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Less Economic Freedom Equals More Income Inequality

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Politicians aiming to reduce inequality end up unintentionally making it worse.

Redistribution of wealth schemes lead to more not less to the income gap between rich and poor

Ronald Bailey | February 20, 2015

Income inequality has been attracting the attention of politicians, policy wonks, pundits, and the public. In 2013, President Barack Obama declared that “a dangerous and growing inequality” is the “defining challenge of our time.” On 60 Minutes last month, Speaker of the House John Boehner argued that “the president’s policies have made income inequality worse.” Senator Mike Lee of Utah has said that “the United States is beset by a crisis in inequality” and that “bigger government is not the solution to unequal opportunity—it’s the cause.”

In his 2013 speech, Obama also said, “We need to set aside the belief that government cannot do anything about reducing inequality.” He’s right, but not in the way he thinks. Several recent economic analyses show that the best thing government can do to reduce income inequality is to get out of the way.

For example, according to a study comparing outcomes in all U.S. states in the January 2014 issue of Contemporary Economic Policyby Illinois State University economist Oguzhan Dincer and his colleagues finds that reducing economic freedom actually tends to increase inequality. “On average, as the size and scope of government increases, so does income inequality,” Dincer tellsReason.

The authors go on to establish “Granger causality.” Simplistically stated, this means they show a causal feedback loop, in which economic intervention produces economic inequality, which in turn leads to more economic intervention. Politicians often react to rising inequality with policies that, on average, end up making inequality worse—say, by increasing the minimum wage. (That is not to say that some policies, such as raising the top marginal tax rate, could decrease inequality. But taken as a whole, the effect moves in the other direction.)

First consider the big picture. Progressives are fond of citing data that shows that income inequality in the United States was falling throughout the 1950s and 1960s. The trend seemed to be following a hypothesis proposed by the economist Simon Kuznets. As economic growth takes off, Kuznets argued, income inequality initially increases as some workers move from low-productivity sectors into higher-productivity sectors. As the higher-productivity sectors absorb a growing proportion of workers, income inequality then begins to decrease, producing the famous inverse-U-shaped relationship between income inequality and economic growth.

https://reason.com/archives/2015/02/20/less-economic-freedom-equals-more-income#.8gw9uv:sDWF

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Look for the Union Label: AFL-CIO releases its general election endorsements

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More than 600 delegates representing 1,000 labor unions and 1 million members of the New Jersey State AFL-CIO convened at Caesars Atlantic City June 16 & 17, 2015, to participate in the endorsement process for one New Jersey Senate seat, 80 state Assembly seats and for a slate of 48 rank-and-file union members seeking public offices at every level of government.  (Pizarro/PolitickerNJ)

AFL-CIO releases its general election endorsements | New Jersey News, Politics, Opinion, and Analysis

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Democrat Senate president “Benito” Sweeney looks to stem protests outside his home

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June 18, 2015 7:39 AM
the staff of the Ridgewood blog

WEST DEPTFORD NJ,  Protests outside the home of New Jersey’s state Senate president Stephen Sweeney could be outlawed by a newly proposed ordinance.

The Philadelphia Inquirer reports the West Deptford Township Committee introduced an ordinance Wednesday to overhaul its loitering ordinance and regulate picketing in residential areas.

The measure would ban picketing that’s targeted at and within 100 feet of a house in the Gloucester County town. Picketing beyond that point would be limited to no more than 10 people for one hour every two weeks.

Sweeneys home has recently been the target of 2nd Amendment activist who staged two protests at Democratic Sen. Stephen Sweeney’s home.

Officials in West Deptford say the ordinance was introduced because of protests requiring police, but they haven’t mentioned Sweeney.Critics has blasted the measure as a blatant attack on free speech and typical New Jersey politicians playing favorites and protecting their own .

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North Jersey rising: with casino war raging, four-county unity alliance party draws statewide power to Meadowlands, a sign of potential power shift

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EAST RUTHERFORD – In the last book of the New Testament of the Bible, the Four Horsemen of the Apocalypse ride on to the scene, a vision of divine apocalypse, a harbinger of the Last Judgment, a shudder for sinners for all time.

