Showing posts with label super rich. Show all posts
Showing posts with label super rich. Show all posts

Saturday, October 25, 2014

Conservatives, do you want the good old days back?

When conservatives implore America to return to the good ole days, they don't understand what that entails.

For instance, a 90 percent top marginal tax rate. Check it out:

marginal tax rates

But hey, it was the golden age of America, right? So let's try it again and see what happens!


By Ben Walsh
October 22, 2014 | Huffington Post

Friday, April 18, 2014

The super rich get the best welfare

By the way, I urge everybody to watch Robert Reich's film Inequality for All that puts the problem in historical perspective, and explains why extreme wealth and income inequality is not just bad for our economy, but for the fundamentals of our democracy.

Pop quiz, hotshots: what was the top marginal tax rate under Eisenhower?  Kennedy?  Nixon? Find the answers and then ponder what you think people mean when they talk about the "good ole' days."  


By Hamilton Nolan
April 18, 2014 | Gawker

It's great to be rich. It's extra double great to be super rich. And not just because you have all that extra money—because being super rich actually lets you pay lower taxes.

As Floyd Norris points out today, our wonderful and democratic tax system, in which investment income is taxed at a far lower rate than regular income, means that the super mega ultra rich—who almost always derive a larger portion of their income from investments than any other group—actually end up paying a lower overall tax rate than the merely normal rich, who derive a higher portion of their income from salaries. (The same goes for the non-rich, but more so!) Specifically, "The superrich ($10 million+ income) paid 20.4 percent of their income in federal income taxes in 2011, while the very rich ($500K-$10 million) paid 24.5 percent."

That is dumb as hell.

Even leaving aside any issues of basic economic justice or fairness, here is a bit of worthwhile context: the latest research shows that although the wealth of America has risen by $25 trillion since the depths of the recession, that wealth is not helping us as much as it should, because it's not being churned back into the economy as much as we would expect. From Bloomberg:

His calculations show that since the recession ended in 2009, households have spent 1.7 cents of every extra $1 earned in wealth. That's less than half the 3.8-cent average implied by data between 1952 and 2009.

One reason for the adjustment may be that those enjoying gains in wealth are already rich, so have less propensity to increase spending incrementally.

Hmm if only we could somehow rectify this vexing situation oh yes TAX THE RICH MORE AND THE PROBLEM IS SOLVED.

Tuesday, December 31, 2013

MB360: U.S. income divide is a yawning chasm

Here MB360 reminds us how the U.S. middle class has disappeared in our new Gilded Age of wealth inequality, where the top 10 Percent own 75 percent of all wealth [emphasis mine]:

Since the 1950s the trend has only moved in one direction.  People often talk about top tax brackets and how high income taxes are but if you look at the above chart, the average tax rate for those in the top 1 percent is 23.5 percent.  How is that when the top tax bracket is 39.6 percent?  First, many people have better methods of tax avoidance: IRAs, 401ks, dividend income, real estate deductions, etc.  Since the bulk of wealth is in the hands of the top 10 percent, this group is already lowering their tax burden via these deductions and beneficial tax structures.  Since the typical American is living paycheck to paycheck with little saved for retirement these tax reducers don’t really help.  Besides, their income tax burden share is minimal.  However, their other tax burdens are large as a proportion to their income.  This is usually ignored when people talk about how little the working class pay in this country as they try to scapegoat the disappearing middle class.

More to the point, the middle class by definition should be well, the middle.  In this case, being middle class is a household making $35,000 or more.  We often hear about $250,000 being middle class by the media but by the IRS tax data, this is closer to being in the top 2 percent of AGI.  Not exactly middle class when 98 percent are below you.  Even if we look at the bottom 75 percent, the cutoff here is $70,492; certainly a far away cry from $250,000.  Or even the top 5 percent starting point of $167,728.

Remember the 2012 presidential campaign when Romney said, amazingly, that the middle class was any household making "$200,000 to $250,000 and less"?  And less, indeed. The media didn't put his absurd comment in context, although the IRS income data was right there for them to see -- probably because the Obama campaign's definition of middle class was basically the same. 

