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By Tim Price, originally published on Next New Deal

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Shared sacrifice – except for CEOs (Reuters)

Roosevelt Institute Fellow Matt Stoller writes that the fiscal cliff deal larded with corporate subsidies is just the latest manifestation of a lopsided tax system in which many companies owe their CEOs more than the IRS and the CEOs owe roughly whatever they want.

A tax deal only the ultra-rich could love (WaPo)

Harold Meyerson notes that despite the furor over raising the top tax rate on wages and salaries, the wealthiest Americans are only dimly aware of wages as the cut their household staff takes from their investment dividends, which are still taxed at a lower rate.

Tax Increases and Bull Markets (NYT)

Bruce Bartlett points out that while the GOP takes it as given that any tax increase will cause the invisible hand of the free market to ball up into a mighty fist and smite the unbelievers, historical evidence shows that raising taxes often leads to a stock market rally.

The payroll tax hike wiped out a year's worth of wage gains (WaPo)

Brad Plumer writes that after rising 2.4 percent in 2012, average weekly earnings are back at square one—or worse—thanks to the expiration of the payroll tax cut. And as tends to happen, Americans are planning to spend less of that money they no longer have.

Social Issues Are Economic Issues, Exhibit 1,463: Michigan's Dual Agenda Slams Low-Income Women (The Nation)

NND Editor Bryce Covert notes that the right-to-work law and abortion restrictions recently passed in Michigan may look like bad but unrelated policies, but based on how they'll affect women's wallets, it's possible to construct a Unified Theory of Awfulness.

TARP is Over, But the Bailouts Will Continue Until the Big Banks are Broken Up (Robert Reich)

With the Treasury Department preparing to sell off its final shares of banks and General Motors, the '08 bailouts are almost behind us. But Robert Reich warns that unless Wall Street is cut down to size, the injured giant we've propped up will fall back on top of us.

Foreclosure Review in New Settlement Leaves Homeowners in Banks' Hands (HuffPo)

Eleazar David Melendez and Ben Hallman note that regulators have answered complaints that the independent review process was flawed by letting the banks review their own foreclosure decisions. Early reports suggest they couldn't agree with themselves more.

Health Care and Profits, a Poor Mix (NYT)

Eduardo Porter argues that America's rising health costs, driven by the profit-maximizing private health care industry, should encourage us to reconsider whether relying on the private sector to provide so many of our public goods is the remedy or the sickness.

Avoiding a climate-change apocalypse (WaPo)

Katrina vanden Heuvel writes that 2012 exposed us to many different end-of-world scenarios, but Hurricane Sandy should be the one that sticks with us. Sadly, it's been a challenge to get the GOP to pay for the consequences of climate change, let alone prevent it.

After the Debt-Ceiling Breach: What Day 1 in Default America Might Look Like (The Atlantic)

Derek Thompson notes that while America could default on its debts just a few weeks from now, it's so unthinkable that it's hard to imagine the consequences. But even though it's scheduled to happen around Valentine's Day, they're likely to be pretty unlovely.

Originally posted to Daily Kos Economics on Wed Jan 09, 2013 at 06:29 AM PST.

Also republished by Daily Kos.

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Comment Preferences

  •  When I read an article about climate change (3+ / 0-)
    Recommended by:
    Words In Action, hnichols, Roger Fox

    that prefaces the article with (weasel) words like "although this (storm, drought, etc.) can't be defined exclusively as a result of climate change", I tend to dismiss it as an article that was written by someone who doesn't understand the concept of climate change.  

  •  A rising tide lifts all ships. (4+ / 0-)

    That's how they sold supply-side economics. Helping the rich will help you!

    What we failed to see was that it was a literal prognostication. Helping the rich does lead to rising sea levels! As long as you have a ship to being with, you're going to be in for a "lift", one way or another...

    The Class, Terror and Climate Wars are indivisible and the short-term outcome will affect the planet for centuries. -WiA "When you triangulate everything, you can't even roll downhill..." - PhilJD

    by Words In Action on Wed Jan 09, 2013 at 07:12:13 AM PST

  •  Taxes go up = stock prices go up. (0+ / 0-)

    Could this be because those with enough $ to affect the stock market's fluctuations decide to put more of their "income" into stocks instead so as to avoid the higher income taxes?

    "Lone catch of the moon, the roots of the sigh of an idea there will be the outcome may be why?"--from a spam diary entitled "The Vast World."

    by bryduck on Wed Jan 09, 2013 at 11:34:12 AM PST

  •  A interesting piece on NW coal export terminals (3+ / 0-)
    Recommended by:
    richardvjohnson, tardis10, Mary Mike

    Electing people who don't believe in government to Congress, is like installing an atheist as pastor of a church. If they don't believe in the institution or its goals, they won't care if it does a good job for its members.

    by Lefty Coaster on Wed Jan 09, 2013 at 11:35:02 AM PST

  •  "Health Care and Profits, a Poor Mix " (3+ / 0-)
    Recommended by:
    richardvjohnson, tardis10, Mary Mike

    I've been saying that since the advent of the HMO.

    There are some things to which a profit margin should never be applied, especially in a capitalist country with a free market fetish.

