An Important New Report Argues Inequality Is Hurting U.S. Economic Growth, And It Isn’t The First
There are two refrains that we often repeat when describing our philosophy for economic growth: we need an economy that works for everyone, not just the wealthy few; and we need an economy that grows from the middle-out, not the top down. At the heart of both of those beliefs is the demand that our leaders address the growing economic inequality in this country that leaves the richest with an ever-growing share of our nation’s wealth, while squeezing the vast middle class. This inequality doesn’t actually hurt some while helping others — it weakens our overall economy and as a result hurts everyone.
A new report issued by economists at Standard & Poor’s Ratings Services agrees with these dire impacts of inequality. The report, entitled “How Increasing Inequality is Dampening U.S. Economic Growth, and Possible Ways to Change the Tide,” concludes that the widening gap between the wealthiest and everyone else is a key reason why our economic recovery is the weakest in the last 50 years. Pushing back against the oft-repeated and dead-wrong trickle-down argument on the right that a rising tide lifts all boats, S&P responds, “A lifeboat carrying a few, surrounded by many treading water, risks capsizing.”
This report is important because it comes from the business forecasting community, focused not on advancing new academic theories but on predicting for clients how the economy is working. It is far from the only voice, however, making the argument that income inequality is hurting economic growth. Here are a few other recent examples:
The International Monetary Fund (IMF): In a report issued this February, IMF economists make the argument that continuing to ignore income inequality will harm economic growth. “Lower net inequality is robustly correlated with faster and more durable growth,” they write. It is “a mistake to focus on growth and let inequality take care of itself.”
Billionaire Entrepreneur Nick Hanauer: Hanauer, who was the first nonfamily investor in Amazon.com, wrote the most popular article in Politico Magazine history, called “The Pitchforks Are Coming… For Us Plutocrats.” In the piece, he points out inequality doesn’t just hurt the economy, it creates political instability as well: “There is no example in human history where wealth accumulated like this and the pitchforks didn’t eventually come out,” writes Hanauer. “You show me a highly unequal society, and I will show you a police state. Or an uprising. There are no counterexamples. None.”
Nobel-Prize Winning Economist Joseph Stiglitz: Stiglitz wrote a whole book on this topic, aptly named “The Price of Inequality: How Today’s Divided Society Endangers Our Future.” One of several reasons he gives for why increasing inequality hurts growth is that it reduces people’s trust in the system. “People are not machines,” Stiglitz writes. “If they feel that they are being treated unfairly, it can be difficult to motivate them.”
Economist and Best-Selling Author Thomas Piketty: In his 2014 best-seller Capital in the 21st Century, Piketty explains that wealth concentrating in the hands of a few at the top is not an accident in capitalism, but a feature. Governments need to intervene in order to prevent that concentration from weakening the economy and causing political instability.
The Federal Reserve Bank. Sarah Bloom Raskin, who resigned from the Federal Reserve Board of Governors in March to become Deputy Treasury Secretary, believes inequality was the cause of the crisis and the source of the slow recovery: “because of how hard these lower- and middle-income households were hit, the recession was worse and the recovery has been weaker.”
BOTTOM LINE: The new S&P report that argues income inequality is hurting U.S. economic growth is an important reminder that we need economic policies that make sure everyone pays their fair share to help the economy grow from the middle-out. And it’s far from the only source to make that case: A stronger middle class means more workers, more consumers, and a better economic climate for everyone.
A vast majority of women serving in Congress today are there because they won tough open primaries. So, when an elected official retires or moves up to higher office, EMILY’s List jumps on the opportunity to get a pro-choice Democratic woman to run for that seat.
So you’ve read all the news stories about the waves of House retirements, right? Well so have we. Watch our behind-the-scenes strategy briefing about some EMILY’s List women currently trying to fill those seats by competing in open primary races:
Thanks for watching,
Jess McIntosh
Communications Director, EMILY’s List
Disappointingly, nearly one-third of women reported having personally experienced discrimination at work. Women at the top were 45 percent more likely to say they have experienced discrimination. Some 20 percent of men in the survey agreed that they’d be paid less if they were a woman.
Unfortunately, there are plenty of stories to underscore what women in the CAP/Elle poll reported. ThinkProgress’ Tara Culp-Ressler and Bryce Covert round up five startling examples of how employers turn women into sex objects at work:
A New Jersey judge ruled that casino waitresses can be fired for gaining weight.
