TOO MUCH (Chronicles of Inequality) July 15, 2013

Too Much July 15, 2013
THIS WEEK
This week’s Too Much flits around the globe, with a quick stop in Switzerland where activists have placed on the ballot an initiative to prevent top corporate execs from making more in a month than their workers can make in a year.If this measure passes, what might be the long-range consequence? Nothing much, just longer lifespans for everyone who lives in Switzerland! Or so suggest the findings from a landmark new study just out on global health. More on that study in this week’s issue, too.Next week we’ll be starting our annual Too Much summer break. We’ll be returning early next month. In the meantime, if you have a hankering for some Too Much material, we’ve posted online — for all heavy-duty summer readers — a Turning the Page on Inequality book quiz. Take a look and try your luck!You might also want to consider signing up for the Too Much Twitter feed. We’ll be updating inequality-related news and views all summer long. About Too Much, a project of the Institute for Policy Studies Program on Inequality and the Common GoodSubscribe
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GREED AT A GLANCE
Officials at Wal-Mart are loudly complaining about a just-passed District of Columbia City Council bill that requires the giant retailer to pay at least $12.50 an hour at any new Wal-Mart outlet in the nation’s capital. Wal-Mart’s current average wage nationally: only $12.67, less than 60 percent of the $20.89 hourly average at competitor Costco. The heirs to Wal-Mart founder Sam Walton, notes Economic Policy Institute analyst David Cooper, now hold more wealth than the bottom 48.8 million — or 41.5 percent — of American families combined, and Wal-Mart CEO Mike Duke last year pocketed $20.7 million, or just about 800 times the annual take-home of a job that pays $12.50 an hour . . .Charles KochKansans down Wichita way have some new job worries. Budget cuts are costing state Head Start programs 500 slots for young kids, a big blow to employment, says Wichita area Head Start director Teresa Rupp, since child care “allows many parents to go work.” And new higher ed cuts in Kansas, says state senator Susan Wagle of Wichita, are hurting her local university’s “ability to create jobs.” But Wichita’s richest native son, billionaire Charles Koch, says he knows the real threat to jobs in Kansas: the minimum wage. His tax-exempt foundation has just begun a four-week, $200,000 ad blitz in Wichita to expose that danger, and Koch says he’s personally helping fashion this new campaign against “government overreach” in the economy. Koch — current net worth, $43.8 billion — may soon expand his campaign to other cities . . .Manhattan’s top luxury retailers are waging a fierce “toe-to-toe” battle for supremacy in pumps. Saks opened the city’s first “intoxicating Shangri-La of shoes” in 2007. Barneys and Bergdorf Goodman, among others, soon followed suit with shoe palaces where the most basic of models, a pair of raspberry suede espadrilles, go for $495 a pair. More elaborate offerings, like designer Christian Louboutin’s “Lady Spiked Platform Pump” with a near six-inch heel can run as much as $4,645. Price resistance? Not a problem. Barneys is “selling out” of sandals that cost $1,400. Smiles Ronald Frasch, the chief merchandising officer of Saks: “We all sit around and talk about the price of shoes.” Quote of the Week“Some politicians and economists still cling to the old claims that bigger is better, greed is good, a fossil-fueled economy is inevitable, and inequality is efficient. A growing body of evidence has shown this model to be bankrupt.”
Econ4, a Statement on Building the New Economy signed by over 100 U.S. economists, July 12, 2013
PETULANT PLUTOCRAT OF THE WEEK
Fabrice TourreFabrice Tourre isn’t exactly falling on his sword. But the 34-year-old is fighting the noble fight — for the right of plutocrats to swindle however they may please. In 2007, Goldman Sachs bond trader Tourre connived with hedge fund kingpin John Paulson to offer investors a mortgage-backed security expressly configured to fail. Paulson then “shorted” the security — bet against it — and netted a clean billion. In 2010, federal officials brought civil suit against Goldman and Tourre. Goldman settled out of court and paid a $550 million fine. Tourre opted to go to trail, with Goldman picking up his legal bills. The trial starts this week. Pretrial motions haven’t gone well for the “Fabulous Fab.” Last week, the judge in the case let a contested email into evidence. The email has Tourre joking about selling toxic bonds to widows and orphans. Like Too Much?
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IMAGES OF INEQUALITY
Spirit Level movieLights, cameras, action — against inequality! The filmmakers behind the upcoming documentary The Spirit Level have just released a trailer for their eagerly anticipated new work. The brief video features excerpts from interviews with noted experts on inequality like Richard Wilkinson, the coauthor of the best-selling book that inspired the film. The planned release date: summer 2014.  

