The hottest Income Inequality Substack posts right now

And their main takeaways
Category
Top U.S. Politics Topics

Tax Breaks for the Rich

Fake Noûs • 572 implied HN points • 25 Jan 25
🇺🇸 U.S. Politics Tax policy Income Inequality Wealth Distribution Government spending Political theory
  1. The current tax system in the U.S. is very progressive, meaning the rich pay a larger percentage of their income in taxes, but some believe it's still not fair for the wealthy.
  2. There are different arguments about how taxes should be distributed, like paying based on ability, benefits received, or costs incurred, but many don't support the idea of higher tax rates for the rich.
  3. Some argue that high taxes on the rich hurt economic growth by discouraging investment and productivity, suggesting that everyone, including the middle class, should contribute to taxes more fairly.

How the oligarchy shrank America’s middle class (Why American capitalism is so rotten, Part 8)

Robert Reich • 19752 implied HN points • 12 Jan 24
🇺🇸 U.S. Politics Labor Unions Economic Policy Income Inequality Corporate Governance
  1. The virtuous cycle of rising wages with productivity gains broke in the late 1970s, leading to stagnant incomes for most American workers.
  2. Corporate governance shifted in the 1980s, with a focus on maximizing shareholder returns, leading to massive job cuts and weakened worker bargaining power.
  3. Decline in union membership since the late 1970s has contributed to shrinking middle class as unions effectively negotiated better wages and benefits for workers.

What do Dartmouth basketball and Tennessee’s VW plant have in common?

Robert Reich • 14308 implied HN points • 07 Feb 24
🇺🇸 U.S. Politics Labor Unionization Income Inequality
  1. Dartmouth basketball team is on its way to becoming the first unionized sports program in the country.
  2. The United Auto Workers are making progress in organizing autoworkers at the Volkswagen plant in Tennessee.
  3. Unionization efforts in the U.S., supported by Biden's National Labor Relations Board, are gaining momentum and support is increasing across various sectors.

Measuring Redistribution

David Friedman’s Substack • 224 implied HN points • 02 Feb 25
🇺🇸 U.S. Politics Taxation Income Inequality Welfare state Economic Policy
  1. Measuring how much wealth is redistributed in society is complicated because people's incomes can change a lot over their lifetime. A person might be considered poor at one point and rich at another, which makes it hard to classify them in studies.
  2. Figuring out who actually pays taxes can be tricky. For example, corporate taxes affect not just shareholders but also employees and customers, so it’s hard to pin down who truly bears the burden of these taxes.
  3. The increase in income inequality might come from factors outside of government policies. Things like changes in job value over time or how people marry within their social class can affect overall wealth distribution.

Free Money

Points And Figures • 799 implied HN points • 07 Oct 24
🇺🇸 U.S. Politics Government funding Economic Policy Political Ideologies Income Inequality Education reform
  1. Many people wrongly believe that money from the government is free and doesn't have really costs associated with it. Government money actually comes from taxpayers, and there's no such thing as a free lunch.
  2. Loans and financial incentives, like student loan forgiveness, can create bad economic expectations and lead to bigger problems down the road. When the government gives money without a clear plan to pay it back, it burdens future generations.
  3. There are better solutions for improving education and the economy, like school choice and reducing government involvement in funding. Allowing the market to dictate provides more opportunities and encourages personal responsibility.
Get a weekly roundup of the best Substack posts, by hacker news affinity:

Yes, male wages explain marriage declines

Sex and the State • 32 implied HN points • 15 Jan 25
🇺🇸 U.S. Politics Income Inequality Gender Roles Social norms
  1. Marriage rates are declining, especially among poorer men and women. Many women are opting for single motherhood instead.
  2. The reason for this decline isn't just about money, but about the quality of potential partners. Poorer men often don't meet the standards women have for marriage.
  3. Reports that say women are too wealthy to marry don't consider that most of the decline is happening in lower-income groups. Single motherhood needs more attention since it's a growing concern.

Inequality is overwhelmingly between firms, not within

Something to Consider • 99 implied HN points • 13 Jul 24
💰 Finance Income Inequality Corporate Structure Economic Theory Labor Market Public Policy
  1. Income inequality is mainly based on differences between companies, not just between workers in the same company. Some companies pay their workers a lot more than others, and that's a big part of why inequality has grown.
  2. About 40% of this inequality comes from workers choosing to work at different firms. The other 20% is because some firms are simply more productive or profitable than others.
  3. We should focus more on how many highly skilled workers are earning a lot overall, rather than just looking at top executives. More people than ever have high incomes, showing that there's great potential for those who can add value in the economy.

