Lawrence Mishel of the Economic Policy Institute is such a sensible economist that I could quote him every day. But it is exasperating in a way. He is known as a “liberal” economist. But there is nothing especially liberal about him. He is just what my father would call “common sense.” This is just part of the decay of political debate that has been going on my entire life. It is now the case that what used to be entirely conventional economic policy is now considered liberal or even “radical.” Just look at the situation in Greece. The new Greek government is making all kinds of sense, but it is the totally unreasonable German government that is considered respectable.
Yesterday, Mishel wrote, Even Better Than a Tax Cut. The “big news” is that both the Democratic and Republican parties are keen to attack income inequality with… tax cuts. Oh yeah, the woman working at Walmart for minimum wage for 29 hours per week (So they don’t have to provide any benefits!) already doesn’t pay any federal income taxes. So just how is it that reducing taxes is going to help her? Are we going to see a reduction in the payroll tax? What would it be replaced with? And increase on the cap? Don’t count on it.
The main aspect of this is just that there is no way that we are going to get tax cuts that don’t disproportionately help the rich. Why do I say that? Because tax cuts are always proposed as being focused on the middle and lower classes, and they always end up enriching the rich. But Mishel is correct that the Democratic plans — “expanded child care credits or a secondary earner tax break” — could at least help in the short term — if they got enacted as proposed (and they wouldn’t). But tax breaks just aren’t going to change the basic situation. As Mishel noted, “What has hurt workers’ paychecks is not what the government takes out, but what their employers no longer put in — a dynamic that tax cuts cannot eliminate.”
Of course, the Republican plans are a total joke:
Similarly, President George W Bush’s 2001 and 2003 tax cuts, which likewise promised to increase middle-class income, were followed by slower productivity and wage stagnation. The latest proposed Republican cuts won’t even provide much short-term relief, as they tend to be targeted at the highest-income households. For example, under a much-touted proposal by Representative Dave Camp of Michigan, the middle fifth would gain just $279 in tax relief a year, according to the Tax Policy Center, while the top 0.1 percent would garner the largest rate cut, valued at $248,000.
Mishel’s main point is not to knock the tax cut proposals. The truth is that they are laughable and why anyone takes them seriously at this point amazes me. Mishel’s main point is to discuss policies that actually would decrease income inequality. And the list ought to sound pretty familiar to people who read this blog:
- The Federal Reserve needs to liberalize itself and stop holding back the economy with its excessive focus on inflation.
- Don’t do any more job killing, rent enhancing trade deals like the TPP and TTIP.
- Raise the minimum wage so that it is equal to half the average American wage ($12.50 by 2020).
- Raise the amount a worker can make and still qualify for over-time pay.
- Protect and expand worker’s rights: including the right to unionize, which has been decimated.
- Enhance laws against businesses that steal from their employees.
That’s a funny list. There isn’t a single item there that wouldn’t get a super-majority if we polled the American people. But precisely because these are measures that would decrease income inequality, the power elite are against them. And as a result, no one will talk about this stuff in the 2016 general election. Instead, we will get “Tax cuts!” And “Reduced regulations!” And “Education!” None of it will help to fix the problem, but it’s something for politicians to talk about while income inequality grows.
Mishel ends with one the clearest descriptions of the problems we face:
But that’s not what the power elite want us to talk about. So instead, we will get these pretend solutions that are meant to do nothing other than stall while nothing is done.
The Middle East peace process is finished. It did not die: it was killed. Mahmoud Abbas was undermined by the President of the Palestinian Authority and humiliated by the Prime Minister of Israel. His successor awaits a similar fate. Israel continues to mock its American patron, building illegal settlements in cynical disregard of the “road map.” The President of the United States of America has been reduced to a ventriloquist’s dummy, pitifully reciting the Israeli cabinet line: “It’s all Arafat’s fault.” Israelis themselves grimly await the next bomber. Palestinian Arabs, corralled into shrinking Bantustans, subsist on EU handouts. On the corpse-strewn landscape of the Fertile Crescent, Ariel Sharon, Yasser Arafat, and a handful of terrorists can all claim victory, and they do. Have we reached the end of the road? What is to be done?
Elizabeth Stoker Bruenig wrote a very thought provoking article, 
On this day in 1836, the great painter 

I haven’t been exactly circumspect in my criticisms of Charles Krauthammer. But I’ve always given the man his due — or what I thought was his due. I thought he was at least fairly intelligent. But he isn’t. He’s an idiot. But before I discuss that, I want to talk about his well documented hypocrisy. A bit over a year ago, I wrote, 
As you may have heard last week, Walmart announced that they will raise the wages of over a half million of their lowest paid employees. In April, the minimum starting pay will go up to $9 per hour and then it will go up to $10 per hour next year. This is good news for those employees, of course. And it is good news for the economy. But it doesn’t say much of anything about the company itself.
Did you watch the Academy Awards last night? I didn’t! I could not have cared less. First, I will tell you something that I learned when I was a sports handicapper: the film with the most nominations always wins Best Picture. Of course, there are often ties, as there was this year. But really: did you think the Academy was going to give Best Picture to 
On this day in 1868, the great
Charlie Pierce wrote an excellent article on Friday,
The purpose of these very public horrific acts is to get us to act like teenage boys right before the big game. It’s all testosterone and no rationality. Is bombing more Islamic State targets going to make the public executions stop? Is a ground invasion? Is more pointed rhetoric about Islamic extremism? What is it that the conservatives want us to do that will actually make the situation better? The answer, of course, is nothing. The conservatives and — let’s face it — most of the liberals just want us to do something. It is the American way: it is better to do something useless or counterproductive than it is to do nothing.
Right now,