Daily Digest - April 14: A Business Plan for a Better Environment

Apr 14, 2014Rachel Goldfarb

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MBAs Will Turn Brownfields Into Green—if Investors Help Them Out (Quartz)

Roosevelt Institute Fellow Georgia Levenson Keohane writes that the social venture competitions becoming common in MBA programs could push sustainability and social change, if Wall Street will fund the proposals.

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MBAs Will Turn Brownfields Into Green—if Investors Help Them Out (Quartz)

Roosevelt Institute Fellow Georgia Levenson Keohane writes that the social venture competitions becoming common in MBA programs could push sustainability and social change, if Wall Street will fund the proposals.

Even As Jobs Numbers Seem Better… (Campaign for America's Future Blog)

Unemployment claims have dropped, and the jobs lost in the recession have been restored, but that's just catch-up. Dave Johnson pulls job creation ideas from a new Roosevelt Institute report, "A Bold Approach to the Jobs Emergency: 15 Ways We Can Create Good Jobs in America Today."

  • Roosevelt Take: Read the full report, produced by the Bernard L. Schwartz Rediscovering Government Initiative.

Low-Wage Workers Pay the Price of Nickel-and-Diming by Employers (LA Times)

Michael Hiltzik points out that wage theft is most common in low-paid, labor-intensive, female-heavy industries. Without sufficient government enforcement, workers are forced to fight back on their own.

What If the Minimum Wage Were $15 an Hour? (The Nation)

Sasha Abramsky looks at the political situation in Seattle, where the push for a $15-an-hour minimum wage is taking center stage. He suggests that if Seattle pulls this off, it will dramatically shift the national conversation.

  • Roosevelt Take: Roosevelt Institute President and CEO Felicia Wong gave the closing remarks at Seattle's Income Inequality Symposium.

Executive Pay: Invasion of the Supersalaries (NYT)

Rising CEO pay is a major contributing factor to today's economic inequality, writes Peter Eavis. But there's disagreement on how to induce companies to pay CEOs less and average workers more.

The Wall Street Second-Chances Rule: Scandal Makes the Rich Grow Stronger (The Guardian)

Heidi Moore writes that on Wall Street, losses, bankruptcies, and even criminal investigations aren't enough to knock top CEOs out of the business. Profits conquer all, so even financiers embroiled in scandal keep their power.

New on Next New Deal

A Millennial’s Case for Fixing Social Security

Brian Lamberta, Northeast Regional Communications Coordinator for the Roosevelt Institute | Campus Network, explains why and how Millennials should try to fix Social Security instead of giving up on it.

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A Millennial’s Case for Fixing Social Security

Apr 11, 2014Brian Lamberta

Instead of giving up of Social Security, Millennials should push an easy fix for the so-called funding crisis: lifting the earnings cap.

Instead of giving up of Social Security, Millennials should push an easy fix for the so-called funding crisis: lifting the earnings cap.

As a public policy student, I’m used to hearing lively debates and diverse perspectives from my professors, fellows students, and course materials. There is one issue on which they consistently agree: apparently, Social Security cannot work for my generation. Polling data confirms this sentiment. Between half and three-quarters of Millennials do not expect Social Security to exist when we retire. Despite all of the rhetoric and doubts, I know that Social Security can work for Millennials – but it’s crucial that we fix the program.

I learned the importance of Social Security during my summer internship at The Alliance for Retired Americans, which was part of the Roosevelt Institute | Campus Network’s Summer Academy program. I learned that Social Security is the primary source of income for most seniors. The internship also taught me all about the program and its current issues, inside and out.

To give some background, Social Security is the widest reaching public benefit program in the United States. Starting at age 62, almost all Americans are eligible to receive monthly checks based on the amount they or their spouse paid into the program during their working years, with the benefit amount increasing for those who delay taking payments. The benefits of Social Security for retirement must be earned – 12.4% of nearly everyone’s yearly income below an annually adjusted cap is taxed to fund the program. For 2014, the cap is set at $117,000. Any income above $117,000 is completely ignored, so a person earning $1,000,000 will pay a 2.2% tax rate in 2014 and person earning five-figures will pay a 12.4% rate. To put it another way, a millionaire finishes paying her Social Security taxes by mid-February (at the latest) while the average American pays those taxes all year long.

