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Individuals earning less than $75,000 will receive the full $1,400. Married couples earning less than $150,000 a year will receive $2,800 -- and families with children are eligible for an additional $1,400 per dependent. Heads of households earning less than $112,500 a year will also receive the full $1,400 plus another $1,400 per dependent.

The jobless will receive a $300 weekly federal boost to unemployment benefits and get those payments through September 6.

The bill also calls for making the first $10,200 of unemployment payments tax-free for households with annual incomes under $150,000.

Food stamp recipients will see a 15% increase in benefits continue through September, instead of having it expire at the end of June.

The bill will send roughly $20 billion to state and local governments to help low-income households cover back rent, rent assistance and utility bills.

It authorizes about $10 billion to help struggling homeowners pay their mortgages, utilities and property taxes.The bill also provides $5 billion to help states and localities assist those at risk of experiencing homelessness by providing safe, socially distant housing, for example. Another $5 billion goes to emergency housing vouchers for those who are homeless.

Qualifying families can receive a child tax credit of $3,600 for each child under 6 and $3,000 for each one under age 18, up from the current credit of up to $2,000 per child under age 17.The enhanced portion of the credit will be available for single parents with annual incomes up to $75,000 and joint filers making up to $150,000 a year.

Enrollees will pay no more than 8.5% of their income towards coverage, down from nearly 10% now. Also, those earning more than the current cap of 400% of the federal poverty level -- about $51,000 for an individual and $104,800 for a family of four in 2021 -- will become eligible for help.

The bill provides $15 billion to the Emergency Injury Disaster Loan program, which provides long-term, low-interest loans from the Small Business Administration. Severely impacted small businesses with fewer than 10 workers will be given priority for some of the money.

It also provides $25 billion for a new grant program specifically for bars and restaurants. Eligible businesses may receive up to $10 million and can use the money for a variety of expenses, including payroll, mortgage and rent, utilities and food and beverages.

Workers being paid at or just above the federal minimum wage of $7.25 an hour will not see a boost in pay.

The $1.9 trillion coronavirus package contains a wide range of benefits to help Americans who are still struggling with the economic fallout of the pandemic.

What awaits at the end of this frenetic period is not likely to resemble the 2008 housing bubble, which brought on a drawn-out crash when it finally burst, they said.

Nationwide, housing inventory was at a record-low 1.03 million units at the end of February, down 29.5 percent from a year earlier, a record decline, according to the National Association of Realtors.

“It gives the feel of a bubble,” Mr. Yun said, recalling the run-up to the subprime mortgage crisis that cratered prices after 2008. “But the fundamental factors are different.”

“We don’t have the reckless lending that we had before,” said Mr. Miller, and so even as market conditions get frothy, some may find that they overpaid for their property, but the ebb and flow will be more in line with regular economic cycles.

He also expects home prices to keep rising in the short term, because of more than a decade of sluggish housing construction, hobbled by restrictive zoning and high labor costs.

Unlike much of the country, New York had a glut of luxury inventory before the pandemic, and prices had been softening since around 2017. From 2018 to the end of 2019, Manhattan saw a roughly 15 percent drop in sale prices, Mr. Miller said.

In the week ending April 11, there were 783 new signed contracts citywide, the highest since the company began tracking weekly pending sales in 2019, when the peak was 491 contracts, she said.

“The rate at which homes are selling nationally is not sustainable, but in New York, the uptick is just getting started,” said Nancy Wu, an economist for StreetEasy, a listing website.

The price cuts have been a boon to a broader range of people. First-time buyers made up 41.9 percent of sales in Manhattan last quarter, the highest share in at least seven years, Mr. Miller said.

“It does have the potential to last for a while, because the results are only based on a half-tank of gas,” Ms. Olshan said, referring to the fact that most of these signings were from domestic and local buyers, as international buyers remain mostly on the sidelines with travel restrictions.

New York’s revival also challenges one of the early assumptions during the pandemic — that the suburbs would benefit at the expense of big cities, where buyers, untethered from office commutes, could choose to live farther from work.

So far, thanks to limited supply, many suburbs remain in high demand. Fairfield County, Conn., for instance, recorded 3,045 sales last quarter, the most in that period in more than 16 years, along with the lowest inventory in 25 years, according to a report from the brokerage Douglas Elliman.

“Manhattan finally joined the party,” he said, referring to the city’s sales turnaround. “But we’re not sure if this is the party we want to be in — because there’s uncertainty about how this plays out.”

In almost every state, property tax assessments were higher in areas with more black and Hispanic residents

The gap between white families and minority households remains large — 10 percent — when you combine data for Hispanic and black families

“We’ve always considered that in addition to paying your regular tax, there was a black tax that goes along with it,”

“It’s almost like it’s in the soil,” he said. “It stretches all across the board. It’s not just real estate. It’s not just housing. It’s not just food deserts. It’s not just racism on the street. It’s not just that you can’t get a cab at night. It’s everything.”

“The structure of the property tax system operates to disadvantage black Americans,” she said. “That’s how structural racism is. It’s built into the system. The property tax system itself discriminates against black Americans.”

