“Our Invisible Rich”: Most Americans Have No Idea Just How Unequal Our Society Has Become
Half a century ago, a classic essay in The New Yorker titled “Our Invisible Poor” took on the then-prevalent myth that America was an affluent society with only a few “pockets of poverty.” For many, the facts about poverty came as a revelation, and Dwight Macdonald’s article arguably did more than any other piece of advocacy to prepare the ground for Lyndon Johnson’s War on Poverty.
I don’t think the poor are invisible today, even though you sometimes hear assertions that they aren’t really living in poverty — hey, some of them have Xboxes! Instead, these days it’s the rich who are invisible.
But wait — isn’t half our TV programming devoted to breathless portrayal of the real or imagined lifestyles of the rich and fatuous? Yes, but that’s celebrity culture, and it doesn’t mean that the public has a good sense either of who the rich are or of how much money they make. In fact, most Americans have no idea just how unequal our society has become.
The latest piece of evidence to that effect is a survey asking people in various countries how much they thought top executives of major companies make relative to unskilled workers. In the United States the median respondent believed that chief executives make about 30 times as much as their employees, which was roughly true in the 1960s — but since then the gap has soared, so that today chief executives earn something like 300 times as much as ordinary workers.
So Americans have no idea how much the Masters of the Universe are paid, a finding very much in line with evidence that Americans vastly underestimate the concentration of wealth at the top.
Is this just a reflection of the innumeracy of hoi polloi? No — the supposedly well informed often seem comparably out of touch. Until the Occupy movement turned the “1 percent” into a catchphrase, it was all too common to hear prominent pundits and politicians speak about inequality as if it were mainly about college graduates versus the less educated, or the top fifth of the population versus the bottom 80 percent.
And even the 1 percent is too broad a category; the really big gains have gone to an even tinier elite. For example, recent estimates indicate not only that the wealth of the top percent has surged relative to everyone else — rising from 25 percent of total wealth in 1973 to 40 percent now — but that the great bulk of that rise has taken place among the top 0.1 percent, the richest one-thousandth of Americans.
So how can people be unaware of this development, or at least unaware of its scale? The main answer, I’d suggest, is that the truly rich are so removed from ordinary people’s lives that we never see what they have. We may notice, and feel aggrieved about, college kids driving luxury cars; but we don’t see private equity managers commuting by helicopter to their immense mansions in the Hamptons. The commanding heights of our economy are invisible because they’re lost in the clouds.
The exceptions are celebrities, who live their lives in public. And defenses of extreme inequality almost always invoke the examples of movie and sports stars. But celebrities make up only a tiny fraction of the wealthy, and even the biggest stars earn far less than the financial barons who really dominate the upper strata. For example, according to Forbes, Robert Downey Jr. is the highest-paid actor in America, making $75 million last year. According to the same publication, in 2013 the top 25 hedge fund managers took home, on average, almost a billion dollars each.
Does the invisibility of the very rich matter? Politically, it matters a lot. Pundits sometimes wonder why American voters don’t care more about inequality; part of the answer is that they don’t realize how extreme it is. And defenders of the superrich take advantage of that ignorance. When the Heritage Foundation tells us that the top 10 percent of filers are cruelly burdened, because they pay 68 percent of income taxes, it’s hoping that you won’t notice that word “income” — other taxes, such as the payroll tax, are far less progressive. But it’s also hoping you don’t know that the top 10 percent receive almost half of all income and own 75 percent of the nation’s wealth, which makes their burden seem a lot less disproportionate.
Most Americans say, if asked, that inequality is too high and something should be done about it — there is overwhelming support for higher minimum wages, and a majority favors higher taxes at the top. But at least so far confronting extreme inequality hasn’t been an election-winning issue. Maybe that would be true even if Americans knew the facts about our new Gilded Age. But we don’t know that. Today’s political balance rests on a foundation of ignorance, in which the public has no idea what our society is really like.
By: Paul Krugman, Op-Ed Columnist, The New York Times, September 28, 2014
“Obligations To Justice”: Eric Holder And Robert F. Kennedy’s Legacy
When he announced his leave-taking last week, Attorney General Eric Holder spoke of Robert F. Kennedy as his inspiration for believing that the Justice Department “can — and must — always be a force for that which is right.”
There are many reasons our nation’s first African American attorney general might see Kennedy as his guide, but this one may be the most important: If ever a public figure was exempt from Holder’s much contested depiction of our country as a “nation of cowards” on race, it was RFK, a man who was in constant struggle with his demons and his conscience.