 

Web Gem

Growing Apart/ At last, a historical survey of contemporary U.S. inequality that brings all the stats and charts and trends together in one comprehensive, updated place.

PROGRESS AND PROMISE
Swiss street actionThis past March Swiss voters enacted an initiative that bans CEO golden parachutes and merger bonuses. Swiss voters may soon send an even stronger message. Now set to go before voters this November: a measure that limits executive compensation to no more than 12 times worker take-home. This “1:12 Initiative for Fair Pay” has the support of top Swiss trade unionists, and last month Social Democratic Party leader Christian Levrat called the proposal a “necessary utopia.” Pay cap organizers, mixing street action with online sophistication, have an early polling lead. Take Action
on InequalityLoad the Buycott app on your smart phone and support the campaign to press top U.S. executives to ensure the safety of workers in their corporate supply chains. 
inequality by the numbers
Passion investments Stat of the WeekLatest sign of our unequal world: In 1950, 200,000 soccer fans watched the World Cup final in Brazil’s Maracanã stadium. For the 2014 World Cup the stadium has been renovated — to maximize luxury boxes. Only 74,000 will be able to attend the final match, report Marina Amaral and Natalia Viana of Brazil’s Publica journalism center.

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IN FOCUS
Why Do Americans Live Lives So Short?To protect our health, we’ve learned to have our ‘vital signs’ taken. But no visit to a doctor’s office can tell us the vital signs that determine where on earth people can expect to live the longest lives.Let’s talk life expectancy.The stats first. They tell a clear story: Americans now live shorter lives than men and women in most of the rest of the developed world. And that gap is growing.

Back in 1990, shouts a new study published last week in the prestigious Journal of the American Medical Association, the United States ranked just 20th on life expectancy among the world’s 34 industrial nations. The United States now ranks 27th — despite spending much more on health care than any other nation.

Americans, notes an editorial the journal ran to accompany the study, are losing ground globally “by every” health measure.

Why such poor performance? Media reports on last week’s new State of U.S. Health study hit all the usual suspects: poor diet, poor access to affordable health care, poor personal health habits, and just plain poverty.

In the Wall Street Journal, for instance, a chief wellness officer in Ohio opined that if Americans exercised more and ate and smoked less, the United States would surely start moving up in the global health rankings.

But many epidemiologists — scientists who study health outcomes — have their doubts. They point out that the United States ranked as one of the world’s healthiest nations in the 1950s, a time when Americans smoked heavily, ate a diet that would horrify any 21st-century nutritionist, and hardly ever exercised.

Poor Americans, then as now, had chronic problems accessing health care. But poverty, epidemiologists note, can’t explain why fully insured middle-income Americans today have significantly worse health outcomes than their middle-income counterparts in other rich nations.

The University of Washington’s Dr. Stephen Bezruchka has been tracking these outcomes since the 1990s. The new research published in the Journal of the American Medical Association, Bezruchka told Too Much last week, should worry Americans at all income levels.

“Even if we are rich, college-educated, white-skinned, and practice all the right health behaviors,” he notes, “similar people in other rich nations will live longer.”

A dozen years ago, Bezruchka published in Newsweek the first mass-media commentary, at least in the United States, to challenge the conventional take on poor U.S. global health rankings.

To really understand America’s poor health standing globally, epidemiologists like Bezruchka posit, we need to look at “the social determinants of health,” those social and economic realities that define our daily lives.

None of these determinants matter more, these researchers contend, than the level of a society’s economic inequality, the divide between the affluent and everyone else. Over 170 studies worldwide have so far linked income inequality to health outcomes. The more unequal a society, the studies show, the more unhealthy most everyone in it — and not the poor alone.

Just how does inequality translate into unhealthy outcomes? Growing numbers of researchers place the blame on stress. The more inequality in a society, the more stress on a daily level. Chronic stress, over time, wears down our immune systems and leaves us more vulnerable to disease.