Folks, U.S. economic inequality is still the elephant in the room; it was the most under-reported story of 2013.

Happy New Year!  Let's hope it's a more equitable one.


Posted by mybudget360 | December 31, 2013

Tuesday, November 19, 2013

11 habits of highly successful fetuses

I'll save all you fetuses, or ovums, as it were, some reading (I know it's dark in there), and list the habits of unborn millionaires and successful belly dwellers:

1.  Have rich parents. Listen up, fetuses. You should definitely make this one a habit; it's gonna pay off someday. Your parents can also help.

2.  Have well-edumacated parents.  It's key for fetuses to remind their parents to get a top-notch higher education before combining their sperm and egg. 

3.  Be beautiful. Fetuses, make sure that, at the moment of conception, you are getting your parents' choicest genes to look your best. You can still be successful without a pretty face... you'll just have to work a lot harder.

4.  One-child policy.  It has worked for China!  Your only "brothers and sisters" should be black people that you know (careful, don't forget #9!) or your church congregation.

5. and 6.  Select a good year and month to be born. Good judgment is a habit and it starts before life even begins. Fetuses, make sure you're parents get it on in May or June, in a year that is not 22 years before an economic recession!

7.  Fetuses, try to be born in the developed world. This one helps a lot!  If your future parents live in some hot mess of a country, before you pop out of the oven, make sure they emigrate someplace nice and civilized with lots of iPhones, Starbucks and expensive colleges.

8.  Fetuses, if you've chosen to be born in the USA -- excellent call! -- look closer and choose the right state. Avoid the Southeast!  (I know, it sounds so obvious.) Later, when you're a highly successful, rich adult you can go there for golf and deep-sea fishing, but until then you're not missing anything.

9.  Be white. If you decide later in life that you really like other races, you can always hire them.

10. Be a man. Even many women recommend it. Because it's a man's world. Even before conception, always be one of the guys! 

11. Choose a CEO dad. Preferably one who plans to bequeath you his company. Some dads are just more generous than others. Fetuses, make sure you always choose the right papa!

And if you're too undisciplined or lazy to do these things before you're born then... you'll just have to pull yourself up by your booty straps after your born. There are no excuses and no free lunches in life, non-people.


By Maxwell Strachan
November 15, 2013 | Huffington Post

Monday, September 9, 2013

A history of 'rich people's movements'

This historical-political study by Martin is long and somewhat academic (not surprising since it's excerpted from a book), but it's nevertheless worth reading in full.

My dear Tea Parties, realize two things: 1) a lot of your "grassroots" ideas were recycled from previous rich people's movements more than a half-century ago when taxes were a heckuva lot higher than they are today; and 2) the original rich people's movements of the early 20th century learned their tactics and style from the Progressive Era reformers.

That's right, you got your modus operandi from Progressives!  Oh, the shame in it!


Wednesday, September 4, 2013

Studies: Wealth makes us less generous

According to professor Dacher Keltner, "In just about every way you can study it, our lower-class individuals volunteer more, they give more of their resources — they're more generous."

Whaddya know?  Yet more evidence that wealth changes people for the worst.


By Shankar Vedantam
September 3, 2013 | NPR

Wednesday, August 28, 2013

Study: The rich are more narcissistic

Here is yet more scientific evidence to prove F. Scott Fitzgerald's famous words:

Let me tell you about the very rich.  They are different from you and me. They possess and enjoy early, and it does something to them, makes them soft where we are hard, and cynical where we are trustful, in a way that, unless you were born rich, it is very difficult to understand. They think, deep in their hearts, that they are better than we are because we had to discover the compensations and refuges of life for ourselves.  Even when they enter deep into our world or sink below us, they still think that they are better than we are. They are different.

Other recent scientific studies have shown that rich people are more likely to be aggressive driversact unethicallylack empathycare more about tax rates than jobs and education... and have more sex. So there you go.


The original narcissist.  If only rich pricks would turn into pretty flowers!