    The tangibility of money is so much stronger than that of  the nebulous and generic term "health", that it bears more "weight" with those in office towers who are charged with making our health decisions than the flesh and blood reality of a sea of individual human beings.

    We are not as real as the wealth they seek to gather.

    It was a bad idea from its conception.

    I believe in democracy, civil liberties, and the rule of law. That makes me a liberal, and I’m proud of it. - Paul Krugman

    by Gentle Giant on Wed Jan 09, 2013 at 11:36:45 AM PST

    •  there's just one way that profits can be (1+ / 0-)
      Recommended by:
      Gentle Giant

      beneficial in the health care industry - innovation in technology and service provision.  I have a friend who's an ER specialist in a for-profit organization and he's found they're more open to using technology effectively than some of the non-for-profit hospitals which tend to be very conservative.  For example, his organization replaced paperwork with iPads...and it increased his productivity while reducing stress levels.  Of course that needs to be combined with the emotional intelligence to really meet the needs of patients, which is a whole different area of expertise.  But inefficiency is never good whether in for-profit or not-for-profit enterprises.
      Incidentally my friend chose ER for the same reason I would - not wanting to deal with folks with chronic conditions which were predominantly their own fault.  Much more emotionally rewarding to fix broken bones for skiers...  

      •  It could be argued that (3+ / 0-)

        a skier's broken bones were brought on by themselves, though not chronic, I suppose. And a lot of candidates for the Darwin Awards are discovered in ERs around the world.

        My mother was an ICU nurse and had worked in the ER. I so admire and appreciate anyone who chooses nursing as a career. They are special human beings who seem to understand humanity more than the average person.

        I believe in democracy, civil liberties, and the rule of law. That makes me a liberal, and I’m proud of it. - Paul Krugman

        by Gentle Giant on Wed Jan 09, 2013 at 12:31:19 PM PST

        [ Parent ]

  •  Not backing off my salary demand for (2+ / 0-)
    Recommended by:
    ArchTeryx, tardis10

    a job I'm being considered for. Won't do it. Not this time. Never again. I'm taking a stand and I may lose. Yes, I may not get the job, but I will not allow corporate theives to belittle my worth and de-value me by my acceptance of a wage less than my experience and expertise, work ethic and work product merit.

    I'm done with that. Just completely done.

    •  It's what I had to do. (2+ / 0-)
      Recommended by:
      bewareofme, tardis10

      My boss offered me a job extension at 50% pay - from what already is severe underemployment for my degree level and experience.  I refused and said I'd have to quit instead, as unemployment, at that point, would pay more.

      He backed down.

      •  Appreciate you taking a stand! (1+ / 0-)
        Recommended by:
        ArchTeryx

        I basically said the same thing. Unemployment or bust before I let an entity denegrate my worthiness one more time. I know my worth and so do they, but they think they had the upper hand in the negotiation to drive down compensation. I let them know they did not, that I would rather walk away. Negotiations continue.

  •  How "shared sacrifice" works... (4+ / 0-)

    Adjust for inflation.

    "Sometimes a scream is better than a thesis." -Ralph Waldo Emerson "YEAAAAAAARGH!" -Howard Dean

    by AtomikNY on Wed Jan 09, 2013 at 11:55:36 AM PST

  •  I Am Not Sure I Understand the Logic Here (0+ / 0-)
    Brad Plumer writes that after rising 2.4 percent in 2012, average weekly earnings are back at square one—or worse—thanks to the expiration of the payroll tax cut. And as tends to happen, Americans are planning to spend less of that money they no longer have.
    Does that mean the implementation of the payroll tax holiday counted as a 2% wage gain when it was implemented?  That logic seems kind of short-sighted.  I would view this along the lines as not adjusting employment numbers seasonally.  Nobody's wages "went up" because of the payroll tax holiday.

    Too Folk For You. - Schmidting in the Punch Bowl - verb - Committing an unexpected and underhanded political act intended to "spoil the party."

    by TooFolkGR on Wed Jan 09, 2013 at 12:08:13 PM PST

  •  What are the Republicans complaining about? (0+ / 0-)

    I just got my year end reports and they show gains for 2012 between 13% and 26%.   I figure the Republicans are shedding crocodile tears over the workers who they threw out of their jobs while they themselves are laughing all the way to the bank.  

  •  it's not about democracy anymore, and hasn't been (0+ / 0-)

    it's inverted totalitarianism
    it's the globalisation of a post modern form of debtor class
    it's the economy of rapid funds transfers and ponzi speculation

    and while we've been snookered with trivial crap.
    distracted and divided by 2nd string issues...

    and if anyone thinks our issues are NOT 2nd string-

    think about... food clothing and shelter.
    'cause that's where we're headed.

    pessimist? nah.
    global warming and plutocracy driven oppression.

    we're soon to be debtor sharecroppers on a hot, barren land.
    at least 6+ billion of us.

    People who say they don't care what people think are usually desperate to have people think they don't care what people think. -George Carlin

    by downtownLALife on Wed Jan 09, 2013 at 01:33:14 PM PST

  •  AIG not joining suit against USG, asks shareholder (0+ / 0-)

    to drop the claims. According to NYT online.

    One piece of free advice to the GOP: Drop the culture wars, explicitly.

    by Inland on Wed Jan 09, 2013 at 02:32:47 PM PST

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