The Week-end Stock Pot Watch, Thursday, November 28th-December 1st. Holiday Edition!

[Demeter]

19. Pope Francis understands economics better than most politicians

http://www.theguardian.com/commentisfree/belief/2013/nov/27/pope-francis-inequality-biggest-issue-our-time?CMP=ema_565

... Income inequality is not someone else's problem. Nearly all of us are likely to experience it. Inequality has been growing in the US since the 1970s. Economist Emmanuel Saez found that the incomes of the top 1% grew by 31.4% in the three years after the financial crisis, while the majority of people struggled with a disappointing economy. The other 99% of the population grew their incomes 0.4% during the same period.

As a result, federal and state spending on social welfare programs has been forced to grow to $1tn just to handle the volume of US households in trouble. Yet income inequality has been locked out of of the mainstream economic conversation, where it is seen largely as a sideshow for progressive bleeding hearts.

In the discussions of why the US is not recovering, economists often mention metrics like economic growth and housing. They rarely mention the metrics that directly tell us we are failing our economic goals, like poverty and starvation. Those metrics of income inequality tell an accurate story of the depth of our economic malaise that new-home sales can't. One-fifth of Americans, or 47 million people, are on food stamps; 50% of children born to single mothers live in poverty; and over 13 million people are out of work. Children are now not likely to do as well as their parents did as downward mobility takes hold for the first time in generations.

The bottom line, which Pope Francis correctly identifies, is that inequality is the biggest economic issue of our time – for everyone, not just the poor. Nearly any major economic metric – unemployment, growth, consumer confidence – comes down to the fact that the vast majority of Americans are struggling in some way. You don't have to begrudge the rich their fortunes or ask for redistribution. It's just hard to justify ignoring the financial problems of 47 million people who don't have enough to eat. Until they have enough money to fill their pantries, we won't have a widespread economic recovery. You can't have a recovery if one-sixth of the world's economically leading country is eating on $1.50 a day...