One in five black households have reported missing a mortgage payment since mid-March, compared with about 1 in 20 white ones

Facing the accumulated disadvantages of centuries of repression and systemic racism, black Americans are likely to earn less than similar white workers in lower-paying service jobs, a dynamic that makes it more difficult to buy a home. Now, by hitting those jobs first and hardest, the coronavirus pandemic has made a bad situation worse

“During the Jim Crow era, local white officials routinely manipulated property tax assessments to overburden and punish black populations and as a hidden tax break to landowning white gentry,”

white officials going to extreme lengths to hike black taxes. In one such case in 1932, a black North Carolina resident was taxed for the value of two stray dogs that had been seen on her property.

Many county assessors intentionally overvalued black properties, sometimes in direct retaliation for black political action

As early as 1901, W.E.B. Du Bois showed that because of their unequal tax burden, black people paid more in taxes than they received in public education funds,

The fiction that “black people take services but they don’t pay taxes” remains widespread,

The values of black-owned homes tend to grow more slowly than values of white-owned ones. The white people who make up the vast majority of home buyers tend to avoid black neighborhoods, which cuts black sellers off from many potential buyers.

Given that difference in price appreciation, if an assessor assumes a black-owned home gains value as quickly as a white-owned home, the assessed value of the black-owned home will quickly outstrip its market value.

Nearby white families benefit from the opposite trend: Their homes increase in value more rapidly than their assessments, giving them an ever-growing tax break.

the appeals process illustrates how much of the property tax system functions in a way that penalizes black wealth, even as it appears neutral on its face.

While neighborhood and race are the biggest drivers of the property tax gap, the economists found others

As part of their study, the economists reviewed 3.4 million property tax appeals from Chicago and surrounding Cook County and found black homeowners were significantly less likely to appeal their property tax assessments. When they did appeal, black homeowners were less likely to win. And when they won, they earned smaller assessment reductions.

“White people feel more comfortable working within the system that was set up to make them succeed,”

“It makes sense that a black family who has been disenfranchised from these systems wouldn’t challenge it.” It is also difficult to work within the system for Latinos, many of whom do not speak English as a first language, she added.

was not taught about appealing property taxes or any of the other small strategies white homeowners have used to accumulate generational wealth.

“They feel their property taxes were being used to push them out of their places, especially when communities started gentrifying,” Avenancio-León said. It helped him see how property taxation can be used as a means of social engineering.

the duo, then working on doctorate degrees at the University of California at Berkeley, combined 118 million real estate transactions and assessments from 2005 to 2016 with maps of more than 75,000 local taxing entities — such as counties, school districts, airport authorities and utility districts.

They used the maps to sort homes into areas that faced the same property tax burdens, identified the races of homeowners using federal mortgage data, and looked at every time a dwelling was assessed and then sold in the same year. That allowed them to compare a home’s assessed value and its market value, alongside the homeowner’s race and ethnicity.

The property tax gaps are worst for low earners, but even the highest-earning black Americans pay more on average in property taxes than similarly well-off white peers living nearby.

Whether or not these gaps were caused by explicit racism, Brown said, “you should be just as outraged that this is going on, and we should find a way to fix it.”

easy money. In an eye-opening new book, “What Went Wrong With Capitalism,” he makes a convincing case.

“When the price of borrowing money is zero,” Sharma told me this week, “the price of everything else goes bonkers.”

To take just one example: In 2010, as the era of ultralow and even negative interest rates was getting started, the median sale price for a house in the United States hovered around $220,000. By the start of this year, it was more than $420,000.

Nowhere has inflation (in the broad sense of the term) been more evident than in global financial markets. In 1980 they were worth a total of $12 trillion — equal to the size of the global economy at the time. After the pandemic, Sharma noted, those markets were worth $390 trillion, or around four times the world’s total gross domestic product.

But the worst hit is to capitalism itself: a pervasive and well-founded sense that the system is broken and rigged, particularly against the poor and the young. “A generation ago, it took the typical young family three years to save up to the down payment on a home,” Sharma observes in the book. “By 2019, thanks to no return on savings, it was taking 19 years.”

First, there was inflation in real and financial assets, followed by inflation in consumer prices, followed by higher financing costs as interest rates have risen to fight inflation

For wealthier Americans who own assets or had locked in low-interest mortgages, this hasn’t been a bad thing. But for Americans who rely heavily on credit, it’s been devastating.

Since investors “can’t make anything on government bonds when those yields are near zero,” he said, “they take bigger risks, buying assets that promise higher returns, from fine art to high-yield debt of zombie firms, which earn too little to make even interest payments and survive by taking on new debt.”

The hit to the overall economy comes in other forms, too: inefficient markets that no longer deploy money carefully to their most productive uses, large corporations swallowing smaller competitors and deploying lobbyists to bend government rules in their favor, the collapse of prudential economic practices.

“The most successful investment strategy of the 2010s,” Sharma writes, citing the podcaster Joshua Brown, “would have been to buy the most expensive tech stocks and then buy more as they rose in price and valuation.”

In theory, easy money should have broad benefits for regular people, from employees with 401(k)s to consumers taking out cheap mortgages. In practice, it has destroyed much of what used to make capitalism an engine of middle-class prosperity in favor of the old and very rich.

The social consequence of this is rage; the political consequence is populism.

“He promised to deconstruct the administrative state but ended up adding new rules at the same pace as his predecessor — 3,000 a year,” Sharma said of Trump. “His exercise of presidential authority to personal ends shattered historic precedents and did more to expand than restrict the scope of government. For all their policy differences, both leading U.S. candidates are committed and fearless statists, not friends of competitive capitalism.”

We are wandering in fog. And the precipice is closer than we think.

