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from Edward Hadas:

A holistic economics of healthcare

By Edward Hadas

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Every country in the world seems to have a healthcare crisis. The problems are particularly severe in rich and ageing countries, including the United States and the United Kingdom, where expectations are especially high and the systems were designed for a different reality. A new report from The King’s Fund, a British charity, suggests a better approach.

The policies proposed by the independent Commission on the Future of Health and Social Care in England, chaired by economist Kate Barker, are designed for the UK. However, the basic idea is universal. Barker says that the two largely separate arms of the welfare state – healthcare provision and direct financial support for individuals in need – should be merged.

The two used to be quite distinct. Healthcare dealt with illnesses and the largely short-term treatments provided required doctors, nurses and, more rarely, hospitals. Welfare programmes assisted the ill, but their chief objective was to counter economic and social problems such as unemployment or dysfunctional families.

from Counterparties:

Unequal inequality

At the Upshot over the weekend, Tyler Cowen writes that Americans’ view of income inequality is too narrowly nationalistic. Instead, he says, we should “preface all discussions of inequality with a reminder that global inequality has been falling and that, in this regard, the world is headed in a fundamentally better direction.” Basically, rising incomes in growing economies like China and India should outweigh the inequality concerns of countries (like the U.S.) where increasing exports are causing incomes at the top to rise. “While Chinese growth has added to income inequality in the United States, it has also increased prosperity and income equality globally,” he says.

A global reduction in income inequality is great, says Ryan Avent, but Cowen’s piece misrepresents the heart of the American argument against income inequality. It isn’t about globalization; instead, it’s about lax financial regulation, subsidies to big banks, low tax rates for the rich, and the appearance that political persuasion can be bought. Further, he says, even if American inequality is benefiting the poor in other parts of the world, “few voters are content to have their economies run as charities.”

from Counterparties:

MORNING BID – Spending concerns and car sales

Coming data on same-store sales will help illuminate whether the modest upward tick in prices is something that is being replicated throughout the economy and signalling a stronger overall economy or perhaps one that remains more weighted to the most wealthy in the United States. According to Thomson Reuters data, Costco is poised to post the strongest same-store sales figures among the retail chains, though its 4.6 percent estimated increase would fall short of the 5 percent rise a year ago. The figures have a bit less utility than in the past given the likes of Wal-Mart stopped supplying this data years ago, but you work with what you have. Either way, it's notable that the discounters have been weak this year - a sign of lackluster spending outlooks for lower income Americans.

The lower-income sector has seen its share of economic growth diminish over recent years, a trend that has been accelerated in part by the weakness in housing prices in most parts of the economy, poor overall demand and lack of spending among all but the upper tier of consumers, and no real growth in wages -- though this morning's data on productivity and labor costs does show finally some wage growth.

from Breakingviews:

Review: Brazil’s toughest tests lie off the pitch

By Dominic Elliott 

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Michael Reid’s astute new book has a stark warning: the country of samba, sex and soccer is teetering on a knife-edge. “Brazil: The Troubled Rise of a Global Power” explains why protests against this year’s World Cup are turning increasingly violent. Reid, a journalist for The Economist, persuasively urges a return to the broad liberal consensus that served Brazil so well between 1994 and 2006.

from The Great Debate:

Why India has less inequality than U.S.

Voters line up to cast their votes outside a polling station at Wadipora in Kupwara district

The outcome of India’s general election may have dramatic consequences for the nation’s economic health.

India now has more equal wealth distribution than the United States. Steven Rattner, a Wall Street financier and former Obama administration economic adviser, recently announced this on MSNBC’s Morning Joe, while discussing Thomas Piketty’s new book, Capital in the 21st Century.

from Edward Hadas:

Shhh – don’t talk about higher taxes

By Edward Hadas

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Many people assume that tax increases are the only realistic response to excessive income inequality. They are wrong. There is a better way.

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.

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:

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