Inequality and Virtue

This class is way ahead of the curve.  This morning, President Obama said:

Inequality and Taxes

Family and Education

Education and Inequality

The "Founding Virtues"

From Federalist 55 (not on syllabus): 

As there is a degree of depravity in mankind which requires a certain degree of circumspection and distrust, so there are other qualities in human nature which justify a certain portion of esteem and confidence. Republican government presupposes the existence of these qualities in a higher degree than any other form. Were the pictures which have been drawn by the political jealousy of some among us faithful likenesses of the human character, the inference would be, that there is not sufficient virtue among men for self-government; and that nothing less than the chains of despotism can restrain them from destroying and devouring one another.

Industriousness and Honesty

The Decline of Social Trust

Marriage and Religion

From Tocqueville, pp 291-292:

In Europe almost all the disorders of society are born around the domestic hearth and not far from the nuptial bed. It is there that men come to feel scorn for natural ties and legitimate pleasures and develop a taste for disorder, restlessness of spirit, and instability of desires. Shaken by the tumultuous passions which have often troubled his own house, the European finds it hard to submit to the authority of the state's legislators. When the American returns from the turmoil of politics to the bosom of the family, he immediately finds a perfect picture of order and peace. There all his pleasures are simple and natural and his joys innocent and quiet, and as the regularity of life brings him happiness, he easily forms the habit of regulating his opinions as well as his tastes.

Whereas the European tries to escape his sorrows at home by troubling society, the American derives from his home that love of order which he carries over affairs of state.

In the United States it is not only mores that are controlled by religion, but its sway extends even over reason.

...

Thus, while the law allows the American people to do everything, there are things which religion prevents them from imagining and forbids them to dare.

Religion, which never intervenes directly in the government of American society, should therefore be considered as the first of their political institutions, for although it did not give them the taste for liberty, it singularly facilitates their use thereof.

Inequality... Not Just a United States Issue

I came across this video and thought it was an interesting and shocking way to illustrate the disparity of wealth distribution in the United States. I was floored when I saw how large the gap is between the top 1% of wealthy people and the rest of the country. It's clear from the charts shown that the majority of Americans (or at least those sampled) are also unaware of just how prevalent wealth inequality is. Murray discusses the growing upper class as well as the growing lower class and provides insightful depictions of what life is like for these two groups, but I was not able to get a clear sense of just how large the gap has grown in recent years until I saw the numbers displayed as clearly as they are here.

Towards the end of the video, the narrator says, "we certainly don't have to go all the way to socialism to find something that is fair for hardworking Americans."

Well how far exactly do we have to go to find a solution to economic inequality? I found this article about legislation that has been recently introduced to combat inequality in Switzerland, which currently ranks far better than the U.S. in regards to economic inequality. The "1 to 12 initiative" was put to a national referendum last week, which would have capped CEO pay at 12 times the amount that the lowest-paid company employee makes. The proposal did not pass, likely because would clearly have had negative effects on the Swiss economy, hurting competition and making it more difficult for Switzerland to attract talented workers. However, this shows that nations around the world are getting serious about inequality and attempting to solve the problem through legislation.

*** Inequality is a complex issue and can thus be depicted many different ways, making it possible for data and figures to be misrepresented. It is important to note that in the video above, the main focus is on wealth inequality, not income inequality. The difference between the two, and further criticism of the "Wealth Inequality in America" video is given in this other video.

The Cycle of Poverty

From our discussion on Monday and subsequent blog posts, it is clear that even two bordering neighborhoods can be worlds apart. From working with some of the seniors at Pomona High School on their college essays, I was able to hear one girl's struggle in her family's cycle of poverty as not just another statistic of people below the poverty line but as a very personal account. 

She grew up in South Central Los Angeles in which some zip codes show the percent of college graduates to be as low as 3%. Drive by shootings, drug dealers, and gang members are common on the streets. Her father was addicted to drugs, leaving her family broke with sometimes no money for food or for paying their gas and electricity bills. He passed away from AIDS, and her family moved to Pomona. 

She is the youngest of five children, and her brothers and sisters who are well into their 20s are either jobless or working minimum wage jobs. She will be the first in her family to graduate from high school and attend college, if accepted- which I have faith that she will be. Her way out of the cycle of poverty is a college education, and she knows it. She has worked hard these past four years, involving herself in extracurricular activities to keep her motivated and, in some cases, away from the troubles of home. Her older siblings, however, will most likely end up raising their children in similar environments. One of her main motivations to become successful is to be an example for her nieces and nephews that if she can do it, they can too. 

I believe that colleges accepting more and more first generation college students, those who have proved that they have worked hard and are willing to work hard like the rest of their peers in college, is one step in addressing the large gap in our class system.  

Relationship Between Geography and Income Mobilitiy

After our class discussion on Monday, I found this interesting article that talks about the relationship between location and the odds of moving up the income ladder. The study looks at factors such as education, family structure, and the economic layout of metropolitan areas to see how they affect socio-economic mobility. Variation in mobility does not seem to be related to average income of an area, as Seattle and Atlanta (two cities with similar average incomes) have disparaging upward mobility rates. The study found that some of the highest rates occurs in the West, the Northeast, and the Great Plains of the United States.

If you visit the website, it shows a map of the USA shaded based on upward mobility. It also includes a calculation where you can input location and parents' earnings to determine what the likely income of the child will be. It is important to note that while location plays a determining factor for middle-class and poor children, affluent children are likely to grow up to be affluent (unsurprisingly).

