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Wednesday, October 26, 2016

Why A Strong Middle-Class Is Necessary For Growth

It’s great to get to watch the arguments against inequality in the United States being built in real time. In spaces ranging from political corruption to a lack of a serious, sustained response to the economic crisis, people are telling sharper and more critical stories about why inequality should be a concern for the country. Which is important, as inequality is not going away.

One of the spaces where this has been lacking is long-term economic growth. The research has been substantial, but few have collected and curated it into a set of arguments for why inequality is bad for the health of our economy. This is one of the more important battles. The normal assumption is that inequality helps everyone by allowing the economic pie to grow as big and as quickly as it possibly can. The background thought animating this is that there’s a serious tension between efficiency and equality – to support equality is to necessarily sacrific economic efficiency.

Heather Boushey and Adam S. Hersh from the Center for American Progress have a new paper out, The American Middle Class, Income Inequality, and the Strength of Our Economy New Evidence in Economics, that summarizes the case for why inequality can damage the economy. They start by reviewing the literature trying to link income inequality and growth, and find that the link is, if anything, in the other direction. “Roland Benabou of Princeton University surveyed 23 studies analyzing the relationship between inequality and growth. Benabou found that about half (11) of studies showed inequality has a significant and strongly negative affect on growth; the other half (12) showed either a negative but inconsistently significant relationship or no relationship at all. None of the studies surveyed found a positive relationship between inequality and growth.”

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  • Thw United States was built with wide men years ago and hard work. Now we have over educated idiots in Washington. Ruining this country to the ground. There in noting wrong with education only how many more over educated idiots can we find jobs for. The United States can not find jobs for them. Only Washington can use them to make more laws that will drown us and Kill America like we have in Washington now. In Washington they want to kill the Constitution and the Ten commencements. Now the Justice want to take out the first four commencements which were in place before we installed Idiots in Washington. We must pot Washington in its place and take away all the goodies they keep giving them selves. All the free trips we the tax payers are playing for also vacations too. That also gpes for the president and family. America must Wake up before the thirties ax comes down and it is going to happen the word is Depression When a dime both a gallon of gas. To today’s price of almost four dollars a gallon.

    John H. Kloch

    • ChowT

      Over educated? Look st what they did to the banks and screw the people.

      • oldtack

        Hey CHOWderhead
        With all of his grammatical errors and misspelling John was expressing concerns and if one peruses his article without being a butt one will see that he does make a valid argument for what he perceives as a problem. All you did was sit on your butt and make assinine remarks. If you are so learned and brilliant then give us a good exhortation. If you are incapable of that then – do the readers of this forum a favor and SHUT UP.

        • ChowT

          Are you not sitting on your butt? And making remarks? What are you capable of?

          • oldtack

            Well Well Chow you are still where I left you hours ago – sitting on your Butt making comments. And you have yet ot offer any input to this forum. I am capable – I have my doubts about you.

    • From the multiple misspellings and grammatical errors in your remarks it regrettably appears you do not suffer from “over education”.

      • Some times people with passion when writting make errors. This is not an educational forum that demands perfection in the use of grammar or spelling. Get over your inflated ego. Remember opinions are like A$$ holes – everyone has one including you.

    • You make a valid point John without I believe knowing you did and that is how crucial education is. Becoming educated has great implication as to how one arrives at a conclusion and how it is therefore applied. It then brings to mind that we have one party in our political system whose first choice when governing is to cut education. As John’s post proves how harmful to society this is.

      • oldtack

        The reaction on this forum has been to blast the Republican Party for what appears to be a deliberate move to block any legislation by adding superfluous items and riders to Bills passed and presented to the Senate with full knowledge that those Bills will fail to be passed. This was made manifest immediately after the election in 2008 when the puss gut from Tennessee publically made the statement that the primary aim of the Republican Party was to make OBama a one term President. In these matters I agree with others and their comments.

        However, the problem in Washington is much deeper than just the Republican Party. The problem engulfs almost all of the 635 members of the House and Senate. This started many years ago with Career Politicians that were elected and immediately entrenched themselves in their positions and became akin to whores – for sale to the higest bidder and available to ride in the pocket of any on Wall Street, Banking orBbig Business. We presently have elected officials that have been in office from 35 to 50 years and damned if some haven’t groomed their children to inherit their “thrones”. This is the result of unlimited terms and unlimited financing from super PACs.

