Included in CEA chair Jason Furman’s thoughtful speech on inequality was this assessment of US tax policy in the past five years:
Since 2009 the United States has made three sets of permanent (or semi-permanent) changes to its tax code relative to the policies that were previously in effect:
For all the gnashing and wailing about the dangers of quantitative easing from some of the super rich, the fact remains that owners of capital (ie the rich) have done very well from QE.
Now, as we’ve noted before, plenty of serious people are paying attention to the inequality question, and its not clear what monetary policy can do about inequality even if it should do something about it. But news that US housing is turning frothy again, with San Francisco prices up 25 per cent over the last year, has Albert Edwards of Societe Generale reaching for the exclamation marks. Read more
Here’s a rather incurious column by Andrew Ross Sorkin in Dealbook. One which jumps from JPMorgan feeling the heat over Chinese princelings and the US Foreign Corrupt Practices Act (serious stuff) to Wall Street executives hiring the progeny of other Wall Street executives.
Sorkin’s for it — rather fatalistically.
But, in truth, it is the way of the world. It is a hard to fault a business for hiring someone who has better contacts than someone else.
We couldn’t manage to squeeze these charts from Edward Wolff’s paper into our earlier already-novel-length post about monetary policy and US inequality (click to enlarge each). Read more
And the annual report from the St Louis Fed found that 62 per cent of the wealth recovery through the end of last year has been the result of rising stock markets — and stock ownership is concentrated among richer households.
Economix has a very good summary, and we also recommend last year’s paper by Edward Wolff, in which you’ll find this chart (click to enlarge): Read more