Jan 28, 2014
The United States is, by every reasonable measure, the most unequal of the world's rich countries. And this is not new development. For more than three decades, the US has been suffering from a crisis of inequality. The Democrats have not taken this crisis seriously enough. The Republicans seem hell-bent on making it worse.

Evidence of extreme and rising economic inequality in the US is quite overwhelming. In 1979, the top 1% earned about 9% of all income; in 2013, they earned 24%. The incomes of the top 0.1% have grown even faster. More than half of all economic growth since 1976 has ended up in the pockets of the top 1%. Meanwhile, the incomes of the shrinking middle class have stagnated, and the incomes of those with a high school education or less have fallen substantially. The purchasing power of the minimum wage has fallen by about 15% since 1979. One in five kids lives in poverty.
How have we responded to all of this? By cutting taxes for the rich, busting unions and vilifying the poor! Over the past few decades, effective tax rates on US corporations and the richest 1% have fallen by about a third. Among the world's rich countries, US tax rates on the rich are near the very bottom. Since 1970, the percentage of private sector workers in unions has fallen from 29% to 7%.
It has not always been this way. Between 1948 and 1975, the income of the median US household doubled. The incomes of the bottom 20% actually grew a little faster than the incomes of the top 20% over this period. Between 1928 and 1950, the distribution of income in the US actually became dramatically more equal.
Why should we be concerned about inequality? America is about opportunity, not guarantees -- right? Actually, no! Among the world's rich countries, the US is tied for last in class mobility; an American's economic success is in fact highly correlated with his/her parents' wealth and status. Richard Wilkinson captures this sad reality perfectly: "If you want the American Dream, you'll have to go to Denmark."
Economic inequality inevitably means political inequality. The right-wing Koch brothers, for example, spent more than $50 million aiming to defeat Obama and the Democrats in 2012. Right-wing casino magnate Sheldon Adelson spent over $100 million. Increasingly, legislation is literally being written by corporate lobbyists. The Koch brothers are entitled to their right wing views; they should not be entitled to the kind of outsized influence that $50 million will buy.
There is also compelling evidence that inequality is socially corrosive. In their magnificent book, The Spirit Level, Richard Wilkinson and Kate Pickett show that unequal societies suffer from higher rates of violent crime, incarceration, obesity, infant mortality, mental illness and alcoholism. Inequality is also associated with lower life expectancy, lower levels of educational performance and lower levels of trust. Inequality is bad for all of us.
Those are the facts.
In this context, the Republican Party's economic proposals are especially appalling. The Republican vision - embodied in the "Ryan Plan," a budget proposal supported by virtually every Republican legislator -- calls for still deeper cuts in taxes for corporations and the top 1%, and further reductions in the "regulatory burden" on oil, coal and gas companies (including "frackers") and - believe it or not -- Wall Street! And further still, Republicans advocate deep cuts in spending on education, Head Start, environmental protection, Social Security, Medicare and Medicaid. Remarkably, the Republicans have concluded - yet again! -- that the super-rich are getting too little, while children, the elderly, the middle class and the poor are getting too much!
Sound familiar? After thirty years, it should. This is trickle-down economics.* The "logic" here (and I'm being generous) is that the economy will grow if we provide a better "business climate" -- lower taxes and fewer regulations will liberate corporations to create jobs. The problem is that it doesn't work. Three decades of lower taxes and reckless deregulation have saddled us with slow growth, soaring inequality, the financial meltdown of 2008, a devastating recession, rising tuition at our public universities, and diminishing opportunities for millions of Americans. And yet -- like a zombie that will not die - trickle-down economics is alive and well in the US, despite its long record of failure.** Ask any Republican about the economy, and he (or she) will tell you that we need more of this toxic concoction.
The US remains a very rich country. It has the capacity to do much better; it has the capacity to produce equitable, sustainable growth. A detailed discussion of how this might go is more than I can do here, but this process would surely include higher taxes on the wealthy, a more serious effort to regulate the financial sector, greater corporate accountability, and increases in public investment. It would also require a shift in priorities - a political transformation. It would require a discourse and a policy agenda that prioritizes the needs of working class and poor people: affordable education and health care, enhanced worker bargaining power, and a commitment to full employment.
