Real Winners

Turns out the "wealth gap" hurts us all

JANUARY 19, 2013, 6:47 PM

Inequality Is Holding Back the Recovery

By JOSEPH E. STIGLITZ

The re-election of President Obama was like a Rorschach test, subject to many interpretations. In this election, each side debated issues that deeply worry me: the long malaise into which the economy seems to be settling, and the growing divide between the 1 percent and the rest - an inequality not only of outcomes but also of opportunity. To me, these problems are two sides of the same coin: with inequality at its highest level since before the Depression, a robust recovery will be difficult in the short term, and the American dream - a good life in exchange for hard work - is slowly dying.

Politicians typically talk about rising inequality and the sluggish recovery as separate phenomena, when they are in fact intertwined. Inequality stifles, restrains and holds back our growth. When even the free-market-oriented magazine The Economist argues - as it did in a special feature in October - that the magnitude and nature of the country's inequality represent a serious threat to America, we should know that something has gone horribly wrong. And yet, after four decades of widening inequality and the greatest economic downturn since the Depression, we haven't done anything about it.

There are four major reasons inequality is squelching our recovery.

To read the entire essay click here.

Joseph E. Stiglitz, a Nobel laureate in economics, a professor at Columbia and a former chairman of the Council of Economic Advisers and chief economist for the World Bank, is the author of "The Price of Inequality."

Santa's hearing different kinds of Christmas wish lists in 2011

Santa finds kids giving shorter lists in recession

By MARTHA WAGGONER
AP – Tue, Dec 6,

RALEIGH, N.C. (AP) — A job for their mom or dad. Money for the heating bill. Food or a place to live. Maybe gloves or boots.

More and more, Santas say the children on their laps are asking for less for themselves — and Santa is promising less as well.

With unemployment stubbornly high, more homes in foreclosure and the economic outlook dim, many children who visit Santa are all too aware of the struggle to make ends meet.

"These children understand the conditions around the home when they ask for stuff," said Richard Holden, a 69-year-old Santa from Gastonia, N.C. "They understand when there are other children in the family, they need to be cautious or thoughtful of them as well and not ask for 10 to 12 items."

Cliff Snider, who's been playing Santa since he was a teenager, agrees.

"I think the parents are saying, 'It's an economic thing. Just list two to three things you really want to have,'" he said. "Parents are trying to encourage the children to be thrifty."

And the 64-year-old Snider does his best to help out. When he gets a big-ticket request, he typically responds: "There's an awful lot of children asking for that this year. What else do you want?"

At the Charles W. Howard Santa Claus School, Santas learn lines like, "Wow, that's a big gift. Is there anything else you might like?"

These days, though, Santas are having to use it less and less.

"I think it's becoming more popular not to have that long list," said Tom Valent, dean of the Howard Santa school in Midland, Mich., which gets more than 3,000 letters to Santa a year and just graduated its 75th class. "Families are teaching their children to be as much of a giver as a receiver."

Starlight Fonseca has been teaching her five children, ages 5 to 14, "that we're not the only ones who have to cut things back. We're not the only ones struggling."

The 31-year-old mother and her husband Jose had been relying on a stipend from the University of Texas law school that Fonseca lost when an illness made it impossible for her to keep her grades up. She'd hoped to graduate in May but was unable to attend school this semester and can't get student loans due to poor credit.

Fonseca tells her kids that "to make it fair for everyone, Santa has to cut back for everyone. ... We paint it in a way that Santa is doing the best he can to make everybody happy at Christmas."

It's especially hard for the oldest children.

They were two little kids who used to be excited about Christmas, and now they know every gift under the tree should have gone to the utility company," she said. "It shouldn't be that way, but that's where we are now."

Of course, Santas still see some kids like the 9-year-old who pulled out a BlackBerry and showed Snider photos of all the things he wanted. "It cracked me up," he said.

Holden's response to a long list is to say something like, "Why don't you narrow this down just a little bit and choose two or three items you would really like?" Sometimes he'll even mention prices, and say, "With things like they are, Santa Claus will do what he can to help you get what you like. But we can't make you any promises."