Times were certainly very good in the decade after the 1991 Soviet collapse ended the fifty year emergency that began with Pearl Harbor. So if one accepts my definition of a conservative as “someone who knows things could be worse than they are-period,” then conservatism was never more apt

the “third age” neoconservatives ensconced at The Weekly Standard, Commentary, and various think tanks thought Promised Land, Crusader State decidedly inconvenient. They wanted Americans to believe that the United States has always possessed the mission and duty to redeem the whole world by exertion as well as example, and that any American who shirks from that betrays the Founders themselves.[13] They were loudly decrying cuts in defense spending as unilateral disarmament, likening U.S. policies to Britain’s lethargy in the 1930s, and warning of new existential threats on the horizon.

what national assets must the United States husband, augment if possible, and take care not to squander? My list was as follows: (1) a strong economy susceptible only to mild recession; (2) robust armed forces boasting technical superiority and high morale designed for winning wars; (3) presidential leadership that is prudent, patriotic, and persuasive; (4) a bipartisan, internationalist consensus in Congress; (5) sturdy regional alliances; (6) engagement to promote balance of power in Europe, East Asia, and the Middle East; (7) strong Pan-American ties to secure of our southern border.

t the shock of the 9/11 attacks and the imperative duty to prevent their repetition caused the Bush administration to launch two wars for regime change that eventuated in costly, bloody occupations belatedly devoted to democratizing the whole Middle East. Thus did the United States squander in only five years all seven of the precious assets listed in my 1999 speech.

When the other shoe dropped—not another Al Qaeda attack but the 2008 sub-prime mortgage collapse—Americans wrestled anew with an inconvenient truth. Foreign enemies cannot harm the United States more than Americans harm themselves, over and over again, through strategic malpractice and financial malfeasance.

Unfortunately, in an era of interdependent globalization vexed by failed states, rogue regimes, ethnic cleansing, sectarian violence, famines, epidemics, transnational terrorism, and what William S. Lind dubbed asymmetrical “Fourth Generation Warfare,” the answer to questions about humanitarian or strategic interventions abroad can’t be “just say no!” For however often Americans rediscover how institutionally, culturally, and temperamentally ill-equipped they are to do nation-building, the United States will likely remain what I (and now Robert Merry) dubbed a Crusader State.

the urgent tasks for civilian and military planners are those of the penitent sinner called to confess, repent, and amend his ways. The tasks include refining procedures to coordinate planning for national security so that bureaucratic and interest-group rivalries do not produce “worst of both worlds” outcomes.[22] They include interpreting past counter-insurgencies and postwar occupations in light of their historical particularities lest facile overemphasis on their social scientific commonalities yield “one size fits all” field manuals

they include persuading politicians to cease playing the demagogue on national security and citizens to cease imagining every intervention a “crusade” or a “quagmire”

The new history of capitalism is less a movement than what proponents call a “cohort”: a loosely linked group of scholars who came of age after the end of the cold war cleared some ideological ground, inspired by work that came before but unbeholden to the questions — like, why didn’t socialism take root in America? — that animated previous generations of labor historians.

the crisis hit, and people started asking, ‘Oh my God, what has Wall Street been doing for the last 100 years?’ ”

While most scholars in the field reject the purely oppositional stance of earlier Marxist history, they also take a distinctly critical view of neoclassical economics, with its tidy mathematical models and crisp axioms about rational actors.

The history of capitalism has also benefited from a surge of new, economically minded scholarship on slavery, with scholars increasingly arguing that Northern factories and Southern plantations were not opposing economic systems, as the old narrative has it, but deeply entwined.

In a paper called “Toxic Debt, Liar Loans and Securitized Human Beings: The Panic of 1837 and the Fate of Slavery,” Edward Baptist, a historian at Cornell, looked at the way small investors across America and Europe snapped up exotic financial instruments based on slave holdings, much as people over the past decade went wild for mortgage-backed securities and collateralized debt obligations — with a similarly disastrous outcome.

The hierarchy of status is a different one. The professionals are the apex of that hierarchy.

these two hierarchies live side by side. They share a lot of the same assumptions about the world and a lot of the same attitudes, but they also differ in important ways. So I’m not one of these people who says the Democrats and the Republicans are the same. I don’t think they are. But there are sometimes similarities between these two groups.

professionals tend to be very liberal on essentially any issue other than workplaces issues. So on every matter of cultural issues, culture war issues, all the things that have been so prominent in the past, they can be very liberal.

On economic questions, however, they tend not to be. (dishes clattering) They tend to be much more conservative. And their attitudes towards working-class people in general and organized labor specifically is very contemptuous.

if you look just back to the Bill Clinton administration: In policy after policy after policy, he was choosing between groups of Americans, and he was always choosing the interests of professionals over the interests of average people. You take something like NAFTA, which was a straight class issue, right down the middle, where working people are on one side of the divide and professionals are on another. And they’re not just on either side of the divide: Working people are saying, “This is a betrayal. You’re going to ruin us.” And professional people are saying, “What are you talking about? This is a no-brainer. This is what you learn on the first day of economics class.” And hilariously, the working people turned out to be right about that. The people flaunting their college degrees turned out to be wrong.

Every policy decision he made was like this. The crime bill of 1994, which was this sort of extraordinary crackdown on all sorts of different kinds of people. And at the same time he’s deregulating Wall Street.