Along with a grim, stubborn economic crisis, we face a national identity crisis. Do we want to recognize that our well-being is tied to that of our neighbors? Do we want to prioritize shared prosperity and economic security? Do we want a country in which every kid has a chance to reach her full potential? Or do we want a country that prioritizes the "right" of rich people to get richer?
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Tim Koechlin
Tim Koechlin holds a PhD in economics. He is the Director of the International Studies Program at Vassar College, where he has an appointment in International Studies and Urban Studies. Professor Koechlin has taught and written about a variety of subjects including economic, political and racial inequality; globalization; macroeconomic policy, and urban political economy.
The United States is, by every reasonable measure, the most unequal of the world's rich countries. And this is not new development. For more than three decades, the US has been suffering from a crisis of inequality. The Democrats have not taken this crisis seriously enough. The Republicans seem hell-bent on making it worse.
Evidence of extreme and rising economic inequality in the US is quite overwhelming. In 1979, the top 1% earned about 9% of all income; in 2013, they earned 24%. The incomes of the top 0.1% have grown even faster. More than half of all economic growth since 1976 has ended up in the pockets of the top 1%. Meanwhile, the incomes of the shrinking middle class have stagnated, and the incomes of those with a high school education or less have fallen substantially. The purchasing power of the minimum wage has fallen by about 15% since 1979. One in five kids lives in poverty.
How have we responded to all of this? By cutting taxes for the rich, busting unions and vilifying the poor! Over the past few decades, effective tax rates on US corporations and the richest 1% have fallen by about a third. Among the world's rich countries, US tax rates on the rich are near the very bottom. Since 1970, the percentage of private sector workers in unions has fallen from 29% to 7%.
It has not always been this way. Between 1948 and 1975, the income of the median US household doubled. The incomes of the bottom 20% actually grew a little faster than the incomes of the top 20% over this period. Between 1928 and 1950, the distribution of income in the US actually became dramatically more equal.
Why should we be concerned about inequality? America is about opportunity, not guarantees -- right? Actually, no! Among the world's rich countries, the US is tied for last in class mobility; an American's economic success is in fact highly correlated with his/her parents' wealth and status. Richard Wilkinson captures this sad reality perfectly: "If you want the American Dream, you'll have to go to Denmark."
Economic inequality inevitably means political inequality. The right-wing Koch brothers, for example, spent more than $50 million aiming to defeat Obama and the Democrats in 2012. Right-wing casino magnate Sheldon Adelson spent over $100 million. Increasingly, legislation is literally being written by corporate lobbyists. The Koch brothers are entitled to their right wing views; they should not be entitled to the kind of outsized influence that $50 million will buy.
There is also compelling evidence that inequality is socially corrosive. In their magnificent book, The Spirit Level, Richard Wilkinson and Kate Pickett show that unequal societies suffer from higher rates of violent crime, incarceration, obesity, infant mortality, mental illness and alcoholism. Inequality is also associated with lower life expectancy, lower levels of educational performance and lower levels of trust. Inequality is bad for all of us.
Those are the facts.
In this context, the Republican Party's economic proposals are especially appalling. The Republican vision - embodied in the "Ryan Plan," a budget proposal supported by virtually every Republican legislator -- calls for still deeper cuts in taxes for corporations and the top 1%, and further reductions in the "regulatory burden" on oil, coal and gas companies (including "frackers") and - believe it or not -- Wall Street! And further still, Republicans advocate deep cuts in spending on education, Head Start, environmental protection, Social Security, Medicare and Medicaid. Remarkably, the Republicans have concluded - yet again! -- that the super-rich are getting too little, while children, the elderly, the middle class and the poor are getting too much!
