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New Treasury head eyes rising inequality
Christian Science Monitor ^ | August 03, 2006 | Mark Trumbull

Posted on 08/03/2006 2:37:15 PM PDT by Graybeard58

The wide gap between the richest and poorest

(Excerpt) Read more at csmonitor.com ...


TOPICS: Business/Economy; Extended News
KEYWORDS: govwatch; inequality; redistribution

1 posted on 08/03/2006 2:37:16 PM PDT by Graybeard58
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To: Graybeard58

The wide gap between the richest and poorest Americans has not often been the topic of choice for the Bush administration's two previous Treasury secretaries.

So it was notable this week that Henry Paulson, the president's latest Treasury head, chose to put that issue on his short list - as one of the nation's four prominent, long-term economic challenges. Mr. Paulson's head-on approach during one of his first public appearances as secretary differs from his predecessors' strategies, some analysts say.

The wealth gap is hardly new, but income inequality has been growing in America over the past quarter century. Even as average worker productivity has surged, average hourly earnings have stagnated. Meanwhile, the nation's economic elites have prospered.

"Amid this country's strong economic expansion, many Americans simply aren't feeling the benefits," Paulson said during his first major speech as Treasury secretary, at Columbia University's business school in New York on Monday. "Their increases in wages are being eaten up by high energy prices and rising healthcare costs, among others."


2 posted on 08/03/2006 2:38:07 PM PDT by Graybeard58 (Remember and pray for Sgt. Matt Maupin - MIA/POW- Iraq since 04/09/04)
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To: Graybeard58
Now that is what I call an excerpt!
3 posted on 08/03/2006 2:38:18 PM PDT by 1rudeboy
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To: 1rudeboy

I screwed it up. I was trying to get 300 words on the button and wound up somehow with 8 words. There's more in comment #1.


4 posted on 08/03/2006 2:41:55 PM PDT by Graybeard58 (Remember and pray for Sgt. Matt Maupin - MIA/POW- Iraq since 04/09/04)
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To: Graybeard58

You should see the gap between the rich and poor in North Korea, Cuba and other commie countries. They don't have a middle class.


5 posted on 08/03/2006 2:48:19 PM PDT by GeronL (http://www.mises.org/story/1975 <--no such thing as a fairtax)
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To: Graybeard58

What is it with these Treas Secs? Jeez, Bush can't pick em!

As long as the economy's good, rich people will always accumulate more wealth. The do-nothings at the other end will always have nothing. Always have, always will. However, it's not like they will ever have less than nothing.

It's when the rich/poor gap narrows, then we'll be in serious economic trouble.

Always the same grasshopper/ant scenario. I can't believe Paulson's actually wasting brainpower on this.


6 posted on 08/03/2006 2:48:30 PM PDT by rock_lobsta (cair = hamas = iran = EVIL)
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To: Graybeard58

Oh W, fire this guy. He is a cheap political whore pandering to the Junk Media's talking points. What utter nonense. Mean wages are significantly UP. This guy is a clown.


7 posted on 08/03/2006 2:49:00 PM PDT by MNJohnnie (Fire Murtha Now! Spread the word. Support Diana Irey. http://www.irey.com/)
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To: Graybeard58

People are always so willing to stretch the concept of Adam Smith's 'guiding' hand and the accumulation of wealth and make the implication that capitalism is founded upon greed, while completely ignoring the much more obvious notion that socialism and communism are rooted in envy?


8 posted on 08/03/2006 2:52:36 PM PDT by Joe 6-pack (Que me amat, amet et canem meum)
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To: Joe 6-pack

Because Adam Smith's theories are rooted in "self interest," which really aren't synonmous with "greed" and communism is isn't rooted in envy, but supposedly scientific principles, while socialism is something else entirely.


9 posted on 08/03/2006 2:55:04 PM PDT by durasell (!)
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To: Graybeard58
How is the income calculated? Are taxes included? Cash benefits? Non-cash benefits like food stamps, section 8 housing and Medicaid?

If you tax me more to give welfare to someone else, by any logical accounting that would reduce my income and increase the income of the beneficiary. However, most of this accounting doesn't count the higher income person as having less income after taxes or the lower income person as having more from government freebies. In fact if the richer person starts working overtime to keep pace, while the poorer person decides that he's making enough from welfare and doesn't need a job, then the welfare program could actually increase the "wealth gap" depending on how it is counted.

10 posted on 08/03/2006 3:10:28 PM PDT by KarlInOhio (Loose lips sink ships - and the New York Times really doesn't have a problem with sinking ships.)
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To: Graybeard58
"Amid this country's strong economic expansion, many Americans simply aren't feeling the benefits," Paulson said during his first major speech as Treasury secretary, at Columbia University's business school in New York on Monday. "Their increases in wages are being eaten up by high energy prices and rising healthcare costs, among others."

He's right. Will he propose supply side economics, restraining government growth, and a market based monetary policy?

11 posted on 08/03/2006 3:11:28 PM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: Graybeard58

Sounds like the liberal rant about the class struggle. We still have a middle class in this country and everyone has
the opportunity to rise above their current status.


12 posted on 08/03/2006 8:10:30 PM PDT by upcountryhorseman (An old fashioned conservative)
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