You’re teaching a course that meets three times a week and you’re getting $1,500 for an entire semester. That was a shocking lesson but at the same time that was happening to us, the price of college was going up and up and up, because increasingly the world or increasingly the American public understands and believes that you have to have a college degree to get ahead in life. So they are charging what the markets can bear

If you go down the list of leading Democrats, leading Democratic politicians, what you find is that they’re all plucked from obscurity by fancy universities. This is their life story. Bill Clinton was from a town in Arkansas, goes to Georgetown, becomes a Rhodes Scholar, goes to Yale Law School — the doors of the world open up for him because of college.

beginning in the 1960s, Americans decided that the right way to pursue opportunities was through the university. It’s more modern than you think. I was reading a book about social class from right after World War II. And the author was describing this transition, this divide between people who came up through their work, who learned on the job and were promoted, versus people who went to universities. And this was in the ’40s. But by the time Bill Clinton was coming up in the ’60s, university was essential

just look at his cabinet choices, which are all from a very concentrated very narrow sector of the American elite. It’s always Ivy League institutions.

The tuition price spiral is one of the great landmark institutions of our country in the last couple of decades.

Or deregulating telecoms. Or capital gains tax cuts. It’s always choosing one group over another.

look, I’m in favor of education. I think people should be educated, should go to college. I think it’s insane that it costs as much as it does. And I think that the country is increasingly agreeing with me

The student debt crisis? This is unbearable. We have put an entire generation of young people — basically they come out of college with the equivalent of a mortgage and very little to show for it. It’s unbelievable that we’ve done this. My dad went to college basically for free. It wasn’t even that expensive when I went, in the early 1980s. This is unbelieveable what we’re doing to young people now and it can’t go on

You seem to be suggesting, the way you talk about the Democrats, that somehow this is elitist and to pursue an education puts you out of touch with real people.I don’t think so. Especially since we’re rapidly becoming a country where — what is the percentage of people who have a college degree now? It’s pretty high. It’s a lot higher than it was when I was young.

One of the chronic failings of meritocracy is orthodoxy. You get people who don’t listen to voices outside their discipline. Economists are the most flagrant example of this. The economics profession, which treats other ways of understanding the world with utter contempt. And in fact they treat a lot of their fellow economists with utter contempt.

there’s no solidarity in a meritocracy. The guys at the top of the profession have very little sympathy for the people at the bottom. When one of their colleagues gets fired, they don’t go out on strike

There’s no solidarity in this group, but there is this amazing deference between the people at the top. And that’s what you see with Obama. He’s choosing those guys.

you start to wonder, maybe expertise is a problem.But I don’t think so. I think it’s a number of things.

The first is orthodoxy which I mentioned

when Clinton ran in ’92, they were arguing about inequality then as well. And it’s definitely the question of our time. The way that issue manifested was Wall Street in ’08 and ’09. He could have taken much more drastic steps. He could have unwound bailouts, broken up the banks, fired some of those guys. They bailed out banks in the Roosevelt years too and they broke up banks all the time. They put banks out of business. They fired executives, all that sort of thing. It is all possible, there is precedent and he did none of it

the third thing is this. You go back and look at when government by expert has worked, because it has worked. It worked in the Roosevelt administration, very famously. They called it the Brains Trust. These guys were excellent.

These were not the cream of the intellectual crop. Now he did have some Harvard- and Yale-certified brains but even these were guys who were sort of in protest. Galbraith: This is a man who spent his entire career at war with economic orthodoxy. I mean, I love that guy. You go right on down the list. Its amazing the people he chose. They weren’t all from this one part of American life.

Is there a hero in your book?I don’t think there is.

The overarching question of our time is inequality, as [Obama] himself has said. And it was in Bill Clinton’s time too.Well you look back over his record and he’s done a better job than most people have done. He’s no George W. Bush. He hasn’t screwed up like that guy did. There have been no major scandals. He got us out of the Iraq war. He got us some form of national health insurance. Those are pretty positive things. But you have to put them in the context of the times, weigh them against what was possible at the time. And compared to what was possible, I think, no. It’s a disappointment.

The second is that a lot of the professions have been corrupted. This is a very interesting part of the book, which I don’t explore at length. I wish I had explored it more. The professions across the board have been corrupted — accounting, real estate appraisers, you just go down the list

What else? You know a better solution for health care. Instead he has this deal where insurance companies are basically bullet-proof forever. Big Pharma. Same thing: When they write these trade deals, Big Pharma is always protected in them. They talk about free trade. Protectionism is supposed to be a bad word. Big Pharma is always protected when they write these trade deals.

You talk about “a way of life from which politicians have withdrawn their blessing.” What is that way of life?You mean manufacturing?You tell me. A sort of blue-collar way of life. It’s the America that I remember from 20, 30, 40 years ago. An America where ordinary people without college degrees were able to have a middle class standard of living. Which was — this is hard for people to believe today — that was common when I was young

Today that’s disappeared. It’s disappearing or it has disappeared. And we’ve managed to convince ourselves that the reason it’s disappeared is because — on strictly meritocratic grounds, using the logic of professionalism — that people who didn’t go to college don’t have any right to a middle-class standard of living. They aren’t educated enough. You have to be educated if you want a middle-class standard of living.

here have been so many different mechanisms brought into play in order to take their power away. One is the decline of organized labor. It’s very hard to form a union in America. If you try to form a union in the workplace, you’ll just get fired. This is well known. Another, NAFTA. All the free trade treaties we’ve entered upon have been designed to give management the upper hand over their workers. They can threaten to move the plant. That used to happen of course before NAFTA but now it happens more often.

