From the category archives:

Public policies

Reducing inequality: what’s the problem?

by lane on April 13, 2009

As Henry mentioned this morning, I’ll be doing a series of guest posts at Crooked Timber this week. I’m grateful for the invitation. My posts will be on strategies for reducing income inequality in the United States.

Here’s the problem (more discussion here):

There are two linked components to this rise in inequality: the surge in incomes for those at the top of the distribution and the slow growth of incomes for those in the middle and at the bottom.

Is this really a problem? Would it be better if income inequality were reduced? I think so, for the following reasons.

1. Fairness. Market processes have produced enormous incomes for various financial operators, CEOs, entrepreneurs, athletes, and entertainers in recent decades. A good bit of this is due to luck — being in the right place at the right time, genetic talent, having the right parents or teacher or coach, and so on. I don’t mind some inequality due to luck, and I recognize that monetary incentives are helpful. But the current (or recent, I should say;  the downturn will reduce top incomes somewhat) magnitude of inequality in America strikes me as unfair. An income of several hundred million dollars when the minimum wage gets you about $15,000 is too much inequality. What’s the proper amount of income inequality? I don’t have a precise answer, but that doesn’t mean it’s wrong to feel that our current level is excessive.

2. Inequality’s consequences. Even if you don’t worry about exorbitant incomes in and of themselves, there’s no avoiding the fact that they have consequences for the incomes and well-being of Americans in middle and lower parts of the distribution. The social pie isn’t zero-sum. But our economy hasn’t grown faster in the past few decades than it did before, so the dramatic jump in incomes among those at the top has come in part at the expense of the rest of us. The following chart offers one way to see this. It shows GDP per family and median family income over the past six decades. Relative to growth of the economy, incomes in the middle (and below) have increased slowly since the 1970s.

As Robert Frank has pointed out, super-high incomes also have led to an arms race in consumption, especially in housing. Spending among the rich has escalated dramatically, encouraging middle- and upper-middle-class households to take on more and more debt in order to keep pace.

Over the past decade a number of social scientists have looked at the effect of inequality on other societal outcomes. We have studies suggesting that inequality is bad for education, health, crime, economic growth, economic mobility, civic engagement, political participation, political influence, and political polarization. I’m not convinced that all of these findings are correct, but some of them are quite plausible.

So what should we do? Stay tuned.

Belated Happy Birthday, International Women’s Day!

by Ingrid Robeyns on March 9, 2009

8march

According to Wikipedia, yesterday was the 100th International Women’s Day (I started writing this post yesterday, but spent most of that day at a feminist meeting and having a women’s night out. Sorry. But here it is – better late than never). Last year, here at CT, we discovered that in some countries this is not celebrated as a social or political event (as it is in Europe) but rather as a day to give your wife or girlfriend chocolates or flowers. So I felt it’d be good to post an old-fashioned political poster, stolen from the very same wikipedia site. Isn’t it awesome? [click to continue…]

Feminism and Basic Income Revisited

by Ingrid Robeyns on February 2, 2009

We’ve had some discussions on the desirability of a basic income from a feminist perspective here before (here and here). So I thought I would mention that about a month ago a special issue of <em>Basic Income Studies</em> was published which addresses precisely the question whether, all things considered, feminists should endorse a basic income. All authors answered this question with (relatively) affluent societies in mind; so the question still need to be answered for developing countries.

I guest-edited this issue and, as I wrote in the introduction (which also summarises the papers), apart from Barbara Bergmann’s contribution, I genuinely did not know what the other contributors (John Baker, Anca Gheaus, Jacqueline O’Reilly, Almaz Zelleke, and Julieta Elgarte) would argue. So although these authors are all either feminists or generally supportive of feminist views, I was truly surprised to find out that they strongly disagreed on the desirability of a basic income for feminists. On the one hand this is due to the different kinds of feminism which they endorse. Bergmann is a ‘Total Androgyny, Male Style’- type of feminist, whereas Baker and Zelleke, for example, are much more concerned about the short-term interests of carers and those who do not want to or cannot take on large paid jobs, which are often mothers and female carers. Yet the other source of disagreement is the predicted effects of a basic income on the gendered division of labour. Gheaus thinks it will become more unequal (a view I share based on an empirical literature survey of similar policy instruments or financial changes, which I did as a graduate student). Elgarte thinks we need to make policy space for an ‘avantgarde’ who is practicing a more egalitarian gender division of labour while at the same time protecting those who are living in more gendertraditional households, whereas Zelleke doesn’t think the gender division of labour will worsen if a basic income would be implemented.