Sound familiar? After thirty years, it should. This is trickle-down economics.* The "logic" here (and I'm being generous) is that the economy will grow if we provide a better "business climate" -- lower taxes and fewer regulations will liberate corporations to create jobs. The problem is that it doesn't work. Three decades of lower taxes and reckless deregulation have saddled us with slow growth, soaring inequality, the financial meltdown of 2008, a devastating recession, rising tuition at our public universities, and diminishing opportunities for millions of Americans. And yet -- like a zombie that will not die - trickle-down economics is alive and well in the US, despite its long record of failure.** Ask any Republican about the economy, and he (or she) will tell you that we need more of this toxic concoction.
The US remains a very rich country. It has the capacity to do much better; it has the capacity to produce equitable, sustainable growth. A detailed discussion of how this might go is more than I can do here, but this process would surely include higher taxes on the wealthy, a more serious effort to regulate the financial sector, greater corporate accountability, and increases in public investment. It would also require a shift in priorities - a political transformation. It would require a discourse and a policy agenda that prioritizes the needs of working class and poor people: affordable education and health care, enhanced worker bargaining power, and a commitment to full employment.
Along with a grim, stubborn economic crisis, we face a national identity crisis. Do we want to recognize that our well-being is tied to that of our neighbors? Do we want to prioritize shared prosperity and economic security? Do we want a country in which every kid has a chance to reach her full potential? Or do we want a country that prioritizes the "right" of rich people to get richer?
Tim Koechlin
Tim Koechlin holds a PhD in economics. He is the Director of the International Studies Program at Vassar College, where he has an appointment in International Studies and Urban Studies. Professor Koechlin has taught and written about a variety of subjects including economic, political and racial inequality; globalization; macroeconomic policy, and urban political economy.
The United States is, by every reasonable measure, the most unequal of the world's rich countries. And this is not new development. For more than three decades, the US has been suffering from a crisis of inequality. The Democrats have not taken this crisis seriously enough. The Republicans seem hell-bent on making it worse.
Evidence of extreme and rising economic inequality in the US is quite overwhelming. In 1979, the top 1% earned about 9% of all income; in 2013, they earned 24%. The incomes of the top 0.1% have grown even faster. More than half of all economic growth since 1976 has ended up in the pockets of the top 1%. Meanwhile, the incomes of the shrinking middle class have stagnated, and the incomes of those with a high school education or less have fallen substantially. The purchasing power of the minimum wage has fallen by about 15% since 1979. One in five kids lives in poverty.
How have we responded to all of this? By cutting taxes for the rich, busting unions and vilifying the poor! Over the past few decades, effective tax rates on US corporations and the richest 1% have fallen by about a third. Among the world's rich countries, US tax rates on the rich are near the very bottom. Since 1970, the percentage of private sector workers in unions has fallen from 29% to 7%.
It has not always been this way. Between 1948 and 1975, the income of the median US household doubled. The incomes of the bottom 20% actually grew a little faster than the incomes of the top 20% over this period. Between 1928 and 1950, the distribution of income in the US actually became dramatically more equal.
Why should we be concerned about inequality? America is about opportunity, not guarantees -- right? Actually, no! Among the world's rich countries, the US is tied for last in class mobility; an American's economic success is in fact highly correlated with his/her parents' wealth and status. Richard Wilkinson captures this sad reality perfectly: "If you want the American Dream, you'll have to go to Denmark."
Economic inequality inevitably means political inequality. The right-wing Koch brothers, for example, spent more than $50 million aiming to defeat Obama and the Democrats in 2012. Right-wing casino magnate Sheldon Adelson spent over $100 million. Increasingly, legislation is literally being written by corporate lobbyists. The Koch brothers are entitled to their right wing views; they should not be entitled to the kind of outsized influence that $50 million will buy.
There is also compelling evidence that inequality is socially corrosive. In their magnificent book, The Spirit Level, Richard Wilkinson and Kate Pickett show that unequal societies suffer from higher rates of violent crime, incarceration, obesity, infant mortality, mental illness and alcoholism. Inequality is also associated with lower life expectancy, lower levels of educational performance and lower levels of trust. Inequality is bad for all of us.
Those are the facts.