Basically everything we’ve done has been designed to increase the power of management over labor in a broad sociological sense.

And then you think about our solutions for these things. Our solutions for these things always have something to do with education. Democrats look at the problems I am describing and for every economic problem, they see an educational solution

The problem is not that we aren’t smart enough; the problem is that we don’t have any power

Why do you think that is?I go back to the same explanation which is that Obama and company, like Clinton and company, are in thrall to a world view that privileges the interest of this one class over everybody else. And Silicon Valley is today when you talk about the creative class or whatever label you want to apply to this favored group, Silicon Valley is the arch-representative.

So do you think it’s just a matter of being enthralled or is it a matter of money? Jobs? Oh the revolving door! Yes. The revolving door, I mean these things are all mixed together.

When you talk about social class, yes, you are talking about money. You are talking about the jobs that these people do and the jobs that they get after they’re done working for government. Or before they begin working for government. So the revolving door — many people have remarked upon the revolving door between the Obama administration and Wall Street.

Now it’s between the administration and Silicon Valley. There’s people coming in from Google. People going out to work at Uber.

the productivity advances that it has made possible are extraordinary. What I’m skeptical of is when we say, oh, there’s a classic example when Jeff Bezos says, ‘Amazon is not happening to book-selling. The future is happening to book-selling.’ You know when people cast innovation — the interests of my company — as, that’s the future. That’s just God. The invisible hand is doing that. It just is not so.

Every economic arrangement is a political decision. It’s not done by God. It’s not done by the invisible hand — I mean sometimes it is, but it’s not the future doing it. It’s in the power of our elected leaders to set up the economic arrangements that we live in. And to just cast it off and say, oh that’s just technology or the future is to just blow off the entire question of how we should arrange this economy that we’re stumbling into.

I may end up voting for Hillary this fall. If she’s the candidate and Trump is the Republican. You bet I’m voting for her. There’s no doubt in my mind. Unless something were to change really really really dramatically.

Bernie Sanders because he has raised the issues that I think are really critical. He’s a voice of discontent which we really need in the Democratic party. I’m so tired of this smug professional class satisfaction. I’ve just had enough of it. He’s talking about what happens to the millennials. That’s really important. He’s talking about the out-of-control price of college. He’s even talking about monopoly and anti-trust. He’s talking about health care. As far as I’m concerned, he’s hitting all the right notes. Now, Hillary, she’s not so bad, right? I mean she’s saying the same things. Usually after a short delay. But he’s also talking about trade. That’s critical. He’s really raising all of the issues, or most of the issues that I think really need to be raised.

My main critique is that she, like other professional class liberals who are so enthralled with meritocracy, that she can’t see this broader critique of all our economic arrangements that I’ve been describing to you. For her, every problem is a problem of the meritocracy: It’s how do we get talented people into the top ranking positions where they deserve to be

People who are talented should be able to rise to the top. I agree on all that stuff. However that’s not the problem right now. The problems are much more systemic, much deeper, much bigger. The whole thing needs to be called into question. So I think sometimes watching Hillary’s speeches that she just doesn’t get that

Conard said Baker was undercounting the social benefits of investment. He looks, in particular, at agriculture, where, since the 1940s, the cost of food has steadily fallen because of a constant stream of innovations. While the businesses that profit from that innovation — like seed companies and fast-food restaurants — have made their owners rich, the average U.S. consumer has benefited far more. Conard concludes that for every dollar an investor gets, the public reaps up to $20 in value. This is crucial to his argument: he thinks it proves that we should all appreciate the vast wealth of others more, because we’re benefiting, proportionally, from it.

What about investment banks, with their complicated financial derivatives and overleveraged balance sheets? Conard argues that they make the economy more efficient, too. The financial crisis, he writes, was not the result of corrupt bankers selling dodgy financial products. It was a simple, old-fashioned run on the banks, which, he says, were just doing their job

He argues that collateralized-debt obligations, credit-default swaps, mortgage-backed securities and other (now deemed toxic) financial products were fundamentally sound. They were new tools that served a market need for the world’s most sophisticated investors,

“A lot of people don’t realize that what happened in 2008 was nearly identical to what happened in 1929,” he says. “Depositors ran to the bank to withdraw their money only to discover, like the citizens of Bedford Falls” — referring to the movie “It’s a Wonderful Life” — “that there was no money in the vault. All that money had been lent.”

In 2008 it was large pension funds, insurance companies and other huge institutional investors that withdrew in panic. Conard argues in retrospect that it was these withdrawals that led to the crisis — not, as so many others have argued, an orgy of irresponsible lending

Conard concedes that the banks made some mistakes, but the important thing now, he says, is to provide them even stronger government support. He advocates creating a new government program that guarantees to bail out the banks if they ever face another run.

the central role of banks, Conard says, is to turn the short-term assets of nervous savers into risky long-term loans that help the economy grow.

