State of the Union

2014

This is from the White House to promote the State of the Union address:

The core idea is as American as they come: If you work hard and play by the rules, you should have the opportunity to succeed. Your ability to get ahead should be based on your hard work and ambition and who you want to be, not just the raw circumstance of who you are when you’re born.

Hard to argue with that, right? But you see, your opportunity to succeed is based on your hard work and your ambition … and your attitude and your life choices. It’s always been that way and there are millions of people to prove it. There are also millions of people to prove that the circumstances of your birth are not totally inhibiting factors, a greater obstacle to overcome granted, but don’t we have scores of programs now to help people? Why aren’t they working as promised?

7 comments

  1. Becoming successful and moving up the soio-economic ladder has and will continue to be a co-variate of ambition, attitude ,individual choices ,personal values and certainly luck. Being caught in a web of generational poverty (however defined),,,,is certainly a dampening variable…….but lets put aside politics for the moment…..if that’s possible ,i think the question raised by dick…..suggests that the numerous entitlement programs have done very little to enhance economic opportunity. We should not confuse equality in economic opportunity with equality/parity of socio-economic results.

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  2. Millionaire investor and star of Shark Tank Kevin O’Leary believes income inequality serves a purpose. In fact, he believes income inequality is fantastic.

    The following exchange occurred on his Canadian show the Lang & O’Leary Exchange:

    Amanda Lang: The wealth, that’s according to Oxfam, of world’s 85 richest people is equal to the three and a half billion poorest people.

    Kevin O’Leary: It’s fantastic. And this is a great thing because it inspires everybody. They get the motivation to look up to the one percent and say I want to become one of those people. I am going to fight hard to get up to the top. This is fantastic news and of course I applaud it. What can be wrong with this?”

    Stunned Amanda Lang: Really?

    Kevin O’Leary: Yes really.
    There should be context to every dialogue. That snippet seems to give the impression that Kevin O’Leary is an unfeeling and callous person. When taken into context with the rest of the interchange something becomes more obvious.
    Follow me below the fold for that context.
    .

    Amanda Lang asks if O’Leary believes some poor kid wakes up in Africa thinking about being the next Bill Gates. He replies that income inequality creates the motivation that everybody needs. Lang made the most important statement that simply flew over his head. She asserts that one cannot pull up their socks if they don’t have any.

    O’Leary immediately plays the redistribution card. “Don’t tell me that you want to redistribute wealth again,” O’Leary said. “That’s never going to happen, okay?” He further says the stat on income inequality is “a celebratory stat,” O’Leary said. “I am very excited about it. I am wonderful to see it happen.”

    A few days ago I wrote this blog post titled “Most Of The Rich Are Undeserving Of Their Wealth & Income.” It received some pushback from a few people. O’Leary’s sentiment is currently codified in an ideology that prevents the poor in the aggregate, access to success.

    The ideology that says “I did it and therefore you can too” is flawed in the context of opportunity. O’Leary’s dismissal of Lang’s statement about the poor person not having a sock to pull up in the first place is where those that think like O’Leary fail. There are exceptions where some, because of sheer luck and brawn, are able to supersede their environment and condition. However in the aggregate one’s station is static and one’s upward mobility is very low. Increasing income inequality makes this worse.

    The following snippet from the referenced Oxfam report should be heeded.

    Given the scale of rising wealth concentrations, opportunity capture and
    unequal political representation are a serious and worrying trend. For
    instance:
    Almost half of the world’s wealth is now owned by just one percent of the population.
    The wealth of the one percent richest people in the world amounts to $110 trillion. That’s 65 times the total wealth of the bottom half of the world’s population.

    The bottom half of the world’s population owns the same as the richest 85 people in the world.

    Seven out of ten people live in countries where economic inequality has increased in the last 30 years.
    The richest one percent increased their share of income in 24 out of 26 countries for which we have data between 1980 and 2012.
    In the US, the wealthiest one percent captured 95 percent of post financial crisis growth since 2009,while the bottom 90 percent became poorer.

    This massive concentration of economic resources in the hands of fewer people presents a significant threat to inclusive political and economic systems. Instead of moving forward together, people are increasingly separated by economic and political power, inevitably heightening social tensions and increasing the risk of societal breakdown.
    O’Leary’s joy in increasing levels of income inequality is at best ignorant. He fails to understand that all forms of capitalism are at risk. The increasing instability that will increasingly come about with exploding income inequality is unstoppable by him or any army. He disregards it at the peril of his own wealth and the world’s current order. .
    Originally posted to ProgressiveLiberal

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    1. Inequality is a buzzword that hurts the cause of people deserving real opportunity. You mention the child with no socks. After fifty years of a war on poverty how can that be? Well, because that war only helped people stay in poverty in a more comfortable state. Paying for the war on poverty has been using tax dollars from the middle class and above and yet we still have poverty. Did a Gates or Buffet or even O’Leary cause that? How does anyone who is successful prevent anyone else from doing the same?

