{"id":13026,"date":"2013-12-06T03:59:04","date_gmt":"2013-12-06T02:59:04","guid":{"rendered":"http:\/\/www.w-t-w.org\/en\/?p=13026"},"modified":"2013-12-06T17:04:10","modified_gmt":"2013-12-06T16:04:10","slug":"obama-tiptoes-toward-the-inequality-issue-in-the-us","status":"publish","type":"post","link":"https:\/\/www.w-t-w.org\/en\/obama-tiptoes-toward-the-inequality-issue-in-the-us\/","title":{"rendered":"Obama Tiptoes Toward the Inequality Issue in the US"},"content":{"rendered":"<p><iframe loading=\"lazy\" src=\"\/\/www.youtube.com\/embed\/QFxEURB4vtA\" height=\"315\" width=\"560\" allowfullscreen=\"\" frameborder=\"0\"><\/iframe><\/p>\n<p style=\"text-align: center;\"><strong>\u00a0<\/strong><\/p>\n<p>Robert Reich, former Secretary of Labor, comments:<\/p>\n<p>The president\u2019s speech yesterday on inequality avoided the \u201cR\u201d word. No politician wants to mention \u201credistribution\u201d because it conjures up images of worthy \u201cmakers\u201d forced to hand over hard-earned income to undeserving \u201ctakers.\u201d<\/p>\n<p>But as low-wage work proliferates in America, so-called takers are working as hard if not harder than anyone else and often at more than one job.<\/p>\n<p>Yet they\u2019re still not making it because the twin forces of globalization and technological change have reduced their bargaining power and undermined their economic standing \u2014 while bestowing ever greater benefits on a comparative few with the right education and connections (and whose parents are often best able to secure these advantages for them).<\/p>\n<div>Without some redistribution, our ever-increasing number of low-wage workers won\u2019t have enough money to keep the economy going.<\/div>\n<p>Better education and training for those on the losing end is critically important, as are several of the other proposals the president listed. But they will only go so far.<\/p>\n<p>The number of losers is growing so quickly and so much of the economies\u2019 winnings are going to a small group at the top \u00a0\u2013 since the recovery began, 95 percent of the gains have gone to the richest 1 percent &#8212;\u00a0that some direct redistribution of the gains is necessary.<\/p>\n<p>Without some redistribution, the losers are likely to react in ways that could hurt the economy. They\u2019ll demand protection from global markets they believe are taking away good jobs and even from certain technological advances that threaten to displace them (rather than smash the machines, as did England\u2019s 19th-century Luddites, they\u2019ll seek regulations that preserve the old jobs).<\/p>\n<p>Without some redistribution, our ever-increasing number of low-wage workers won\u2019t have enough money to keep the economy going. (This is one reason why the current recovery has been so anemic.) And without some redistribution, America\u2019s growing army of low-wage workers may fall prey to demagogues on the right or left who offer convenient scapegoats for their frustrations.<\/p>\n<p>One way we already redistribute is through the\u00a0<a href=\"http:\/\/economix.blogs.nytimes.com\/2012\/02\/13\/expanding-a-safety-net-program\/\" target=\"_blank\">Earned Income Tax Credit (EITC)<\/a>, a wage subsidy for the working poor, which, at about $60 billion a year, is the nation\u2019s largest anti-poverty program. It\u2019s like a reverse income tax \u2014 larger at the bottom of the wage scale (now around $3,000 for incomes around $20,000) and gradually tapering off as incomes rise (vanishing at around $35,000).<\/p>\n<p>The EITC subsidy should be enlarged and extended further up the wage scale before tapering off. How to pay for this? By cutting subsidies and special tax breaks for the oil and gas industries, big agribusiness, military contractors, hedge-fund and private-equity partners and Wall Street banks. And by capping individual tax deductions (deductions are the economic equivalent of government subsidies) for gold-plated health care plans, lavish business junkets and interest on giant mortgages.