‘Tis the season of inequality

Posted: 28 December 2010 in Uncategorized
Tags: , ,

Inequality, it seems, is everywhere this holiday season.

It’s a central issue in William Easterly’s review of Matt Ridley’s new book, The Rational Optimist.

Ridley also fails to really address inequality and uncertainty. The free market may produce cornucopia, doubters concede. But it also gave Richard Fuld of Lehman Brothers $60,000 a day (in 2007, the year before the company went bankrupt) while one billion other people survived on a dollar a day.

Frank Rich discusses it in the course of writing about the the “Disneyland Dream.”

In last week’s exultant preholiday press conference, Obama called for a “thriving, booming middle class, where everybody’s got a shot at the American dream.” But it will take much more than rhetorical Scotch tape to bring that back. The Barstows of 1956 could not have fathomed the outrageous gap between this country’s upper class and the rest of us. America can’t move forward until we once again believe, as they did, that everyone can enter Frontierland if they try hard enough, and that no one will be denied a dream because a private party has rented out Tomorrowland.

Francis Fukuyama focuses on it in posing the question “Is America a plutocracy?”

Why has a significant increase in income inequality in recent decades failed to generate political pressure from the left for redistributional redress, as similar trends did in earlier times? Instead, insofar as there is any populism bubbling from below in America today it comes from the Right, and its target is not just the “undeserving rich”—Wall Street “flip-it” shysters and their ilk—but, even more so, government policies intended to protect Americans from their predations. How do we explain this?

And Jeffrey Sachs expresses his worry that both major U.S. political parties are making it worse.

The US budget deficit is enormous and unsustainable. The poor are squeezed by cuts in social programs and a weak job market. One in eight Americans depends on Food Stamps to eat. Yet, despite these circumstances, one political party wants to gut tax revenues altogether, and the other is easily dragged along, against its better instincts, out of concern for keeping its rich contributors happy.

Maybe that’s what Dr. Seuss was writing about, too: how inequality stole Christmas.

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