Sunday, August 25, 2013

Reich: Giving up our public goods

Reich is right, even liberals are too shy anymore to mention public goods and the general welfare:  

Not even Democrats still use the phrase "the public good." Public goods are now, at best, "public investments." Public institutions have morphed into "public-private partnerships" or, for Republicans, simply "vouchers."

Outside of defense, domestic discretionary spending is down sharply as a percent of the economy. Add in declines in state and local spending, and total public spending on education, infrastructure and basic research has dropped dramatically over the past five years as a portion of GDP.

America has, though, created a whopping entitlement for the biggest Wall Street banks and their top executives -- who, unlike most of the rest of us, are no longer allowed to fail. They can also borrow from the Fed at almost no cost, then lend out the money at 3 percent to 6 percent.

All told, Wall Street's entitlement is the biggest offered by the federal government, even though it doesn't show up in the budget. And it's not even a public good. It's just private gain.

We're losing public goods available to all, supported by the tax payments of all and especially the better-off. In its place we have private goods available to the very rich, supported by the rest of us.

There's a class war going on alright, and the super rich and the TBTF banks are winning it.


By Robert Reich
August 24, 2013 | Huffington Post

Trump University: The cost of worshiping the wealthy



Donald Trump is a boorish, egomaniacal plutocrat. But we already knew that. That's not what bothers me today.

What bothers me is how many gullible people were eager to plop down $35,000 on Trump University (disclaimer: not a real university) in the hopes of getting rich like The Donald. Many of the poor students paid "tuition" with their credit card.

The truth is, the best way to become a billionaire is to inherit the money. That's how Donald Trump got rich: by inheriting up to $200 million from his father who made his fortune building FHA-backed (read: Big Government-subsidized) housing.

Trump is not alone.  Less than 40 percent of the Forbes 400 billionaires are self-made, according to the Columbia Journalism Review.  

The most recent study in the U.S. of self-made millionaires that I could find relied on a survey of 482 millionaires.  Only 3 percent said they inherited their wealth.  Mm-hm.  And in a separate survey of male billionaires, only 5 percent reported having a penis under 10 inches.

Kidding.  The fact is, Americans worship the wealthy.  And the wealthy worship themselves. Our politicians and media fawn over life's economic winners, attributing all sorts of super-human qualities to them. Then when a rich person turns out to be, well, more or less normal, the fawning escalates even higher. "My God, he acts just like you and me!" we cry in disbelief that somebody so rich could possibly not be a prick.  (At least during interviews and public appearances).

There is a whole cottage industry of books, courses and websites that reveal what successful things millionaires do that we normal folks don't. If only we too would sleep 4 hours a night, drop out of school (or stay in school), take huge risks, max out our credit cards and invest all our savings in a simple idea, etc., etc. then we would be super-rich like them.

Sometimes the rich offer advice themselves -- and try to make $ millions off it, like Trump did here.  Other billionaires like Michael Bloomberg offer nuggets of wealth-building wisdom for free, such as: don't take bathroom breaks.  

What the rich often forget to mention is luck.  Yeah, luck.  I guarantee you there are thousands of people who have all the same habits as Bloomberg, including giving themselves urinary tract infections and skipping lunch, and yet they are not rich. Because luck plays a huge role in success. Including luck of birth. If anything, what differentiates the rich from the rest of us is their ability to recognize lucky moments and seize them.  But also having millions of dollars, a rich family or a company at your disposal when lucky moments come along tends to help.  

As Columbia business school professor Michael Maboussin reminds us, "your mind is expert at creating stories to explain results after the fact," and that goes for great success as well as failure.  So just as we shouldn't begrudge the success of the Donalds of the world, we should not attribute that success to their personal grandeur.


By Michael Gormley
August 25, 2013 | AP

Tuesday, March 26, 2013

DC Johnston: Average Americans $59 richer since 1966

Everybody's gotta read this. I'm not even gonna give you snippets, just read the whole thing.

My man David Cay Johnston is back on the case!


