
This graph comes to us from Paul Krugman, Competitiveness and Class Warfare. He uses it primarily to make the case that the idea of national competitiveness is nonsense. You can see that most starkly with France, which has a strong welfare state, and the United States, which has an extremely stingy one. (Don’t worry about the slight divergence at the very end; that is due to the catastrophic austerity policies in the EU.)
There is a long tradition of people freaking out about other countries becoming too competitive and the US falling behind. There is always some “star” country that people are afraid of. In the 1980s, it was Japan. Now it is China. And this supposed question for competitiveness is always used to make the lives of Americans worse. It is a reason why we have to destroy unions. It is the primary reason why must make public education boring and turn our children into top quality multiple choice test takers. And it is the reason why we must bow down to the “job creators.” Otherwise, China will take all our jobs and we will starve to death.
This isn’t to say that any nation can do anything it wants. There are a lot of things that can hurt the economy. But what it does mean is that the things that people in this country complain about don’t matter. The supposed big problem in France is that employees are really hard to fire. But we certainly don’t see that in terms of GDP growth. Similarly, with the Gini coefficient, which measures income inequality. Japan and France are relatively low at 63 and 69. But the United States is 85 — one of the highest in the world — even higher than Zimbabwe.
What this shows is that our economic system is the way it is because we’ve made it that way. There is nothing natural about it. And more to the point, these policies are not designed to grow our economy. Milton Friedman’s old idea is just wrong: it isn’t that the rich are pulling away but that the lives of the poor are being improved as well. In fact, there is more and more indication that all of this inequality is also bad for the rich.
To me, it is all very simple. I’ve been hammering on this for a while. If we don’t have an economic system that shares gains relatively fairly, then there is no point to continue on with it. What we have is a system that is already highly unequal. And then we add to that a system that just makes inequality worse over time. And then we add to that a system where the poor have little chance of becoming rich. And we end up with the modern equivalent of feudalism.
I know the conservative (and even more so, libertarian) response to this: we just haven’t gone far enough! The system is “free” enough to cause problems but not “free” enough to fix them all. But this is based on an idea that just doesn’t fly. There are almost no systems in any field of endeavor that just get worse and worse until you reach the solution and are then suddenly good. In general, if you follow a path and things are getting worse, it means you are going the wrong direction. See gradient descent.
But I think conservatives understand this. They are not pushing these policies because they think they are ultimately good. Instead, they think that the market (corrupt as it is) has picked the correct winners and so we should do everything we can to further help them. This is why libertarians are almost always against labor unions. It has nothing to do with freedom — much less the common good. It is just that they have decided that businesses are “good” and workers are “bad.”
The rest of us need to stop buying all this nonsense about how screwing over the poor and middle class is actually for our own good. It isn’t even for the overall economy’s own good.

Chris Dillow at Stumbling and Mumbling wrote a very interesting article that is worth digging into,
On 1 March of this year, Charly Keunang was killed by police officers in Los Angeles. He was unarmed and black — as if that cliche even has to be mentioned. But there is an issue that stands apart from the fact of unjustified police violence. As Janine Jackson reported recently, 
When I was a kid, I loved the Olympics. Of course, I loved game shows too. I was a kid. Sue me.
I still hear conservatives talk about the Surge during the Iraq War. It continues to seem bizarre to me for a few reasons. First, the Surge didn’t work. It just corresponded to the Awakening when moderate Sunnis started fighting against the jihadist elements in Iraq. Things didn’t improve because we sent in an extra 30,000 troops. I thought this had been well established. Second, the Surge didn’t win the war; it just took it from a total catastrophe to a smaller catastrophe. But third and most important, who cares what happened in 2007?! That was almost a decade ago. Why are conservatives continuing to talk about it?
It has been interesting to watch the debate against the Iran nuclear deal. That’s because it is entirely faith based. No one has anything of substance against it. They constantly say that the alternative to this deal is a “better deal.” Generally, they never say what that better deal would consist of. But when they do, we find out that their “better deal” is one where Iran capitulates not just about everything regarding its nuclear problem but other things as well — like officially declaring support for Zionism. And the truly annoying thing is that even if such a deal came, the same people would reject it because they would say Iran can’t be trusted.
Bruce Bartlett wrote an interesting article last week,
As far as I can tell, the reason that the “establishment” side of the Republican Party doesn’t like Donald Trump is because they don’t think he will win in a general election. Their outrage concerning his comments about Mexican immigrants is purely political: they think it is bad among swing voters. But when it comes to his policy positions, we hear nothing from the party establishment. Are they against his immigration policy on its own terms (not on how it looks outside the party)? Are they against his ideas on taxes or social programs? The only policy I know of that they seem to have any problem with is his opposition to privatizing or “block granting” Social Security.
Hello morning music fans! This week, I want to do a series of songs about spirituality. It isn’t the religious kind of spirituality, but a more human focused one. You know: one that actually exists! In this regard, I’m thinking of issues like acceptance, hope, and duty. But we will see. I’m planning to figure it out as I go along.
On this day in 1920, Carl Mays hit