In this context, the Republican Party's economic proposals are especially appalling. The Republican vision - embodied in the "Ryan Plan," a budget proposal supported by virtually every Republican legislator -- calls for still deeper cuts in taxes for corporations and the top 1%, and further reductions in the "regulatory burden" on oil, coal and gas companies (including "frackers") and - believe it or not -- Wall Street! And further still, Republicans advocate deep cuts in spending on education, Head Start, environmental protection, Social Security, Medicare and Medicaid. Remarkably, the Republicans have concluded - yet again! -- that the super-rich are getting too little, while children, the elderly, the middle class and the poor are getting too much!
Sound familiar? After thirty years, it should. This is trickle-down economics.* The "logic" here (and I'm being generous) is that the economy will grow if we provide a better "business climate" -- lower taxes and fewer regulations will liberate corporations to create jobs. The problem is that it doesn't work. Three decades of lower taxes and reckless deregulation have saddled us with slow growth, soaring inequality, the financial meltdown of 2008, a devastating recession, rising tuition at our public universities, and diminishing opportunities for millions of Americans. And yet -- like a zombie that will not die - trickle-down economics is alive and well in the US, despite its long record of failure.** Ask any Republican about the economy, and he (or she) will tell you that we need more of this toxic concoction.
The US remains a very rich country. It has the capacity to do much better; it has the capacity to produce equitable, sustainable growth. A detailed discussion of how this might go is more than I can do here, but this process would surely include higher taxes on the wealthy, a more serious effort to regulate the financial sector, greater corporate accountability, and increases in public investment. It would also require a shift in priorities - a political transformation. It would require a discourse and a policy agenda that prioritizes the needs of working class and poor people: affordable education and health care, enhanced worker bargaining power, and a commitment to full employment.
Along with a grim, stubborn economic crisis, we face a national identity crisis. Do we want to recognize that our well-being is tied to that of our neighbors? Do we want to prioritize shared prosperity and economic security? Do we want a country in which every kid has a chance to reach her full potential? Or do we want a country that prioritizes the "right" of rich people to get richer?
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LATEST NEWS
Omar, Ramirez Among First in Congress to Decry 'Unconstitutional' Trump Strike on Boat
"They're now using the failed War on Drugs to justify their egregious violation of international law," the Minnesota progressive said of the Trump administration.
Sep 04, 2025
Congresswomen Ilhan Omar and Delia Ramirez on Thursday strongly condemned the Trump administration's deadly attack on a boat allegedly trafficking cocaine off the coast of Venezuela as "lawless and reckless," while urging the White House to respect lawmakers' "clear constitutional authority on matters of war and peace."
"Congress has not declared war on Venezuela, or Tren de Aragua, and the mere designation of a group as a terrorist organization does not give any president carte blanche," said Omar (D-Minn.), referring to President Donald Trump's day one executive order designating drug cartels including the Venezuela-based group as foreign terrorist organizations.
Trump—who reportedly signed a secret order directing the Pentagon to use military force to combat cartels abroad—said that Tuesday's US strike in international waters killed 11 people. The attack sparked fears of renewed US aggression in a region that has endured well over 100 US interventions over the past 200 years, and against a country that has suffered US meddling since the late 19th century.
"It appears that US forces that were recently sent to the region in an escalatory and provocative manner were under no threat from the boat they attacked," Omar cotended. "There is no conceivable legal justification for this use of force. Unless compelling evidence emerges that they were acting in self-defense, that makes the strike a clear violation of international law."
Omar continued:
They're now using the failed War on Drugs to justify their egregious violation of international law. The US posture towards the eradication of drugs has caused immeasurable damage across our hemisphere. It has led to massive forced displacement, environmental devastation, violence, and human rights violations. What it has not done is any damage whatsoever to narcotrafficking or to the cartels. It has been a dramatic, profound failure at every level. In Latin America, even right-wing presidents acknowledge this is true.
The congresswoman's remarks came on the same day that US Secretary of State Marco Rubio designated a pair of Ecuadorean drug gangs as terrorist organizations while visiting the South American nation. This, after Rubio said that US attacks on suspected drug traffickers "will happen again."