At Meadowlands Racetrack on Tuesday night, the Democratic chairmen of four North Jersey counties – Bergen, Essex, Hudson and Passaic – rode into East Rutherford for what was billed as a charity event, providing what could be a glimpse of doom to South Jersey power brokers as the war clouds of casino controversy loom over all of New Jersey.  (Bonamo/PolitickerNJ)

North Jersey rising: with casino war raging, four-county unity alliance party draws statewide power to Meadowlands, a sign of potential power shift | New Jersey News, Politics, Opinion, and Analysis

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Drug overdose deaths soar to double the number of N.J. road fatalities in 2014

Prescription-Drugs

JUNE 17, 2015, 10:02 AM    LAST UPDATED: THURSDAY, JUNE 18, 2015, 12:20 AM
BY MARY JO LAYTON
STAFF WRITER |
THE RECORD

Drug overdoses from illicit and prescription drugs claimed twice as many lives statewide in 2014 as auto crashes, becoming the leading cause of accidental death in New Jersey, according to a national report and state data released Wednesday.

In Bergen County, heroin overdoses rose sharply, one of the most dramatic increases in New Jersey last year, according to data provided by the state Medical Examiner’s Office.

But there are signs that in North Jersey that trend may be reversing, as more first responders are using the rescue drug Narcan to save people in the throes of an overdose. So far this year, the drug has been used 60 times, resulting in far fewer deaths, said Bergen County Prosecutor John L. Molinelli. Since Narcan was approved for use in 2014, more than 45 towns across North Jersey have deployed it to stop overdoses. The drug, which can reverse an overdose in as little as two minutes, is injected or inhaled.

Last month, Cliffside Park police responded to a call at a Day Avenue home and found a 34-year-old Fairview man lying on his back, a potential overdose victim. They administered two doses of the rescue drug in the form of a nasal spray and took the patient to Palisades Medical Center in North Bergen. Other saves occurred in Hillsdale, Lodi, Oakland and Ramsey in recent weeks.

The results have been a reduction in deaths so far this year, with 11 people dying of heroin overdoses, compared with 42 who died all of last year in Bergen County, according to Molinelli, who has organized task forces to rein in the heroin trade in North Jersey.

“All the community outreach being done by addictive service groups, parent and school organizations and law enforcement has been substantial,” Molinelli said.

https://www.northjersey.com/news/n-j-drug-overdoses-double-over-4-years-become-leading-cause-of-accidental-death-1.1357250

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Americans Have Lost Confidence … in Everything

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It’s not just Congress and the economy that have Americans concerned these days.

Americans have little confidence in most of their major institutions including Congress, the presidency, the Supreme Court, banks and organized religion, according to the latest Gallup poll.

“Americans’ confidence in most major U.S. institutions remains below the historical average for each one,” a Gallup spokesman said in a news release. Only the military, in which 72 percent of Americans express confidence, up from a historical average of 68 percent, and small business, with 67 percent confidence, up from 63, are currently rated higher than their historical norms. This is based on the percentage expressing “a great deal” or “quite a lot” of confidence in these institutions, the Gallup spokesman said.

Only 8 percent have confidence in Congress, down by 16 points from a long-term average of 24 percent – the lowest of all institutions rated. The rating is about the same as last year’s 7 percent, the lowest Gallup has ever measured for any institution.

All in all, it’s a picture of a nation discouraged about its present and worried about its future, and highly doubtful that its institutions can pull America out of its trough. In a political context, the findings indicate that the growing number of presidential candidates for 2016 will have a difficult time instilling confidence in a skeptical electorate that they have the answers to the country’s problems.

https://www.usnews.com/news/blogs/ken-walshs-washington/2015/06/17/americans-have-lost-confidence-in-everything

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Fed holds off on interest rate hike, downgrades economic forecast

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By JIM PUZZANGHER

Federal Reserve policymakers on Wednesday kept the central bank’s benchmark short-term interest rate near zero, opting against the first increase since 2006 after determining the economy still isn’t strong enough to handle it.

Fed officials sharply downgraded their economic forecast for this year. They projected the economy would grow between 1.8% and 2% this year, well below the range of 2.3% to 2.7% in its last forecast in March.

If they’re correct, annual growth would be the worst since 2011 and would be far from the breakout performance some economists had hoped for this year.

In a statement after its two-day policymaking meeting, Fed officials said the economy “has been expanding moderately” after having improved little during the first quarter.

While the housing market “has shown some improvement,” central bank policymakers said exports and investments by businesses have been soft.

