inequality and soc policy

inequality and soc policy - Inequality and social policy...

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Inequality and social policy
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Compensation for bottom 80% of Americans vs productivity growth
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Growing Inequality since ‘74
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1980: CEO pay 40X worker, now: 400X
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International comparison
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why? less progressive taxation since 80s? “progressive” vs “regressive” taxes--income tax, sales tax, estate (death) tax globalization? decline in unionization? changing technology?
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Secession of the successful? Retreating from the public in favor of the private
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The Too-Easy Answer Education
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Social Programs Most benefits go from middle class to middle class Social Security and Medicare are the big items, and growing
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Federal Budget Source: New York Times , Feb. 8, 2005, based on Budget of the United States FY2006 , Feb. 8, 2005.
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Social Security Before 1935, poverty among the elderly was much higher than the rest of the population, today lower. How it works: Not means tested You pay 7% of paycheck, employer matches. (Up to income of $87,000).
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Financing social security in the future “Pay as you go” program.
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