Les Leopold turned his recent testimony about corporate tax subsidies in New Jersey into an op-ed in the Newark Star Ledger. You can read it here.
Here’s the problem with the belief that helping Wall Street always helps the economy: it isn’t true. In recent decades, Wall Street has grown bigger and financial sector profits have gone from 10% to 25% of total corporate profits, but everyone else in America has lived through a generation of stagnant wages and sluggish economic growth. Even today, big banks are making record profits and handing out huge bonuses as average wages barely budge.
The truth is that Washington has it backwards. For a long time now, Wall Street’s success hasn’t helped the broader economy — it’s come at the expense of the rest of the economy. Wall Street is looting the economy and Washington is helping them do it.Elizabeth Warren, “My Plan to Rein in Wall Street”
Child care is expensive because good child care employs a high ratio of caregivers to children. That’s good for children but a problem for working people earning on the low end (and even the middle) of the wage scale. The Economic Policy Institute took a look at child care costs and found that infant care in New York cost more than $14,000, and in 33 states and Washington DC, the cost of child care was higher than the cost to attend the state’s colleges.
This Vox article lets the Democratic candidates for president explain their program proposals for child care.
The AFL-CIO Paywatch program keeps an eye on the executive compensation figures public corporations are required to report thanks to the Dodd Frank Wall Street Reform and Consumer Protection Act of 2010. That’s information companies didn’t want to report, and a closer look shows why.
A few takeaways:
In the past 10 years, CEOs have seen their compensation increased by $5,200,000 each. In those same 10 years, employees have seen their compensation increase by $7,858. That’s a ratio of 662 to 1.
After the big Trump tax cut in 2017, the top 10 companies in stock buybacks last year spent $25,200,000,000 reacquiring their own stock, driving up stock prices. Since the majority of executive compensation comes from stock grants and option, the average CEO in this group made $30,800,000. Until 1981, the SEC considered stock buybacks stock manipulation, which was not allowed.
Arthur Peck, the Gap CEO, earned 3,566 times more than the Gap’s median worker. Median is the worker who is in the middle of the distribution curve, meaning there are as many workers making less as making more. The Gap’s median worker earned $5,831 last year. Mind the wage gap.
At the other end of the spectrum, Niraj Shah, CEO of home furnishings e-commerce site Wayfair, made just two times what the company’s median worker made (which was $42,694). Seems way fair.
The People’s Policy Project is a think tank run by Matt Breunig, who previously worked as a lawyer for the National Labor Relations Board and as a policy analyst at the Demos Think Tank.
The 3P, as they refer to themselves, took a look at the recent Federal Reserve report that tracks the distribution of wealth in the US. You can get to the original data here.
By comparing the data from 1989, the first year they were collected, to 2018, the most recent set, and making adjustments for consumer durables (taking them out) and inflation (making all dollars equal over time), 3P shows that in the last 30 years the top one percent have increased their wealth by $21 trillion.
Over the same period the wealth of the bottom 50 percent has decreased (yes, decreased) by $900 billion.
You can listen to Les talk to Arthur Schwartz on this WBAI by clicking this link. The Leopold segment begins at about the 11 minute mark.