      Are you saying tax them more so we can use more dollars to do more of what we have been doing? The answer to poverty is not redistribution, but reassessment of individual life choices and of the programs designed to help people deal with the real world of the 21st century. We are doing the same things over and over and expect new results. Ain’t going to happen.

      If you look at my life history and that of my parents and grandparents one of whom didn’t graduate grammar school, I should be decidedly lower middle class income wise, I’m not because I was determined not to be and leveraged every opportunity I could, including two years in the army to help with an education. Don’t tell me my success is taking from anyone else’s opportunity.

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  3. A new Pew Research Center/USA Today poll echoes Quinnipiac in finding that voters want to see the minimum wage increased and unemployment aid extended; once again, even Republicans support raising the minimum wage, 53 percent to 43 percent. Republicans are just about exactly flipped on unemployment aid: 43 percent want to see it extended while 54 percent don’t. Democrats are overwhelmingly in favor of both policies, as are strong majorities of independents.
    But the survey also highlights a fundamental difference in how Republicans and Democrats see economic inequality and poverty: Republicans actually believe that rich people are rich because they worked harder and poor people are poor because they didn’t work hard enough:

    attribution: Pew Research Center
    A child raised in the bottom fifth of the income scale through much of the southern United States has around a 5 percent chance of rising to the top fifth—4 percent in Atlanta and 4.3 percent in Charlotte—while a low-income child has a 9.6 percent chance of rising in Los Angeles and 11.2 percent in San Francisco. Do Republicans think poor kids in California are just twice as likely to be hardworking as poor kids in Georgia and North Carolina? Or might there be something else going on? Not to mention, even an 11.2 percent chance of going from low-income to high-income is pretty damn low if what we’re looking at is an issue of merit. Those numbers are in line with Pew’s earlier finding that 43 percent of Americans born in the bottom fifth of the income ladder never move up, and a full 70 percent never reach the middle. The “this is about advantages and inequality, not individual merit” hypothesis gains strength when you learn that rich kids with below-average test scores are more likely to graduate from college than poor kids with above-average test scores.
    Rich people are rich because they worked harder, my ass. This is a convenient belief if you’re wealthy, but in the vast majority of cases, reality it is not. And on that mistaken—and often self-interested—belief rests a long list of Republican policy positions that are increasing inequality and poverty, year by year by year.

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    1. If rich people are not richer because they work harder (or smarter, or maximize their talents or don’t screw themselves by their actions) why are they rich? And don’t tell me they all started out with built in advantages. If poor children have a small chance of rising to the top (which I don’t doubt) why haven’t we addressed that problem all these years? That is the cause of inequality. Inequality is not the problem. Poverty is the problem. Inequality is irrelevant if we focus on fixing the problem of what is going on that perpetuates poverty generation after generation.

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      1. Of course, the poor have long been with us, and Catholic priests and lay workers the world over have long made great exertions on their behalf. All too often, though, this charitable work has coexisted with a Church hierarchy that studiously avoided critiquing the political and economic system that generates poverty and inequality. And when such a critique did emerge from within the Church, during the nineteen-sixties and nineteen-seventies, in the form of “liberation theology”—a doctrine that placed helping the poor and oppressed front and center—the Vatican stamped down on it, with Cardinal Joseph Ratzinger, who eventually became Pope Benedict XVI, playing a prominent role. Pope Francis seems intent on revisiting this debate. In the part of the exhortation devoted to economic matters, which runs to about twenty pages, he resurrects, and appears to endorse, many of the themes of liberation theology. He begins:

        It is not the task of the Pope to offer a detailed and complete analysis of contemporary reality, but I do exhort all the communities to an “ever watchful scrutiny of the signs of the times.” This is in fact a grave responsibility, since certain present realities, unless effectively dealt with, are capable of setting off processes of dehumanization which would then be hard to reverse. We need to distinguish clearly what might be a fruit of the kingdom from what runs counter to God’s plan.

        “Dehumanization” is a strong word. Francis doesn’t flinch from its meaning. He goes on:

        [H]umanity is experiencing a turning point in its history, as we can see from the advances being made in so many fields. We can only praise the steps being taken to improve people’s welfare in areas such as health care, education and communications. At the same time, we have to remember that the majority of our contemporaries are barely living from day to day, with dire consequences. A number of diseases are spreading. The hearts of many people are gripped by fear and desperation, even in the so-called rich countries. The joy of living frequently fades, lack of respect for others and violence are on the rise, and inequality is increasingly evident. It is a struggle to live and, often, to live with precious little dignity.‚

        Just as the commandment “Thou shalt not kill” sets a clear limit in order to safeguard the value of human life, today we also have to say “Thou shalt not” to an economy of exclusion and inequality. Such an economy kills. How can it be that it is not a news item when an elderly homeless person dies of exposure, but it is news when the stock market loses two points? This is a case of exclusion. Can we continue to stand by when food is thrown away while people are starving? This is a case of inequality.

