"Striking it Richer," a paper by Emmanuel Saez (an economist at UC Berkeley) looks at the way that the dividends of the slow US "economic recovery" have been distributed. Saez finds that 121% of the economic gains since 2009 have been captured by the richest 1% of Americans -- in other words, despite economic growth, the poorest 99% of Americans actually got poorer through the "recovery."
This confirms a pattern that Matt Stoller highlighted: that income inequality increased more under Obama than under Bush. And the new Saez paper also describes how it came about. In short form, income to the top 1% is significantly influenced by capital gains. Remember, the tax reporting is not clean here: rising equity and bond markets help all those private equity and hedge fund professionals, who are able to get capital gains treatment for what ought to be labor income. But the paper also stresses that the lower orders were hit hard in the aftermath of the global financial crisis than in the dot-bomb era, which also saw a big drop in capital gains. That isn’t as hard to understand. The collapse of the dot-com mania didn’t impair the real economy overmuch because it was not fueled in a meaningful way by borrowings. By contrast, the housing bubble, and more important (in terms of damage to the financial system) the much housing exposure created synthetically by CDOs that consisted entirely or mainly of credit default swaps was highly geared, hence when it collapsed, it took credit providers down with it.
Yes, Virginia, the Rich Continue to Get Richer: the Top 1% Got 121% of Income Gains Since 2009 [Yves Smith/Naked Capitalism]
Wisconsin Governor and balanced-budget hawk Scott Walker’s failed bid for the GOP presidential candidacy left him with $1.2 million in debt.
The Federal Election Commission has deadlocked on a complaint about an employer who coerced his salaried employees into donating to a PAC he had started; the three Democratic commissioners voted to take action, the three GOP commissioners voted against, and that means that nothing will happen.
This week, Marvel Comics published the first issue of Captain America: Steve Rogers in which it’s revealed that since his earliest days, Captain America has been a double agent for Hydra, the thinly veiled allegory for the Nazis; in an epic Twitter rant, Livejournal alumnus and Dreamwidth cofounder Denise Paolucci explains the way that perpetual […]
We’d all love a 75-inch TV screen on which to view our favorite shows. But not all of us can drop the cash needed to get one of those broadcasting beauties (or even have the space needed to house them).Thankfully, there’s an alternative. With the SainSonic Mini LED Portable Projector (only $59.99 in the Boing Boing Store), you can project a picture […]
If you want to add some real firepower to your programming repertoire, learn Java–one of the most adaptable, widely-used programming platforms around. You can easily do that with this Ultimate Java bundle, now just $69 in the Boing Boing Store.Across 14 lectures and 117 hours of content, the educators at online academy eduCBA will walk you through […]
Every company wants to harness the power of social media, but few understand how to make that happen. Be one of those select few with this Social Media Marketing Course & Certification package, now just $29 in the Boing Boing Store.Over 12 modules of course material, you’ll learn what it takes to increase a brand’s […]