Few white men were as searing as Kennedy in describing how the world looked to a young black man in the late 1960s. “He is told that the Negro is making progress,” Kennedy wrote, following the racial etiquette of his time. “But what does that mean to him? He cannot experience the progress of others, nor should we seriously expect him to feel grateful because he is no longer a slave, or because he can vote or eat at some lunch counters.”
“How overwhelming must be the frustration of this young man — this young American,” Kennedy continued, “who, desperately wanting to believe and half believing, finds himself locked in the slums, his education second-rate, unable to get a job, confronted by the open prejudice and subtle hostilities of a white world, and seemingly powerless to change his condition or shape his future.”
Yet Kennedy was never one to let individuals escape responsibility for their own fates. So he also spoke of others who would tell this young black man “to work his way up, as other minorities have done; and so he must. For he knows, and we know, that only by his efforts and his own labor will the Negro come to full equality.”
Holder and his friend President Obama have lived both halves of Kennedy’s parable. Like social reformers in every time, they strived to balance their own determination to succeed with their obligations to justice. Doing this is never easy. It can’t be.
Kennedy was not alone among Americans in being tormented by how much racism has scarred our national story. That’s why I was one of many who bristled back in 2009 when Holder called us all cowards. For all our flaws, few nations have faced up to a history of racial subjugation as regularly and comprehensively as we have. And Holder and Obama have both testified to our progress.
Yet rereading Kennedy is to understand why Holder spoke as he did. That the young man Kennedy described is still so present and recognizable tells us that complacency remains a subtle but corrosive sin. One of Holder’s finest hours as attorney general was his visit to Ferguson, Mo., after the killing of Michael Brown. Many young black men still fear they will be shot, a sign that the “open prejudice and subtle hostilities of a white world” have not gone away. We have moved forward, yet we still must overcome.
Holder leaves two big legacies in this area from which his successors must not turn away. In the face of a regressive Supreme Court decision gutting the Voting Rights Act, he has found other ways to press against renewed efforts to disenfranchise minority voters. And it is a beacon of hope that sentencing reform and over-incarceration, central Holder concerns, are matters now engaging conservatives, libertarians and liberals alike.
The New York Times’ Matt Apuzzo captured the irony of Holder’s tenure with the observation that his time as attorney general “is unique in that his biggest supporters are also among his loudest critics.” Many progressives have been troubled by his record on civil liberties in the battle against terrorism, his aggressive pursuit of journalists’ e-mails and phone records in leak investigations, and his reluctance to prosecute individual Wall Street malefactors.
That these issues will long be debated is a reminder that Holder was first a lawyer and public servant, most of whose work had nothing to do with race. That he singled out Kennedy as his hero shows that none of us need be imprisoned by race. That Holder cajoled and provoked us on the need “to confront our racial past, and our racial present” is itself an achievement that transcends the color line.
Kennedy, who spoke of those who braved “the disapproval of their fellows, the censure of their colleagues, the wrath of their society,” would understand the risks that Holder ran.
By: E. J. Dionne, Jr., Opinion Writer, The Washington Post, September 29, 2014
“Judge Slams Voter Suppression Law”: ‘Why Does The State Of North Carolina Not Want People To Vote?’
Voting rights advocates in North Carolina caught a lucky break on Thursday, where it was revealed that the panel of three judges who would consider that state’s comprehensive voter suppression law included one Clinton appointee, Judge Diana Gribbon Motz, and two Obama appointees, Judges James Wynn and Henry Floyd. Last month, a George W. Bush appointee to a federal trial bench in North Carolina allowed the law to go into effect during the 2014 election, the panel of three judges from the United States Court of Appeals for the Fourth Circuit are now considering whether to affirm or reverse that decision. They heard oral arguments in the case on Thursday.
Several provisions are at issue in this case that all make it more difficult for residents of North Carolina to cast a vote. One provision cuts a week of early voting days. Another restricts voter registration drives. A third implements a strict voter ID law, although that provision does not take effect until 2016, so it would be reasonable for the court to decide not to suspend it during the 2014 election.
One provision that received a great deal of attention from the judges during Thursday’s oral arguments in this case is a change to the state law that causes ballots to be tossed out if a voter shows up in the wrong precinct. For the last decade, voters who showed up at the wrong precinct would still have their votes counted in races that were not specific to that precinct, so long as they voted in the correct county. The new law prohibits these ballots from being counted at all. According to the Associated Press, that means thousands of ballots will be thrown out each election year.
Judge Wynn, the only member of the panel who lives in North Carolina, appeared baffled by this provision. Explaining that he lives very close to a precinct that is not his assigned polling place, he asked the state to justify why his vote should be thrown out if he did not travel to a precinct that is further away from his home. At one point, his questions grew quite pointed — “Why does the state of North Carolina not want people to vote?” Wynn asked. At another point, he described a hypothetical grandmother who has always voted at the same place. Why not “let her just vote in that precinct?” he wondered?