The study determined income mobility to be highest in areas with a high percentage of two-parent households, better education systems, and more civic engagement (including participation in religious and civic groups). These factors are tied to the themes of religiosity, industriousness, marriage, and honesty discussed by Murray.

19th St

In my city, there is one street that is famous for dividing two very different communities. 19th Street doesn't need census evidence to prove that it is a major dividing line, either. By crossing the street and walking a block on either side, the viewer will seen a drastic change in the types of houses and individuals who make up either side. From listening to others talk in class, I know that this is not an isolated phenomena but instead a pattern that is seen throughout the country. I believe that these cases exemplify Murray's argument about the geographic division between different classes. 19th Street is a particularly good example, also, because the majority of individuals who live on the side with the lower income and education levels are white- though a smaller majority than the other side.

My city newspaper published this article that mentions 19th street and talks about the socioeconomic segregation of Cedar Rapids. The article also goes on to talk about how individuals reinforce the division when moving to certain areas.

I also think its worthy to check out the interactive map on the Washington Post site to compare the zip codes 52401 and 52403. Though the two do not correspond to the 19th St division, they both represent an individual side rather well. 52401 is the smaller income, less educated side of 19th St. The median income is $24,507 and only 20% of adults have college degrees. On the other side, the median income of 52403 is $55,024 and 38% of individuals have college degrees. I'd also like to note that 52403 includes all of the "better off" side of 19th and a portion of the "less better off" side of 19th, which influences its rating. Without that portion, I believe both levels would be even higher.

While I do see truth in much of Murrary's argument, I think that the makeup of my school discredits some of his argument about the size of your bubble depending almost primarily one's income and education level. The kids that went to my high school almost perfectly came from half on one side of 19th and half from the other. As a result, individuals were exposed to individuals with very different backgrounds on a day to day basis. While this did not destroy ignorance, it did help promote understanding between classes.

The invisible unemployed

Though the recent trend in an overall lowered unemployment rate seems to calm the general public and point to a progressive economy, the statistic (7.9 percent in October 2012, 7.3 percent in October 2013) ignores an invisible group of people - discouraged workers. A discouraged worker is an unemployed person who has given up looking for work. This person is no longer considered as part of the labor force. Discouraged workers face the same issues as unemployed persons; both are victims of poor job prospects. When these people have given up hope, the measured unemployment rate declines. According to the Bureau of Labor Statistics, 6.9% of the total number not in the labor force currently wanted a job in October 2011. The number remained steady at 6.9% in October 2012, and recently has shifted to 6.2% in October 2013. However, the number of people out of the labor force between October 2012 and October 2013 has also grown by over 3 million. This may indicate that out of those no longer in the labor force, the people included within the steady 6.9% in both 2011 and 2012 gave up looking for work in 2013, leading to a smaller percentage of people currently wanting a job.

Murray indicates male unemployment has remained higher in low-income areas such as Fishtown rather than high-income areas such as Belmont. However, recent college graduates and educated middle-aged adults seeking positions are more likely to be found in Belmont. Most of these educated individuals are not seeking blue-collar service/factory jobs that can be more readily found than white-collar positions. Murray's statistics of lower rates of unemployment in Belmont could be ignoring the amount of discouraged workers who are not actively seeking employment or have chosen to retire early. As part of a high-income family, many individuals can still expect financial support from their families/existing assets. In contrast, the uneducated must be persistent and keep looking for work. Low-income families more often depend on living paycheck-to-paycheck and cannot live comfortably without a regular source of income. There will be less discouraged workers among those who cannot afford to live without wages. Belmont's unemployment ratio may actually be higher than what Murray documents, should the ratios be adjusted for discouraged workers. Murray might be ignoring an important issue. In communities such as Fishtown, there could be a lower rate of discouraged workers among those out of the labor force. Among communities like Belmont, there could be a higher rate of discouraged workers - because they can afford it.

Class

For Wednesday, take the "How Thick is Your Bubble?" test here.

The Executive Branch:

Barack Obama POTUS	Columbia	Harvard	UCC
Joseph Biden VPOTUS	U of Delaware	Syracuse	Catholic
John Kerry, State	Yale	Boston C.	Catholic
Chuck Hagel, Defense	U of Nebraska		Catholic
Jack Lew, Treasury	Harvard	Georgetown	Jewish
Eric Holder, Atty Gen.	Columbia	Columbia	Episcopalian
Ben Bernanke, Fed Res.	Harvard	MIT	Jewish

The Supreme Court:

Name	Appt. by	College	Law school	Religion
John Roberts (Chief Justice)	G.W. Bush	Harvard	Harvard	Catholic
Antonin Scalia	Reagan	Georgetown	Harvard	Catholic
Anthony Kennedy	Reagan	Stanford	Harvard	Catholic
Clarence Thomas	G.H.W. Bush	Holy Cross	Yale	Catholic
Ruth Bader Ginsburg	Clinton	Cornell	Columbia	Jewish
Stephen Breyer	Clinton	Stanford	Harvard	Jewish
Samuel Alito	G.W. Bush	Princeton	Yale	Catholic
Sonia Sotomayor	Obama	Princeton	Yale	Catholic
Elena Kagan	Obama	Princeton	Harvard	Jewish

SuperZips and residential segregation

The geography of inequality:  the case of California

Murray's virtues:

• Industriousness
• Honesty
• Marriage
• Religiosity