Who Killed the Middle Class?

The Los Angeles Times published a grim headline: “Middle-class families, pillar of the American dream, are no longer in the majority, study finds.” The nation’s middle class, long a pillar of the American economy, has shrunk to the point where it no longer constitutes the majority of the adult population, according to a new major study. Rapid growth of upper-income households, coupled with an increase in less-educated, low earners, has driven the decline of the middle-income population to a hair Read more […]

Why did a CEO Pay Everyone $70k?

Remember David Price who decided to pay every employee at his company, Gravity, including himself, an annual salary of $70,000? A great many things went predictably wrong with that plan. One of the unpredictable things was a lawsuit. Another problem is that Price is now involved in a lawsuit. Price told the New York Times, “We don’t have a margin of error to pay those legal fees.” Price made it sound like the lawsuit was an event he didn’t expect. But Karen Weisse at Bloomberg Business Read more […]

End the Federal Reserve; Stop the Widening Income Gap

If we want to stop the income gap from growing, we need to stop the Federal Reserve. A massive “Amen!” to this essay, published at Mises Canada! During the years of the Roman Republic, Cato the Elder ended every speech with the phrase “Delanda est Carthago” (Carthage must be destroyed). Rome had fought two wars with Carthage, yet the threat to the Republic remained. Cato saw Carthage as an existential threat and concluded that Rome would not be secure as long as Carthage existed. So fervently Read more […]

Minimum Wage: Income Gap Widens in Seattle

Raising minimum wage doesn’t solve the income gap; it aggravates the income gap. Supposedly, a higher minimum wage is needed to deal with the income gap. But Seattle is showing us not only does a higher minimum wage not address the problem. It additionally makes the problem worse. Seattle, by imposing a fifteen-dollar-an-hour minimum wage is going to widen the income gap. Think about it. In order for people of modest means to be able to afford to eat out, they need to be able to go to Read more […]

Income Inequality Is Increased by Anti-Capitalism

Market forces don’t increase income inequality; government does. Have you heard it said that “income inequality” is a failure of capitalism? Well, maybe we could say that, if what we had in America today was capitalism. But that’s far from the case. Our income inequality is largely the product of a government that has vastly too much power in the marketplace, and ends up determining winners and losers—virtually always favoring the politically-connected. [See also, “Why the Tea Read more […]

The Obama Recovery Increases Wealth Gap

Liberals keep touting the Obama recovery, but if Obama gets credit for the economy why not blame him for income gap? We are told over and over again that Barack Obama deserves credit for the economic growth that is allegedly happening. So, if he is the one whom we should thank for this economy, shouldn’t we also hold him responsible for the growing income gap under his presidency? The L.A. Times reports, “Wealth gap in America widens to record level, report says.” Using the latest Read more […]

Why the Tea Party Is the Enemy of Income Inequality

Unlike the Left, Ted Cruz is willing to name the cause of income inequality. OK, I am impressed. From the Daily Signal: “Ted Cruz Strikes Back: ‘Too Many Republicans Willing to Be Complicit’” In the midst of the debate over a mammoth government spending bill, Republicans and Democrats found something to agree on: their dislike for Sen. Ted Cruz, who forced a rare weekend session for the Senate. But rather than back down, Cruz opted to call out Washington politicians on Sean Hannity’s Read more […]

Hollywood Hypocrites Produce Extreme Income Inequality

Celebrity Leftists plugging Democrat slogans about income inequality are the worst offenders! Ever wondered how much people in the lower echelons of the movie credits make? Well, here you go! From the belly of the beast—The Hollywood Reporter—you can see what a “Best Boy,” a “Gaffer,” and a stuntman take home. “Hollywood Salaries Revealed, From Movie Stars to Agents (and Even Their Assitants)” How bad is the decline in actor salaries over the past decade? Despite the huge sums Read more […]

Does the Media Want Us to Inspire Mass Shootings of CEOs?

Of course not, they would say. Anyone who would sit in their car and make a video about how unfair life is and announce a plan to inflict “retribution” on CEOs could only be suffering from a mental illness. But then why the obsession with the pay of CEOs? What exactly are we expected to do with that information? From Newser.com: “CEOs Now Make 257 Times More Than You.” They’re the $10 million men and women. Propelled by a soaring stock market, the median pay package for a CEO rose Read more […]

The Chamber of Commerce Sides with Federal Reserve Against Rand Paul

This move by the Chamber of Commerce isn’t that shocking. I had wondered if Rand Paul’s free market principles would keep him from being attacked. But that’s not enough for the Chamber of Commerce. [Note: I somehow put “Ron Paul” in the title of this post and didn’t see my mistake even though I checked it several times! Sorry for the confusion. I know the difference in theory but my brain seems to constantly trip me up in practice.] From CNN Money: Big Business took a swipe at tea party Read more […]

The Gender Wage Gap & Liberal Economic Superstitions

Consider two groups of people, Group A and Group B. The people in Group A tend to major in engineering, math, and/or computer science. Those in Group B prefer careers in English, education, and psychology, and they usually stop in mid-career and drop out of the full-time workforce for a few years. Who do you think will earn more during their working lifetime, Group A or Group B? Duh, Group A. Imagine a world where people who claimed to be intelligent and concerned with “social justice” Read more […]

The Rich Get Richer Because the Game Is Rigged

This is one of those must reads to come to grips with what has, and is, happening. From the Of Two Minds blog: Financialization results when leverage and information asymmetry replace innovation and productive investment as the source of wealth creation. Emmanuel Saez and Thomas Piketty are leading lights in the exploration of rising wealth inequality. Both are academic economists who have devoted considerable time and effort to assembling data that deepens our understanding of the issues. Read more […]