary of his writings can be found here . While his book has some technical arguments, Wright’s ideas can be easily understood as a chronicle of the often overlooked economic consequences of the struggle for civil rights. It’s difficult not to look at the large wealth and income disparities between blacks and whites today and conclude that the...

When Public Is Better

Flickr/Mirsasha
L ong before we thought of founding The American Prospect in 1989, I came to know Paul Starr through a prescient article titled “Passive Intervention.” The piece was published in 1979, in a now-defunct journal, Working Papers for a New Society . As Paul and his co-author, Gøsta Esping-Andersen, observed, the American welfare state is built on terrible, even disabling compromises. Progressives often lack the votes to pass legislation to deliver public benefits directly. So they either create tax incentives or bribe the private sector to do the job, thus inflating a bloated system. “The problem is not too much government activism,” they wrote, “but too much passivity.” Their two emblematic examples were housing and health care. In housing, tax advantages became an inflation hedge for the affluent and drove up prices. Low-income homeownership programs, run through the private sector, had huge default rates. In health care, the political compromises necessary to enact Medicare excluded...

Bull Market for Stocks, Bear Market for Workers

Flickr/Michael Aston
Today the Dow Jones Industrial Average rose above 14,270 — completely erasing its 54 percent loss between 2007 and 2009. The stock market is basically back to where it was in 2000, while corporate earnings have doubled since then. Yet the real median wage is now 8 percent below what it was in 2000, and unemployment remains sky-high. Why is the stock market doing so well, while most Americans are doing so poorly? Four reasons: First, productivity gains. Corporations have been investing in technology rather than their workers. They get tax credits and deductions for such investments; they get no such tax benefits for improving the skills of their employees. As a result, corporations can now do more with fewer people on their payrolls. That means higher profits. Second, high unemployment itself. Joblessness all but eliminates the bargaining power of most workers—allowing corporations to keep wages low. Public policies that might otherwise reduce unemployment—a new WPA or CCC to hire the...

How to Survive a Miracle

A World AIDS Day display in Mississippi on Dec. 1, 2009. (AP Photo/MSU, Kenny Billings)
This week, a baby from Mississippi was “functionally cured” of HIV after doctors treated her aggressively from the time of her birth with anti-retroviral medications. It's the first time a patient’s system has been cleared of the disease with a regular HIV treatment regimen designed to disrupt the ability of the virus to replicate itself. It opens the door for new research that could, theoretically, lead to a cure for AIDS. But while the breakthrough illustrates how far we’ve come in treating the virus since it was first identified three decades ago, it's also a stark reminder of how little progress we’ve made in fighting the spread of the disease. In the dark days of the 1980s, AIDS patients often found themselves turned away from emergency rooms by fearful hospital administrators, and politicians debated putting HIV-positive people into permanent quarantine. The Oscar-nominated documentary “ How to Survive a Plague ,” which has recently been optioned by ABC for a mini-series, shows...

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