All Holocaust All the Time 3

Just another reminder of the omnipresence of the Holocaust. The Washington Post (and many others) report the ordination of the first rabbis in Germany since World War II. You'd think this would no longer be news, 60 years after the war. The war is no longer news, but the Holocaust is.

NYT on Income Inequality

The NYT editorializes that the latest 4.9% blip in labor costs was caused by increases in executives' fat bonuses and stock options, not increases in workers' wages and salaries. Meanwhile, letters to the editor comment on David Brooks' "Populist Myths on Income Inequality," one saying, " listen to Mr. Brooks and his 'let's get skills' message. Mr. Krugman's message of 'let's get 'em' will lead only to further social polarization."

The problem is that if income inequality is not related to education, more education won't help. Some good paying jobs do require education -- engineer, pilot, journalist, professor. But the jobs that pay the really big bucks -- corporate CEO, entrepreneur -- don't require that much education. Bill Gates never finished college. The big bucks jobs that are producing the income inequality require greed, not education. Better education, especially for high school dropouts, might keep some people from sinking below the poverty level, but it's not going to cure income inequality caused by corporate chieftans who keep the bulk of the profits for themselves and don't share with their employees. For that you need government policies like progressive taxation of income and estate taxes, forcing them to share the wealth.

When progressive tax rates were really high -- 75 to 90% -- people complained that there was no incentive to earn more money. Then I thought that was bad, but now I'm not so sure. Maybe we should encourage the fat cats to go spend their ill gotten gains and let someone else start to earn the big bucks.

FT Right on Torture & Globalization

The Financial Times for last Friday was right on the evils of Bush's torture and of globalization. The editorial condemning Bush's use of torture says:

Five years after launching a war on terror that has undermined America's moral authority abroad -- and proved spectacularly counter-productive in the battle for hearts and minds in the Muslim world -- Mr. Bush seems to have learnt few lessons about why torture and martial law will not win this war for him. For the benefits of intelligence gleaned, if any, are ultimately outweighed by the damage to America's standing at home and abroad

And the op-ed by Nobel Prize winner Joseph Stiglitz, entitled "We have become rich countries of poor people," says:

Unfettered globalization actually has the potential to make many people in advanced industrial countries worse off, even if economic growth increases....

In the US, tax policies have become less progressive; the bulk of recent tax cuts went to the winners, those who had already benefited both from globalization and changes in technology....

The Scandinavian countries have shown there is another way. Investment in education and research and a strong safety net can lead to a more productive and competitive economy.

I hope David Brooks reads this Stiglitz op-ed. Brooks is for education, but not for a strong safety net. Stiglitz also says:

While economic theory predicted there would be losers from globalization, it also said that the winners could compensate the losers. Well-managed globalization can make everyone, or at least most, better off. This has not happened.

This implies that for globalization to work humanely, business leaders, CEOs and others, should take some responsibility for their workers. In my earlier comment on Brooks' column, I said that after the depression and World War II, business leaders who had been through those trials tended to feel a responsibility toward their "troops." They had a shared experience that we no longer have. One downside of our diverse culture is that there is little that we share. While there are charitable impulses to help the downtrodden, there is not the shared feeling that we are all in this together, rich and poor. In business today, it's every man (or woman) for himself (or herself).

Get Wolfowitz Out of World Bank

The Financial Times has it right in criticizing Paul Wolfowitz' performance at the World Bank. It does not call for his removal, but I think that is the best way to improve the bank. Why should the US put a war criminal in to head it up? The FT says:

The Financial Times hoped that Mr Wolfowitz might pleasantly surprise his critics, but his first year at the World Bank was not a success. Surrounding himself with a coterie of advisers from his Pentagon days, he has failed to set a new direction for the bank. His obsessive anti-corruption drive is not a development strategy. The World Bank's complexity - and the complexity of its mission - demand that he now shows some leadership.

I think it is time for him to go. He should never have been there in the first place.