Tag Archives: inflation

US Inequality Crisis Worst in Industrialized World. Trump Will Make It Worse.

If the policies favored by the Trump administration—including massive tax cuts for the rich and reductions in spending on Medicaid and education—go into effect, the U.S. will only fall further in the global rankings

By Jake Johnson, staff writer for Common Dreams. Published 7-17-2017

“Policymaking processes dominated by elites undermine democracy,” Max Lawson and Matthew Martin write. (Photo: Dean Chahim/Flickr/cc)

The United States is already the most unequal industrialized nation in the world, and a new report published on Monday shows that President Donald Trump’s agenda would only make matters worse.

“The Commitment to Reducing Inequality Index,” developed by Oxfam in partnership with Development Finance International (DFI), uses several factors to “measure the commitment of governments to reducing the gap between the rich and the poor.”

Compared to other wealthy nations, the report concludes, the U.S. is doing “very badly” in the fight against income and wealth inequality. Continue reading

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Debt Relief—Japanese-style—Could Work Here

Japan has found a way to write off its national debt without creating inflation. Why can’t we do that?

By . Published 7-3-2017 by YES! Magazine

Minatomirai 21, newly developed bayside district in Yokohama, Japan. Photo: Gleam [CC-BY-SA 3.0] via Wikimedia Commons

Let’s face it. The U.S. government is never going to pay back a $20 trillion federal debt. The taxpayers will just continue to pay interest on it, year after year.

A lot of interest.

If the Federal Reserve raises the Federal Funds Rate, which is the interest major banks charge each other for overnight loans, to 3.5 percent and sells its federal securities into the market, as it is proposing to do, the projected tab will be $830 billion annually by 2026. That’s nearly $1 trillion owed by the taxpayers every year, and that just covers interest. Continue reading

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