"Trump and Rubio's apparent solution" to the failed drug war, said Omar, is "to make it even more militarized," an effort that "is doomed to fail."
"Worse, it risks spiraling into the exact type of endless, pointless conflict that Trump supposedly opposes," she added.
Echoing critics including former Human Rights Watch director Kenneth Roth, who called Tuesday's strike a "summary execution," Ramirez (D-Ill.) said Thursday on social media that "Trump and the Pentagon executed 11 people in the Caribbean, 1,500 miles away from the United States, without a legal rationale."
"From Iran to Venezuela, to DC, LA, and Chicago, Trump continues to abuse our military power, undermine the rule of law, and erode our constitutional boundaries in political spectacles," Ramirez added, referring to the president's ordering of strikes on Iran and National Guard deployments to Los Angeles, the nation's capital, and likely beyond.
"Presidents don't bomb first and ask questions later," Ramirez added. "Wannabe dictators do that."
'Cruelty': US Appeals Court Blocks Order to Shut Down Alligator Alcatraz
"The fact that a facility embedded in so much pain is allowed to reopen is absolutely disheartening!" said Florida Immigrant Coalition's deputy director.
Sep 04, 2025
Two judges appointed to the US Court of Appeals for the 11th Circuit by President Donald Trump issued a Thursday decision that allows a newly established but already notorious immigrant detention center in Florida, dubbed Alligator Alcatraz, to stay open.
Friends of the Everglades, the Center for Biological Diversity, and the Miccosukee Tribe of Indians of Florida sought "to halt the unlawful construction" of the site. Last month, Judge Kathleen Williams—appointed by former President Barack Obama to the U.S. District Court for the Southern District of Florida—ordered the closure of the facility within 60 days.
However, on Thursday, Circuit Judges Elizabeth Branch and Barbara Lagoa blocked Williams' decision, concluding that "the balance of the harms and our consideration of the public interest favor a stay of the preliminary injunction."
Judge Adalberto Jordan, an Obama appointee, issued a brief but scathing dissent. He wrote that the majority "essentially ignores the burden borne by the defendants, pays only lip service to the abuse of discretion standard, engages in its own factfinding, declines to consider the district court's determination on irreparable harm, and performs its own balancing of the equities."
The 11th Circuit's ruling was cheered by the US Department of Homeland Security, Republican Florida Attorney General James Uthmeier, and Gov. Ron DeSantis, who declared in a video that "Alligator Alcatraz is, in fact, like we've always said, open for business."
Uthmeier's communications director, Jeremy Redfern, collected responses to the initial ruling by state and federal Democrats, and urged them to weigh in on social media. Florida state Sen. Shevrin "Shev" Jones (D-34) did, stressing that "cruelty is still cruelty."
In a Thursday statement, Florida Immigrant Coalition deputy director Renata Bozzetto said that "the 11th Circuit is allowing atrocities to happen by reversing the injunction that helped to paralyze something that has been functioning as an extrajudicial site in our own state! The Everglades Detention Camp isn't just an environmental threat; it is also a huge human rights crisis."
"Housing thousands of men in tents in the middle of a fragile ecosystem puts immense strain on Florida's source environment, but even more troublesome, it disregards human rights and our constitutional commitments," Bozzetto continued. "This is a place where hundreds of our neighbors were illegally held, were made invisible within government systems, and were subjected to inhumane heat and unbearable treatment. The fact that a facility embedded in so much pain is allowed to reopen is absolutely disheartening! The only just solution is to shut this facility down and ensure that no facility like this opens in our state!"
"Lastly, it is imperative that we as a nation uphold the balance of powers that this country was founded on," she added. "That is what makes this country special! Calling judges who rule against you 'activists' flies in the face of our democracy. It is a huge tell that AG Uthmeier expressed this as a 'win for President Trump's agenda,' as if the courts were to serve as political weapons. This demonstrates the clear partisan games they are playing with people's lives and with our democracy."
While Alligator Alcatraz has drawn widespread criticism for the conditions in which detainees are held, the suit is based on the government's failure to follow a law that requires an environmental review, given the facility's proximity to surrounding wetlands.