        In stressing the themes of exclusion and inequality, and in pointing out the awkward fact that these phenomena can result in fatalities, the Pope surely knew he would raise some hackles, and he did. James Pethokoukis, a blogger at the American Enterprise Institute, while conceding that the Pope’s words “are excellent cause for reflection,” went on to say that they “should not obscure the reality that innovative free enterprise is the greatest wealth generator ever discovered and the economic system most supportive of human freedom and flourishing.” Pethokoukis cited a new research note by James E. Glassman, an economist at J. P. Morgan Chase, which featured graphs showing the sharp rise in G.D.P. around the world over the past century, and which concluded: “The global community has much to be thankful for and modern market-oriented economies deserve considerable credit for the battle against global poverty.”

        The gains that Pethokoukis and Glassman point to are certainly real. In China alone over the past couple of decades, according to figures from the World Bank, hundreds of millions of people have been lifted out of acute poverty. India, Indonesia, and other countries that have embraced the global economy have also made big strides. To some extent, though, Pope Francis appears to have foreseen this counter-argument. In his exhortation, he doesn’t contest the fact that global capitalism is uniquely productive. His argument is that the material progress that accompanies the expansion of the market is based on the exclusion and suffering of the powerless, and that this is immoral. He writes:

        In this context, some people continue to defend trickle-down theories which assume that economic growth, encouraged by a free market, will inevitably succeed in bringing about greater justice and inclusiveness in the world. This opinion, which has never been confirmed by the facts, expresses a crude and naïve trust in the goodness of those wielding economic power and in the sacralized workings of the prevailing economic system. Meanwhile, the excluded are still waiting.

        In asserting the primacy of the underdog, and the need to interpret scripture from the underdog’s perspective, Pope Francis was echoing arguments made by left-leaning Latin American priests during the nineteen-seventies, such as the Peruvian Gustavo Gutierrez, and Leonardo Boff, of Brazil. But the pontiff also goes beyond old-school liberation theology. The poor aren’t the only victims, he argues. The system’s prosperous winners also get dehumanized and debased, albeit in a more subtle way.

        To sustain a lifestyle which excludes others, or to sustain enthusiasm for that selfish ideal, a globalization of indifference has developed. Almost without being aware of it, we end up being incapable of feeling compassion at the outcry of the poor, weeping for other people’s pain, and feeling a need to help them, as though all this were someone else’s responsibility and not our own. The culture of prosperity deadens us; we are thrilled if the market offers us something new to purchase. In the meantime all those lives stunted for lack of opportunity seem a mere spectacle; they fail to move us.

        This is incendiary stuff, especially in a country like the United States, where moral assaults on the market are rare in mainstream discourse. Even the tribunes of Occupy Wall Street rarely rose to the rhetorical heights of the new Pope, who goes on:

        While the earnings of the minority are growing exponentially, so, too, is the gap separating the majority from the prosperity enjoyed by those happy few. The imbalance is the result of ideologies which defend the absolute autonomy of the marketplace and financial speculation…. A new tyranny is thus born, invisible and often virtual, which relentlessly imposes its own laws and rules…. The thirst for power and possessions knows no limits. In this system, which tends to devour everything that stands in the way of increased profits, whatever is fragile, like the environment, is defenseless before the interests of a deified market, which become the only rule.

        With the Pope bandying about phrases like “a new tyranny,” I am not surprised that Limbaugh and other defenders of the established order have labeled him a Marxist. In its recognition of the universality and power of the market, its self-sustaining ideology, its association with rising inequality, and its dehumanizing aspect, parts of the Pope’s analysis do resemble those of the man his friends called the Moor, and his cohort Friedrich Engels. But the Argentine Pope isn’t just a priest who swallowed bits of “The Communist Manifesto”—the more acute bits. Parts of his argument also hark back to the anti-growth and anti-consumerism movements of the sixties and seventies, which have recently seen a rebirth in many parts of the advanced world, particularly among the young.

        The core of the Pope’s critique is moral and theological rather than economic, and that is what gives it its power. Referring once again to the idolatry of money, he writes:

        Behind this attitude lurks a rejection of Ethics and a rejection of God. Ethics has come to be viewed with a certain scornful derision. It is seen as counterproductive, too human, because it makes money and power relative. It is felt to be a threat, since it threatens the manipulation and debasement of the person. In effect, Ethics leads to a God who calls for a committed response which is outside the categories of the marketplace.

        What might that response be? Once again, the latest heir to St. Peter doesn’t hold back:

        Money must serve, not rule! The Pope loves everyone, rich and poor alike, but he is obliged in the name of Christ to remind all that the rich must help, respect, and promote the poor. I exhort you to a generous solidarity and to the return of economics and finance to an ethical approach which favors human beings.

        I cannot say it better than that.

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