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Thursday, Aug 11, 2011 11:56 PM UTC2011-08-11T23:56:00Zl, M j, Y g:i A T

Income inequality is bad for rich people too

Plutocrats would do themselves a favor by being taxed at higher rates


By Yves Smith

One of the major fights in the debt ceiling battle is how much top earners should contribute to efforts to close deficits. Australian economist John Quiggin makes an eloquent case as to why they need to pony up:

My analysis is quite simple and follows the apocryphal statement attributed to Willie Sutton. The wealth that has accrued to those in the top 1 per cent of the US income distribution is so massive that any serious policy program must begin by clawing it back.

If their 25 per cent, or the great bulk of it, is off-limits, then it’s impossible to see any good resolution of the current US crisis. It’s unsurprising that lots of voters are unwilling to pay higher taxes, even to prevent the complete collapse of public sector services. Median household income has been static or declining for the past decade, household wealth has fallen by something like 50 per cent (at least for ordinary households whose wealth, if they have any, is dominated by home equity) and the easy credit that made the whole process tolerable for decades has disappeared. In these circumstances, welshing on obligations to retired teachers, police officers and firefighters looks only fair.

In both policy and political terms, nothing can be achieved under these circumstances, except at the expense of the top 1 per cent. This is a contingent, but inescapable fact about massively unequal, and economically stagnant, societies like the US in 2010. By contrast, in a society like that of the 1950s and 1960s, where most people could plausibly regard themselves as middle class and where middle class incomes were steadily rising, the big questions could be put in terms of the mix of public goods and private income that was best for the representative middle class citizen. The question of how much (more) to tax the very rich was secondary – their share of national income was already at an all time low.

 

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Thursday, Feb 23, 2012 6:30 PM UTC2012-02-23T18:30:00Zl, M j, Y g:i A T

The Oscars’ hated savior

After several years of disaster, the ceremony is in crisis. Billy Crystal may be their best hope forward

Billy Crystal

Billy Crystal  (Credit: AP)

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The most surprising moment of last year’s Academy Awards broadcast occurred a little bit past the halfway mark, when a well-tanned, kewpie-faced Billy Crystal showed up for an unbilled cameo. It had been a long night: Hosts Anne Hathaway and James Franco had been struggling, sometimes nobly, through a series of erratic comedy bits, while many of the other presenters had reverted to that dead-eyed, forced-gravitas zombie-state unique to awards shows and North Korean news reports. So when Crystal stepped into this humdrum thunderdome, the response was a sustained, rapturous standing ovation—the sort of outpouring Oscar attendees normally reserve for the newly and/or nearly dead. The message was clear. These people wanted Billy back.

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Brian Raftery (@brianraftery) is a contributing editor at Wired magazine.  More Brian Raftery

Thursday, Feb 23, 2012 6:27 PM UTC2012-02-23T18:27:00Zl, M j, Y g:i A T

Why the U.S. should not pull out of Afghanistan

A female parliamentarian says the Taliban would return to power and undo the gains in women's rights.

Fawzia Koofi

Afghan Parliament Member Fawzia Koofi  (Credit: AP)

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President Obama’s recent announcement that he  plans to withdraw all US troops from Afghanistan by 2014 will not only prove disastrous for Afghanistan, a country which I fear will slide back in the abyss of either Taliban rule or civil war. It will also be disastrous for the United States; without international support Afghanistan may once again become the playgound for international terrorism.

One of the most common misperceptions about my nation is that democracy was forced on an unwilling population by the West after the defeat of the Taliban in 2001. The fact is Afghanistan has a long history of democratic traditions. At local level we have a system of Arbabs.  An Arbab is usually a village elder who acts as representative to the others.  He makes low level decisions on behalf of people and he represents his village at the Jirga, a local council where elders from neighboring villages meet and discuss problems or solve disputes.  Anyone can bring a problem or dispute to a Jirga  – the Jirga council will listen to both sides of the debate and make a judgment. Their decision is final.

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Fawzia Koofi is Afghanistan's first female Parliament speaker and the author of the recently-released "The Favored Daughter: One Woman's Fight to Lead Afghanistan into the Future" (Palgrave Macmillan, January 2012). She is a candidate for the president in the 2014 elections. The mother of two girls, she lives in Kabul.  More Fawzia Koofi

Thursday, Feb 23, 2012 5:49 PM UTC2012-02-23T17:49:00Zl, M j, Y g:i A T

Santorum flip-flops on family planning

He was against Title X before he was for it. Or something. Why his "I won't ban birth control" vow can't be trusted

Rick Santorum

Republican presidential candidate Rick Santorum  (Credit: AP Jae C. Hong)

Whatever else he is, culture warrior Rick Santorum has never appeared to be the flip-flopper in the 2012 GOP nomination battle. Mitt Romney and Newt Gingrich are Flip and Flop, so often have they changed their tune on healthcare policy, individual insurance mandate, climate change and other issues. (Only Gingrich, to be fair, has flip-flopped on his marriage vows.)

But Santorum is now vying for the flip-flop championship thanks to his remarkable change of heart on Title X family planning funds during Wednesday night’s debate in Mesa, Ariz. You’ll recall that over the last few days he’s been bragging about his support for Title X, to prove that mean feminists and shifty Democrats are wrong when they say he wants to take away your birth control. Strange bedfellows Rush Limbaugh and the Washington Post’s Melinda Henneberger have claimed that it’s Democrats who are making an issue out of Santorum’s contraception beliefs.

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Joan Walsh

Joan Walsh is Salon's editor at large.  More Joan Walsh

Thursday, Feb 23, 2012 4:15 PM UTC2012-02-23T16:15:00Zl, M j, Y g:i A T

The latest lies in the war on choice

The GOP debate made clear that the goal of the new culture war is preventing women from controlling their own lives

U.S. Republican presidential candidates former U.S. Senator Rick Santorum and former Massachusetts Governor Mitt Romney

U.S. Republican presidential candidates former U.S. Senator Rick Santorum and former Massachusetts Governor Mitt Romney (Credit: Joshua Lott / Reuters)

Why did the audience groan when John King asked in last night’s CNN debate whether the Republican candidates believe in contraception? It probably wasn’t because it was an asinine formulation (“Since birth control is the latest hot topic, which candidate believes in birth control, and if not, why?” as if birth control were a unicorn). It’s likely because the audience seems to have realized that it’s not a good look for Republicans to be so obviously engaged in curtailing women’s rights — which is why the candidates, or at least Rick Santorum and Mitt Romney, started talking about “out of wedlock” births. And though linking births outside marriage to contraception may have seemed like a non-sequitur, it wasn’t.

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Irin Carmon is a staff writer for Salon. Follow her on Twitter at @irincarmon or email her at icarmon@salon.com.  More Irin Carmon

Thursday, Feb 23, 2012 4:15 PM UTC2012-02-23T16:15:00Zl, M j, Y g:i A T

Julian Assange prepares his next move

The WikiLeaks founder is doing TV, building a news organization and preparing his algorithmic legal defense

Julian Assange

WikiLeaks founder Julian Assange  (Credit: AP)

In a few weeks, the U.K. Supreme Court rules on the final appeal for Julian Assange, the editor in chief of WikiLeaks; if he loses, he will be extradited to Sweden to answer questions about alleged sexual misconduct. His legal team fears extradition to Sweden ultimately would mean extradition to the U.S., where Assange is the subject of a grand jury investigation in northern Virginia.

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