How is all this possible? The answer, I think, lies in the fact that these papers argue at a high level of generality and without specifying what the level of the basic income will be and what other elements of the welfare state (public goods, merit goods, etc.) will be kept and/or implemented. Of course, this critique is not true for Bergmann, who has done some interesting calculations and argues that if we have a Swedish-style welfare state with targeted transfers and subsidized public and merit goods, there is no fiscal room left to increase taxation rates for a basic income; and it is also not entirely true for O’Reilly, who compares existing social policies aiming at gender equality, and concludes that she is sceptical about what a basic income can do better.

So my conclusion? “…the main merit of this debate in Basic Income Studies is that it provides evidence of the consolidation of the conflicting feminist views about basic income proposals when analysed at a general level. Therefore, I believe that it is time to move to a second stage of feminist analyses that needs to focus more on the details of the entire package deal of a basic income society, in an empirically grounded fashion.” (introduction, p. 5)

Basic Income Studies is one of those wonderful Open Access Journals, so anybody interested can read it all here.

Valuing Children

by Ingrid Robeyns on September 15, 2008

Finally and long overdue, here is my book review of Valuing Children, Nancy Folbre’s latest book. The overall goal of this book is to show how and why children matter for economic life, to provide estimates of the economic value of family (nonmarket) childcare and parental expenditures in the USA, and to raise critical questions about the size and kinds of public spending on children in the USA.

Folbre formulates four questions which she sets out to answer: (1) Why should we care about spending on the children? (2) How much money and time do parents devote to children? (3) How much money do taxpayers spend on children? And (4) who should pay for the kids (in other words, which share of the costs of children should be borne by parents and by the government)?
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Better Never to Have Been

by Harry on September 3, 2008

I see that David Benatar’s excellent book Better Never to Have Been: The Harm of Coming into Existence has just come out in paperback. It’s almost enough to make me regret that I am on sabbatical this coming year. In my Contemporary Moral Issues course I always teach abortion as the first topic, because it gets them to read two of my favourite pieces of applied philosophy, Thomson’s A Defence of Abortion, and Marquis’s Why Abortion is Immoral. I also take a bit of time to discuss conceptual space, and used to use the view that abortion is always obligatory as an example of conceptual space that no-one occupies. Now, however, I include chapter 5 of Benatar’s book (Abortion: the ‘Pro-Death’ View) in the course packet. Benatar is a terse, unfussy, and careful writer: the argument is complicated, but the writing is excellent, and it is an easy, and compelling, read. I was annoyed that it first came out in an expensive hardback which I could not, in good conscience, assign, and feared that it would not sell well enough to be paperbacked. So, now I’ll be happy to assign it.

The opening lines give the basic structure of the argument:

Each one of us was harmed by being brought into existence. That harm is not negligible, because the quality of even the best lives is very bad-and considerably worse than most people recognise it to be. Although it is obviously too late to prevent our own existence, it is not too late to prevent the existence of future possible people. Creating new people is thus morally problematic.

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Care Talk Blog

by Ingrid Robeyns on May 20, 2008

Nancy Folbre, who is widely considered to be one of the most knowledgeable economists on issues of care work, has recently started a new blog, called Care Talk. It’s a research blog that aims to bring together interdisciplinary insights on issues of care — child care, care issues related to primary education, elder care, care for disabled, and health care. Care is a neglected issue in several disciplines and subdisciplines, including economics and political philosophy, and I can only applaud this initiative. I hope that this will become a genuine international blog — much can be learnt from looking at how care work is organised and divided in other countries.

