There is that inequality thing again

2014

This paragraph in an editorial today caught my eye:

A decade ago, before “income inequality” became a political watchword, the World Bank issued a report called “Beyond Economic Growth.” The 2004 study concluded with this message: “An excessively equal distribution can be bad for economic efficiency. Take, for example, the experience of socialist countries where deliberately low inequality deprives people of the incentives needed for their active participation in economic activities.” Among the consequences, the report noted, is “slower economic growth leading to more poverty.”

It’s been repeated so often and in so many ways the rhetoric of inequality and the 1% has become gospel to many people (including a few reading this blog).

The answer to the issue of inequality is not found within the 1%, but rather in a common acronym; STEM. In other words, rather than looking to bring down the higher income Americans and thus eventually kill innovation and risk taking, we must recognize the changes in the job market and better prepare Americans for jobs of the 21st century. That is jobs related to Science, Technology, Engineering and Mathematics. Jobs that can compete in the global world.

We can tax the rich all we want and support the lower income with one government program after another; it solves nothing. It is like putting your finger in a dike, it appears the problem has been solved, but in reality that finger must eventually be removed and the floods will come. In the case of the US the flood is massive debt, economic stagnation, and still growing inequality. Step back and look at all the laws, regulations and programs supported by progressives. There is a clear message; the average American is stupid, incompetent and incapable of prudent decision-making. I find that insulting, but apparently many Americans agree with that message.

Populist rhetoric about inequality and the 1% is a cruel hoax. It serves no purpose other than to advance political power goals. We need politicians to tell Americans the truth about what they need to do to make life better in a global world.

For decades many Americans, including poor Americas, have lived above their means and way above the means of people around the world. That is no longer possible unless we adapt. If you want a better life, you must plan for the future and act prudently today. That includes major things like staying in school and actually learning, not getting or getting someone pregnant at 16, and lessor things like not wasting hundreds of dollars on tattoos, piercings, lottery tickets and on and on.

And we need government programs that are designed to provide temporary support when needed and to focus on the betterment of ones life rather than trap them in a mediocre, but comfortable existence.

We should keep in mind that there is no such thing as a government paid program. The money comes from the taxes paid by our citizens, mostly from hard working people who have taken advantage of every opportunity presented or created.

Take all the politics out of this and the answers seem quite simple and if a new focus does not work for some, then it becomes clear of the role the individual plays in his or her life.

4 comments

  1. That was indeed an inspiring sermon, Mr. Quinn. Your thinly veiled message is the same as Paul (Lyan) Ryan’s philosophy: If you live in the United States and you are poor, it’s your own damn fault.
    Here is just one (of a great many) examples of the idiocy of your shared ideology:
    A great many of our veterans returning from two Republican created wars (on totally false pretenses) are suffering from physical and/or mental injuries. Many of them cannot find employment and need assistance such as food stamps to survive and feed their families. They are therefore considered to be poor and lazy. They are among Paul Ryan’s “takers”. They are, in your world, poor because they have no initiative and don’t “work hard”. They fought in foreign invasions that never had any hope of success or any goal of “success”. Those were Republican follies to enrich arms manufacturers (many in Texas – gee whiz). And now the Republican congress members who sent them to fight and/or die treat them as lazy takers and refuse to help them.
    It many times takes a comedian to nail the truth in short sentences. Let your readers hear and see these:

    No, Mr. Quinn, the poor are not poor because they are lazy and have no initiative. The playing field is not level. The game is rigged and Congress is bought and paid for by the 1%. You know that and I know that.
    One recent example: The toxic oil coming from Canadian tar sands is being transported to severely polluted Port Arthur, Texas via truck and rail right now. The Keystone pipeline will only serve to make it less expensive to move that toxic oil. The refineries that are processing that oil are owned by the Koch brothers who are trying to buy our Congress.
    Smell the coffee.

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    1. It’s a bit unfair for you to assume I believe veterans are lazy and a bit naive of you to ignore the people who do not put forth their fair share of effort. Tell me exactly what “the playing field is not level” means. Give examples showing why and how someone is restricted in their opportunity.

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      1. First of all, I know that you are intelligent enough to know and understand this obvious situation without any explanation from me.
        Secondly, I have answered your questions several times previously with lengthy factual postings.
        Read what Pope Francis said once again. He certainly has no political oars in our water:

        A week after Pope Francis released his first papal exhortation, the innocuously named “Joy of the Gospel,” it is still causing ruptures. Rush Limbaugh dismissed it as “pure Marxism coming out of the mouth of the Pope.” At least one Roman Catholic group demanded that Limbaugh apologize and retract his remarks, but that seems unlikely. And meanwhile, some conservative economic commentators, while stopping short of echoing Limbaugh’s words, have accused the Pope of misrepresenting global capitalism, and ignoring its role in wealth creation.

        It’s the not the first time that the seventy-six-year-old Argentine has created controversy since he took over the papacy in March. But on this occasion, what is he actually saying? Rather than relying on secondhand accounts, it’s worth examining his own words, which run to two hundred and twenty-three pages.

        A papal exhortation is an official statement issued by the Vatican that ranks below formal encyclicals, which are used to state the Church’s position on things like abortion and contraception, but above a regular letter to the faithful. In this instance, Pope Francis, who succeeded the arch-conservative Pope Benedict XVI, is laying down some themes for his tenure, and he ranges well beyond economics. He writes primarily about the meaning of the Gospels, the challenges facing Roman Catholicism—including a section on “Temptations faced by pastoral workers”—and the need for a renewed missionary impulse in the Church. “The joy of the gospel fills the hearts and lives of all who encounter Jesus,” he begins. “I wish to encourage the Christian faithful to embark upon a new chapter of evangelization marked by this joy, while pointing out new paths for the Church’s journey in years to come.”

        If this sounds more like the language of a prelate than a political economist, nobody should be surprised. Like many Jesuits, the former Jorge Mario Bergoglio is a doctrinal traditionalist, who puts great stress on the language of the New Testament. But he also has a vision of the Church as an institution that acts for, and on behalf of, the dispossessed—a vision that owes a lot to Saint Francis of Assisi, the thirteenth-century Italian who renounced his inheritance to tend to the poor. In Buenos Aires, Bergoglio’s latest biographer, Paul Vallely, reminds us in his new book about the Pope, he was known as “Bishop of the Slums.” On taking Francis’s name and entering the Vatican, he said he wanted “a poor Church, and for the poor.”

        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.

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      2. Furthermore, Mr. Quinn:
        Koch Brothers likes to champion themselves as crusaders against the welfare state. But a new report shows that they took $88 million of your taxpayer dollars while demanding that governments stop wasting taxpayer dollars. In total, $110 billion goes out to corporate welfare projects from state and local authorities. This does not even include money coming from federal sources.

        Entitled “Subsidizing the Corporate One Percent,” the report from the taxpayer watchdog group Good Jobs First shows that the world’s largest companies aren’t models of self-sufficiency and unbridled capitalism. To the contrary, they’re propped up by billions of dollars in welfare payments from state and local governments.
        Such subsidies might be a bit more defensible if they were being doled out in a way that promoted upstart entrepreneurialism. But as the study also shows, a full “three-quarters of all the economic development dollars awarded and disclosed by state and local governments have gone to just 965 large corporations”—not to the small businesses and startups that politicians so often pretend to care about.

        In dollar figures, that’s a whopping $110 billion going to big companies. Fortune 500 firms alone receive more than 16,000 subsidies at a total cost of $63 billion.

        Is that a level playing field? Is that Republican hypocrisy?

        This is totally sickening to all Americans!

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