Twenty two former cocktail servers sued a popular casino in Atlantic City over a policy that forbids waitresses from gaining more than seven percent of their original body weight. The women were subject to regular weigh-ins, and the policy meant that a 130-pound woman was not allowed to gain more than 9.1 pounds. They alleged it was weight discrimination — but an Atlantic County Superior Court Judge disagreed. In July, the judge ruled that casino waitresses are essentially “sex objects,” and it’s okay to fire them for gaining weight because they are no longer fulfilling their contractual obligations.
A widely-used employee training manual tells women how to make sure they don’t lead men on.
Earlier this week, Jezebel reported that a popular manager training guide — used as companies like Google, Groupon, and Modcloth — essentially tells women that they’re responsible for preventing advances from their male co-workers. The manual tells women who are “touchy-feely or flirtatious by nature” to “dial it back,” suggests women socialize in groups, and advises women to avoid “revealing clothing” or “ending statements with an upward inflection.”
Women at Merrill Lynch have been instructed to seduce their way to the top.
Other employee trainings have similarly gone off the rails when it comes to guidance on women’s behavior in the workplace. Female employees at Merrill Lynch allege they were made to read a book called “Seducing the Boys Club: Uncensored Tactics From a Woman at the Top” and to make use of its advice to get ahead. To get men to do their work, the book suggested “play[ing] on their masculine pride and natural instincts to protect the weaker sex.” To diffuse tense situations, it pointed out that men “puff up” at being told, “Wow, you look great. Been working out?” The women also allege that they were pressured to attend female-only events on “dressing for success” and were told to be more “perky” and “bubbly.”
The Iowa Supreme Court decided it’s okay to fire attractive women if they pose a risk to men’s marriages.
James Knight, a dentist in Iowa, didn’t fire his female assistant Melissa Nelson after 10 years of working for him because of performance reasons. Instead, Nelson alleges that Knight’s wife told him to do it because “she was a big threat to our marriage” given that he was sexually attracted to her. Yet in July, the all-male Iowa Supreme Court stood by an earlier decision that she wasn’t improperly fired because it wasn’t gender discrimination. Instead, her firing was found permissible because of the facts surrounding her relationship with Knight, such as several comments he made about her clothing and the fact that they texted each other after work hours.
Two hotel employees were fired after they complained about being photoshopped onto bikini-clad bodies.
Two sisters, Martha and Lorena Reyes, say they were fired from the Hyatt Hotel in Santa Clara, CA after they complained about photoshopped images of them. In the photos, the women’s heads were photoshopped onto the bodies of women wearing bikinis. Lorena told Jezebel that they were “extremely humiliating and shameful for me” and also said she has never worn a bikini, even at home. While the company says it fired them two days after they complained about the images because they took overly long breaks, the sisters feel it was related to the incident. The Reyes sisters have filed a retaliation charge with the Equal Employment Opportunity Commission.
The Senate stands in adjournment until 9:30am on Wednesday, April 24, 2013. Following any Leader remarks, the Senate will be in a period of morning business until 10:30am with Senators permitted to speak therein for up to 10 minutes each with the Republicans controlling the first half and the Majority controlling the final half.
Following morning business, the Senate will proceed to Executive Session to consider the following nominations:
There will be 90 minutes of debate, with time from 10:30 until 11:00am on the Kelly nomination and the time from 11:00am until 12:00 noon on the Burwell nomination. At 12:00 noon, the Senate will proceed to vote on confirmation of the nominations in the order listed. The first vote will be a 15 minute vote and the second vote will be a 10 minute vote.
Following the votes, the Senate will resume consideration of the motion to proceed to S.743, the Marketplace Fairness Act of 2013, and immediately vote on adoption of the motion.
At 10:00am the Senate turned to a period of morning business until 10:30am, with the time equally divided. At 10:30am, the Senate will turn to Executive Session to debate the Kelly (30 minutes of debate) and Burwell (60 minutes of debate) nominations.
At 12:00 noon, the Senate will proceed to a series of up to 3 roll call votes in relation to the following items:
– Confirmation of Executive Calendar #60, the nomination of Jane Kelly, of Iowa, to be United States Circuit Judge for the Eighth Circuit;
– Confirmation of Executive Calendar #64, the nomination of Sylvia Mathews Burwell, of West Virginia, to be Director of the Office of Management and Budget; and
– Adoption of the motion to proceed to S.743, Marketplace Fairness Act.
12:05pm The Senate began a roll call vote on confirmation of Executive Calendar #60, the nomination of Jane Kelly, of Iowa, to be United States Circuit Judge for the Eighth Circuit
Confirmed: 96-0
12:29pm The Senate began a roll call vote on confirmation of Executive Calendar #64, the nomination of Sylvia Mathews Burwell, of West Virginia, to be Director of the Office of Management and Budget (10 minute roll call vote)
The motion to proceed to S.743, Marketplace Fairness Act, was adopted 75-22. Senator Reid then offered the Enzi-Durbin perfecting amendment #741 (Manager’s technical amendment) and filed cloture on the bill. Under the rule, the cloture vote would occur 1 hour after the Senate convenes on Friday.