This same stress drives people to seek relief in unhealthy habits. They may do drugs or smoke — or eat more “comfort foods” packed with sugar and fat.

Inequality has an equally potent impact on policy decisions around health.

“A substantial proportion of our adult health,” as Stephen Bezruchka explained last week, gets programmed in the early years of a child’s life. Given this reality, guaranteeing every child the best possible supports in the early years ought to be priority number one for any society committed to better health for all.

But unequal nations do precious little of this guaranteeing. The nations with the highest ranking for child well-being turn out to be the nations with the most equal distributions of income.

Can the United States change course on health? Will Americans in the future be able to look forward to living lives as long as people in other developed nations?

Japan may offer the most encouraging precedent. In the middle of the 20th century, Japan ranked as a deeply unequal and unhealthy nation. But since the 1950s Japan has become a much more equal society, one of the world’s most equal, and, on life expectancy, Japan now ranks number one globally.

The United States, over the same span of time, has gone in the exact opposite direction. We have become the world’s most unequal major nation, with health outcomes among the developed world’s worst.

So how do we start a turnaround? Most Americans, Stephen Bezruchka notes, already understand the concept of “vital signs.”

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“We can sense these vital signs tell us something significant about our individual health,” he notes, “every time we step on a scale at the doctor’s office or feel a blood pressure cuff tighten.”

But societies have “vital signs,” too, with none more important to health than our level of inequality. We need to start recognizing these broader “vital signs.” If we do, Bezruchka believes, we can make a difference.

“Dying so much younger than we should,” he sums up, “can be changed.”

New Wisdom
on WealthDean Baker, The 1 Percent Want Your Kidney: Tales of Redistribution, Nation of Change, July 9, 2013. All the sweet little things the government does to make the rich even richer.Helaine Olen, CEOs and the rest of us: a tale of two economies, Guardian, July 9, 2013. Median U.S. household income sits at $51,400. A CEO earns that amount of money with a bit more than a day’s work.

Benjamin Jealous, America’s yawning racial wealth gap, Politico, July 11, 2013. Today’s gaping economic disparities between the rich and the rest in the United States, notes the NAACP president, run even more pronounced for African-Americans.

Mar Arguelles, Inability to tax rich blamed for income gap, South Luzon Inquirer, July 13, 2013. A Filipino governor is calling his nation’s inability to tax the rich its “biggest failure.” A U.S. congressional panel, meanwhile, has voted a 24 percent IRS budget cut.

Editorial, Overpaid? Or Worth Every Penny? New York Times, July 14, 2013. Regulators, Congress, and the White House need to start enforcing the 2010 Dodd-Frank Act provision that requires corporations to reveal the pay gap between their CEOs and most typical workers.

 

 

 

Gar Alperovitz, author of What Then Must We Do?, on The Rich Don’t Always Win, the new book by Too Much editor Sam Pizzigati: “Bold, thorough, and above all inspiring — an energizing and spirited reminder of what it took, and what it will take, to once again make ours a nation of equals.”

The Rich Don’t Always Win: The Forgotten Triumph over Plutocracy that Created the American Middle Class cover

NEW AND notable
Abundance and Leisure: We Can Have BothFree TimeBenjamin Hunnicutt, Free Time: The Forgotten American Dream. Temple University Press, 237 pages.What better time for a book about free time than summer, the season of free time, or at least that little of it that most Americans enjoy?We have less leisure in the United States than our peers elsewhere in the world — and much less leisure than average Americans had back in the middle of the 20th century. But our current political system evinces no interest whatsoever in confronting our harried status quo.

Free time has essentially become a forgotten issue. University of Iowa historian Benjamin Hunnicutt wants us to remember what we have forgotten: that the original “American dream” revolved around extending the time average Americans had free.

In these fascinating new pages, Hunnicutt aims at nothing less than “re-presenting” this traditional American dream as “a compelling and inspiring alternative to the current dream of eternal consumption, wealth, and work.”

Generations ago, Americans who struggled for the free time we all need understood that this free time will never materialize in a society where abundance goes unshared. The chase after unlimited wealth, they believed, would never go hand in hand with the happiness that fulfilling leisure can bring.

Hunnicutt believes that, too. So will his readers.

 

 

About Too Much
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