Trump’s corporate tax cuts would increase deficit, and therefore are very unlike to pass The Republican tax cut myth: It’s worth remembering that the conservative Heritage Foundation made exactly the same argument about the 2001 tax cut that Secretary Mnuchin is making today. It issued a report on April 27, 2001 forecasting that by 2011, federal revenues would be higher with the tax cut than they would have been without it, due to higher economic growth, greater investment, and lower unemployment. In fact, real G.D.P. growth was half of what Heritage predicted and the unemployment rate was 50 percent higher. It predicted that federal revenues would equal $3.3 trillion in 2011 including the effect of the tax cut; revenues actually were $1 trillion less, $2.3 trillion. American Airlines announces pay raises for pilots and shareholders freak Trends in absolute income mobility since 1940 US economy has weakest quarterly performance in three years: So…is this still a part of the Obama economy? Quote of the day: Mr. Obama, who recently accepted a very lucrative speaking engagement on Wall Street, now looks like just one of the fortunate members of historically depressed minorities who mistake their own upward mobility for collective advance.
We’re excited to announce that our podcast, The Other Washington , is coming back for Season 2. In our first episode we interviewed Thomas Frank, the author of Listen, Liberal—and we have quite the conversation. We talk about the failings of the Democratic Party, both electorally and intellectually. Here’s a snippet of what Frank spoke to us about on the episode ( which you can listen to here ): …no political faction gives up its grip on power such as this. The Democrats have no state power anymore. The faction that I described in the book still has the … It has the Democratic Party by the throat. There’s no question about it. They are the dominant faction. Nobody is going to give that up on purpose or without a fight. They have to be forced. They have to be challenged the leadership, and they have to lose. That’s easier said than done. You think that a debacle like last November would help to change people’s minds. For those of you who listened to the podcast last year, you know that we delved into a range of big political ideas and examined how these policies could be practically implemented. We talked paid sick leave with WA legislators, the $15 minimum wage with a venture capitalist, and secure scheduling with Seattle city council members. The big ideas will remain, but Season 2 will be a little different in a couple of ways. First off, the frequency of episodes will be weekly as opposed to monthly — a change that will allow us to explore more subjects and react to breaking news and the latest trends in politics — both here in Seattle and Washington state, and also in that other Washington. We also want to bring in new voices, examine ideas that are new to us, and publicly debate ideas that we don’t all agree on. Our first season was a lecture series where
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Do sweatshops lift workers out of poverty? For poor countries to develop, we simply do not know of any alternative to industrialization. The sooner that happens, the sooner the world will end extreme poverty. As we look at our results, we are conflicted: We do not want to see workers exposed to hazardous risks, but we also worry that regulating or improving the jobs too much too quickly will keep that industrial boom from happening. Economists fear tax plan heightens a ‘mountain of debt’ House Republicans have made a move to avert government shutdown — for at least a week Texas mayor blasted after she says lack of faith in God causes poverty New Trumpcare plan ‘makes bad bill worse,’ AARP says Trump’s tax plan is trickle-down fundamentalism: Experts on the left and right agree there’s no way the White House can cover the cost of those cuts—about $2.4 trillion in lost revenue over 10 years—just by limiting deductions, closing loopholes, or even including dubious revenue raisers like House Speaker Paul Ryan’s border-adjustment tax , which Trump has now ditched. Alas, Trump and his aides are turning to the only argument that politicians can make to justify trickle-down economics: that when the wealthy and corporations pay less in taxes, economic growth surges and make up for the lost revenue.
Tax Cuts Pay for Themselves? Revival of Contested Theory: “Contested” Obama’s getting paid $400k to speak for a Wall St investment bank: This made me so angry. Here’s a guy that clearly has no bloody clue about how to appeal to a nation that is mired in economic inequality. Maybe now that he’s president he doesn’t care, but if that’s the case, he’s half the man I thought. Sanders and 21 Democrats introduce bill to raise minimum wage to $15 an hour The Raise the Wage Act of 2017, which Sanders and Murray will unveil later today, would hike the minimum wage for the first time in a decade, raising it to $9.25 immediately, and inching it up to $15 by 2024, while simultaneously raising the minimum wage for tipped workers. Why regulators won’t confront big banks America’s rich get richer and the poor get replaced by robots The U.S. makes it easy for parents to get college loans—repaying them is another story
Ivanka Trump gets booed, hissed at during Berlin event: There’s some sense in the world. Seattle home-price hikes lead U.S. again; even century-old homes command top dollar Washington state relies on a rotten tax system: The top 1 percent in Washington paid 2.4 percent of their income, which is less than half of the national average, 5.4 percent. There have been efforts to introduce an income tax, but in recent times they’ve never gotten far. The idea of a Seattle city income tax on high-income households is going to be an issue in this year’s race for mayor. Current Mayor Ed Murray announced in the first mayoral debate last week that he will send a tax proposal to the City Council. The grim biology of being poor: Why do so few make it out of poverty? I can tell you from experience it is not because some have more merit than others. It is because being poor is a high-risk gamble. The asymmetry of outcomes for the poor is so enormous because it is so expensive to be poor. Imagine losing a job because your phone was cut off, or blowing off an exam because you spent the day in the ER dealing with something that preventative care would have avoided completely. Something as simple as that can spark a spiral of adversity almost impossible to recover from. The reality is that when you’re poor, if you make one mistake, you’re done. Everything becomes a sudden-death gamble. Now imagine that, on top of that, your brain is wired to multiply the subjective experience of stress by 10. The result is a profound focus on short-term thinking. To those outsiders who, by fortune of birth, have never known the calculus of poverty, the poor seem to make sub-optimal decisions time and time again. But the choices made by the poor are supremely rational choices under the circumstances. Pondering optimal, long-term decisions is a liability when you have 48 hours of food left. Stress takes on a