A central problem with the U.S. economy, he told me, is finding a way to get more people to look for solutions despite these terrible odds of success. Conard’s solution is simple. Society benefits if the successful risk takers get a lot of money

As Conard told me, one of the crucial lessons he learned at Bain is that it makes no sense to look for easy solutions. In a competitive market, all that’s left are the truly hard puzzles. And they require extraordinary resources. While we often hear about the greatest successes — penicillin, the iPhone — we rarely hear about the countless failures and the people and companies who financed them.

we live longer, healthier and richer lives because of countless microimprovements like that one. The people looking for them, Conard likes to point out, are not only computer programmers, engineers and scientists. They are also wealthy investors like him

He said the only way to persuade these “art-history majors” to join the fiercely competitive economic mechanism is to tempt them with extraordinary payoffs.

When I look around, I see a world of unrealized opportunities for improvements, an abundance of talented people able to take the risks necessary to make improvements but a shortage of people and investors willing to take those risks. That doesn’t indicate to me that risk takers, as a whole, are overpaid. Quite the opposite.” The wealth concentrated at the top should be twice as large, he said. That way, the art-history majors would feel compelled to try to join them.

Rather than simply serving as an invitation for everybody to engage in potentially beneficial risk-taking, inequality can allow those with wealth to crush new ideas.

Unlike Romney, Conard rejects the notion that America has “some monopoly on hard work or entrepreneurship.” “I think it’s simple economics,” he said. “If the payoff for risk-taking is better, people will take more risks

Conard sees the success of the U.S. economy as, in part, the result of a series of historic accidents. Most recently, the coincidence of Roe v. Wade and the late 1970s economic malaise allowed Ronald Reagan to unify social conservatives and free-market advocates and set the country on a pro-investment path for decades. Europeans, he says, made all the wrong decisions. Concern about promoting equality and protecting favored industries have led to onerous work rules, higher taxes and all sorts of social programs that keep them poorer than Americans.

Now we’re at a particularly crucial moment, he writes. Technology and global competition have made it more important than ever that the United States remain the world’s most productive, risk-taking, success-rewarding society. Obama, Conard says, is “going to dampen the incentives.” Even worse, Conard says, “he’s slowing the accumulation of equity” by fighting income inequality.

Conard’s book addresses what is perhaps the most important question in economics, the one Adam Smith set out to answer in “The Wealth of Nations”: Why do some countries grow so rich and others stay poor? Where you come down on the answer has as much to do with your politics as your economic worldview (two things that can often be the same)

Nearly every economist I spoke with said that Conard has too much faith in the market’s ability to reward only those who create real value. Conard, for instance, insists that even the dodgiest financial products must have been beneficial or else nobody would have bought them in the first place. If a Wall Street trader or a corporate chief executive is filthy rich, Conard says that the merciless process of economic selection has assured that they have somehow benefited society. Even pro-market Romney supporters take issue with this. “Ed ought to be more concerned about crony capitalism,” Hubbard told me.

“Unintended Consequences” ignores some of the most important economic work of the past few decades, about how power and politics influence economic growth. In technical language, this field is the study of “rent seeking,” in which people or companies get rich because of their power, not because of their ideas.

wealthy individuals and corporations are able to influence politicians and regulators to make seemingly insignificant changes to regulations that benefit themselves. In other words, to rig the game

Conard’s version of the financial crisis ignores much reporting and analysis — including work I’ve done with NPR’s “Planet Money” team — that shows that some of the nation’s largest banks actively manipulated customers and regulators and, sometimes, their own stockholders to profit from dangerous risk

he expressed anger over the praise that Warren Buffett has received for pledging billions of his fortune to charity. It was no sacrifice, Conard argued; Buffett still has plenty left over to lead his normal quality of life. By taking billions out of productive investment, he was depriving the middle class of the potential of its 20-to-1 benefits. If anyone was sacrificing, it was those people. “Quit taking a victory lap,” he said, referring to Buffett. “That money was for the middle class.”

Perhaps concentrated wealth will inspire a nation of innovative problem-solvers. But if the view of many economists is right — that it sometimes discourages innovation — then we should worry

on this one he resorted to anecdotes and gut feelings. During his work at Bain, he said, he saw that successful companies had to battle against one another. Nobody was just given a free ride because of their power. “Was a person, like me, excluded from opportunity?” he asked rhetorically. “If so, I wasn’t aware!”

both could be true. The rich could earn a great deal of wealth through their own hard work, skill and luck. They could also use their subsequent influence to make themselves even richer

One of the great political and economic challenges of our time is figuring out the balance between wealth that benefits society and wealth that distorts.

Glenn Hubbard said only that at a broad level, Romney and Conard share “beliefs about innovation and growth and responsible risk-taking.”

Conard and Romney certainly share views on numerous policy matters. Like many Republicans, they promote lower taxes and less regulation for those who achieve financial succes

"We meet in the midst of a nation brought to the verge of moral, political, and material ruin. Corruption dominates the ballot-box, the Legislatures, the Congress, and touches even the ermine of the bench. The people are demoralized. . . . The newspapers are largely subsidized or muzzled, public opinion silenced, business prostrated, homes covered with mortgages, labor impoverished, and the land concentrating in the hands of capitalists. The urban workmen are denied the right to organize for self-protection, imported pauper­ized labor beats down their wages. . . . The fruits of the toil of millions are boldly stolen to build up colossal fortunes for a few, unprecedented in the history of mankind, and the pos­sessors of these, in turn, despise the Republic and endanger liberty. From the same prolific womb of governmental injus­tice we breed the two great classes - tramps and million­aires."