Currently, there is a funding gap, which is often overstated as a “crisis.” Based on the Social Security Administration’s own predictions, only about three-quarters of benefits can be paid after 2033. Poor planning regarding the retirement of the Baby Boomers did not cause this gap. In preparation for the retirement of the Baby Boomers, we amended Social Security during the 1970s and 1980s; their retirement is almost entirely funded. This lapse (“the crisis”) is directly linked to the unintended consequences of reforming the taxable earnings cap in the 1970s.

Since 1975, Congress has linked annual cap increases to the average growth in wages. Post-World War II wage growth has consistently favored higher earners, who already had total incomes above the cap. This led to two disturbing trends, the first of which is shown in this chart, taken directly from the Social Security Administration’s website:

 

 

As seen here, the cap used to reduce taxes for many more Americans, but since the 1970s it's leveled out from reducing taxes for the top 15% to helping just the top 6%, establishing its status as a tool for the mega-rich to avoid paying taxes. Since the wealthiest Americans have benefitted most from wage growth in recent years, the amount of income that is untaxable for Social Security purposes has increased from 10% to 17% since 1975. In essence, the funding gap is a result of an antiquated and poorly calculated tax break that allows the wealthiest Americans to avoid paying their fair share.  

Social Security can remain in perpetuity if we scrap the cap. Historically, regular adjustments have been applied to program to ensure its continued solvency, and this obvious change should be no different.

Millennials: I urge you look more deeply into this issue and better understand the facts as the debate continues. Most of the money that our grandparents use to pay their bills comes from Social Security, so simply letting the program crumble would have disastrous effects. As a generation, we are far less likely to have union-backed pensions and extra money for savings. Fixing Social Security could be more necessary for our generation’s retirement stability than any before us.

Brian Lamberta is an urban studies and public policy student at the CUNY Macaulay Honors College at Hunter College and currently serves as the Northeast Regional Communications Coordinator for the Roosevelt Institute | Campus Network.

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Daily Digest - April 11: Do Universities Make the Grade on Local Impact?

Apr 11, 2014Rachel Goldfarb

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What's the Deal: How Can We Grade Universities On Their Local Economic Impact? (YouTube)

Roosevelt Institute Associate Director of Networked Initiatives Alan Smith and NYU student Eugenia Kim explain the Campus Network's Rethinking Communities Initiative and how universities can promote local development.

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What's the Deal: How Can We Grade Universities On Their Local Economic Impact? (YouTube)

Roosevelt Institute Associate Director of Networked Initiatives Alan Smith and NYU student Eugenia Kim explain the Campus Network's Rethinking Communities Initiative and how universities can promote local development.

Don't Be Fooled: The Fed's New Rule Lets Banks Off Easy (TNR)

Roosevelt Institute Fellow Mike Konczal says that increased leverage ratio requirements aren't the end-all solution to Too Big To Fail, even though they are a strong regulatory tool.

Does Christianity Really Prefer Charity to Government Welfare? (The Week)

Elizabeth Stoker agrees with Mike Konczal: the social safety net allows private charities to function better. She also argues for the safety net from a Christian perspective.

  • Roosevelt Take: Stoker's piece responds to Mike's recent essay on "the voluntarism fantasy" in Democracy Journal.

Missing Ingredient on Minimum Wage: A Motivated G.O.P. (NYT)

The last three minimum wage increases have involved a president working with a congressional leader from the other party. John Harwood says President Obama seems unlikely to find such a partner.

Yes, Being a Woman Makes You Poorer (TAP)

Monica Potts lays out the complexities of the wage gap, and emphasizes that blaming the gap on women's choices ignores the realities of those choices. Wage gap deniers seem to suggest that gender discrimination doesn't exist.