Senator Donnelly is now giving his maiden speech. We will resume consideration of the Marketplace Fairness Act following his remarks.
Senator Durbin offered a second degree amendment #745 (date change) to Enzi amendment #741. Senator Durbin has urged senators with amendments to the bill to come to the floor to talk to the managers about their amendments. He, along with Senator Reid, would like to complete action on the bill before we leave this week.
Senator Toomey asked unanimous consent the Senate take up and pass a bill to provide for sequester replacement. Senator Durbin objected. Senator Durbin then asked consent to take up and pass Calendar #64, S.788, a bill to suspend the fiscal year 2013 sequestration and offset with funds from Overseas Contingency Operations. Senator Toomey objected.
As a result of cloture being filed, the filing deadline for first degree amendments to S.743, Marketplace Fairness Act, is 1pm tomorrow, Thursday, April 25. If cloture is invoked, amendments must be germane and timely filed to be considered in order post-cloture.
ROLL CALL VOTES
1) Executive Calendar #60, the nomination of Jane Kelly, of Iowa, to be United States Circuit Judge for the Eighth Circuit; Confirmed: 96-0
2) Executive Calendar #64, the nomination of Sylvia Mathews Burwell, of West Virginia, to be Director of the Office of Management and Budget; Confirmed: 96-0
3) Adoption of the motion to proceed to S.743, Marketplace Fairness Act; Adopted: 75-22
LEGISLATIVE ITEMS
Adopted S.Res.111, a resolution supporting the goals and ideals of National Safe Digging Month.
Adopted S.Res.112, Commending employees of the Senate Post Office, employees of the Sergeant at Arms of the Senate, members of the Capitol Police, and members of the Capitol Hill community for their courage and professionalism following the biochemical attack against the Senate on April 16, 2013.
Adopted S.Res.113, designating April 23, 2013 as “National Adopt a Library Day”.
Adopted S.Res.114, a legal counsel resolution regarding U.S. v. Renzi.
Began the Rule 14 process of S.799, to provide for a sequester replacement. (Inhofe/Toomey)
Completed the Rule 14 process of S.788, to suspend FY2013 sequestration. (Reid)
Last Floor Action:
9:31:34 P.M. – The House adjourned. 4/23/13
The next meeting is scheduled for 10:00 a.m. on April 24, 2013.
10:00:24 A.M.
The House convened, starting a new legislative day.
10:00:39 A.M.
The Speaker designated the Honorable Rodney Davis to act as Speaker pro tempore for today.
10:01:02 A.M.
MORNING-HOUR DEBATE – The House proceeded with Morning-Hour Debate. At the conclusion of Morning-Hour, the House will recess until 12:00 p.m. for the start of legislative business.
10:40:09 A.M.
The Speaker announced that the House do now recess. The next meeting is scheduled for 12:00 P.M. today.
12:00:25 P.M.
The House convened, returning from a recess continuing the legislative day of April 24.
12:00:32 P.M.
Today’s prayer was offered by Archbishop Oshagan Choloyan, Armenian Apostolic Church of America, New York, NY
12:02:33 P.M.
The Speaker announced approval of the Journal. Pursuant to clause 1, rule I, the Journal stands approved.
12:02:35 P.M.
PLEDGE OF ALLEGIANCE – The Chair designated Mr. Valadao to lead the Members in reciting the Pledge of Allegiance to the Flag.
12:04:25 P.M.
ONE MINUTE SPEECHES – The House proceeded with one minute speeches, which by direction of the Chair would be limited to 15 per side of the aisle.
12:30:35 P.M.
The Speaker announced that votes on suspensions, if ordered, will be postponed until a time to be announced.
12:30:56 P.M.
H.R. 1071
Mr. Bachus moved to suspend the rules and pass the bill. H.R. 1071 — “To specify the size of the precious-metal blanks that will be used in the production of the National Baseball Hall of Fame commemorative coins.”
12:31:13 P.M.
H.R. 1071
Considered under suspension of the rules.
12:31:19 P.M.
H.R. 1071
DEBATE – The House proceeded with forty minutes of debate on H.R. 1071.
12:40:13 P.M.
H.R. 1071
On motion to suspend the rules and pass the bill Agreed to by voice vote.
12:40:16 P.M.