Central bank policymakers were less optimistic about improvements in the unemployment rate than they were three months ago, though they noted that the pace of job gains had improved.

https://www.latimes.com/business/la-fi-federal-reserve-interest-rate-20150617-story.html

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REMEMBERING COMMUNISM CORRECTLY: NOT A “BEAUTIFUL IDEA”

Communism

BY JÁNOS MARTONYI
JUNE 15, 2015

What is communism? Is it a beautiful idea, a utopian dream of bright future? Is it a coherent ideology of “historic materialism,” one that will abolish exploitation, eradicate inequality and injustice, abuses, estrangement, alienation, or Entfremdung, as it was called in the mid-nineteenth century by a young German philosopher, Karl Marx?

Or is it something else?

Is it a mother who enters the room of a twelve-year-old kid, wakes him up in the morning at 3 AM, and tells his son: “My son, you have to get up, the Soviet Army is attacking Budapest again”? Or is it the same mother, who, a couple of months later, wakes up his son again at 4 AM: “My son, you have to get up, your father has been taken away by the political police?”

We have to give a clear answer to people who are still saying that communism or Marxism-Leninism was a great idea, a beautiful idea — only the implementation was wrong. This is utterly and fatally wrong. It is not true.

It is not true because this was an idea, which was aggressive and violent, right in its inception, right from the beginning. The language was violent, the substance was violent, and of course everything, which has happened since, has been enormously violent.

That is why somebody said, that “revolutions are like trees: you can tell them by their fruits.” Communism had a logical outcome. Because if you want to destroy the existing political, economic and social order, and you want to put a new one in its place, it is a logical consequence that while destroying the existing structures, you sooner or later start destroying the basic human rights, the basic liberties, human dignity and yes, you start destroying thousands, millions, tens of millions of human lives.

That is the true face of communism.

Winston Churchill said right at the beginning, don’t think it is a peaceful utopian idea, because sooner or later it will be converted into external aggression, external expansion, because that is the nature of the ideology.

It is not by chance that in most countries, the communist dictatorship was established by sheer military force, in most cases coming from the outside. Certainly, it was the case in my country and all countries of the region.

The support of the communists in these countries was significantly less than in many Western European countries that never turned communist. Why? Because there was no presence of the Red Army in those countries.

Inevitably, dictatorships have to erect walls, barbed wires, iron curtains. But these are not external walls or barbed wires. The free minds were captured from within – as it was said by Czesław Miłosz.

A famous Hungarian poet, Gyula Illyés, wrote a fantastic poem about tyranny in which he says, “where there is tyranny, there is tyranny everywhere”. It is not just in the concentration camps, it is not just in the prisons, it is in the smile of the children, it is in your laugh, it is in your daily life.

As Havel said, the basic problem here was a morally contaminated environment: moral relativism, and moral corruption. That is to my mind the most important toxic legacy of communism.

Yet, there is an innate desire and aspiration for freedom in every human being, in every community or nation. That is why so many uprisings, revolutions, freedom fights and wars of independence took place. And finally, yes, in the ‘Year of Miracles,’ Central and Eastern Europe was liberated.

At the same time, we should never forget and we have to remember that this was only possible because there was a great nation that sacrificed more human lives to roll back and defeat communism around the world than any other nation. And this nation was and is the United States of America.

This is the reason why the stakes of moral clarity about the crimes of communist regimes in the past as well as the present are particularly high for America. This is why we hope that the mission of the Victims of Communism Memorial Foundation will be part of a genuine national consensus, a non-negotiable minimum of bipartisan nature.

https://blog.victimsofcommunism.org/remarks-of-janos-martonyi/

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Village of Ridgewood 2015 Kasschau Shell Schedule

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Village of Ridgewood 2015 Kasschau Shell Schedule

Here is the schedule for you to make plans for the upcoming 2015 Entertainment Under the Stars at the Kasschau Shell on Vet’s Field in Ridgewood. All programs are free. Just bring a chair or blanket and enjoy the music!

Click Here for 2015 Season Schedule.

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Tonight , the Village of Ridgewood 6th Central Business District Forum

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Village of Ridgewood 6th Central Business District Forum – Parking – Wednesday, June 17th 7:30pm – 9:00pm

The 6th Central Business District Forum will take place on Wednesday, June 17, 7:30 to 9:00 PM in the Courtroom in the Village Hall. An open mic will be available until 8:00 PM for anyone with ideas, comments and suggestions concerning the CBD. Then Bob Rooney, Director of the Parking Utility, Janet Fricke, our Assistant to the Village Manager and Charley DeBow of Park Mobile will conduct a seminar on using Park Mobile, review the new parking rules and times in the CBD and discuss the proposal for a parking garage on Hudson and Broad Streets. We are especially interested in hearing from commuters and welcome everyone who has not yet tried Park Mobile. Please join us.