The Safety Net Catches the Middle Class More Than the Poor (WaPo)

Safety net spending has increased since the 1990s, but not for those in deep poverty, writes Catherine Rampell. Paul Ryan's budget proposal takes the idea of supporting the "deserving" over the most needy even further.

MAP: In 31 States, Daycare Is More Expensive Than College (MoJo)

Erika Eichelberger looks at a comparison of the cost of in-state college tuition and infant daycare from Child Care Aware America. The growing cost of childcare may help explain a recent increase in stay-at-home mothers.

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Daily Digest - April 10: 15 Ways to Put America Back to Work

Apr 10, 2014Rachel Goldfarb

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America Can Attain Full Employment with a Bold Approach to the Jobs Emergency (Next New Deal)

Jeff Madrick, Director of the Bernard L. Schwartz Rediscovering Government Initiative, argues that government can create more and better jobs if lawmakers can get over their current fatalism.

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America Can Attain Full Employment with a Bold Approach to the Jobs Emergency (Next New Deal)

Jeff Madrick, Director of the Bernard L. Schwartz Rediscovering Government Initiative, argues that government can create more and better jobs if lawmakers can get over their current fatalism.

  • Roosevelt Take: Read the Rediscovering Government Initiative's new report, "A Bold Approach to the Jobs Emergency: 15 Ways We Can Create Good Jobs in America Today," here.

Obamacare: 9.3 million & Counting (The Big Picture)

Thom Hartmann speaks with Roosevelt Institute Senior Fellow Richard Kirsch, who looks forward to when the GOP gets past obstructionism and we can focus on ways to improve the Affordable Care Act.

Long-Term Unemployment Is Elevated Across All Education, Age, Occupation, Industry, Gender, And Racial And Ethnic Groups (Working Economics)

Heidi Shierholz argues that the prevalence of long-term unemployment across all demographics proves this crisis has nothing to do with workers, and everything to do with employers who aren't hiring due to lack of demand.

The Politics Around Welfare Show Why the Poor Need a Real Break, Not Just a Tax Break (The Nation)

Michelle Chen argues that the Earned Income Tax Credit shouldn't be the key pillar of anti-poverty efforts, as it's only a once-a-year boost that leaves out too many people living in poverty.

Forget Obamacare: Vermont Wants to Bring Single Payer to America (Vox)

Sarah Kliff explains that Vermont's governor is determined to see single payer health care in his state because it will cut statewide health care costs by millions. His current challenge: funding the program.

U.S. House Republicans Prepare a Second JOBS Act bill; Critics See Dangers (Reuters)

The bill is supposed to make it easier for startups to raise money, writes Sarah N. Lynch, but critics see it as an attempt at deregulation that reduces the amount of information potential investors can access.

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America Can Attain Full Employment with a Bold Approach to the Jobs Emergency

Apr 9, 2014Jeff Madrick

A new report from the Rediscovering Government Initiative lays out 15 ways the government can create more and better jobs starting right now.

A new report from the Rediscovering Government Initiative lays out 15 ways the government can create more and better jobs starting right now.

After five long years, the economy has at last produced enough new jobs to compensate for the 8 million lost in the Great Recession of 2009. But in that same period some 7 million more Americans reached employment age, and we have only produced about half the jobs we need to keep up with population growth. To make matters worse, the jobs created during the recovery pay on average much less than those lost. Yet rather than pulling out all the stops to create more and better jobs, too many politicians and economists tell us we can’t move too quickly. They cite limitation after limitation: inflation fears, budget deficits, skills mismatches, and so on. Americans deserve better than this defeatism. We deserve bold action.

In a new report, A Bold Approach to the Jobs Emergency, the Bernard L. Schwartz Rediscovering Government Initiative offers fifteen ideas that could get us back to true full employment and at the same time build a foundation for rapid economic growth in the future. We are demanding a full-court press to recreate the economic opportunity that America once offered. We emphasize some ideas that have been heard before, but many that are forced to the back seat or are hardly talked about at all.

There are taboos among policymakers that are holding us back. Above all, we must take fiscal stimulus seriously again. Today’s economy operates far below its growth potential. The fiscal stimulus we need should not only make the social safety net whole but also be tied to aggressive investment in transportation, communications, and clean technologies that have been badly neglected.

