Tag Archives: income

This Is the Degrading Bullshit Nail Salon Workers Put Up With Every Single Day

Mother Jones

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Scoring a cheap manicure or pedicure, particularly in New York, is incredibly easy. After all, nail salons abound on seemingly every other city block and thus keep prices low in order to compete. It all comes at a steep price, however. The New York Times has published an in-depth investigation looking into the disturbing culture of exploitation, racism, and low-wages salon workers endure throughout the New York region. Here are the most shocking bits:

Some workers are paid as little as $1.50 an hour. In Manhattan, where the average price for a manicure is $10.50, salons compensate for such low prices by severely underpaying workers and oftentimes hitting employees with surprise charges just to work there. On slow days, some worker aren’t even paid at all.

Among the hidden customs are how new manicurists get started. Most must hand over cash — usually $100 to $200, but sometimes much more — as a training fee. Weeks or months of work in a kind of unpaid apprenticeship follows.

Ms. Ren spent almost three months painting on pedicures and slathering feet with paraffin wax before one afternoon in the late summer when her boss drew her into a waxing room and told her she would finally be paid.

Race often determines how well a worker is paid.

Korean workers routinely earn twice as much as their peers, valued above others by the Korean owners who dominate the industry and who are often shockingly plain-spoken in their disparagement of workers of other backgrounds. Chinese workers occupy the next rung in the hierarchy; Hispanics and other non-Asians are at the bottom.

Many Korean owners are frank about their prejudices. “Spanish employees” are not as smart as Koreans, or as sanitary, said Mal Sung Noh, 68, who is known as Mary, at the front desk of Rose Nails, a salon she owns on the Upper East Side.

Workers are frequently subjected to physical abuse.

…the minichain of Long Island salons whose workers said they were not only underpaid but also kicked as they sat on pedicure stools, and verbally abused.

Salons rarely go punished because language barriers prove too difficult.

When investigators try to interview them, manicurists are frequently reluctant to cooperate, more so than in any other industry, according a Labor Department official involved who spoke on the condition of anonymity because the official was not permitted to talk with reporters. “It’s really the only industry we see that in,” the person said, explaining that it most likely indicated just how widespread exploitation is in nail salons. “They are totally running scared in this industry.”

In all, the story paints a deeply disturbing portrait of income inequality literally an arm’s length away. To read the investigation in its entirety, head to the Times.

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This Is the Degrading Bullshit Nail Salon Workers Put Up With Every Single Day

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The Law, In Its Finnish Majesty….

Mother Jones

In Finland, a speeding ticket costs you more if you’re rich than if you’re poor. Fair enough, perhaps. “The thinking here is that if it stings for the little guy, it should sting for the big guy, too,” says the New York Times.

In any case, I already knew this. What I didn’t know was the formula:

The fines are calculated based on half an offender’s daily net income, with some consideration for the number of children under his or her roof and a deduction deemed to be enough to cover basic living expenses, currently 255 euros per month.

Then, that figure is multiplied by the number of days of income the offender should lose, according to the severity of the offense.

Mr. Kuisla, a betting man who parlayed his winnings into a real estate empire, was clocked speeding near the Seinajoki airport. Given the speed he was going, Mr. Kuisla was assessed eight days. His fine was then calculated from his 2013 income, 6,559,742 euros, or more than $7 million at current exchange rates.

Sadly for Reima Kuisla, he was clocked at 103 kph, which set him back a whopping 54,024 euros. However, if he’d been traveling just 3 kph slower, his fine would have been only 100 euros. No matter what you think of the social justice of this system, that does seem like a bit of a steep spike, doesn’t it?

Here in America, though, perhaps we have different priorities. What minor but annoying infractions would you like to apply this system to here in the good ‘ol USA?

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The Law, In Its Finnish Majesty….

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Republicans Are Cutting Taxes on the Rich and Raising Them on the Poor

Mother Jones

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Shaila Dewan surveys the tax policies of actual Republicans who are governing actual states:

A number of Republican-led states are considering tax changes that, in many cases, would have the effect of cutting taxes on the rich and raising them on the poor.

Conservatives are known for hating taxes but particularly hate income taxes, which they say have a greater dampening effect on growth. Of the 10 or so Republican governors who have proposed tax increases, virtually all have called for increases in consumption taxes, which hit the poor and middle class harder than the rich.

Favorite targets for the new taxes include gasoline, e-cigarettes, and goods and services in general (Governor Paul LePage of Maine would like to start taxing movie tickets and haircuts). At the same time, some of those governors — most notably Mr. LePage, Nikki Haley of South Carolina and John Kasich of Ohio — have proposed significant cuts to their state income tax. In an effort to relieve some of the added pressure, Mr. LePage’s plan includes a tax break for the lowest-income families.

