Opinion

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.

It sounded unlikely, but Rattner’s charts and statistics showed that India is indeed a more equal society. The top 1 percent of Americans earn more income and hold more wealth, compared to the nation’s poorer citizens, than their Indian counterparts.

Economists are puzzling over how this happened. One key reason could be the massive income-redistribution programs that Indian Prime Minister Manmohan Singh and his Congress government have created. Though many programs are inefficiently run, they have achieved some remarkable successes.

Hindu nationalist Modi shows his ink-marked finger to his supporters after casting his vote in AhmedabadSome 815 million Indians have registered to vote in the world’s largest democracy, in an election that runs more than a month, April 7 to May 12. The Congress government now looks likely to lose to the Bharatiya Janata Party (BJP) under Narendra Modi, who has a strong Hindu nationalist background. This new BJP government is expected to focus more on overall economic growth than equality.

Bring GOP convention back to Kansas City — and Reagan

ford -- crunched

The Republican Party is now going though its quadrennial debate to select a city for its presidential nominating convention. The finalists are likely to be named next week. The site selection committee has reportedly narrowed the choices to Cleveland, Cincinnati, Dallas, Las Vegas and Kansas City.

This decision is important because it helps set the theme and encapsulate the philosophy that the party wants to communicate to voters across the nation. Stagecraft often becomes statecraft.

As a longtime foot soldier for the GOP’s conservative movement, I have visited all these cities. Each has a case to be made, but none possesses the symbolism or history of Kansas City. (Besides being the best place in the country to get a good steak.)

For a new GM culture, pinpoint responsibility

GM Chief Executive Officer Barra testifies during a House Energy and Commerce hearing on Capitol Hill in Washington

For more than 10 years, scores of General Motors engineers, inspectors and other employees engaged in a deadly cover-up over an easily fixable ignition-switch defect. An estimated 13 to 300 people lost their lives when their car suddenly shut off, disabling  their power brakes and airbags.

GM discovered the problem in 2001 with its Saturn ION, according to documents the company belatedly sent to the National Highway Traffic Safety Administration. Though the defect was evident in other models, GM did not notify the federal safety agency until 2006. The company then sent its dealers a service bulletin to look out for but not recall the cars.

GM finally declared a recall this February. It was just days before the new chief executive, Mary Barra, says she was told about the millions of cars containing the faulty switch.

from Breakingviews:

Rob Cox: Solving America’s homegrown Putin dilemma

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

As the eagle flies, it's a long way from Bunkerville, Nevada to Slovyansk, Ukraine. Right now, though, the two places have something insidious in common: armed vigilantism. That parallel sadly seems to escape the many American policymakers who have accused President Barack Obama of adopting the logic of appeasement in his dealings with Russian President Vladimir Putin. They're missing a big point. If the United States can't uphold the rule of law at home, it can have no credibility abroad.

Over the weekend, South Carolina Senator Lindsey Graham joined the chorus of Republicans branding Obama the new Neville Chamberlain. He told CBS's "Face the Nation" that the president is "delusional" and his latest economic sanctions "should have been called the Russian economic recovery act" for helping bolster the Russian stock market and rouble last week.

Elites focus on inequality; real people just want growth

kochs & warrenThe economic debate is now sharply focused on the issue of income inequality. That may not be the debate Democrats want to have, however. It’s negative and divisive. Democrats would be better off talking about growth — a hopeful and unifying agenda.

Democrats believe income inequality is a populist cause. But it may be less of a populist issue than an issue promoted by the cultural elite: well-educated professionals who are economically comfortable but not rich. There’s new evidence that ordinary voters care more about growth.

Growth and inequality are not separate issues. Nobel Prize-winning economist Joseph E. Stiglitz wrote, “Politicians typically talk about rising inequality and the sluggish recovery as separate phenomena when they are in fact intertwined.  Inequality restrains and holds back our economic growth

Theodore Roosevelt on net neutrality

tr & crowd

“Above all else,” President Theodore Roosevelt admonished Congress in 1905, “we must strive to keep the highways of commerce open to all on equal terms.”

