Group items tagged

Mathew Yglesias: CBPP Analysis of John Boehner's Plan: The Center on Budget and Policy Priorities concludes that if enacted, John Boehner's debt ceiling plan "could well produce the greatest increase in poverty and hardship produced by any law in modern U.S. history." That sounds to me like something that would create strong incentives to not be poor and, indeed, to fully incentive richness. Consequently, we'll have massive economic growth. Right? Think of all the old people who will be willing to do odd jobs, whatever, in order to pay for health care. No more free-riding from grandma and grandpa to slow the economy down. The CBPP adds: This may sound hyperbolic, but it is not. The mathematics are inexorable. ... In short, the Boehner plan would force policymakers to choose among cutting the incomes and health benefits of ordinary retirees, repealing the guts of health reform and leaving an estimated 34 million more Americans uninsured, and savaging the safety net for the poor. It would do so even as it shielded all tax breaks, including the many lucrative tax breaks for the wealthiest and most powerful individuals and corporations. As for the way the debt ceiling talks are going, what a disaster.

It could be argued that the costs to the United States of providing such services for the rest of the world are modest, but that is ultimately a judgment call. To be sure, the dollar costs will not bankrupt us as a nation, but Americans spend $2,700 per person on our military, while the average European spends less than $700. The bottom line is that Europeans have little incentive to spend more because they don't feel particularly threatened, and they aren't anxious to take on responsibilities that are ably handled by the United States. The advocates of hegemonic stability theory would declare that a feature, not a bug. Mission accomplished. And that might be true, if the greatest threat to global security were a resurgence of conflict in Europe, and if it is truly in the U.S. interest to forever have allies with few capabilities and many liabilities. But that seems extremely shortsighted. The sweeping political and economic integration in Europe has dramatically reduced the likelihood of another European war. In the meantime, the fact that we have many allies with little to offer by way of military assets, and even less political will to actually use them, is forcing the U.S. military to bear the disproportionate share of the burdens of policing the planet. And in the medium- to long-term, while I doubt that we will be facing "a militarily superior, post-Soviet Russia," allies with usable military power might ultimately serve a purpose if Moscow proves as aggressive (and capable) as the hawks claim.

To the GOP everything can be solved by lower taxes and more corporate incentives. And yes, the upper middle class and the elite wealthy all benefit nicely… but it DOES NOT TRICKLE DOWN! The poor are still getting poorer, the lower middle class is still struggling along with the poor to hold jobs and keep health insurance.

(Part 2 of 2 - see first part below) What impact do the incredible salaries of superstars have on the rest of us? What has changed, technologically and socially, to precipitate these inequities? This article also offers a brief look at the relationship between income inequality and economic growth, comparing the US throughout its history and the US vis a vis several European countries.