By David Cay Johnston
February 25, 2013 | Tax Analysts

Saturday, March 16, 2013

Study: Millionaires ARE different

Shocker: millionaires care the more about capital gains taxes and the federal deficit than they do about jobs and a living wage for their fellow Americans. Well knock me over with a feather.


By Joshua Holland
March 11, 2013 | AlterNet

Friday, March 8, 2013

Video: 92% of Americans agree on ideal wealth distribution!

This video is apparently going viral, so let me jump on the bandwagon.

Seriously though, this is worth watching. Sometimes charts and pictures are way better than blah, blah, blah.

But here's just a little blah-blah:  The top One Percent owns 40 percent of America's wealth and takes in 24 percent of the nation's annual income, while the bottom 80 percent of Americans owns only 7 percent of the nation's wealth. And it's getting worse and more skewed every year.


By politizane
November 20, 2012 | YouTube


Saturday, December 15, 2012

CRS report: Higher taxes on rich do not impede growth

Not that most Republicans will care, but once again, facts and statistics do not support their article of faith that higher taxes on the One Percent damage the economy:

"Analysis of such data [since WW II] conducted for this report suggests the reduction in the top tax rates has had little association with saving, investment, or productivity growth," the study says. "It is reasonable to assume that a tax rate change limited to a small group of taxpayers at the top of the income distribution would have a negligible effect on economic growth."

The American economy has done much better than it has today with much higher tax rates on the rich -- a top marginal rate as high as 91 percent. In fact what our current tax policies do is create greater disparities of wealth, which hurts the U.S. economy in the long run, since, at the end of the day, our economy runs on consumption, therefore the American economy requires a broad, stable middle class that is not mired in debt and can afford to buy the goods and services that our economy can produce.


By Michael McAuliff
December 13, 2012 | Huffington Post

Wednesday, December 5, 2012

Be honest about taxes on rich capitalists

A lot of folks in the MSM, punditry, think tanks and lobbying firms are blowing a lot of smoke about tax hikes and the "fiscal cliff."  Most journalists are too lazy, or too intimidated, to contradict their BS.

This includes the corporate media's preemptive strikes against a possible increase in U.S. dividend tax rates. Thanks to one ultra-conservative reader I learned, inadvertently, that higher U.S. dividend tax rates in fact correlate, historically, with higher stock market returns!

Now, as I'm always quick to point out, correlation does not equal causation; nevertheless, this shows that economic performance is not doomed by relatively higher tax rates. Far from it.


By Peter Hart 
December 3, 2012 | FAIR

Thursday, September 20, 2012

Frum: Mitt played up to the rich's class terror but got burned

Conservative pundit David Frum makes it clear what the 47 percent is meant to mean to Republicans, the facts be damned:

Start with this data point:  When you ask white Americans to estimate the black population of the United States, the answer averages out at nearly 30%. Ask them to estimate the Hispanic population, and the answer averages out at 22%.

So when a politician or a broadcaster talks about 47% in "dependency," the image that swims into many white voters' minds is not their mother in Florida, her Social Security untaxed, receiving Medicare benefits vastly greater than her lifetime tax contributions; it is not their uncle, laid off after 30 years and now too old to start over. No, the image that comes into mind is minorities on welfare

It's also a lot of silly and, frankly, disproven fear about Obama's diabolical designs on the wealthy (his first term is almost over and America still exists, pretty much as it was under Dubya):

The background to so much of the politics of the past four years is the mood of apocalyptic terror that has gripped so much of the American upper class.

Hucksters of all kinds have battened on this terror. They tell them that free enterprise is under attack; that Obama is a socialist, a Marxist, a fascist, an anti-colonialist. Only by donating to my think tank, buying my book, watching my network, going to my movie, can you - can we - stop him before he seizes everything to give to his base of "bums," as Charles Murray memorably called them.

And what makes it all both so heart-rending and so outrageous is that all this is occurring at a time when economically disadvantaged Americans have never been so demoralized and passive, never exerted less political clout.  [...]

