Paul Krugman criticized the Trump administration for its budget, which would cut or eliminate many programs that benefit low and moderate income people. In his piece, Krugman points out that the public is incredibly ignorant on the budget, with most people having virtually no idea of where most spending goes.
More than eight years after the start of the Great Recession, our labor market is far from recovering by most measures. At 5 percent, the current unemployment rate is not very different from its pre-recession level, but the main reason it is so low is that millions of people have given up looking for work and dropped out of the labor force. These people are no longer counted as being unemployed.
The Washington Post Says Doctors Without Borders Is Silly to Worry About the Impact of the TPP on Drug Prices
The humanitarian group, Doctors Without Borders, along with many other NGOs involved in providing health care to people in the developing world, have come out in opposition to the Trans-Pacific Partnership (TPP) over concerns that the deal will make it more difficult to provide drugs to people in the developing world. Their argument is that it will raise drug prices by making patent protection stronger and longer and by making it more difficult for countries to scale back protections that they may come to view as excessive and wasteful.
New York Times Absurdly Claims Verizon Workers Make Average of $130,000 a Year: Here's Why That's Not True
Some readers may have been misled by a statement in a NYT article on the Verizon strike that the union members at Verizon receive an average of $130,000 a year in wages and benefits. This is what the company pays in labor costs per worker. This includes not only straight pay, but also overtime pay, employer-side Social Security and Medicare taxes, health insurance, and pension benefits. The pension payments are everything that Verizon pays into its pension, including payments to cover costs of retired employees, averaged over the size of its current unionized workforce.
Government Is More Efficient Than The Private Sector In Biggest Social Services, Contrary To Right-Wing Claims
As much as some folks might hate this fact, the government is sometimes more efficient than the private sector. This is true in the case of providing a retirement income to workers. It is also true when it comes to providing health care insurance. This is one of the main reasons that we have a government-run Social Security and Medicare program.
The big news item in Washington last week was Attorney General Eric Holder's decision to resign. Undoubtedly there are positives to Holder's tenure as attorney general, but one really big minus is his decision not to prosecute any of the Wall Street crew whose actions helped to prop up the housing bubble. As a result of this failure, the main culprits walked away incredibly wealthy even as most of the country has yet to recover from the damage they caused.
Surge of Attention to Crusading Economist Piketty's New Book Takes Us to the Big Question of How to Reduce Inequality
Thomas Piketty's new book, “Capital for the 21st Century,” has done a remarkable job of focusing public attention on the growth of inequality in the last three decades and the risk that it will grow further in the decades ahead. Piketty's basic point on this issue is almost too simple for economists to understand: If the rate of return on wealth (r) is greater than the rate of growth (g), then wealth is likely to become ever more concentrated.
Gretchen Morgenson had a column on a new report from the Inspector General of the Justice Department which found that prosecuting mortgage fraud was a low priority, contrary to claims by the Obama administration. Since there is so much confusion on the topic it is worth repeating again what the Justice Department would have done if law enforcement had been its concern.
MSNBC's New Young GOP Voice, Abby Huntsman, Takes Old False Generational Warfare Line on Social Security
It's always entertaining when people who obviously have no clue about the basic facts on Social Security take to educating people on Social Security. Of course it's unfortunate when such people actually get taken seriously. In the hope of reducing this risk, BTP takes this opportunity to address Abby Huntsman's warning to millennials about the risks posed to them by Social Security.
In the last three decades the rich have gotten the bulk of the benefits of economic growth, as those at the middle and bottom of the wage distribution have seen little improvement in living standards. This naturally leads many people to want to reverse the policies that have led to this upward redistribution, such as high unemployment, a trade policy that protects high end workers, while subjecting the middle and bottom to international competition, government subsidies to too big to fail banks, an ever more intrusive patent policy, an anti-trust policy that greenlights monopolies like Microsoft, and many others that could be added to this list.