H.R. 1071
Motion to reconsider laid on the table Agreed to without objection.
12:40:32 P.M.
H.R. 360
Mr. Bachus moved to suspend the rules and pass the bill, as amended. H.R. 360 — “To award posthumously a Congressional Gold Medal to Addie Mae Collins, Denise McNair, Carole Robertson, and Cynthia Wesley, in recognition of the 50th commemoration of the bombing of the Sixteenth Street Baptist Church where the 4 little Black girls lost their lives, which served as a catalyst for the Civil Rights Movement.”
12:40:47 P.M.
H.R. 360
Considered under suspension of the rules.
12:41:07 P.M.
H.R. 360
DEBATE – The House proceeded with forty minutes of debate on H.R. 360.
1:40:33 P.M.
H.R. 360
At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
1:41:47 P.M.
H. Res. 175
Considered as privileged matter. H. Res. 175 — “Providing for consideration of the bill (H.R. 1549) to amend Public Law 111-148 to transfer fiscal year 2013 through fiscal year 2016 funds from the Prevention and Public Health Fund to carry out the temporary high risk health insurance pool program for individuals with preexisting conditions, and to extend access to such program to such individuals who have had creditable coverage during the 6 months prior to application for coverage through such program.”
1:44:43 P.M.
H. Res. 175
DEBATE – The House proceeded with one hour of debate on H. Res. 175.
2:59:02 P.M.
H. Res. 175
On ordering the previous question Agreed to by the Yeas and Nays: 228 – 192 (Roll no. 121).
3:05:37 P.M.
H. Res. 175
On agreeing to the resolution Agreed to by the Yeas and Nays: 225 – 189 (Roll no. 122).
3:05:38 P.M.
H. Res. 175
Motion to reconsider laid on the table Agreed to without objection.
3:05:57 P.M.
UNFINISHED BUSINESS – The Chair announced that the unfinished business was on a motion to suspend the rules which had been debated earlier and on which further proceedings had been postponed.
3:06:14 P.M.
H.R. 360
Considered as unfinished business. H.R. 360 — “To award posthumously a Congressional Gold Medal to Addie Mae Collins, Denise McNair, Carole Robertson, and Cynthia Wesley, in recognition of the 50th commemoration of the bombing of the Sixteenth Street Baptist Church where the 4 little Black girls lost their lives, which served as a catalyst for the Civil Rights Movement.”
3:14:08 P.M.
H.R. 360
On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 420 – 0 (Roll no. 123).
3:14:09 P.M.
H.R. 360
Motion to reconsider laid on the table Agreed to without objection.
3:14:35 P.M.
Ms. Ros-Lehtinen asked unanimous consent That it may be in order at any time on Wednesday, May 8, 2013, for the Speaker to declare a recess, subject to the call of the Chair, for the purpose of receiving in Joint Meeting Her Excellency Park Geun-hye, President of the Republic of Korea. Agreed to without objection.
3:15:08 P.M.
ONE MINUTE SPEECHES – The House proceeded with further one minute speeches.
3:23:01 P.M.
The Speaker laid before the House a message from the President transmitting a notification of the 2013 National Drug Control Strategy – referred to the Committees on Energy and Commerce, Education and the Workforce, Veterans’ Affairs, Armed Services, Judiciary, Natural Resources, Financial Services, Homeland Security, Oversight and Government Reform, Ways and Means, Foreign Affairs, Transportation and Infrastructure, and Intelligence (Permanent Select) and ordered to be printed (H. Doc. 113-20).
3:25:10 P.M.
ONE MINUTE SPEECHES – The House resumed with further one minute speeches.
3:27:30 P.M.
SPECIAL ORDER SPEECHES – The House has concluded all anticipated legislative business and has proceeded to Special Order speeches.
4:27:31 P.M.
RE-REFERRAL of H.R. 763 – Mr. Gardner asked unanimous consent that H.R. 763 be re-referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce.
4:27:32 P.M.
ONE MINUTE SPEECHES – The House proceeded with further one minute speeches.
4:28:00 P.M.
SPECIAL ORDER SPEECHES – The House resumed Special Order speeches.
5:02:59 P.M.
Mr. Bishop (UT) filed a report from the Committee on Rules on H. Res. 178.
5:03:40 P.M.
SPECIAL ORDER SPEECHES – The House resumed Special Order speeches.
6:26:50 P.M.
Mr. Rokita moved that the House do now adjourn.
6:26:54 P.M.
On motion to adjourn Agreed to by voice vote.
6:26:58 P.M.
The House adjourned. The next meeting is scheduled for 10:00 a.m. on April 25, 2013.
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