Tag Archives: income inequality

March jobs report well below expectations, trade war trouble on the horizon

Economic forecasters expected another strong jobs report today. That didn’t happen. Steve Benen has the March jobs report. Following February’s highs, job growth slowed down in March:

The Bureau of Labor Statistics reported today that the economy added 103,000 jobs in March, while the unemployment rate held steady at 4.1% for the sixth consecutive month. In both cases, forecasts projected better progress, making today’s report disappointing.

Making matters slightly worse, the revisions for the two previous months – January and February – point to a combined loss of 50,000 jobs as compared to previous BLS reports.

MarchJobs
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Authoritarian Tea-Publicans reject the constitutional right of Arizona citizens to enact a minimum wage law

Authoritarian Tea-Publicans in the Arizona legislature reject the constitutional right of Arizona citizens to make their own laws by citizens initiative. Like Louis XIV of France, they believe “I am the state,” and that you are the unwashed rabble who are mere subjects who should bow down before them.

They are also the tools of corporate plutocrats, i.e., the Arizona chambers of commerce organizations, and in particular, the Arizona Restaurant Association, the most vocal opponent of the minimum wage and paid time off leave. The ARA would bring back indentured servitude if not for the Thirteenth Amendment.

In 2016, Arizona voters overwhelmingly approved a Minimum Wage Initiative that also allowed local governments to enact paid time off leave policies. The chamber of commerce organizations and their lickspittle Tea-Publican servants in the Arizona legislature will not stand for this. They want to stomp out this citizens-created law, despite the Voter Protection Act.

Two Tea-Publican members of the Arizona Legislature think voters should reconsider parts of the minimum-wage ballot measure they passed overwhelmingly less than two years ago. Proposals to roll back Arizona’s minimum-wage ballot measure protested at Capitol:

A pair of resolutions are moving through the Legislature that together would make major changes, including: freezing the minimum wage and stopping further scheduled increases to it; eliminating mandatory sick leave; repealing provisions regarding employer retaliation; and prohibiting cities from having a higher minimum wage than is set by the state.

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Working Americans have not noticed the effect of the GOP tax cut on their personal finances

Erica Werner of the Washington Post today asserts As GOP tax cuts take hold, Democrats struggle for line of attack based upon conservative Democrat Joe Donnelly’s reelection campaign in the deep red state of Indiana:

The new law is rising in popularity as businesses in Indiana and elsewhere trumpet bonuses and bigger paychecks. And while Donnelly and fellow Democrats struggle to craft a consistent attack on the law, Republicans — boosted by outside spending from groups backed by the billionaire Koch brothers and others — are united in touting the tax cuts and slamming moderate Democrats who voted against them.

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Americans have just started to see the tax cut show up in their paychecks this month, and along with those boosts in pay have come a spate of recent polls that show public opinion turning in favor of the tax legislation — leaving Democrats the unenviable task of trying to convince voters that a law increasing their paychecks now will be bad for the country later.

Werner is correct about the Koch brothers multi-million dollar GOPropaganda campaign to sell the GOP tax bill, and the resulting bump in polling (mostly from GOP-leaning voters responding to messaging for GOP tribalism). But there is contradictory evidence on any actual economic benefits of the GOP tax bill being noticeable in paychecks.

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December jobs report disappoints, a market correction is on the horizon

If you were hoping to see the U.S. job market end 2017 on an encouraging note you were disappointed today. And no, it was not due to extreme winter weather (that is going to be noted in January’s jobs report).

Steve Benen has the December jobs report. Job growth slows to a six-year low in Trump’s first year:

The Bureau of Labor Statistics reported today that the economy added 148,000 jobs in December, which is down a fair amount from the previous two months, and falls short of expectations. That said, the unemployment rate held steady at 4.1%, which is very low.

DecemberJobs

The revisions from the previous two months were mixed, with October’s totals revised down and November’s totals revised up. Combined, they pointed to a net loss of 9,000 jobs, which adds to the discouraging nature of today’s report.

Providing some additional context, now that we have data for all of the previous calendar year, we can note that the U.S. added 1.84 million jobs in 2011, 2.19 million jobs in 2012, 2.33 million in 2013, 3.11 million in 2014, 2.74 million in 2015, 2.24 million in 2016, and 2.05 million in 2017.

Or put another way, while Donald Trump’s first year as president has been pretty good overall for job creation, Americans nevertheless saw the slowest job growth in six years. (Note, the Bureau of Labor Statistics will revise the 2017 data once more, making the available figures preliminary.)

Here’s another chart, this one showing monthly job losses/gains in just the private sector since the start of the Great Recession.

DecemberPrivate

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Economic Inequality, Access to Care & Workforce Development: A Progressive Roadmap (video)

Rep. Pamela Powers Hannley

Rep. Pamela Powers Hannley

Economist Dean Baker, of the Center for Economic and Policy Research, recently gave a talk which focused on solving economic inequality. He pointed to five key areas of the economy that keep the rich rich and keep the rest of us in our places:

  • Macroeconomics;
  • Intellectual property rights;
  • Practice protection by highly paid professionals;
  • Financial regulation; and
  • Cooperate governance.

Given this list, can a state legislator like me make a dent in economic inequality? I think so.

I ran on a platform that focused on economic reform and public banking; equality and paycheck fairness; and attacking the opioid crisis.

How does my platform dovetail with Dean Baker’s list? There is quite a bit of overlap—particularly in macroeconomics, intellectual property rights, and practice protection.

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2018 World Inequality Report: inequality in U.S. is a result of deliberate policy decisions (updated)

Christopher Ingraham at the Washington Post reports, U.S. lawmakers are redistributing income from the poor to the rich, according to massive new study:

Back in 1980, the bottom 50 percent of wage-earners in the United States earned about 21 percent of all income in the country — nearly twice as much as the share of income (11 percent) earned by the top 1 percent of Americans.

But today, according to a massive new study on global inequality, those numbers have nearly reversed: The bottom 50 percent take in only 13 percent of the income pie, while the top 1 percent grab over 20 percent of the country’s income.

Since 1980, in other words, the U.S. economy has transferred eight points of national income from the bottom 50 percent to the top 1 percent.

That trend is even more remarkable when you set it against comparable numbers for wealthy nations in Western Europe. There, the bottom 50 percent earn nearly 22 percent of the income in those economies, while the top 1 percent take in just over 12 percent of the money.

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The income situation in Western Europe today, in other words, is similar to how things were in the United States nearly 40 years ago.

The 2018 World Inequality Report, written by a team of leading international economists including Thomas Piketty of “Capital in the Twenty-First Century” fame, finds that the rise of income inequality in the United States is “largely due to massive educational inequalities, combined with a tax system that grew less progressive despite a surge in top labor compensation since the 1980s, and in top capital incomes in the 2000s.”

Since the 1970s the price of higher education has skyrocketed, putting the price of tuition out of reach for many low-income students. Over the same time, the tax code became more generous to the wealthiest Americans — the top marginal income-tax rate fell from 70 percent in 1980 to 39.6 percent in 2017, taxes on capital gains fell by more than half from the mid-1970s to the mid-2000s, and the estate tax has fallen as well.

Those changes have made it easier for high-income Americans to grab more and more of the income pie in any given year.

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