Yet even so, the rich and the old are scared witless! Watch the trailer of Dinesh D'Souza's new movie to glimpse into their mental universe: chanting swarthy mobs, churches and banks under attack, angry black people grabbing at other people's houses.

It's all a scam, but it's a spectacularly effective scam. Mitt Romney tried to make use of the scam, and now instead has fallen victim to it himself.

Friday, August 3, 2012

Forbes: Romney can't deny his tax plan is a giveaway to fellow millionaires

So Romney called this think-tank "objective" when it criticized his rival Rick Perry's tax plan, but called it "liberal" when it criticized his own tax plan for giving huge tax breaks to the rich at the expense of the middle class.

Indeed, "the centrist Tax Policy Center found that Romney's tax cuts would boost after-tax income by an average of 4.1 percent for those earning more than $1 million a year, while reducing by an average of 1.2 percent the after-tax income of individuals earning less than $200,000."

What a self-serving, plutocratic liar!


By Rick Ungar
August 1, 2012 | Forbes

A study out today by the Tax Policy Center—a joint venture of the Brookings Institution and the Urban Institute—concludes that the Romney tax plan will result in "large tax cuts to high-income households, and increase the tax burdens on middle- and/or lower-income taxpayers."

As one might expect, the report became the big news over at Obama headquarters and the headline attraction during the President's campaign swing through Ohio today.

Before you presume that this must be some liberal hatchet job to be dismissed out of hand (we will explore that possibility in a moment), there a few things you will want to know about the study—and then you can jump to your conclusions.

For starters, the report keys its results on Governor Romney's promise that any tax cuts provided will be 'revenue neutral'—meaning that every dollar he cuts in taxes will be paid for by either increasing revenue from some other source or cutting expenses somewhere else on the balance sheet.

While Romney has gone on record as saying that he will produce the revenue neutral result by eliminating deductions and tax code loopholes, he has—to date—declined to be specific in stating exactly what deductions and loopholes he will do away with to make it all work.

The good news? Because the Tax Policy Center did not know what Romney would actually eliminate, they took the trouble to construct a wide variety of models in an effort to see what results would emerge under different scenarios involving the many possible loopholes a Romney administration could choose to close and deductions that could disappear.

The bad news for Governor Romney is that—no matter how the Tax Policy Center structured the effort to balance the result of the proposed tax cuts, even going so far as to run the model under the assumption that Romney would first eliminate those deductions and loopholes that currently inure to the benefit of the wealthiest Americans—the result always turned out the same way.

The wealthy win big—middle and lower income earners…not so much.

This from the report-

Even when we assume that tax breaks – like the charitable deduction, mortgage interest deduction, and the exclusion for health insurance – are completely eliminated for higher-income households first, and only then reduced as necessary for other households to achieve overall revenue-neutrality- the net effect of the plan would be a tax cut for high-income households coupled with a tax increase for middle-income households.

So, is this just a case of a liberal think tank attack to be dismissed out of hand?

When it comes to think tanks, it can be difficult to say—particularly when we're talking about an organization filled with accountants and other mathematical money crunchers who can, undoubtably, do amazing things when it comes to playing with numbers to achieve a desired result.

During the 2008 campaign, Senator McCain certainly branded the organization as a liberal shill doing the bidding of the Democrats.

However, when reviewing what the organization had to say about the Obama tax plans in during the 2008 campaign,  I didn't think they were all that favorable to the candidate who ended up winning the prize. Still, they certainly appeared to have more love for the Obama approach than the McCain plan so one can see why Senator McCain might be ready to dismiss the group as a liberal front, even if the Center's conclusions were an honest statement of where their research led them .

Certainly, Governor Romney finds himself in agreement with the McCain assessment. Upon release of the study today, his campaign issued a statement saying, "President Obama continues to tout liberal studies calling for more tax hikes and more government spending." The campaign was also quick to add that one of the authors of the study is an ex-Obama employee.

But there are some problems which should not be ignored —assuming that objectivity is your interest.