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United Airlines Moves all Operations to Newark Airport

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Newark flights to/from San Francisco and Los Angeles to offer international-style inflight service

Airline will add trans-Atlantic 757s to p.s. fleet and replace them with Boeing 767s on most trans-Atlantic routes

June 16, 2015

NEWARK, N.J.,  United Airlines, the U.S. airline industry’s transcontinental leader, will bring the airline’s “p.s.” Premium Service to its New York hub at Newark Liberty International Airport in October. Beginning October 25, all regularly scheduled Newark-Los Angeles and Newark-San Francisco flights will offer:

flat-bed seats in the United BusinessFirst cabin;
premium in-flight service;
more extra-legroom Economy Plus seats than any other carrier; and
modern interiors with in-flight Wi-Fi and personal on-demand entertainment with individual seatback monitors and power ports for customers in every row.

With the addition of p.s. service at Newark Liberty, United customers flying on transcontinental flights to and from Newark in the BusinessFirst cabin will, for the first time, enjoy flat-bed comfort for their entire journey when connecting to and from flights across United’s extensive trans-Atlantic and trans-Pacific networks.

United will cement its role as the leader in transcontinental flying with more than 1,250 daily flat-bed seats – the most in the New Yorkmarket – and a 44 percent increase in flat-bed seats year-over-year. The airline will fly up to 17 daily round trips Newark-San Franciscoand up to 15 daily round trips Newark-Los Angeles, leading the industry with a total of up to 10,000 round-trip seats offered per day on the two combined key transcontinental routes.

Manhattan business travelers, particularly those who work on Wall Street and throughout lower and westernManhattan, enjoy easy access to Newark Liberty, the most convenient of the three New York-area airports.

While at Newark Liberty, p.s. customers will have access to the New York area’s best airport experience. The company also announced today that it is making a multi-million dollar investment to renovate United’s Terminal C lobby and to bring its new airport lounge design concept to all United Club locations at Newark Liberty. United already has invested more than $2 billion to build a world-class gateway at Newark Liberty where, with its airport partners, the airline is offering chef-driven restaurants, redesigned lounge-like gate areas and improved United Club locations.

At Newark Liberty, the airline offers a full range of premium services, including a new United Global Services reception lobby for its top frequent flyers, offering personalized check-in and travel services to members of the airline’s invitation-only Global Services program and to customers traveling on long-haul international flights in United Global First. United also offers its Mercedes-Benz tarmac transportation service, and when feasible, representatives meet Global Services and United Global First customers with applicable itineraries who may have tight connections and will drive them across the tarmac to their connecting flights.

“The introduction of p.s. to Newark Liberty, the New York/Newark region’s premier airport, offers Los Angeles and San Francisco travelers the highest levels of service in the air and on the ground,” said Jim Compton, United’s vice chairman and chief revenue officer. “We are investing in the three critical components of the travel experience for our customers – our network, our product and our facilities.”

With its launch of p.s. services at Newark Liberty, United will cease operations at Kennedy International Airport on Oct. 25. United has entered into two separate transactions:  Delta Air Lines plans to acquire United’s JFK slots, and United plans to acquire slots from Delta in Newark. Each transaction is subject to regulatory approval.

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Paramus business executive accused of embezzling employer

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JUNE 17, 2015    LAST UPDATED: WEDNESDAY, JUNE 17, 2015, 1:21 AM
BY HUGH R. MORLEY
STAFF WRITER |
THE RECORD

Authorities on Tuesday accused a Paramus man of participating in a scheme to embezzle $2.6 million from a large international insurance company and using the proceeds to buy a multimillion-dollar house and two luxury cars.

The U.S. attorney for Manhattan charged James J. Shea, 49, of Paramus and Eugene Fallon, 51, of Nanuet, N.Y., with wire fraud, arresting Shea on Tuesday morning. Fallon remained at large late in the day.

Authorities said Shea, an executive at the company, which was not named but was described as “the North American subsidiary of an international insurance company,” forged the signature of his supervisor to “authorize numerous payments to bogus consulting companies that Fallon controlled.”

Fallon then returned two-thirds of the money – about $1.8 million – to Shea, the office of U.S. Attorney Preet Bharara said.