Two visions of America: Bedford Falls and Pottersville

America in Crisis • 99 implied HN points • 23 Feb 24
🇺🇸 U.S. Politics Economic Policy Social Impact Political Ideology Government intervention Income Inequality
  1. The movie 'It’s a Wonderful Life' showcases two visions of America through Bedford Falls and Pottersville, illustrating the impact of individual actions on the community.
  2. The film emphasizes the importance of economic stimulus and the difference in societal outcomes between stakeholder capitalism (Bedford Falls) and shareholder primacy (Pottersville).
  3. There is a social contrast between SC (Bedford Falls) and SP (Pottersville) economic cultures, impacting birth rates, marriage rates, and family formation trends in America.

Xu Gao on Establishing a Govt-Market Relationship with Chinese Characteristics

Pekingnology • 64 implied HN points • 06 Dec 24
🇺🇸 U.S. Politics Economic Policy Income Inequality Government Role Trade Relations
  1. Xu Gao believes the government should play an active role in the economy, especially during crises. He suggests that when markets fail, government intervention is necessary to stabilize them.
  2. He emphasizes the importance of addressing income inequality, arguing that the government needs to redistribute wealth more effectively. This will help ensure social harmony and allow all citizens to benefit from economic growth.
  3. Gao also highlights that targeted government policies can promote industrial development. He points to China's new energy vehicle industry as a successful example of how strategic support can lead to significant economic advancements.

causing prosperity

bad cattitude • 165 implied HN points • 07 Mar 24
💰 Finance Economics Wealth Poverty Income Inequality
  1. Welfare states are not charity; they can lead to poverty traps
  2. To create prosperity, we need pillars like property rights, scientific rationalism, modern capital markets, and effective communication systems
  3. Redistribution of wealth to alleviate poverty can actually increase absolute poverty, impacting economic growth and overall wealth

Cross-country income inequality

Something to Consider • 19 implied HN points • 23 Jun 24
🇺🇸 U.S. Politics Income Inequality Human Capital Immigration Policy
  1. Cross-country income inequality exists because countries have different levels of human capital. This means that education and skills significantly affect economic growth.
  2. Poor countries often have short-sighted and corrupt governments, which keeps people stuck in poverty. Moving to countries with better institutions can help improve people's lives.
  3. External help can be beneficial for poorer nations by promoting good governance and better economic practices, but it's important to avoid harmful past methods of interference. There's hope for reducing global poverty.

The Case for Reparations

Something to Consider • 19 implied HN points • 12 Apr 24
🇺🇸 U.S. Politics Reparations Welfare Income Inequality Economic Justice
  1. Redistribution of wealth based on race can be more effective than just helping the poor. Doing this focuses on addressing specific historical inequalities.
  2. It's better to provide support based on group averages rather than individual income, since people may change their behavior to qualify for help. Group averages don't change as easily.
  3. Using a DNA test could help define eligibility for reparations, which could also assist in solving some unsolved crimes.

Why the postwar prosperity was not atypical

America in Crisis • 19 implied HN points • 03 Feb 24
🇺🇸 U.S. Politics Economic Policy Labor Market Taxation Income Inequality Cultural Evolution
  1. Real wages for working class people grew slower after the 1970s due to economic policies, like tax cuts, since the Reagan administration.
  2. The post-war US economic success wasn't solely due to lack of foreign competition; trade only increased after mid-1960s tariff reductions.
  3. Shift away from high-productivity manufacturing jobs doesn't explain wage stagnation; the decrease in share of income going to working class started around 1980.

The Broken Bargain

Logos and Liberty • 0 implied HN points • 12 May 23
🇺🇸 U.S. Politics Economic History Income Inequality Financial Crisis Political Analysis
  1. Robert Reich's 'Aftershock' analyzes the 2008 crash and emphasizes the need for fundamental social and economic reform.
  2. Reich highlights parallels between the lead-up to the Great Depression and the Great Recession, such as income inequality, increasing household debt, and speculative activity.
  3. Reich proposes policy solutions to restore the basic bargain, including a reverse income tax, a carbon tax, and higher marginal tax rates on the wealthy, among others.

1200 Hours (working draft)

Logos and Liberty • 0 implied HN points • 17 Jul 23
🇺🇸 U.S. Politics Economic Policy Labor relations Income Inequality Government programs
  1. Consider reducing work hours per year to 1200 from the standard 2000 to balance the needs of families and improve work-life balance for employees.
  2. Implementing a 1200-hour work year would lead to increased bargaining power for workers, better worker productivity, and a potential shift in how the fruits of productivity gains are shared.
  3. Employers could adapt to a 1200-hour work year by paying more, offering flexibility, hiring more workers, adjusting operations, and supporting policies to facilitate the transition.