Charles Stevenson, who was for decades a staffer to Democratic senators before becoming a professor at the National War College. He writes:

I used to think that increased party polarization was simply the result of the growing ideological unity of each group, a process reinforced by redistricting into safe seats.  Now I think that a better explanation is a combination of a capture of the GOP by a radical fringe and the defeat of congressional institutionalism by partisanship

Newt Gingrich was the godfather to both movements, starting with his rejection of the bipartisan 1990 budget deal and continuing with his strategy of "destroy[ing] the House in order to save it" by undermining public confidence in the institution....

Congressional norms have also changed, most dramatically as you've noted in terms of the abuse of the filibuster. But they've also changed in terms of defending the congressional institutions and their proper Constitutional roles.

America actually earns more from its assets abroad than it pays to foreign investors. If your image is of a nation that’s already deep in hock to the Chinese, you’ve been misinformed. Nor are we heading rapidly in that direction.

And that’s why nations with stable, responsible governments — that is, governments that are willing to impose modestly higher taxes when the situation warrants it — have historically been able to live with much higher levels of debt than today’s conventional wisdom would lead you to believe.

That may not sound like much, but scientists say even the smallest increase causes the seawater to eat away more aggressively at the shoreline in calm weather, and leads to higher tidal surges during storms. The sea-level rise of decades past thus explains why coastal towns nearly everywhere are having to spend billions of dollars fighting erosion.

The evidence suggests that the sea-level rise has probably accelerated, to about a foot a century, and scientists think it will accelerate still more with the continued emission of large amounts of greenhouse gases into the air. The gases heat the planet and cause land ice to melt into the sea.

The official stance of the world’s climate scientists is that the global sea level could rise as much as three feet by the end of this century, if emissions continue at a rapid pace. But some scientific evidence supports even higher numbers, five feet and beyond in the worst case.

the land in this part of the world is sinking. And that goes back to the last ice age, which peaked some 20,000 years ago.

s a massive ice sheet, more than a mile thick, grew over what are now Canada and the northern reaches of the United States, the weight of it depressed the crust of the earth. Areas away from the ice sheet bulged upward in response, as though somebody had stepped on one edge of a balloon, causing the other side to pop up. Now that the ice sheet has melted, the ground that was directly beneath it is rising, and the peripheral bulge is falling.

Up and down the Eastern Seaboard, municipal planners want to know: How bad are things going to get, and how fast?

People considering whether to buy or rebuild at the storm-damaged Jersey Shore, for instance, could be looking at nearly a foot of sea-level rise by the time they would pay off a 30-year mortgage, according to the Rutgers projections. That would make coastal flooding and further property damage considerably more likely than in the past.

Even if the global sea level rises only eight more inches by 2050, a moderate forecast, the Rutgers group foresees relative increases of 14 inches at bedrock locations like the Battery, and 15 inches along the New Jersey coastal plain, where the sediments are compressing. By 2100, they calculate, a global ocean rise of 28 inches would produce increases of 36 inches at the Battery and 39 inches on the coastal plain.

The Census Bureau, in creating the S.P.M., corrected these failings, and it also took a more comprehensive view of what types of outlays are necessary for a decent life. Rather than basing everything on food, it included clothing, shelter (rent or mortgage payments), utilities, medical expenses, and child care. And, recognizing that poverty is partly relative, it tied the new poverty threshold to the expenditures of a family that is a third of the way up the income distribution. By recognizing non-market sources of income, the new poverty measure increases the estimated resources of the poor. In taking account of things like rent and medical expenses, it broadens the concept of the household budget. As far as the poverty rate goes, these adjustments work in opposite directions: the increased measure of incomes reduces the poverty rate; the acknowledgement that more must be spent to secure life’s essentials increases it. When the Census Bureau compared its new poverty metric to its old one, it found that the S.P.M. gave a slightly higher rate for 2012: sixteen per cent, compared to fifteen per cent for the O.P.M.

By 2012, the pre-tax/pre-transfer poverty rate is twenty-nine per cent, and the post-tax/post-transfer poverty rate is sixteen percent. To put it another way, by 2012, government anti-poverty programs were reducing the poverty rate by thirteen percentage points.

“Our estimates…show that historical trends in poverty have been more favorable—and that government programs have played a larger role—than [previous] estimates suggest… Government programs today are cutting poverty nearly in half (from 29% to 16%) while in 1967 they only cut poverty by about one percentage point.” The next time Paul Ryan (or any other Republican luminary) starts talking about poverty, and anti-poverty programs, somebody should ask him if he knows what he is talking about. The evidence suggests he doesn’t.

I used to say of investment banking that it was good one day a year: the day you got your bonus. The kicker: that bonus was nothing more than the present value of an inevitable pink slip. Being well paid but expendable was a fact of life.

my abiding memory is the drudgery of it all — none of which has ever been captured on film or in print. With good reason: much of what happens on Wall Street is terrifically boring.

The change Wall Street needs is about what people get rewarded to do, which is to take risks with other people’s money.

We saw how corrosive bad incentives were in the years leading up the financial crisis, when huge bonuses were paid to those who bundled up millions of faulty mortgages into securities and sold them as safe investments to people all over the world. Many of them knew better, but they did it anyway.

Speculating without any concern about being held accountable is exactly what the army of Wall Street bankers and traders will continue to do. Regardless of the fact that this very behavior was a key cause of the recent financial mess, that is what they are still being rewarded to do. Wall Streeters like to extol the complexity of their work, but in reality, it’s that simple.

the financial industry has grown much faster than either the flow of savings it channels or the assets it manages.

