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from Edward Hadas:

Wealth buys less lifestyle, more power

Many serious people think economic inequality in the United States and other developed economies should be a hot political topic. But the general public hardly cares. There is a bad reason behind lack of public interest.

President Barack Obama said last December that a “dangerous and growing inequality” is “the defining issue of our time,” but the most recent Gallup poll suggests that view is not widely shared. Only 3 percent of Americans chose the “gap between rich and poor” as the country’s “most important problem” and 4 percent went for poverty. Unemployment scored 19 percent.

The American indifference is surprising because the measured increase in inequality there has been relatively large by international standards, to judge from the recent Chartbook of Economic Inequality from the Institute for New Economic Thinking at the Oxford Martin School. But the lack of concern is widespread. Neither help-the-poor nor soak-the-rich politicians have gained much traction in any rich country.

Debilitating economic inequality is in fact diminishing on a planetary scale. Each year, fewer people have to live without the basic economic goods of adequate food, clean water, decent housing and clothing, electricity and so forth. More people are experiencing a middle-class lifestyle. Almost every year, the gap between average incomes in developing and developed countries narrows.

from Counterparties:

What we know about income inequality: Unions on the decline

There are a lot of things that “explain” inequality. Technology, finance, societal, and cultural changes have all played their part. In this series, Counterparties takes a look at the various things that correlate with rising income inequality in order to ascertain how we got to this economy and where we might go from here. For story tips/comments/complaints email us at Counterparties.Reuters@gmail.com.

In February, the United Auto Workers lost a fight to unionize workers at a Volkswagen plant in Tennessee. The vote was taken as a symbol for all organized labor in the South — particularly because Volkswagen was tacitly supportive of the unionization movement.

from Data Dive:

What we know about income inequaliy: America’s disappearing ‘middle-skill’ jobs and falling wages

There are a lot of things that “explain” inequality. Technology, finance, societal, and cultural changes have all played their part. In this series, Counterparties takes a look at the various things that correlate with rising income inequality in order to ascertain how we got to this economy and where we might go from here. For story tips/comments/complaints email us atCounterparties.Reuters@gmail.com.

America is losing middle class jobs -- and middle class pay. Not only are "middle-skill" jobs disappearing as routine tasks become computerized (think everything people do in the television show "The Office"), but that job loss has contributed to stagnating wages, according to a recent paper by Michael Boehm of the University of Bonn.

from Equals:

What we know about income inequality: Better marriages may mean more inequality

There are a lot of things that “explain” inequality. Technology, finance, societal, and cultural changes have all played their part. In a new series, Counterparties takes a look at the various things that correlate with rising income inequality in order to ascertain how we got to this economy and where we might go from here. For story tips/comments/complaints email us at Counterparties.Reuters@gmail.com.

Matt O’Brien wrote a good post last week on how the classic 1989 romcom When Harry Met Sally explains inequality. I’ll let him explain:

from The Great Debate:

The other inequality is structural

Photo

For the second year in a row, the issue of economic inequality was featured in President Barack Obama’s State of the Union Address. Even some Republican lawmakers have now dared to speak the “i-word.”

Though Obama predictably avoided comparisons between the earnings held by the top 1 percent and the 99 percent of Occupy Wall Street fame, the message was familiar: The widening income gap between the very rich and everyone else is a stain on the social compact and a serious problem for future economic growth.

from Counterparties:

Unity and inequality

Welcome to the Counterparties email. The sign-up page is here, it’s just a matter of checking a box if you’re already registered on the Reuters website. Send suggestions, story tips and complaints to Counterparties.Reuters@gmail.com.

The most common complaint about the annual State of the Union speech, Jeff Shesol writes, "is that it is a laundry list, which is an insult to laundry lists”. President Obama will deliver his sixth tonight.

from The Edgy Optimist:

The real issues behind the minimum wage debate

In his speech at the Center for American Progress this week, President Obama devoted considerable time to an issue suddenly much in discussion: the minimum wage. This is not a new debate. In fact, it neatly echoes the last time Congress raised the minimum wage, in 2007, which echoed the debates before that. Few economic issues are such sweet catnip to ideological camps, and there is precisely zero consensus about whether these minimums have positive, negative or no effect.

Supporters say that a higher minimum wage will give people a better standard of living and boost consumption. Detractors argue that it will lead companies to hire fewer workers and kill job creation. One thing no one addresses, however, is that regardless of whether the government raises the minimum wage, our society can’t endlessly coast with a system that includes wage stagnation for the many and soaring prosperity for the few, nor can the government snap its legislative fingers and magically produce income. Someone will pay for these increases; nothing is free.

from Counterparties:

Poor choices

Welcome to the Counterparties email. The sign-up page is here, it’s just a matter of checking a box if you’re already registered on the Reuters website. Send suggestions, story tips and complaints to Counterparties.Reuters@gmail.com.

Recently, John Cassidy posted six charts presented by various researchers from the launch of the Washington Center for Equitable Growth, a new think tank that will fund research into inequality. “Taken together, the pictures convey a good deal of what we know about inequality”, he writes. However, he also says that there’s plenty we still don’t know, particularly about the relationship is between inequality and growth.

from The Great Debate:

Swiss outrage over executive pay sparks a movement in Europe

Here’s an idea for how to end corporate greed and reverse the trend of growing income inequality worldwide: impose a new rule that would limit the pay of top executives to just 12 times that of the lowest-paid employees at the same firm. In other words, prevent CEOs from earning more in one month than the lowliest shop-floor worker earns in a year.

This proposal might sound like something cooked up by Occupy Wall Street or another radical protest movement, but in fact it comes from the heartland of a nation not usually known for its disdain of money-making: Switzerland. On Nov. 24, the Swiss will vote in a referendum on whether to enshrine the 1:12 pay ratio -- in their national constitution, no less.

from Counterparties:

Lifeline guarantee

Welcome to the Counterparties email. The sign-up page is here, it’s just a matter of checking a box if you’re already registered on the Reuters website. Send suggestions, story tips and complaints to Counterparties.Reuters@gmail.com.

Swiss voters will soon take up the question of whether the country's citizens should have a guaranteed basic income of 2,500 Swiss francs ($2,800) per year, after a grassroots campaign came up with the 100,000 signatures required to hold a nationwide referendum. Annie Lowrey reports that this idea -- giving every living adult a check every month regardless of their employment situation -- is gaining popularity, even in the United States. “Certain wonks on the libertarian right and liberal left have come to a strange convergence around the idea,” she writes.

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