Archive

Author Archive

In the US since 1949 inequality has increased with each expansion, with most gains going to the 1% (2 charts)

September 29, 2014 2 comments

from David Ruccio

inequality-recovery

Read more…

Map of the day : the world’s billionairs

September 28, 2014 1 comment

from David Ruccio

billionaires-map

This map of the world’s billionaires—all 2,325 of them (an all-time record high), with a total wealth of $7.3 trillion (which is higher than the market capitalization of all the companies that make up the Dow Jones Industrial Average)—comes from the new census by Wealth-X and UBS

Categories: The Economy

Americans have no idea how unequal the distribution of income is.

September 26, 2014 2 comments

from David Ruccio

estimatedandideal

Read more…

A problem that legions of mainstream academic economists have simply ignored (5 charts)

September 24, 2014 11 comments

from David Ruccio

P1-BM854C_OUTLO_G_20130825172704

The Wall Street Journal uses this chart to illustrate a story on a new report issued by Morgan Stanley on “Inequality and Consumption.”* Read more…

4% in 40 years

September 19, 2014 5 comments

from David Ruccio

OG-AC604_INCOME_G_20140917193034

Neil King, Jr., for the Wall Street Journal, is perplexed:

It is in many ways both the ultimate economic puzzle and the great political challenge: Why have American incomes remained so flat, for so long, and what can be done to change that?

Uh, well. Maybe it’s this, maybe it’s that. King just can’t be bothered to figure it out.

So, let’s help him out: American incomes are flat precisely because of the anti-union, free-trade, decrease-taxes, cut-social-programs, don’t-raise-the-minimum-wage policies

Strange work in a strange land

September 17, 2014 Leave a comment

from David Ruccio

Americans, as we know, work many more hours than people in other advanced countries. As it turns out, they also work many more strange hours: on weekends and at night.

strange-work-04 strange-work-05

Read more…

Categories: The Economy

Hours worked per worker in industrialized countries 1979-2013

September 16, 2014 4 comments

from David Ruccio

hours

source

Americans, as we know, are forced to have the freedom to labor more hours than do workers in other advanced countries.

Categories: Uncategorized

47 hours per week

September 12, 2014 1 comment

from David Ruccio

jaovdjajnkuj1crc5saija 2hnv5akcfesir3p-vgvrag

According to Gallup’s latest annual Work and Education Survey [ht: db],

Adults employed full time in the U.S. report working an average of 47 hours per week, almost a full workday longer than what a standard five-day, 9-to-5 schedule entails. In fact, half of all full-time workers indicate they typically work more than 40 hours, and nearly four in 10 say they work at least 50 hours.

Read more…

Categories: Uncategorized

The wage-productivity gap in the G20 (2 graphs)

September 11, 2014 Leave a comment

from David Ruccio

productivity-wages-G20

 

Read more…

What is inflation?

September 10, 2014 5 comments

from David Ruccio

Inflation appears at first sight an extremely obvious, trivial thing. But its analysis brings out that it is a very strange thing…

One one level, inflation is extremely obvious: it’s an increase in the prices of the commodities people buy. Bread, gasoline, housing, and so on. When their prices go up, we are witnessing (and, for many, suffering) inflation. (The opposite, when prices fall, is deflation.)

Why is inflation important? Well, for most of us, our money (or nominal) incomes are eaten away by increases in prices. Therefore, over time, our real incomes are less than our nominal incomes, thus permitting us to purchase less.

Here’s an USA illustration of the difference: Read more…

Categories: Uncategorized

USA median household’s net worth fell from $106,591 to $68,839 from 2005 to 2011

September 8, 2014 1 comment

from David Ruccio

Screen_Shot_2014-08-22_at_2.15.58_PM.0

As Danielle Kurtzleben explains, Read more…

Categories: The Economy

Wages of US workers by wage percentile 1979-2013

September 2, 2014 4 comments

from David Ruccio

hourly wages-1979-2013 Read more…

Categories: The Economy

The economics of American racism (9 charts, 1960 to 2014)

August 28, 2014 3 comments

from David Ruccio

incarceration

Read more…

Categories: The Economy

Misdirection in the United States

August 19, 2014 1 comment

from David Ruccio

private employment

The Washington Post tries to put a positive spin on the recent pattern of job growth. However, the underlying study (from the National Employment Law Project [pdf]) offers quite a different view: even though jobs gains have recently accelerated in higher-wage industries, the imbalance of especially pronounced gains at the bottom and slow growth in mid-wage industries persists. Read more…

Categories: The Economy

USA jobs lost 2008-14, average wage of jobs lost, average wage of jobs gained

August 17, 2014 1 comment

from David Ruccio

jobs-wages

Read more…

Categories: The Economy

American public sector jobs under 6 presidents

from David Ruccio

PublicJuly2014

As Bill McBride explains, Read more…

Categories: The Economy

Maximum wage—or, even better, no wages

July 31, 2014 3 comments

from David Ruccio

One way of dealing with the problem of growing inequality is to establish a maximum wage. That’s what Franklin Delano Roosevelt proposed back in the early 1940s—a 100 percent marginal tax rate on incomes over$25,000 a year (roughly $350,000 in today’s dollars)—in order to “provide for greater equality in contributing to the war effort.”

Infuriated conservatives saw red, literally. The “only logical stopping place for this movement,” fumed Princeton economist Harley Lutz, would be “a completely communistic equalization of incomes.”

Simon Wren-Lewis reports his own recent suggestion for a maximum wage was greeted in much the same manner.

Well, if mainstream economists are going to howl about tinkering with tax rates, why not make them howl about a real change in the system whereby incomes are distributed? Like Filip Spagnoli’s suggestion to get rid of wage-labor entirely. Read more…

US wealth inequality increased significantly from 2003 through 2013 (2 charts)

from David Ruccio

According to a new study by Fabian T. Pfeffer, Sheldon Danziger, and Robert F. Schoeni,

Through at least 2013, there are very few signs of significant recovery from the losses in wealth experienced by American families during the Great Recession. Declines in net worth from 2007 to 2009 were large, and the declines continued through 2013. These wealth losses, however, were not distributed equally. While large absolute amounts of wealth were destroyed at the top of the wealth distribution, households at the bottom of the wealth distribution lost the largest share of their wealth. As a result, wealth inequality increased significantly from 2003 through 2013; by some metrics inequality roughly doubled.

Read more…

The gap in the USA between the rate of growth of productivity (now at 11.4 percent) and that of wages (1.5 percent) continues to widen

June 28, 2014 3 comments

from David Ruccio

productivity-growth

The gap between the growth of productivity (now 11.4 percent higher than in January 2007) and that of wages (only 1.5 percent higher) continues to widen (according to Reuters).

Is it any wonder, then, that income inequality continues to rise?

CEO-to-worker compensation ratio, USA 1965 – 2013

June 25, 2014 3 comments

from David Ruccio

CEO-worker

In charting the amount of the surplus that ends up in the hands (or, if you prefer, pockets or bank accounts) of CEOs, the Economic Policy Institute finds that:  Read more…

Follow

Get every new post delivered to your Inbox.

Join 10,291 other followers