An attorney defending the North Carolina law spent a great deal of his time at the podium arguing that it would be too disruptive for a court to suspend parts of North Carolina’s election law this close to the November elections. As a legal matter, this is a strong argument. In a 2006 case called Purcell v. Gonzalez, the justices reinstated a voter ID law that had been halted by a lower court. They explained that “[c]ourt orders affecting elections, especially conflicting orders, can themselves result in voter confusion and consequent incentive to remain away from the polls. As an election draws closer, that risk will increase.”
Yet the judges seemed skeptical of this argument as well, questioning what evidence the state could show that voters would actually be confused. When an attorney argued that restoring lost voting rights could be logistically challenging for the state, Judge Floyd asked whether “an administrative burden [can] trump a constitutional right?”
The argument that judges should heed Purcell‘s warning and be cautious about changing voting law close to an election also did not convince a much more conservative panel considering another voter suppression law in Wisconsin. Earlier this month, a panel of three Republican judges reinstated a voter ID in a single page order issued the same day that they heard oral arguments in the case. At the time, election law expert Rick Hasen criticized this order as a “very bad idea,” in part because of the reasons stated in Purcell. There are already early signs that Hasen was correct.
The Wisconsin case is already making its way to the Supreme Court, and the North Carolina case is likely to wind up there as well, especially if the Fourth Circuit rules against the state’s law. Should both cases come before the justices, that means that they will be confronted with one case where a court changed a state’s election law in a way that Democrats generally approve of, and another case where a court changed the state’s election law in a way that Republicans generally approve of. Both of these changes, moreover, would be made close to an election.
If the conservative Roberts Court really meant what it said in Purcell, then it is likely to allow the North Carolina law to go into effect while suspending the Wisconsin law. Should it allow both laws to take effect, however, that would raise serious concerns about whether the justices are willing to apply the same rule to every case, regardless of whether the rule benefits Democrats or Republicans.
By: Ian Millhiser, Think Progress, September 29, 2014
“You Can See Russia From 1400 Pennsylvania Avenue”: My Disorienting Day With Sarah Palin
Had John McCain been elected president in 2008, Sarah Palin still may not have ever set foot in the White House…because she wouldn’t have been able to find it.
On Friday afternoon, the failed reality-television star and one-time VP nominee materialized in Washington, clad in a leather blazer, to deliver a speech to the crowd at the Values Voter Summit—an annual social-conservative confab held at the Omni Shoreham Hotel, a sprawling, gilded maze of a place that is rumored to be haunted by a dead maid.
Maybe she was the one screwing with Palin’s notes, because about halfway through her remarks, Palin said this: “Don’t retreat: You reload with truth, which I know is an endangered species at 1400 Pennsylvania Avenue. Anyway, truth.”
1400 Pennsylvania Avenue.
One assumes Palin was attempting to say truth is an endangered species at the White House, which is located at 1600 Pennsylvania Ave. 1400 Pennsylvania Avenue is roughly a plaza in front of the Willard Hotel.
Palin is not the first politician to make this mistake. On Aug. 1, 2008, Rep. K. Michael Conaway, Republican from Texas, wrote a letter to then-President George W. Bush, which he addressed to:
“The President
The White House
1400 Pennsylvania Avenue
Washington, D.C. 20500”
I would like to imagine Conaway has spent the last six years wondering why he never received a response.
Out in the hallway of the Omni Shoreham, I talked to conservative women who felt that Palin’s mistake was not a big deal: “She speaks from the heart,” Marlea Knighton of Arizona, said. “The news never misprints?” Linda, an older lady from Virginia, said that anyone criticizing Palin for not knowing where the White House is located is just doing it “because they’re scared of what she says,” because women “who love the Lord” are intimidating to non-believers, like those populating the mainstream media.
Mark Roeske, who operates campaign buses, offered a different take: Conservative women like Palin intimidate feminist women because “they’re women who are not just a vagina,” and so they feel compelled to attack her whenever possible and make her seem stupid.
Gaffe aside, the rest of Palin’s speech was an unremarkable, nonsensical collection of Palinisms haphazardly strung together and delivered in her signature bright-yet-bitter-sounding sing-song style—like a homicidal kindergarten teacher.
“You’re the Americans that the media loves to hate,” she crooned, menacingly. And then, “All you mama grizzlies out there, rear up and charge against the lawless, imperial president and his failed liberal agenda and the lapdogs in the media.” And then, “So, I’m out in the shop with Todd, and he’s winterizing his snow plane.”
Let’s hope Todd has a better sense of direction.
By: Olivia Nuzzi, The Daily Beast, September 26, 2014