Tim Connaghan, who runs the International University for Santa Claus in Riverside, Calif., conducts an annual survey among the 500 Santas he employs. The economy has become such a big issue that Connaghan asked them for advice on how to handle some of the questions kids were asking about unemployed parents or having to move.

"Let's all hope your dad will find a new job, or you will get into a new home," is one recommended response.

"Acknowledge the problem, give them a positive response and say, 'Santa loves you, too. Maybe I could get something special for you,'" said Connaghan. "It's that quick, usually. But the hope is that when the child leaves, he feels a little better."

Connaghan recalled the night he and other Santas took some needy children shopping. One boy wanted to buy toilet paper because his mother was taking napkins and paper towels from a fast food restaurant for toilet paper.

"He wanted to buy her real toilet paper — a common, everyday item that we all take for granted," Connaghan said. "And this child is thinking this is a Christmas gift."

Holden has had children ask for things like heat at home. He'll tell the child Santa will do what he can, then try to let the parents know about agencies that might help.

One child returned a year later and "said she wanted to thank Santa for getting her some help when they didn't have food or a place to stay." Someone had overheard the conversation with Santa and helped the family.

"There's more to being a Santa Claus than you think there is," Holden said. "You don't just go 'ho, ho, ho,' pat them on the back of the head and send them on their way. You get involved with them. ... You just make sure they feel loved and they feel special when they leave your lap.

Occupy movement learning what homeless have long known. . .

Received the article summary below recently. 

Barbara Ehrenreich likely knows more about poverty, the decline of the working class and the growth of the underclass in America as anyone alive today.  Her article is significant, and rooted in very literal reality. 

Homelessness and the Occupy Wall Street Movement

The logistics involved in maintaining the Occupy Wall Street protests turn out to be some of the very activities that homeless people have been banned from doing in most cities for years.

Barbara Ehrenreich argues that there is common cause between OWS and the homeless; that the financial elites that have destroyed the middle class have also criminalized homelessness, and that, as a result, most of what constitutes survival in public spaces has become illegal.

"What the Occupy Wall Streeters are beginning to discover, and homeless people have known all along, is that most ordinary, biologically necessary activities are illegal when performed in American streets — not just peeing, but sitting, lying down, and sleeping. It is illegal, in other words, to be homeless or live outdoors for any other reason. It should be noted, though, that there are no laws requiring cities to provide food, shelter or restrooms for their indigent citizens...What occupiers from all walks of life are discovering, at least every time they contemplate taking a leak, is that to be homeless in America is to live like a fugitive."

To read the entire Ehrenreich essay click here. Reactions welcomed!

U. S. poverty on rise

Those of us who work daily alongside and among low-income Americans hate to hear news like this. It is crucial that we respond as a nation to this sort of pain and suffering. Forty-six million of our neighbors live in poverty. But, notice how even a report on the growth of poverty ends up reporting on the U. S. stock market. The folks with whom we deal daily live no where near the market. Mainstream media typically ignores the poor and the real difficulties created by the growth of domestic poverty.

Struggling economy, struggle at the bottom

The New York Times published data from the Pew Research Center last Saturday (June 25, 2011, A17, "Polling Poverty and Pessimism").  The graph linked opinions about our struggling economy to household income.  Here's what the report revealed:

"You have had trouble getting or paying for medical care for yourself or your family in the last year."  Nine percent of those earning more than $75,000 said yes; 28% of those earning $30,000 to $75,000 said yes; and 51% of those earning less than $30,000 answered in the affirmative.

"You have had problems paying your rent or mortgage in the past year."  Eleven percent of those in the top income bracket said yes; 25% in the mid-bracket said yes; 45% in the lower bracket replied yes.

"It is very or somewhat likely that you may be laid off over the next year."  Of those in the top income range 12% said yes; in the middle 20% said yes; while 36% at the bottom answered yes.

"It is very or somewhat likely that you may be asked to take a pay cut over the next year."  Twenty percent of the top; 26% of the middle and 37% at the bottom income range answered yes.

"You have gotten a pay raise at your current job or gotten a better job in the past year."  Top:  48%; Middle:  44%;  Bottom:  30%.

"Rate the economic condition in the country today as poor."  Top:  41%; middle:  46% and bottom:  50%.