In response to the ruling, Elise Bennett, a senior attorney at the Center for Biological Diversity, told The Associated Press that "this is a heartbreaking blow to America's Everglades and every living creature there, but the case isn't even close to over."
Healthcare Giants Have Raked in 'Sick Profits' From Trump Tax Cuts While Stiffing Patients: Report
The report found that seven of America's biggest healthcare companies have collectively dodged $34 billion in taxes as a result of Trump's 2017 tax law while making patient care worse.
Sep 04, 2025
President Donald Trump's tax policies have allowed the healthcare industry to rake in "sick profits" by avoiding tens of billions of dollars in taxes and lowering the quality of care for patients, according to a report out Wednesday.
The report, by the advocacy groups Americans for Tax Fairness and Community Catalyst, found that "seven of America's biggest healthcare corporations have dodged over $34 billion in collective taxes since the enactment of the 2017 Trump-GOP tax law that Republicans recently succeeded in extending."
The study examined four health insurance companies—Centene, Cigna, Elevance (formerly Anthem), and Humana; two for-profit hospital chains—HCA Holdings and Universal Health Services; and the CVS Healthcare pharmacy conglomerate.
It found that these companies' average profits increased by 75%, from around $21 billion before the tax bill to about $35 billion afterward, and yet their federal tax rate was about the same.
This was primarily due to the 2017 law's slashing of the corporate tax rate from 35% to 21%, a change that was cheered on by the healthcare industry and continued with this year's GOP tax legislation. The legislation also loosened many tax loopholes and made it easier to move profits to offshore tax shelters.
The report found that Cigna, for instance, saved an estimated $181 million in taxes on the $2.5 billion it held in offshore accounts before the law took effect.
The law's supporters, including those in the healthcare industry, argued that lowering corporate taxes would allow companies to increase wages and provide better services to patients. But the report found that "healthcare corporations failed to use their tax savings to lower costs for customers or meaningfully boost worker pay."
Instead, they used those windfalls primarily to increase shareholder payouts through stock buybacks and dividends and to give fat bonuses to their top executives.
Stock buybacks increased by 42% after the law passed, with Centene purchasing an astonishing average of 20 times more of its own shares in the years following its enactment than in the years before. During the first seven years of the law, dividends for shareholders increased by 133% to an average of $5.6 billion.
Pay for the seven companies' half-dozen top executives increased by a combined $100 million, 42%, on average. This is compared to the $14,000 pay increase that the average employee at these companies received over the same period, which is a much more modest increase of 24%.
And contrary to claims that lower taxes would allow companies to improve coverage or patient care, the opposite has occurred.
While data is scarce, the rate of denied insurance claims is believed to have risen since the law went into effect.
The four major insurers' Medicare Advantage plans were found to frequently deny claims improperly. In the case of Centene, 93% of its denials for prior authorizations were overturned once patients appealed them, which indicates that they may have been improper. The others were not much better: 86% of Cigna's denials were overturned, along with 71% for Elevance/Anthem, and 65% for Humana.
The report said that such high rates of denials being overturned raise "questions about whether Medicare Advantage plans are complying with their coverage obligations or just reflexively saying 'no' in the hopes there will be no appeal."
Salespeople for the Cigna-owned company EviCore, which insurers hire to review claims, have even boasted that they help companies reduce their costs by increasing denials by 15%, part of a model that ProPublica has called the "denials for dollars business." Their investigation in 2024 found that insurers have used EviCore to evaluate whether to pay for coverage for over 100 million people.
And while paying tens of millions to their executives, both HCA and Universal Health Services—which each saved around $5.5 billion from Trump's tax law—have been repeatedly accused of overbilling patients while treating them in horrendous conditions.
"Congress should demand both more in tax revenue and better patient care from these highly profitable corporations," Americans for Tax Fairness said in a statement. "Healthcare corporation profitability should not come before quality of patient care. In healthcare, more than almost any other industry, the search for ever higher earnings threatens the wellbeing and lives of the American people."
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