The federal government can itself create useful, good-paying jobs in transportation, teaching, and health care. A carefully crafted federal job creation program, as was successfully enacted under FDR, can work today. Fifty billion dollars worth of new jobs could go a long way toward helping Americans.

The repressive effect on jobs and wages that results from aggressive Wall Street practices is all but invisible in Washington. Academic economists are almost as bad as the Washington think tanks in paying too little attention to how big finance can undermine both jobs and wages. Our report highlights the findings of researchers such as Eileen Appelbaum, formerly of Rutgers, and Rosemary Batt of Cornell, who show that the leveraged buyout and privatization crazes have on average led to many lost jobs and significantly less spending on R&D. It also showcases the work of William Lazonick of the University of Massachusetts, Lowell, who has long called attention to how massive corporate stock buybacks may help shareholders in the short run but hurt the American economy by diverting investment.

Poor wages are also part and parcel of America’s economic failure. Today’s typical household earns no more after inflation than it did almost 20 years ago. Only 44 percent of Americans think they are middle class, the lowest level recorded. However, until fairly recently, raising the minimum wage has also been taboo. The bill before Congress to raise the federal minimum wage from $7.25 to $10.10 may still not pass, but intelligently designed studies suggest such a hike could lift not just 1 million, as the Congressional Budget Office has too conservatively estimated, but 6 million people out of poverty and provide raises for about 25 million people. Similarly, we need an expansion of the Earned Income Tax Credit to childless adults, which the president supports.

Most tragically, we neglect our young. Six million or so Americans ages 16 to 24 are neither in school nor have a job. Dozens of local agencies have been created to place these “opportunity youth” on a middle-class track. But they badly need to be scaled up, and federal support is the only way to do so.

The new interest in funding pre-kindergarten in New York City and elsewhere is welcome. But help has to come much earlier in the lives of children in poverty. One in every five America children under the age of six live in poverty, the second-highest rate in the rich world. A growing body of research shows unambiguously how poor children are cognitively and emotional deprived—and how bleak their futures inevitably are. In America more than in any other rich country, inequality begins at birth. We need to address this crisis to begin building the economy of the future.

If America wants a strong future, it had also better invest more in technological research. Government research has been the heart of the innovation economy, as economists have increasingly shown. But Congress mindlessly cut such research last year. It must be revived and expanded. Other recommendations in our report include investments in energy, national paid family leave policies, and re-vamped workforce training.

The decline of work is not inevitable, and there are more ideas than the 15 we present in our report. We calculate that we can get the unemployment rate below 5 percent and raise wages with a combination of such programs, without incurring a dangerously growing budget deficit.

But bankrupt ideology, narrow politics, and bad economics are robbing the nation of its confidence and hope for the future. A comprehensive jobs plan is not even being attempted in America. Failure becomes contagious. Let’s end the fatalism about employment in America now and win back the nation’s hard-won optimism. 

Jeff Madrick is the Director of the Bernard L. Schwartz Rediscovering Government Initiative.

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Daily Digest - April 9: The Social Safety Net is Popular Because It Works

Apr 9, 2014Rachel Goldfarb

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The One Part of the Charity vs. Social Welfare Argument That Everyone Ignores (The Week)

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The One Part of the Charity vs. Social Welfare Argument That Everyone Ignores (The Week)

Building on Roosevelt Institute Fellow Mike Konczal's piece in Democracy Journal on the myth that private charity could replace government, Matt Bruenig argues that the status quo bias – "let's hold on to what works" – protects social safety net programs once they're in place.

Bill to Restore U.S. Unemployment Insurance Likely to Deadlock in Congress (The Guardian)

Dan Roberts reports that John Boehner will not allow a vote on extended unemployment insurance, which lapsed in December, without provisions to encourage job growth, though the GOP hasn't offered any big ideas.