        We all concentrate on the battle for the Presidency between OBama and Romney and we ignore the Senate and House races. This is where the problem lies. We need to oust ever career politician, regardless of party and press for Term limits and restrictions on Campaign time and donations. Until we have a cleansing it doesn’t matter who is President because the cancer still exists in the halls of Congress. We have to root the whores out of their beds and get the corruption and stench out of our Legislative branch of government and chase the money launderers from the halls and only then will we see the resurgence of Government according to the Cconstitution. Get out now and become actively involved in your area House and Senate contests with the intent of ridding your area of the careerists that now foul the governing bodies. If we do this all across the Nation then and only then will we begin to see a positive impact.

        • Oldtack I agree with your ideas for improving Congress but term limits should also include the Supreme Court and other federal appointments that are lifetime jobs. Since the President can only serve eight years in office and can not run again for the office, the limiting the time that members of Congress should be the same or similar to the Presidents term limit and the same for not being able to run again after 2 terms, no matter if the terms are together or years apart. Who is the person you are talking about from Tennessee that said about making President Obama a one term president. The only people I had this was from McConnell who is from Kentucky and the speaker of the House whose name I have trouble spelling and that crybaby is from Ohio. Since majority of my relatives live Tennessee, I would like to know who the Tennessee person talking about a 1 term Obama is so I can pass it on to them.

          • oldtack

            The one from Tennessee is corker. He has sided with McConnell and the idiot from Ohio Boehner. I’ll confewss – when I said Puss Gut from Tennessee I was really thinking of Puss gut McConnell from Kentucky. I think on rrestructure we should look at two 4 year terms for Senators and 2 three year terms for Representatives. And I agree – we do not need any life time appointments.

            Have a good day.

    • oldtack

      Thank you John. I may not be in full accordance with your statement but I appreciate your input in what is a serious problem in our Government on both sides of the Aisle. We need a full house cleaning in both the House and the Senate.

  • William Deutschlander

    What the GOP can not FATHOM is, IF THE GENERAL POPULATION, DOES NOT, Have SUFFICIENT INCOME, to PURCHASE “goods & services”, over and above the absolute basic neccessities, there will NOT BE an ECONOMY that will generate or create WEALTH!

    That is precisely why Dillon named them the FOOLS, they are “GREEDY BASTARDS”!

    • ChowT

      The republicans really sodomised the country financially! In cohorts with the bankers!

    • wayneonly

      William, most of the GOP haven’t got a clue. They have been fed the “party line” and have rolled over to the wishes of the 1%ers. Those in the know only hope to get their hands on enough money to keep themselves and their own in the lap of luxury for the rest of their lives and maybe even join the ranks of the ruling party as “nobles”. Democracy will have died as the 1%ers become the ruling party.

    • ChowT

      The Bankers really killed the financial ecosystem.
      They are no more maddleclass and the poor to screw!

  • hubydoll166

    The GOP and some of corporate america feel that its good to have more under educated people because they can peddal low wages and less people that have a brain to figure out their big scam on society…They cant have a bunch of knowledgable people out there messing up their plans to control us all.

  • hubydoll166

    Todays american citizen really screwed up and puty way too much trust in congress and we are living in the aftermath of unchecked power…thank you relaxed people.

  • ChowT

    You said, you are capable. Capable of what?

    Shoving your views down people!

    I think you need a nice day, like your partners.

    Birds of the same feathers flock together. If they have any feathers at all.

    Have a nice day. You guys really need it.

    • oldtack

      Aah Chow T.

      Take your meds and have a good soothing cup of herbal tea. You’ve got your bowels all in an uproar and it’s not good for your health at all.

      Drink your tea and do have a nice and relaxing day -sincerely.

      And I’m still waiting for your profound oration on the troubles that assail this Nation. We need your words of -wisdom?

      • ChowT

        Yawn,,, A pack of strays looking for exitement….. Wow. wow wow !!!