<\/p>\n<p>In other words, we can finance much of this redistribution to the working poor by ending unnecessary redistributions to the wealthy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0 Robert Reich, former Secretary of Labor, comments: The president\u2019s speech yesterday on inequality avoided the \u201cR\u201d word. No politician wants to mention \u201credistribution\u201d because it conjures up images of worthy \u201cmakers\u201d forced to hand over hard-earned income to undeserving &hellip; <a href=\"https:\/\/www.w-t-w.org\/en\/obama-tiptoes-toward-the-inequality-issue-in-the-us\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":18,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[13],"tags":[],"class_list":["post-13026","post","type-post","status-publish","format-standard","hentry","category-finance"],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 4.9.10 - aioseo.com -->\n\t<meta name=\"description\" content=\"Robert Reich, former Secretary of Labor, comments: The president\u2019s speech yesterday on inequality avoided the \u201cR\u201d word. 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No politician wants to mention \u201credistribution\u201d because it conjures up images of worthy \u201cmakers\u201d forced to hand over hard-earned income to undeserving \u201ctakers.\u201d But as low-wage work proliferates in America, so-called takers are working as hard if"},"aioseo_meta_data":{"post_id":"13026","title":null,"description":null,"keywords":null,"keyphrases":null,"primary_term":null,"canonical_url":null,"og_title":null,"og_description":null,"og_object_type":"default","og_image_type":"default","og_image_url":null,"og_image_width":null,"og_image_height":null,"og_image_custom_url":null,"og_image_custom_fields":null,"og_video":null,"og_custom_url":null,"og_article_section":null,"og_article_tags":null,"twitter_use_og":false,"twitter_card":"default","twitter_image_type":"default","twitter_image_url":null,"twitter_image_custom_url":null,"twitter_image_custom_fields":null,"twitter_title":null,"twitter_description":null,"schema":{"blockGraphs":[],"customGraphs":[],"default":{"data":{"Article":[],"Course":[],"Dataset":[],"FAQPage":[],"Movie":[],"Person":[],"Product":[],"ProductReview":[],"Car":[],"Recipe":[],"Service":[],"SoftwareApplication":[],"WebPage":[]},"graphName":"BlogPosting","isEnabled":true},"graphs":[]},"schema_type":"default","schema_type_options":null,"pillar_content":false,"robots_default":true,"robots_noindex":false,"robots_noarchive":false,"robots_nosnippet":false,"robots_nofollow":false,"robots_noimageindex":false,"robots_noodp":false,"robots_notranslate":false,"robots_max_snippet":null,"robots_max_videopreview":null,"robots_max_imagepreview":"large","priority":null,"frequency":null,"local_seo":null,"breadcrumb_settings":null,"limit_modified_date":false,"ai":null,"created":"2024-10-05 16:28:47","updated":"2025-07-13 21:34:53","seo_analyzer_scan_date":null},"aioseo_breadcrumb":"<div class=\"aioseo-breadcrumbs\"><span class=\"aioseo-breadcrumb\">\n\t\t\t<a href=\"https:\/\/www.w-t-w.org\/en\" title=\"Home\">Home<\/a>\n\t\t<\/span><span class=\"aioseo-breadcrumb-separator\">&raquo;<\/span><span class=\"aioseo-breadcrumb\">\n\t\t\t<a href=\"https:\/\/www.w-t-w.org\/en\/home\/news-blog\/\" title=\"News Blog\">News Blog<\/a>\n\t\t<\/span><span class=\"aioseo-breadcrumb-separator\">&raquo;<\/span><span class=\"aioseo-breadcrumb\">\n\t\t\t<a href=\"https:\/\/www.w-t-w.org\/en\/home\/news-blog\/finance\/\" title=\"Finance\">Finance<\/a>\n\t\t<\/span><span class=\"aioseo-breadcrumb-separator\">&raquo;<\/span><span class=\"aioseo-breadcrumb\">\n\t\t\tObama Tiptoes Toward the Inequality Issue in the US\n\t\t<\/span><\/div>","aioseo_breadcrumb_json":[{"label":"Home","link":"https:\/\/www.w-t-w.org\/en"},{"label":"News Blog","link":"https:\/\/www.w-t-w.org\/en\/home\/news-blog\/"},{"label":"Finance","link":"https:\/\/www.w-t-w.org\/en\/home\/news-blog\/finance\/"},{"label":"Obama Tiptoes Toward the Inequality Issue in the US","link":"https:\/\/www.w-t-w.org\/en\/obama-tiptoes-toward-the-inequality-issue-in-the-us\/"}],"_links":{"self":[{"href":"https:\/\/www.w-t-w.org\/en\/wp-json\/wp\/v2\/posts\/13026","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.w-t-w.org\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.w-t-w.org\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.w-t-w.org\/en\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/www.w-t-w.org\/en\/wp-json\/wp\/v2\/comments?post=13026"}],"version-history":[{"count":3,"href":"https:\/\/www.w-t-w.org\/en\/wp-json\/wp\/v2\/posts\/13026\/revisions"}],"predecessor-version":[{"id":13035,"href":"https:\/\/www.w-t-w.org\/en\/wp-json\/wp\/v2\/posts\/13026\/revisions\/13035"}],"wp:attachment":[{"href":"https:\/\/www.w-t-w.org\/en\/wp-json\/wp\/v2\/media?parent=13026"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.w-t-w.org\/en\/wp-json\/wp\/v2\/categories?post=13026"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.w-t-w.org\/en\/wp-json\/wp\/v2\/tags?post=13026"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}