Skip to:

inequality

  • Economic Shocks And Attitudes Toward Redistribution

    Written on September 2, 2016

    In the wake of the financial crisis that began in 2007, as well as the subsequent recession, there has been a great deal of attention paid to income inequality. Specifically, there was a pervasive argument among many Americans that the discrepancies in income between the top and bottom are too large, and that the fruits of economic growth are predominantly going to the highest earners (the so-called “one percent”).

    Among those who believe that income inequality is too high, the solutions might include policies such as more progressive taxation, stronger regulation, and more generous policies to help lower income families. That is, they might generally support some increased role for government in addressing this issue. Insofar as individuals’ attitudes tend to respond to changes in their own circumstances (e.g., Owens and Pedulla 2013), as well as to overall economic conditions, one would possibly expect an increase in support for government efforts to reduce inequality during and after the financial crisis.

    We might take a look at this proposition using a General Social Survey (GSS) question asking respondents to characterize their support (on a scale of 1-7) for the statement that the government should reduce income differences between the rich and poor. The graph below presents the average value of this scale between 1986 and 2014. Note that higher values in the graph represent greater support for government action.

    READ MORE
  • Why We Defend The Public Square

    Written on May 7, 2015

    The following are the texts of the two speeches from the opening session of our recent two-day conference, “In Defense of the Public Square,” which was held on May 1-2 at Georgetown University in Washington, D.C. The introduction was delivered by Leo Casey and the keynote address was delivered by Randi Weingarten. The video of the full event will be available soon here.

    Remarks by Leo Casey

    We meet here today in “defense of the public square.”

    The public square is the place where Americans come together as a people and establish common goals in pursuit of our common good.

    The public square is the place where Americans – in all of our rich diversity – promote the general welfare, achieving as a community what we never could do as private individuals.

    The public square is the place where Americans weave together our ideal of political equality and our solidarity with community in a democratic political culture, as de Tocqueville saw so well.

    READ MORE
  • Are Americans Exceptional In Their Attitudes Toward Government's Role In Reducing Inequality?

    Written on January 10, 2012

    As discussed in a previous post, roughly half of Americans believe that government should take some active role in reducing income differences between rich and poor, though, as one would expect, this view is less prevalent among Republicans, more educated and higher earning survey respondents.

    These data, however, lack a frame of reference. That is, they don’t tell us whether American support for government redistribution is “high” or “low” compared with that in other nations. The conventional wisdom in this area is that Americans generally prefer a more limited government, especially when it comes to things like income redistribution.

    It might therefore be interesting to take a quick look at how the U.S. stacks up against other nations in terms of these redistributive preferences.

    READ MORE
  • Do Americans Think Government Should Reduce Income Inequality?

    Written on October 24, 2011

    With all the recent coverage of Occupy Wall Street and President Obama’s jobs bill, we’ve heard a lot of polling results showing that a large plurality of Americans supports raising taxes on high earners, and that this support is strong among both Democrats and Republicans.

    The campaign to raise taxes on high-income households is part of a larger ideological notion that reducing inequality by such means as taxation and welfare programs is a proper function of government. Supporters (e.g., Democrats) argue that progressive taxation helps to ensure that high earners pay their “fair share” in supporting the public resources, such as schools, roads and law enforcement, that are necessary (but not sufficient) for their success. Republicans, on the other hand, tend frame the issue directly in terms of government intrusion – the government is unfairly “picking winners and losers," and stifling innovation and risk-taking. The assumption seems to be that many Americans don't care for the generic idea of government taking an active role in reducing the gap between rich and poor, even though they tend to support many of the specific means by which this occurs, including not only raising taxes on high earners, but also public education and programs like Medicaid.

    So, it might be interesting to see what Americans think of the broader idea that government has a legitimate role in reducing income inequality. Let’s take a quick look.

    READ MORE
  • An International Perspective On Corporate Pay

    Written on October 14, 2011

    Our guest author today is Michael Tims, associate professor of biology at Montgomery College in Takoma Park, Maryland. Some of his writing can be found on his science blog, Bardo's Calculus, as well as at the Hyattstown Mill Arts Project, where he is a board member.

    The growing wealth gap in the United States has worried some commentators for years. The length and breadth of the economic crisis, and the suffering it has brought with it, have moved those concerns into the mainstream. One aspect of this development that warrants more attention is the connection between declining rates of unionization, and the incredible gap between the pay of workers and their bosses.

    As corporate resistance to unions has increased and union density declined, the discrepancy in pay between management and worker has grown extreme. Since the mid 1970s, the average multiple of CEO pay to worker pay has increased from 28x in 1970 to 158x in 2005, to almost 400x in 2010. . Their average "total realized annual CEO compensation" is currently $12 million, according to Governance Metrics International. During this same period, worker pay has stagnated and fallen behind inflation, despite an historic rise in workforce productivity

    This phenomenon of high pay disparity in the industrial world is uniquely American, with the next highest countries being Britain (25x), Sweden (13x), Germany (11x) and Japan (10x). Claims that these pay levels represent success on the part of the CEO appear to be misleading.

    READ MORE
Subscribe to inequality

DISCLAIMER

This web site and the information contained herein are provided as a service to those who are interested in the work of the Albert Shanker Institute (ASI). ASI makes no warranties, either express or implied, concerning the information contained on or linked from shankerblog.org. The visitor uses the information provided herein at his/her own risk. ASI, its officers, board members, agents, and employees specifically disclaim any and all liability from damages which may result from the utilization of the information provided herein. The content in the Shanker Blog may not necessarily reflect the views or official policy positions of ASI or any related entity or organization.