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"In their 2009 book “Class War? What Americans Really Think about Economic Inequality,” Benjamin Page and Lawrence Jacobs put together survey data and make a convincing case that this cynical story is not a fair summary of public opinion in the United States. Actually, most Americans—Democrats and Republicans alike—support government intervention in health care, education, and jobs, and are willing to pay more in taxes for these benefits."
"Another reason is that I was (and remain to some extent) guilty of what science fiction writer Bruce Sterling calls acting dead: being irrationally averse to spending money where it matters, in a misguided attempt to “save” money to the point that the behavior paralyzes you. A large segment of the middle class is starting to act dead these days. Which makes sense since the class itself is dying. To stop acting dead, you have to resolve to exit the traditional middle class as well, unless you want to go down with it."
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Not acting dead involves a strategic spending pattern that marketers are starting to call trading up: buying premium in some areas of your life, while buying budget or entirely forgoing spending in other areas. This pattern of conscious, discriminating consumption defines the emerging replacement for the middle class. As the picture above illustrates, there isn’t really one “New Middle Class.” Instead, it is a fragmented social space, with each little island being defined by a specific pattern of trading-up, and an associated lifestyle design script.
"But why do we spend too much time on comfort goods and ordinary consumer spending and not enough on creative activities? One reason, says Pugno is that the latter require investment in “leisure skills” - the ability to play an instrument, garden or appreciate art. Such investment, like any other, is costly. At any point in time, therefore, we might prefer the zero-cost option of comfort goods. But this means we never acquire the skills needed to make best use of our leisure."
"While universities routinely maintain that it costs them more to educate students than what students pay, a new report says exactly the opposite is true.
The report was released today by the Center for College Affordability and Productivity, which is directed by Richard K. Vedder, an economist who is also an adjunct scholar at the American Enterprise Institute and a Chronicle blogger. It says student tuition payments actually subsidize university spending on things that are unrelated to classroom instruction, like research, and that universities unfairly inflate the stated cost of providing an education by counting unrelated spending into the mix of what it costs them to educate students."
"The United States of America also uses dollars as a unit of account for tallying up assets and liabilities, but the wealth of the United States is properly measured not by how many dollars there are but by what real production we’re engaged in and what real stock of assets we possess. "
clean graphic of President Obama's overall budget proposal. No details on allocations, just taxes and spending.
A consensus view - "balance sheet" recession, debt has grown too large and is being deleveraged.
in list: Economic Crisis
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Richard Koo (2003) coined the term “balance sheet recession” to characterise the endless travail of Japan following the collapse of its real estate and stock market bubbles in 1990. The Japanese government did not act to repair the balance sheets of the private sector following the crash.
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The US Great Depression saw no consistent policy of deficit spending on adequate scale in the 1930’s.
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Tries to connect Democratic Senator William Proxmire's 'Golden Fleece' awards from the 1970s and 1980s to the current public rejection of all government spending. A good government idea taken to an absurd extreme by bad-faith Republicans.
Their data makes government spending look a lot more effective than tax cuts. You can see that even with the tax cuts, those that are most effective are those that target low income, rebates for those don’t pay federal income taxes or payroll tax holiday.
in list: Economic Crisis
The United States now spends almost as much on defense in real dollars as it ever has before -- even though it has no plausible rationale for using most of its impressive military forces. Why? Because without political incentives for restraint, policymake
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