Labor Department Intervenes on Behalf of Hearst Interns (ProPublica)

In its first amicus brief in an unpaid internship lawsuit, the Labor Department urged the court to use stricter standards to determine whether an unpaid internship is permissible, writes Kara Brandeisky.

Banks Ordered to Add Capital to Limit Risks (NYT)

Federal regulators will increase the leverage ratio, which measures the amount of capital a bank must hold against its assets, writes Peter Eavis. Supporters say this rule is simpler and easier to enforce than other parts of financial reform.

Fed Gives Banks More Time on Volcker Rule Detail (Reuters)

Douwe Miedema reports that banks will get two additional years, through July 21, 2017, to sell off collateralized loan obligations, which the Volcker Rule deems too risky for banks to invest in.

The Unexpected Benefit of Telling People What Their Coworkers Make (The Atlantic)

On Equal Pay Day, many spoke up for pay disclosure as a way to reduce the wage gap. Emiliano Huet-Vaughn's research shows that pay transparency also significantly increases worker productivity.

New on Next New Deal

Is Short-Term Unemployment a Better Predictor of Inflation?

Roosevelt Institute Fellow Mike Konczal argues that we should not ignore long-term unemployment while analyzing how the economy is doing. That makes the Great Recession data make more sense, he says, but isn't applicable today.

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Is Short-Term Unemployment a Better Predictor of Inflation?

Apr 8, 2014Mike Konczal

Alan B. Krueger, Judd Cramer, and David Cho of Princeton recently released a Brookings paper on the state of the labor market titled "Are the Long-Term Unemployed on the Margins of the Labor Market?" Their big headline result is that the long-term unemployed are going to have trouble finding steady work, both as a historical matter and from what we've seen in the Great Recession. It's fascinating work we'll revisit here.

But what does that mean for the job market right now, with its mix of short-term and long-term unemployed? The second takeaway is that if we only look at short-term unemployment, the economy makes more sense than if we look at total unemployment. As Tim Hartford wrote, this research shows that if "we replotted the Phillips curve['s mix of inflation and unemployment]... using statistics on short-term unemployment... it turns out that the old statistical relationships would work just fine." Some are arguing that we should just focus on short-term unemployment for the moment as an indicator of how the economy is doing.

Is that the case? Not really. We should be careful with this argument now, because this is really a matter of 2009-2012. Back then, the question was why inflation was as steady as it was given very high unemployment. In 2014 the question is very different: why is inflation so low given high unemployment and the relationship of the past several years? We need to explain a different problem.

Let's look at a key chart from the Krueger paper (green boxes my addition):

This is the change in core inflation versus unemployment. (There's a similar dynamic with wage inflation in a different chart.) The left graphic is the change in core inflation versus overall unemployment, and the right graphic is the change versus short-term unemployment. As the paper's authors argue, it's a much tighter relationship if you just look at short-term unemployment. But there are three things to note here.

First, as flagged in the green box in the left graphic, the outliers are the years 2009-2012. Looking at their wage inflation version of this in particular, the authors note that they get a higher R-squared and better predictive value using short-term unemployment. But replicating this chart (data), if you simply take out 2009-2011, you also end up with the higher R-squared and better predictive value.

More importantly, as a second matter look at where we are now via the 2013 data point. The total unemployment number for 2013 is right on the line in the left graph. However, as we can see from the green circle on the right, using short-term unemployment shows inflation much lower than anticipated. This is not surprising; one of the more important economic stories of 2013 was the collapse of inflation. Note that if the labor market were actually getting much tighter, inflation should have been increasing during this time period. More broadly, if the problem were the preponderance of long-term unemployed in the general labor market, we wouldn't expect 2013 to go into freefall and hop over the trendline as it did.

I'm very interested in why we didn't collapse into deflation from 2009 to 2011. I imagine the Fed has something to do with it. But as a third point I'd be a little cautious about using just short-term unemployment during that time as an important indicator about the labor market, as job separations collapsed during the crisis. A low short-term unemployment rate reflects people simply not leaving their jobs more than it reflects the idea that the economy was doing better than we'd expect.