Defenders of modern finance like to argue that it does the economy a great service by allocating capital to its most productive uses — but that’s a hard argument to sustain after a decade in which Wall Street’s crowning achievement involved directing hundreds of billions of dollars into subprime mortgages.

Wall Street’s friends also used to claim that the proliferation of complex financial instruments was reducing risk and increasing the system’s stability, so that financial crises were a thing of the past. No, really.

if our supersized financial sector isn’t making us either safer or more productive, what is it doing? One answer is that it’s playing small investors for suckers, causing them to waste huge sums in a vain effort to beat the market.

Another answer is that a lot of money is going to speculative activities that are privately profitable but socially unproductive.

n short, we’re giving huge sums to the financial industry while receiving little or nothing — maybe less than nothing — in return. Mr. Philippon puts the waste at 2 percent of G.D.P.

et even that figure, I’d argue, understates the true cost of our bloated financial industry. For there is a clear correlation between the rise of modern finance and America’s return to Gilded Age levels of inequality.

ut a seemingly insatiable demand for luxury condos in Miami, created in part by wealthy Latin Americans, has caused land prices to soar, making affordable housing projects harder to build anywhere close to downtown. Moving farther out is cheaper, but the cost savings on housing can be quickly wiped out by transportation costs. A 2012 study by the Center for Housing Policy found that Miami was the most expensive metropolitan area in the country when housing and transportation costs were combined.

n many markets, buying a home is considerably cheaper than renting, and Miami is no exception. But many people are shut out of buying because their income is too low, they don’t qualify for a mortgage or they are burdened by other debt. In 2008, a quarter of rental applicants were still paying off student loans, according to CoreLogic, but as of last fall half of them were doing so.

Chertoff told Biern, according to attendees, that if the Justice Department “can’t bring these cases because it may bring harm, then maybe these banks are too big.” In the end, though, Chertoff and the Justice Department blinked.

From 2004 to 2012, the Justice Department reached 242 deferred and nonprosecution agreements with corporations, compared with 26 in the previous 12 years, according to a study by David M. Uhlmann, a former prosecutor and law professor at the University of Michigan. And while companies paid large sums in the settlements — the days of $7 million cost-of-doing-business fees were over — several veteran Justice Department officials told me that these settlements emboldened defense lawyers.

Indeed, the department now effectively outsources many of its investigations of corporate executives to outside firms, which invariably produce reports that exculpate those at the top.

Over the years, the KPMG debacle and the corporate revolt would lead the Justice Department to roll back the Thompson memo to nearly the point of reversal. Today prosecutors are prohibited from even asking companies to waive their attorney-client privilege. They are also prohibited from pushing a company to cut off the legal fees for indicted executives or pressuring it to forgo joint defense agreements.

In the decade since, the courts dulled other prosecutorial tools.

Breuer may have come with the right pedigree, but he now faced troubles that hurt as much as the debacles of Arthur Andersen and KPMG, or the retreat from the Thompson memo: austerity. The department faced periodic hiring freezes. The F.B.I., which assigned dozens of agents to Enron, had shifted resources to terrorism. The Postal Service wound down an elite unit that had specialized in complex financial investigations. President Obama’s Fraud Enforcement and Recovery Act, which was designed to give hundreds of millions to prosecute financial criminals, was able to deliver only $65 million in 2010 and 2011. Prosecutors reporting to Breuer proposed setting up a mortgage-fraud initiative, a “Prosecutorial Strike Force,” as one July 2009 memo put it, but the Justice Department dithered. Finally it set up the Financial Fraud Enforcement Task Force, an enormous coordinating committee with essentially no investigative operation.

In truth, the American system of health care — in which most people get their private health insurance through their employer — has always been rather odd. Why should quitting a job also mean you have to get a new health insurance plan? Why should your boss get to decide what options you have and negotiate the cost of them? Employers don’t get to select our auto insurance or mortgage company, so why should health insurance be any different?

A typical millennial averaged earnings of $33,883 (in 2013 dollars) between 2009 and 2013. That was down 9.3 percent (after adjustment for inflation) in just a decade and is the lowest since 1980. Older

So what’s going on? A major reason is the recession. Those who graduate in weaker economic times typically earn less than those who enter the work force during more robust periods. Starting behind often means never catching up

The wealth of millennials has been hit even harder than their incomes. Their median net worth was just $10,400 as of 2013, down 43 percent from the $18,200 that Gen Xers had in 1995 when they were under 35. With incomes squeezed, millennials are not only not saving much; they are dipping into whatever savings they do have.

Millennials also participate less frequently in 401(k) plans and, scarred by the recession, invest less and keep more than half their money in cash — not a great long-term strategy.

Members of this year’s graduating class left their campuses owing an average of $35,051, about twice the levels borne by their counterparts two decades earlier (after adjusting for inflation).

millennials are delaying purchasing cars and new homes, low mortgage rates notwithstanding. By June of this year, homeownership among Americans under 35 fell to 34.8 percent, down from a high of 43.6 percent in 2004.

millennials will also be the victims of the irresponsible fiscal policies pursued in large part by members of my generation. The massive budget deficits of recent years and projected needs to meet future obligations to retirees will result in a steady increase in federal debt, from less than 80 percent of gross domestic product today to an estimated 181 percent of G.D.P. by 2090.

we can start to put in place policies that will ease their burden. First and foremost would be to get the nation’s economy onto a stronger growth trajectory.