Economics @ ITT

What you never knew about global wealth inequality

Posted in economics, Income Redistribution, International Economics, macroeconomics by ittecon on April 13, 2013

Do you think the United States is the only country that favours the affluent?

I though not. This short video infographic provides some insight.

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Bye, Bye American Dream! Economic Inequality Is Permanent

Posted in economics, Income Redistribution, Policy Issues, Taxation by ittecon on March 23, 2013

A new study by a team of economists in academia and the government has concluded that economic inequality is a permanent—not temporary—feature in the United States, based on an analysis of 350,000 federal income tax returns between 1987 and 2009.

via Bye, Bye American Dream! U.S. Economic Inequality Is Permanent, Study Finds | Alternet.

Why Should Taxpayers Give Big Banks $83 Billion a Year?

Posted in economics, Income Redistribution, macroeconomics, Moral Hazard, Policy Issues, Regulation by ittecon on February 22, 2013

On television, in interviews and inmeetings with investors, executives of the biggest U.S. banks—notably JPMorgan Chase & Co. Chief Executive Jamie Dimon—makethe case that size is a competitive advantage. It helps them lower costs and vie for customers on an international scale. Limiting it, they warn, would impair profitability and weaken the country’s position in global finance.

So what if we told you that, by our calculations, the largest U.S. banks aren’t really profitable at all? What if the billions of dollars they allegedly earn for their shareholders were almost entirely a gift from U.S. taxpayers?

via Why Should Taxpayers Give Big Banks $83 Billion a Year? – Bloomberg.

Conservatives Still Pushing Regressive Taxation Schemes

Posted in economics, Income Redistribution, Policy Issues, regressive taxation, Taxation by ittecon on January 29, 2013

[I]n Louisiana Mr. Jindal is pushing a plan to eliminate the state’s income tax, which falls most heavily on the affluent, and make up for the lost revenue by raising sales taxes, which fall much more heavily on the poor and the middle class. The result would be big gains for the top 1 percent, substantial losses for the bottom 60 percent.

via Makers, Takers, Fakers – NYTimes.com.

A Case for a $15 an Hour Minimum Wage

Posted in economics, employment, Income Redistribution, microeconomics by ittecon on December 4, 2012

This report analyses and calls for a minimum wage in Chicago of $15 per hour. It is short and worth a quick read.

via A Case for $15.

Eat the Rich

Posted in economics, Income Redistribution, International Economics by ittecon on September 25, 2012

The world’s richest woman, Australian mining tycoon Gina Rinehart, drew international scorn recently after saying that people who are jealous of the wealthy should drink less and work harder.

via Gina Rinehart, world’s richest woman, makes case for $2-a-day pay – latimes.com.

401(k)s are a Government Subsidy for Wall Street

Posted in economics, Income Redistribution, Policy Issues by ittecon on September 23, 2012

It shouldnt surprise us that the 401K, marketed to us as a retirement plan, is just a cash cow for Wall Street. After all, the 401k started as a tax loophole for executive pay. So why do i call the retirement “plan” of millions a “Wall Street subsidy”?

This is the hope Wall Street and Conservative thinkers have for Social Security funds under the guise of Privitisation.

via Daily Kos: The 401k is a Government Subsidy for Wall Street.

Super-Rich Hiding at Least $21 Trillion in Taxable Procedes

Posted in economics, Income Redistribution, Taxation by ittecon on July 22, 2012

The figure is equivalent to the size of the US and Japanese economies combined.

via BBC News – Tax havens: Super-rich hiding at least $21tn.

Great Recession Worsens US Wealth Inequality

Posted in economics, employment, Income Redistribution by ittecon on July 10, 2012

White Americans have 22 times more wealth than blacks — a gap that nearly doubled during the Great Recession. 

 The median household net worth for whites was $110,729 in 2010, versus $4,995 for blacks, according to recently released Census Bureau figures.

via Share » » Great Recession worsened US wealth inequality.

Conservatives Are Not Against Big Government

Posted in economics, Income Redistribution, Policy Issues, Regulation, Taxation by ittecon on June 19, 2012

Conservatives just want to distribute income upwards instead of downwards.

[An] example of big government that conservatives support, highly paid professionals e.g. doctors, dentists and lawyers use licensing restrictions to limit both foreign and domestic competition. While the government has been using the banner of “free trade” to drive down the wages of manufacturing workers, it has simultaneously been increasing the protection afforded doctors in order to prevent any similar downward pressure on their wages.

If doctors in the United States were paid the same as doctors in Western Europe, it would save us more than $80 billion a year. The big government subsidy to doctors alone is close to two times the money involved in Bush’s tax cuts to the wealthy.

via Dean Baker: Liberals Working for the Right.