For starters, the Tax Policy Center report says nothing that could remotely be interpreted as calling for more tax hikes or government spending. And while we could be generous and simply consider the Romney campaign's response to be standard rhetorical fare, there is an even larger problem – Governor Romney did not always think that the Tax Policy Center was such a liberal organization.

As Benji Sarlin over at TPM reminds us, when the Tax Policy Center issued a report beating up on Texas Governor Rick Perry during the GOP primary race, the Romney campaign issued a press release referring to the study that read, "Objective, Third-Party Analysis Showed Governor Perry's Plan Would Raise Taxes On Millions Of American Families – But He Doesn't Seem Interested In The Discussion."

So, when the Tax Policy Center attacked the Perry tax plan, they were—according to the Romney camp—'objective'. Yet, when the same think tank reports on the impact of the Romney policy proposals, the organization suddenly become 'liberal' and, therefore, biased.

I know. I know. That's just politics.

But you know what is not politics? The complete and utter inability of the Romney campaign to respond to today's study with appropriate facts and figures revealing why, in their judgment, the study gets it wrong.

Maybe the Romney folks just didn't have time to react with substance and thought it necessary to get a more political statement out there to take the edge off of the field day the President was treated to as a result of the report's conclusions? That's a tough explanation to buy as the Romney campaign had a heads up on this one.

It turns out that, back in January of this year, The Wall Street Journal published an article reporting on a similar study by this very same think tank which, while not as dispositive as the new study, reached pretty much the identical result.

Thus, the Romney campaign has had months to consider their response to the charge that his tax cut proposals will badly impact on everyone but the wealthy.

And still, all we got today was a statement that the report is to be discredited because the organization publishing the study is a 'liberal' think tank—despite the fact that the Tax Policy Center is generally regarded as unbiased (with some argument to be made that they might lean a bit to the left) and despite the fact that Romney himself has previously labeled the group as "objective".

Something is wrong here. Either Governor Romney should tell us why the study fails or acknowledge that the tax cuts he proposes for the wealthy will either result in increased taxes for to those who earn less or will not, in fact, be revenue neutral after all.

If you are willing to let the Republican presidential campaign off the hook by dismissing what is a fairly extensive, fair and balanced report (I suggest you read the study)—where the authors actually appear to go to the extreme to give the Governor the benefit of the doubt—then I have some California government bonds I'd like to sell you. They're a great investment…honest.

Friday, June 15, 2012

The morality of liberal & conservative economics

Lakoff and Wehling voice thoughts that I haven't been able to formulate as clearly. Obviously what they write is the truth.

Indeed, I have noticed for a while now how many conservatives seem to take thinly veiled pleasure in contemplating the economic suffering of those who ought to "learn their lesson" from the Great Recession: distressed homeowners; the newly unemployed; students in debt; European "socialists;" and of course poor minorities, always minorities.  Yet their bitter pills are never prescribed to Wall Street.  Why is that?  Lakoff and Wehling have the answer: conservatives see wealth as proof of one's morality.  Or as they put it: "The most moral people are the rich."  People with money can't be wrong; to them it's as simple as that.



By George Lakoff and Elisabeth Wehling
June 13, 2012 | Huffington Post

In his June 11, 2012 op-ed in the New York Times, Paul Krugman goes beyond economic analysis to bring up the morality and the conceptual framing that determines economic policy. He speaks of "the people the economy is supposed to serve" -- "the unemployed," and "workers"-- and "the mentality that sees economic pain as somehow redeeming."

Krugman is right to bring these matters up. Markets are not provided by nature. They are constructed -- by laws, rules, and institutions. All of these have moral bases of one sort or another.  Hence, all markets are moral, according to someone's sense of morality.  The only question is, Whose morality?  In contemporary America, it is conservative versus progressive morality that governs forms of economic policy. The systems of morality behind economic policies need to be discussed.

Most Democrats, consciously or mostly unconsciously, use a moral view deriving from an idealized notion of nurturant parenting, a morality based on caring about their fellow citizens, and acting responsibly both for themselves and others with what President Obama has called "an ethic of excellence" -- doing one's best not just for oneself, but for one's family, community, and country, and for the world. Government on this view has two moral missions: to protect and empower everyone equally.