But this question is also a historical one. Krueger and his co-authors acknowledge this, using phrasing like "since 2009" as the basis of their paper. But other people might not catch this, and assume that the short-term unemployment rate is crucial for right now. But that doesn't reflect our current situation of low inflation, a falling rate of long-term unemployment, and an unemployment rate that is going to be stuck in the mid-6% range for some time. We shouldn't use a way of adjusting data to examine what was going on in 2010 to argue there's less slack than there actually is out here in 2014.

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Alan B. Krueger, Judd Cramer, and David Cho of Princeton recently released a Brookings paper on the state of the labor market titled "Are the Long-Term Unemployed on the Margins of the Labor Market?" Their big headline result is that the long-term unemployed are going to have trouble finding steady work, both as a historical matter and from what we've seen in the Great Recession. It's fascinating work we'll revisit here.

But what does that mean for the job market right now, with its mix of short-term and long-term unemployed? The second takeaway is that if we only look at short-term unemployment, the economy makes more sense than if we look at total unemployment. As Tim Hartford wrote, this research shows that if "we replotted the Phillips curve['s mix of inflation and unemployment]... using statistics on short-term unemployment... it turns out that the old statistical relationships would work just fine." Some are arguing that we should just focus on short-term unemployment for the moment as an indicator of how the economy is doing.

Is that the case? Not really. We should be careful with this argument now, because this is really a matter of 2009-2012. Back then, the question was why inflation was as steady as it was given very high unemployment. In 2014 the question is very different: why is inflation so low given high unemployment and the relationship of the past several years? We need to explain a different problem.

Let's look at a key chart from the Krueger paper (green boxes my addition):

This is the change in core inflation versus unemployment. (There's a similar dynamic with wage inflation in a different chart.) The left graphic is the change in core inflation versus overall unemployment, and the right graphic is the change versus short-term unemployment. As the paper's authors argue, it's a much tighter relationship if you just look at short-term unemployment. But there are three things to note here.

First, as flagged in the green box in the left graphic, the outliers are the years 2009-2012. Looking at their wage inflation version of this in particular, the authors note that they get a higher R-squared and better predictive value using short-term unemployment. But replicating this chart (data), if you simply take out 2009-2011, you also end up with the higher R-squared and better predictive value.

More importantly, as a second matter look at where we are now via the 2013 data point. The total unemployment number for 2013 is right on the line in the left graph. However, as we can see from the green circle on the right, using short-term unemployment shows inflation much lower than anticipated. This is not surprising; one of the more important economic stories of 2013 was the collapse of inflation. Note that if the labor market were actually getting much tighter, inflation should have been increasing during this time period. More broadly, if the problem were the preponderance of long-term unemployed in the general labor market, we wouldn't expect 2013 to go into freefall and hop over the trendline as it did.

I'm very interested in why we didn't collapse into deflation from 2009 to 2011. I imagine the Fed has something to do with it. But as a third point I'd be a little cautious about using just short-term unemployment during that time as an important indicator about the labor market, as job separations collapsed during the crisis. A low short-term unemployment rate reflects people simply not leaving their jobs more than it reflects the idea that the economy was doing better than we'd expect.

But this question is also a historical one. Krueger and his co-authors acknowledge this, using phrasing like "since 2009" as the basis of their paper. But other people might not catch this, and assume that the short-term unemployment rate is crucial for right now. But that doesn't reflect our current situation of low inflation, a falling rate of long-term unemployment, and an unemployment rate that is going to be stuck in the mid-6% range for some time. We shouldn't use a way of adjusting data to examine what was going on in 2010 to argue there's less slack than there actually is out here in 2014.

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Money Issue of The New Inquiry is Out

Apr 8, 2014Mike Konczal

I helped edit (curate might be a better word) the latest New Inquiry issue on Money and Finance. Their editor Robert Horning wanted to get some of the vibe of the older financial blogs, when the thing was still a wild west, and so we got a ton of our favorite old-school finance writers like Steve Waldman, Izzy Kaminska, and the Epicurean Dealmaker to contribute. I also helped edit a good explainer of MMT from Rebecca Rojer, and a definitive "disgorge the cash" piece on the rentier takeover of the economy by JW Mason, both which are definitely worth your time. I have my own piece in the article, now also online, about buying the future.