Roosevelt could not have imagined digital computers and fiber-optic cables. He was talking about railroads, the highways of commerce in his day.

But though the technology has changed, the principle TR expressed remains as essential as it was a century ago. We ignore it at our peril.

Boehner: The fight to hold the party line

U.S. House Speaker Boehner holds a news conference at the Republican National Committee offices in Washington

In his latest attempt to impose discipline on his famously disorderly Republican caucus, House Speaker John Boehner (R-Ohio) chose the soft power of public mockery over the more militant promise of private retribution. Speaking at an event in his home state, Boehner lashed out at fellow Republicans who have stymied immigration reform. “Here’s the attitude,” Boehner said of his recalcitrant colleagues. ‘Oooh, don’t make me do this. Oooh, this is too hard.’ ”

He spoke not in his usual solemn tones but with a high, child-like pitch, suggesting that his tormentors were in need of adult supervision.

Back to Baker

Boehner is hardly the first legislative leader to reach that conclusion. Howard Baker, the Tennessee Republican who served as Senate majority leader in the early 1980s, famously said that rounding up votes was like “herding kittens.” But during Boehner’s three-plus years as speaker, he has been notably unable to prod his colleagues in a productive direction. Earlier this year, Boehner was forced to withdraw his own debt-ceiling bill after realizing that, despite being speaker of the House of Representatives and commander in chief of his fellow House Republicans,  he didn’t have enough GOP votes.

from Anatole Kaletsky:

Why the Russian sanctions don’t work

putin!!

Why did the U.S. and European sanctions against Russia earlier this week trigger a rebound in the ruble and the Moscow stock market?

To understand this paradox it is worth recalling Yes Minister, the British TV comedy about a blundering politician who stumbles from crisis to crisis with the same justification for every panic response: “Something must be done. This is something --– therefore it must be done.”

The problem with this syllogism is that doing something may be worse than doing nothing -- and the Western decision to rely on economic sanctions in the Ukraine crisis is a case in point.

Don’t cry for the Nabucco pipeline

The site of a newly opened distribution hub of the gas pipeline Gazelle is pictured in Primda

It is too late for regrets. With Europe worried that Moscow could cut off gas deliveries to Ukraine, which would trigger price volatility and supply risks throughout the continent, the failure of the Nabucco pipeline project stands out.

Created to carry Caspian gas into Europe by bypassing Ukraine, Nabucco would have given Europeans and Americans a much-needed sense of supply security — though the pipeline would have carried its capacity of 31 billion cubic meters of gas annually only near the end of this decade. Instead, Europeans are left scratching their heads and searching for alternative energy supplies.

Russia, meanwhile, is likely to remain Europe’s chief natural gas supplier through at least 2020, despite the anticipated growth of diversified gas shipments to Europe, including liquefied natural gas (LNG) from the vast U.S. shale-gas resources.

Supersize salaries: How much is that CEO worth?

california combo

The disparity between what chief executive officers earn and what their employees earn continues to grow exponentially. CEO pay levels have increased dramatically for more than 20 years. Pay levels for workers, however, have stagnated. This is a much-cited statistic. But now a proposed bill in the California state Senate aims to do something about this.

Two state senators want to make sure that companies based in California pay a price for granting super-sized salaries to their CEOs. Businesses that reward their top officials with outlandish bonuses and salaries would be forced to pay a special tax.

ellison -- small unhappyOracle CEO Larry Ellison, for example, was paid $78.4 million in 2013. If the median pay for all Oracle employees, including contractors and non-U.S. workers, is less than $200,000 (roughly one four-hundredth of Ellison’s pay) — and my guess would be it is — under the new law the company could soon be paying a 13 percent state corporation tax rate, rather than its current 8.84 percent.

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