Folbre published earlier this year her new book Valuing Children which I have here on my desk. I promise our readers a review of that book sometime in June.

Speaking of public intellectuals, Siva Vaidhyanathan gave a talk here a couple days ago on privacy and surveillance, developing the ideas here. (For one thing, he now prefers “Cryptopticon” to “Nonopticon.”)

Siva thinks we should stop our Foucauldian worrying about Bentham’s Panopticon. He says he’s lived in the Panopticon, in New York, where there are lots of visible cameras everywhere (when I lived in one of the home counties, where it is said you can go all day without being out of CCTV range, I knew the feeling). Siva points out a lot of the cameras aren’t maintained, monitored, or even attached to anything; that’s not the point of them. They’re not there to watch you, they’re there to make you think that you’re being watched. Such reminders (your call may be monitored) are supposed to get you to become your own social superego.

On balance, Siva seems to think, this is pretty harmless. The point of the Panopticon is to get you to behave, to hide your real self, to conform. About which we can note two things: one, if you’ve been to London or New York, you see that in the real Panopticon people get their freak on just fine, thank you very much. And two, to the extent that it does work, the Panopticon actually reinforces privacy—getting you to hide your real self draws the boundaries around that real self. What we really need to worry about is unannounced, concealed surveillance: the NonCryptopticon.
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“Let it rip.”

by Eric on April 22, 2008

Over at our joint I’ve been doing a fair bit of “this day seventy-five years ago” because of the anniversary of Roosevelt’s hundred days and, well, because. This one may hold some interest for an international readership:

On this day in 1933, British Prime Minister Ramsay MacDonald delivered an address from the National Press Club in Washington, DC, discussing the common problems of the US and UK: “In America at this moment and in Great Britain there are millions of men who want work and can’t get it…. Governments cannot be indifferent to a state of things like that.”

MacDonald looked forward to “wise international government action,” to be established at the upcoming international economic conference. He hoped it would revive “a freely flowing international exchange,” i.e., trade—“Self-sufficiency in the economic field on the part of nations ultimately ends in the poverty of their own people.”

He was mindful of the apparent irony in Britain’s having taken the nationalist, defensive action of going off the gold standard: “Can you imagine that in the early days of that crisis we said gayly and light-heartedly, ‘Let it rip. Let it rip. We will go off gold. There are benefits in being off gold, and we will reap them.'” Obviously he meant the answer to be “no.”—“And so on this currency question, agreement is the only protection.”1
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The one per cent doctrine

by Chris Bertram on April 5, 2008

Jeremy Waldron has a great piece in the latest LRB reviewing a recent book by Cass Sunstein. He has a nice discussion of the Cheney doctrine that even a one-percent probability of a catastrophic event should be treated as a certainty for policy purposes, where the class of catastrophic events is limited to those with a military, security or terrorist dimension. Reasoning like this interacts neatly with “ticking-bomb” scenarios: now a 1 per cent chance that the there’s a ticking bomb the terrorist knows about is sufficient in to justify waterboarding or worse. Of course other potentially catastrophic developments — such as climate change — haven’t generated a “treat as if certain” policy response from the US government, even thought even the most determined denialists must evaluate the probability that anthropogenic global warming is happening at greater than one in a hundred.

Waldron is also pretty acid about Sunstein’s treatment of global warming and distributive justice, noting some of the shortcomings of the idea that poor people’s lives should be valued according to what they’re prepared to pay to avoid the risk of death. But read the whole thing, as they say.

2 weeks of birthleave for fathers

by Ingrid Robeyns on January 3, 2008

When last September Ronald Plasterk, the Dutch minister of Education, Culture and Science, who also holds emancipation in his portfolio, released his Policy Paper on Emancipation, he was criticized for not mentioning men at all. Basically his view is that women should be encouraged to perform more paid work so that they can be ‘financially independent’, and the government should provide the conditions for making this possible, for example by expanding the supply of formal child care facilities. I agree with the critics that what is missing is a vision of what fathers need to be offered, both as a matter of justice for fathers, but also as a precondition for women’s emancipation. So I would like to suggest to Mr. Plasterk, as a first and minimal step towards the inclusion of men in his emancipation policies, that he introduces the right for fathers of a minimum of 2 weeks of fully paid birthleave (and, of course, also for co-mothers in the case of lesbian parents).
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Welfare and Race

by Henry Farrell on August 8, 2007

From Glenn Loury’s excellent article in the new _Boston Review_ on why there are so many people in US prisons, and why so many of these people are black.