These pieces will eventually be rolled out and available online over the next month, but for now you can read it by subscribing. Hope you check it out!

I helped edit (curate might be a better word) the latest New Inquiry issue on Money and Finance. Their editor Robert Horning wanted to get some of the vibe of the older financial blogs, when the thing was still a wild west, and so we got a ton of our favorite old-school finance writers like Steve Waldman, Izzy Kaminska, and the Epicurean Dealmaker to contribute. I also helped edit a good explainer of MMT from Rebecca Rojer, and a definitive "disgorge the cash" piece on the rentier takeover of the economy by JW Mason, both which are definitely worth your time. I have my own piece in the article, now also online, about buying the future.

These pieces will eventually be rolled out and available online over the next month, but for now you can read it by subscribing. Hope you check it out!

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The Internet Responds to the Voluntarism Fantasy

Apr 8, 2014Mike Konczal

My recent Voluntarism Fantasy piece (pdf) for Democracy Journal has gotten a fair amount of coverage. So I'm going to use this post, which will be updated, to keep track of the links to other people engaging, if only so I can respond in the future.

The piece was also reprinted at The Altantic Monthly.

Reddit thread with comments.

In favor of the piece:

Michael Hiltzik covers the argument in the LA Times' opinion page and EJ Dionne in the Washington Post's opinion page.

Matt Bruenig notes that the way we discuss this reflects a deep status quo bias at The Week.

Elizabeth Stoker, channeling Niebuhr, makes the strong Christian case that charity and government social insurance go together at The Week.

Sally Steenland of Center for America Progress also addresses the fantasy in this article.

Erik Loomis makes an excellent point that in addition to the rest of the 19th century state, the "federally subsidized westward expansion was also part of this welfare state, as Republicans especially explicitly saw the frontier as a social safety net that would alleviate poverty without directly giving charity to people."

James Kwak agrees that there's "No Substitute for the Government" here.

Jordan Weissmann argues that "Charity Can’t Replace the Safety Net" over at Slate.

I discuss the piece on the Majority Report with Sam Seder (also in-studio video here).

Less in favor:

Marvin Olasky, author of the Tragedy of American Compassion (which is one focal point of the article), responds in World.

Philathrophy Daily ran two articles critical of the piece, both at the forefront of the voluntarism fantasy's worldview. The first is from Hans Zeiger and the second from Martin Morse Wooster, who breaks out the paralipsis "I could argue that Mike Konczal and the Roosevelt Institute has a hidden agenda: to force the U.S. to accept Soviet-style communism ... I won’t make that argument because I know it isn’t true."

Rich Tucker at Townhall says that I do "a better job than Barack Obama did explaining the president’s 'You didn’t build that' philosophy," which I'll take as a compliment.

Reihan Salam has a set of responses at The Agenda.

Howard Husock argues that  charitably-funded, non-governmental programs are better than government at helping help individuals thrive at Forbes.

Don Watkins at the Ayn Rand Institute has a five part (!) critical response; you can work backwards from the fifth part here.

Anarchist Kevin Carson sees "the welfare state nevertheless as an evil necessitated by the state-enforced model of capitalism, and ultimately destined to wither away along with economic privilege and exploitation" in his response.

I'll add any more as they happen. (Last updated April 11th.)

My recent Voluntarism Fantasy piece (pdf) for Democracy Journal has gotten a fair amount of coverage. So I'm going to use this post, which will be updated, to keep track of the links to other people engaging, if only so I can respond in the future.

The piece was also reprinted at The Altantic Monthly.

Reddit thread with comments.

In favor of the piece:

Michael Hiltzik covers the argument in the LA Times' opinion page and EJ Dionne in the Washington Post's opinion page.

Matt Bruenig notes that the way we discuss this reflects a deep status quo bias at The Week.

Elizabeth Stoker, channeling Niebuhr, makes the strong Christian case that charity and government social insurance go together at The Week.