Bloomberg News identified the insurance company as Australia-based QBE Insurance Group Ltd., and it quoted a spokeswoman as saying the company is cooperating with prosecutors.

https://www.northjersey.com/news/business/paramus-man-charged-in-fraud-scheme-1.1356727

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United Way planning affordable-housing project in Glen Rock

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JUNE 16, 2015, 7:58 PM    LAST UPDATED: TUESDAY, JUNE 16, 2015, 8:00 PM
BY CHRIS HARRIS
STAFF WRITER |
THE RECORD

GLEN ROCK — Bergen County’s United Way is considering land on Bradford Street as a possible site for an affordable-housing project for the physically and developmentally disabled.

Glen Rock officials disclosed in a meeting last week that the United Way was “under contract” to purchase 15 Bradford Street, the 0.34-acre site of a condemned, four-bedroom home built 80 years ago.

Tom Toronto, president of Bergen County’s United Way, confirmed on Tuesday that his organization had been working with borough officials to find a suitable site for a single-story “supportive housing project.”

It would be the United Way’s first project in Glen Rock and could serve as the new address for “less than 10” adults with needs, Toronto said. Similar projects have been constructed in Allendale, Mahwah, Demarest, Emerson, and Ramsey.

The United Way has been working with Mayor John van Keuren for three years “to identify a site that would make sense for such a project,” Toronto said Tuesday. “The mayor understands the need for this kind of housing. It’s a great locale in a beautiful neighborhood near a park.”

https://www.northjersey.com/news/united-way-planning-affordable-housing-project-in-glen-rock-1.1356776

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Contract talks break down between NJ Transit, labor unions

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JUNE 16, 2015, 1:05 PM    LAST UPDATED: TUESDAY, JUNE 16, 2015, 1:09 PM
BY CHRISTOPHER MAAG
STAFF WRITER |
THE RECORD

The latest round of talks between NJ Transit and its labor unions has broken down, signaling increased tensions between the two sides over pay and benefits. Union members have been working without a new contract for four years, union leaders said.

The next step in the process requires intervention from President Obama, who must create a three-member Presidential Emergency Board to keep the sides negotiating and prevent a strike or labor lockout that could cripple the region’s economy. Nearly 955,000 people ride NJ Transit buses, trains and light rail every workday.

NJ Transit and its unions started negotiating through the National Mediation Board in 2011, soon after the old contract expired. As the process dragged on, more unions joined in, eventually creating a coalition that includes all 17 of NJ Transit’s unions, together representing 4,263 workers, said Thomas Roth, a labor consultant hired to represent the unions in the next round of negotiations. The final union, the International Brotherhood of Electrical Workers, joined the coalition last week, Roth said.

“To have all the unions that represent all the workers on the property, it’s very rare,” said Roth, who has been involved in labor disputes for 40 years. “In fact this is the first time we’ve ever had a coalition like this.”

After years of negotiation went nowhere, the unions asked the National Mediation Board to release them from talks. On Monday the board agreed, an indication that the sides are so far apart on subjects including salary increases, benefits and work rules that an agreement now is impossible.

https://www.northjersey.com/news/contract-talks-break-down-between-nj-transit-labor-unions-1.1356514

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Why Credit Monitoring Fails to Address the Real Threat Facing Hacked Feds

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By Eric Katz
June 11, 2015

In response to what was one of the largest data breaches in American history, the Office of Personnel Management has offered 4 million current and former federal employees free credit monitoring and identity theft insurance.

That approach may completely miss the mark, experts say.

Media reports and now lawmakers have said that state actors — likely from China – appear to be behind the attack, rather than individuals looking to exploit employees’ financial information. Credit monitoring, therefore, is a nice offer but one that is unlikely to protect federal employees from their adversaries’ true intentions.

“Credit reporting is lip service,” said Richard Blech, CEO of Secure Channels Inc., a cybersecurity firm that provides encryption technology and authentication services. “It means nothing.”

Ken Ammon, chief strategy officer for Xceedium, a network security company that contracts with the government and commercial enterprises, said credit monitoring is fine as a “first step,” though it serves more to protect the infiltrated organization legally than it does the individual from bad actors.

Experts refer to the hack as “cyber espionage,” rather than “cyber crime.” Individuals that illegally obtain data such as Social Security numbers and addresses can use that information for identity theft as it relates to credit card information, for example, but state actors do not hold those same interests.

https://www.govexec.com/defense/2015/06/why-credit-monitoring-fails-address-real-threat-facing-hacked-feds/115090/?oref=relatedstories