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How ideologues use grade-school economics to distort the minimum wage: The United States has the lowest minimum wage, as a proportion of average wages, of any advanced economy—one reason for our wide gap between rich and poor. But according to economism, raising the minimum wage would only backfire and harm poor people. U.S. Chamber of Commerce Chief expects basic NAFTA deal by mid-2018 Republicans want to muzzle database of consumer complaints Want to rescue rural America? Bust monopolies It is a myth that the economic challenges that rural and small-town America face are caused by forces largely outside our control, like globalization or improvements in technology. We have the ability to help restore competition and economic vibrancy in rural America and beyond. The government has the authority to ensure markets are once again open and competitive so that communities have a chance to shape their own economic destinies. The question is whether we will recognize the error of our ways and put taking on monopolies high on the economic agenda — for rural and small-town America, and for everyone who wants to ensure our country can once again be the land of opportunity. Watch: Bill Nye rips CNN for treating climate change like theater instead of science
Trump tax plan to rely on future US growth to fund cuts Republicans believe major tax reform would drive annual U.S. economic growth above 3 percent. But if anticipated improvement fails to materialize, the strategy could rob the Treasury of tax revenue and saddle the economy with bigger deficits and higher debt burdens. Bill Nye Saves the World brings us an updated, unapologetically political science guy Does the government subsidize low-wage employers? America is regressing into a developing nation for most people Seattle Mayor Ed Murray proposes income tax for city’s ‘high-end’ households The end of men? Not in the retail sector
Happy 4/20. Here’s a quote from Carl Sagan: The illegality of cannabis is outrageous, an impediment to full utilization of a drug which helps produce the serenity and insight, sensitivity and fellowship so desperately needed in this increasingly mad and dangerous world. Blacks and whites use pot at about the same rate, but blacks get arrested for pot possession a lot more A new high: 61 percent of Americans believe weed should be legalized Nobel Prize-Winning Economist: We’re Headed for Oligarchy Pesticide maker tries to kill risk study The jobless economy Why has growth been so slow? This too is a topic in itself but there are several reasons. One, popular among mainstream economists, is that very deep recessions, like the 2008–9 affair, have historically left deep scars that make recovery slow and difficult. Another, less orthodox, way of interpreting those “scars” is that a very deep recession is itself a sign of serious structural problems beyond the normal ups and downs of capitalist economies.
After using n-word in front of black colleagues, Fla. state senator faces calls to resign New election analysis: Yes, it really was blatant racism that gave us President Donald Trump Sean McElwee, a policy analyst for Demos and a frequent contributor to Salon, published a statistical analysis last week , based on data collected by the American National Election Studies , that demonstrates clearly that racism, rather than economic insecurity, was the primary factor that helped push Trump over the top. Fighting child poverty with a universal child allowance It might seem naive that a universal child allowance could be adopted this year. But with support from both sides of the aisle, it is now a viable policy alternative. Cary Moon is running for Seattle mayor What Trump’s H-1B visa executive order actually does
Morgan Stanley’s CEO says repealing Dodd-Frank would be a mistake Are sectorial unions the way of the future? Sectoral bargaining is certainly getting more attention in legal academic and labor law policy debates,” Benjamin Sachs, a professor at Harvard law school and former practicing labor lawyer, says. ‘The way I would think about it is that there’s an existential panic about what will happen to the labor movement. That’s not new, it’s just getting worse … If we need unions for economic and political equality as I think we do, we have to do something to stop that downward spiral.’ Why don’t all jobs matter? While we can’t stop job losses from happening, however, we can limit the human damage when they do happen. We can guarantee health care and adequate retirement income for all. We can provide aid to the newly unemployed. And we can act to keep the overall economy strong — which means doing things like investing in infrastructure and education, not cutting taxes on rich people and hoping the benefits trickle down. Tax cuts don’t work the way trickle downers think: Tax cuts that go to high-income taxpayers generate less growth than…cuts for low and moderate income taxpayers. Why the 101 model doesn’t work for labor markets: Labor is a crucial input in so many markets that it really needs to be dealt with in general equilibrium – in other words, by analyzing all markets at once – rather than by treating it as a single market in isolation. That makes the basic Econ 101 partial-equilibrium model pretty useless for analyzing labor. WA passes Student Loan Transparency Act: Starting next year, Washington college students who take out student loans will get an email or letter from their school telling them how much they owe and how much their monthly loan payments will be after graduation. Wow, what an amazing step forward. Now when students take out tens of thousands of dollars in loans they’ll know how much they’ll need to repay. I am so sick of all this winning! WA is so
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