Sally Steenland of Center for America Progress also addresses the fantasy in this article.

Erik Loomis makes an excellent point that in addition to the rest of the 19th century state, the "federally subsidized westward expansion was also part of this welfare state, as Republicans especially explicitly saw the frontier as a social safety net that would alleviate poverty without directly giving charity to people."

James Kwak agrees that there's "No Substitute for the Government" here.

Jordan Weissmann argues that "Charity Can’t Replace the Safety Net" over at Slate.

I discuss the piece on the Majority Report with Sam Seder (also in-studio video here).

Less in favor:

Marvin Olasky, author of the Tragedy of American Compassion (which is one focal point of the article), responds in World.

Philathrophy Daily ran two articles critical of the piece, both at the forefront of the voluntarism fantasy's worldview. The first is from Hans Zeiger and the second from Martin Morse Wooster, who breaks out the paralipsis "I could argue that Mike Konczal and the Roosevelt Institute has a hidden agenda: to force the U.S. to accept Soviet-style communism ... I won’t make that argument because I know it isn’t true."

Rich Tucker at Townhall says that I do "a better job than Barack Obama did explaining the president’s 'You didn’t build that' philosophy," which I'll take as a compliment.

Reihan Salam has a set of responses at The Agenda.

Howard Husock argues that  charitably-funded, non-governmental programs are better than government at helping help individuals thrive at Forbes.

Don Watkins at the Ayn Rand Institute has a five part (!) critical response; you can work backwards from the fifth part here.

Anarchist Kevin Carson sees "the welfare state nevertheless as an evil necessitated by the state-enforced model of capitalism, and ultimately destined to wither away along with economic privilege and exploitation" in his response.

I'll add any more as they happen. (Last updated April 11th.)

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Daily Digest - April 8: Equal Pay Still Isn't a Reality

Apr 8, 2014Rachel Goldfarb

Click here to receive the Daily Digest via email.

Why the GOP is Wrong About the Pay Gap (MSNBC)

With President Obama signing executive orders to fight the pay gap on Equal Pay Day, Irin Carmon lays out the shortcomings in the current system for fighting pay discrimination.

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Why the GOP is Wrong About the Pay Gap (MSNBC)

With President Obama signing executive orders to fight the pay gap on Equal Pay Day, Irin Carmon lays out the shortcomings in the current system for fighting pay discrimination.

Cities Advance Their Fight Against Rising Inequality (NYT)

Cities are working to fight inequality locally because they aren't willing to wait on the federal government, writes Annie Lowrey. Seattle, which is debating a $15-an-hour minimum wage, is a prime example.

  • Roosevelt Take: Roosevelt Institute President and CEO Felicia Wong gave the closing remarks at Seattle's Income Inequality Symposium on March 27.

Maryland Set to Increase Its Minimum Wage to $10.10 by 2018 (WaPo)

Jenna Johnson reports on the final agreement on the minimum wage in the Maryland legislature. Maryland is the second state to take President Obama's advice and lead the charge for a $10.10 minimum wage.

Congress May Extend Corporate Tax Breaks But Not Unemployment Benefits (National Priorities Project)

Mattea Kramer points out a case of classic Washington illogic: Congress is preparing to extend corporate tax breaks worth $700 billion, but won't extend unemployment insurance because it would add $10 billion to the deficit.

GOP Grapples With The Unsettling Fear That Obamacare May Succeed (TPM)

Sahil Kapur says the 7 million Americans and potential voters who registered for insurance on the exchanges during open enrollment create a challenge for Republican candidates, whose base still supports repeal.

Yes, Rubio's Antipoverty Plan Would Cut Benefits to Working Parents (TNR)

Danny Vinik writes that it's mathematically impossible for Senator Rubio's plan to increase benefits for childless working adults and remain deficit-neutral, as his office has claimed it will, without reducing benefits to parents.

Workers on the Edge (TAP)

David Bensman looks at the difficulties faced by workers whose employers misclassify them as independent contractors. Employers do this to avoid paying workers' compensation, overtime, and even some taxes.

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