The means is The Public, which provides infrastructure, public education, and regulations to maximize health, protection and justice, a sustainable environment, systems for information and transportation, and so forth. The Public is necessary for The Private, especially private enterprise, which relies on all of the above.  The liberal market economy maximizes overall freedom by serving public needs: providing needed products at reasonable prices for reasonable profits, paying workers fairly and treating them well, and serving the communities to which they belong.  In short, "the people the economy is supposed to serve" are ordinary citizens. This has been the basis of American democracy from the beginning.

Conservatives hold a different moral perspective, based on an idealized notion of a strict father family.  In this model, the father is The Decider, Dubya? -- J ] who is in charge, knows right from wrong, and teaches children morality by punishing them painfully when they do wrong, so that they can become disciplined enough to do right and thrive in the market.  If they are not well-off, they are not sufficiently disciplined and so cannot be moral: they deserve their poverty. Applied to conservative politics, this yields a moral hierarchy with the wealthy, morally disciplined citizens deservedly on the top.

Democracy is seen as providing liberty, the freedom to seek one's self interest with minimal responsibility for the interests or well-being of others. It is laissez-faire liberty. Responsibility is personal, not social.  People should be able to be their own strict fathers, Deciders on their own -- the ideal of conservative populists, who are voting their morality not their economic interests.  Those who are needy are assumed to be weak and undisciplined and therefore morally lacking.  The most moral people are the rich. The slogan, "Let the market decide," sees the market itself as The Decider, the ultimate authority, where there should be no government power over it to regulate, tax, protect workers, and to impose fines in tort cases. Those with no money are undisciplined, not moral, and so should be punished.  The poor can earn redemption only by suffering and thus, supposedly, getting an incentive to do better.

If you believe all of this, and if you see the world only from this perspective, then you cannot possibly perceive the deep economic truth that The Public is necessary for The Private, for a decent private life and private enterprise. The denial of this truth, and the desire to eliminate The Public altogether, can unfortunately come naturally and honestly via this moral perspective.

When Krugman speaks of those who have "the mentality that sees economic pain as somehow redeeming," he is speaking of those who have ordinary conservative morality, the more than forty percent who voted for John McCain and who now support Mitt Romney -- and Angela Merkel's call for "austerity" in Germany. It is conservative moral thought that gives the word "austerity" a positive moral connotation.

Just as the authority of a strict father must always be maintained, so the highest value in this conservative moral system is the preservation, extension, and ultimate victory of the conservative moral system itself.  Preaching about the deficit is only a means to an end -- eliminating funding for The Public and bringing us closer to permanent conservative domination. From this perspective, the Paul Ryan budget makes sense -- cut funding for The Public (the antithesis of conservative morality) and reward the rich (who are the best people from a conservative moral perspective). Economic truth is irrelevant here.

Historically, American democracy is premised on the moral principle that citizens care about each other and that a robust Public is the way to act on that care. Who is the market economy for? All of us. Equally. But with the sway of conservative morality, we are moving toward a 1 percent economy -- for the bankers, the wealthy investors, and the super rich like the six members of the family that owns Walmart and has accumulated more wealth than the bottom 30 percent of Americans. Six people!

What is wrong with a 1 percent economy? As Joseph Stiglitz has pointed out in The Price of Inequality, the 1 percent economy eliminates opportunity for over a hundred million Americans. From the Land of Opportunity, we are in danger of becoming the Land of Opportunism.

If there is hope in our present situation, it lies with people who are morally complex, who are progressive on some issues and conservative on others -- often called "moderates," "independents," and "swing voters."  They have both moral systems in their brains: when one is turned on, the other is turned off. The one that is turned on more often gets strongest. Quoting conservative language, even to argue against it, just strengthens conservatism in the brain of people who are morally complex.  It is vital that they hear the progressive values of the traditional American moral system, the truth that The Public is necessary for The Private, the truth that our freedom depends on a robust Public, and that the economy is for all of us.