"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."
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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.
David says, "Canada used to have 2.5 million protected lakes and other bodies of water. After recent Conservative Omnibus bills, we're down to 97
. 87 of which are located in Conservative ridings (rich cottage country). More info
." Read the rest
Following an earlier signal from the Bishop of London, as well as the resignations of three prominent clerics, St Paul's cathedral has withdrawn from its legal action against the OccupyLondon demonstrators camped around its grounds.
A member of the group responsible for liaison with the cathedral said they had met the Chapter of St Paul's, the church's governing body, at 11am: "We were informed that they will no longer be proceeding with legal action against us." Cue loud cheers and applause.
Another activist then read out the full St Paul's statement to the assembly, which was punctuated with cheers - notably, when Giles Fraser's name was mentioned. News of Ken Costa's involvement was greeted with silence, apart from one man just behind me who muttered: "Yeah, great."
The church liaison committee will meet the St Paul's Chapter again tomorrow, with issues to be discussed including access to the cathedral during busy upcoming events such as Remembrance Day, Thanksgiving and Christmas.
That leaves the Corporation of London alone in its mission to evict OccupyLondon. The Corporation is a sinister and eccentric body that runs the "Square Mile" -- the headquarters of Britain's financial industry -- with near-total autonomy, as a kind of special economic zone or a country-within-a-country. Seriously, they make conspiracy nuts look reasonable:
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What is this thing? Ostensibly it's the equivalent of a local council, responsible for a small area of London known as the Square Mile. But, as its website boasts, "among local authorities the City of London is unique".
Steve Hilton, UK Prime Minister David Cameron's "strategy guru" has a cure for the sluggish British economy: temporarily abolishing all maternity rights and consumer protection laws
. He's not interested in proposals for lowering executive pay in publicly backed financial institutions that drove the world's economy off a cliff, or for increasing transparency in the executive compensation packages offered to the heads of publicly traded companies. Read the rest