Notes on a Theory…

Thoughts on politics, law, & social science

Posts Tagged ‘Unilateral Executive Action

Inequality is a Problem: There is Too Little

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thebestinequalitygraphupdated-figure1-version3Talk about inequality is in the air. Everyone seems to agree it’s a problem, although a lot of people seem to offering the same old policy proposals to address it. It’s almost as if they are simply attaching what they already want to do to the rhetoric of today’s demands. But maybe the problem is that we misunderstand what exactly the problem of inequality is as far as elites are concerned.

Speaking of which, Jonathan Cohn points us to this story by Scott Amey from the Project On Government Oversight

On the same day that the President spoke eloquently and fervently about the rising income inequality in the United States, the ever-contractor-friendly Office of Federal Procurement Policy (OFPP) in the Office of Management and Budget (OMB) increased the maximum amount of contractor compensation that can be charged to government contracts from a mere$763,029 per employee per year to what OFPP apparently considers a much more reasonable $952,308 per employee per year. This increase primarily affects the employees of the largest government contractors—most notably defense and information technology firms. So taxpayers are now on the hook for paying up to nearly $1 million for every one of these contractor executives or employees every year.

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Written by David Kaib

December 9, 2013 at 10:56 am

Predistribution, Public Opinion and Unilateral Executive Action

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The Market St Quentin

A market, which exists, unlike “the market” which does not. (St Quinton Saturday Market by M Hobbs)

Matt Bruenig has a good post on predistribution, “measures governments take to reduce or eliminate inequality in market incomes” as “the most viable way to give a boost to low-income workers.”

As far I am concerned, there is no moral or political difference between the two. Predistributive institutions and redistributive institutions are both just institutions. What matters is achieving greater economic equality, not so much the precise institutional regime that we use to get there. If anything, I tend to find so-called redistributive institutions more attractive because they are easier to fine tune and strike me as more liberating.

I certainly agree on the ‘no difference’ point.  Why is it more viable?

But, as Hacker correctly points out, my view is almost certainly an outlying one. For cultural or other reasons, Americans tend to be more supportive of equality-producing measures that get baked into paychecks than they are of equality-producing measures that go through more overt government channels. As a result, the US has a very stingy welfare state and delivers much of its government spending through opaque, submerged mechanisms like tax credits.

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