… something interesting seems to have been going on in the late 1960s regarding the relationship between attitudes on race and social policy. Before 1965, public attitudes on the welfare state and on race, as measured by the annually administered General Social Survey, varied year to year independently of one another: you could not predict much about a person’s attitudes on welfare politics by knowing their attitudes about race. After 1965, the attitudes moved in tandem, as welfare came to be seen as a race issue. Indeed, the year-to-year correlation between an index measuring liberalism of racial attitudes and attitudes toward the welfare state over the interval 1950–1965 was .03. These same two series had a correlation of .68 over the period 1966–1996.

A genuine right to part-time work

by Ingrid Robeyns on July 25, 2007

Judith Warner wrote a column in yesterday’s NYT (unfortunately behind the pay-wall) on the need to make part-time work genuinely available for all American workers. She argues that study after study shows that up to 80% of mothers, both those holding jobs or caring at home, want to work part-time, but that currently only 24% do so because “part-time work doesn’t pay”:

Women on a reduced schedule earn almost 18 percent less than their full-time female peers with equivalent jobs and education levels, according to research by Janet Gornick, a professor of sociology and political science at City University of New York, and the labor economist Elena Bardasi. Part-time jobs rarely come with benefits. They tend to be clustered in low-paying fields like the retail and service industries. And in better-paid professions, a reduced work schedule very often can mean cutting down from 50-plus hours a week to 40-odd — hardly a “privilege” worth paying for with a big pay cut.

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Should feminists support basic income?

by Ingrid Robeyns on July 10, 2007

A little while ago, when Harry discussed the latest addition to the Real Utopias Project on basic income and stakeholding, some commentators raised the issue of the gender effects. I promised at that time that I would write a post about it. Well, finallly the time has come — thanks to a workshop on this topic that the Heinrich Boell Foundation organised last Thursday in Berlin. They are the think-thank of the Green German Party, which is currently seriously debating whether they should advocate a basic income as (part of) a welfare state reform strategy. The workshop addressed the question whether a basic income would have different implications for women and men, and whether, all things considered, it would be a policy reform that feminists may want to support. [click to continue…]

Three Card Monte

by Henry Farrell on February 25, 2007

This short, funny paper on the “denialist’s deck of cards” by Chris Hoofnagle does a pretty good job at identifying a stock set of lobbyist/glibertarian responses to various proposals for consumer legislation.

Most of these arguments can be cogent in certain contexts. Sometimes the industry is correct on the facts and the issues. In others, the arguments [are] not. … The point of listing denialists’ arguments in this fashion is to show the rhetorical progression of groups that are not seeking a dialogue but rather an outcome. As such, this taxonomy is extremely cynical, but it is a reflection of and reaction to how poor the public policy debates.

Not as short and to the point as Whale Central Station but pretty useful nonetheless. Via Larry Solum.

A Paradise for Children?

by Ingrid Robeyns on February 15, 2007

UNICEF has released a study on the well-being of children in 21 OECD countries. The countries are ranked according to their average child well-being. The top four are the Netherlands, Sweden, Denmark, and Finland, and the bottom two are the United States and the United Kingdom. Ranking countries always attracts the attention of the media, with the Dutch media proudly announcing that children are nowhere as happy as in the Netherlands, and the BBC reporting on reactions in the UK.

Here are some thoughts about this report from a Dutch perspective — I’ll leave it to others to comment on the problems the UK, USA or other countries are facing. What follows are just some thoughts for discussion and not a full explanation of why the Dutch are so high in this ranking (for other discussions of the report, see here, here and here) [click to continue…]