This gets back to what I was talking about a couple of days ago. Contrary to what Republican reformicons are proposing, Republicans on the ground continue to focus most of their attention on cutting taxes on the rich. Or, in a pinch, if they have to raise revenue, they’re raising it from the poor and middle class. This is despite the well-known fact that virtually all of the income gains in recent years have gone to the well-off.

There are ways to make consumption taxes progressive. It’s not impossible. The problem is that Republicans simply don’t want to. Their goal is, and always has been, to reduce taxes on the wealthy. Any other tax agenda just isn’t on the table.

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Republicans Are Cutting Taxes on the Rich and Raising Them on the Poor

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The Great Wage Slowdown of the 21st Century Is About a Lot More Than Just Wages

Mother Jones

David Leonhardt writes about why the economy looks so bad even though unemployment has fallen below 6 percent:

American workers have been receiving meager pay increases for so long now that it’s reasonable to talk in sweeping terms about the trend. It is the great wage slowdown of the 21st century.

Yes indeed. This started around the year 2000 and hasn’t changed since. But as I’ve written before, that’s not all that changed around the year 2000. Here’s a more comprehensive list:

  1. Median income growth slowed in the mid-70s, but it stalled almost completely around 2000 and hasn’t recovered since.
  2. Real-world investment opportunities began stagnating around 2000.
  3. Labor markets slackened permanently starting around 2000.
  4. The employment-population ratio among women plateaued around 2000 and continued its long-term decline among men.
  5. The labor share of income in the nonfinancial sector dropped steeply starting in 2000 and never recovered.
  6. The number of jobs created by new businesses peaked around 2000 and has been falling ever since.
  7. State and local government output suddenly stagnated around 2000.
  8. Globally, the energy intensity of GDP stopped growing around 2000, which means world economic growth became limited by energy growth.
  9. Household debt inflected upward in 2000, and kept growing until the Great Recession put a stop to it.

I call this the Inflection Point of 2000, and it seems like too many things, all happening at about the same time, to be mere coincidence. In my piece last year about our robotic future, I suggested that much of it might be the barely visible early signs of a more automated economy, and I still suspect that may be part of what’s going on. But I don’t know for sure, and the evidence on this score is distinctly fuzzy.

And yet. It sure feels like something changed right around 2000. But what?

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The Great Wage Slowdown of the 21st Century Is About a Lot More Than Just Wages

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Chart: It’s Never Been a Better Time to Be Rich

Mother Jones

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We’ll be posting a new chart on the current state of income inequality every day for the next couple of weeks. Yesterday’s chart looked at how the richest of the rich have enjoyed massive income gains for decades.

But wait, you say, isn’t that the way it’s always been? Yes and no. It’s never been a bad time to be rich in America. But some times have been a lot better. In fact, the best time may be now, especially when you consider the amount of total income controlled by the top 1 percent since colonial times (with ancient Rome thrown in for comparison):

Sources: Rome: Walter Scheidel and Steven J. Friesen; US in 1774 and 1860: Peter H. Lindert and Jeffrey G. Williamson; US in 1929-2012, Emmanuel Saez and Thomas Piketty (Excel)

Illustrations and infographic design by Mattias Macklerâ&#128;&#139;

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Chart: It’s Never Been a Better Time to Be Rich

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Chart: Happy Days Are Here Again—for the Superwealthy

Mother Jones

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With Washington paralyzed on bread-and-butter issues and the midterms ahead, we put together a primer on the state of America’s frozen paychecks. We’ll be posting a new chart every day for the next couple of weeks. Today’s chart: How the recovery left most Americans behind.

The Great Recession officially ended five years ago, but that’s news for millions of Americans: A stunning 95 percent of income growth since the recovery started has gone to the superwealthy. The top 1 percent has captured almost all post-recession income growth. Compare that with how they did during these historic booms:

Sources: Boom and recovery gains, 1% gains: Emmanuel Saez and Thomas Piketty (Excel); average household income: Census Bureau.

Illustrations and infographic design by Mattias Macklerâ&#128;&#139;

Photos: Warner Bros; Peter Morgan/Reuters; Christoph Dernbach/DPA/ZumaPress; Steve Jennings/Wireimage/Getty Images; Bo Rader/Witchita Eagle/MCT/Getty Images; Kimberly White/Reuters

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Chart: Happy Days Are Here Again—for the Superwealthy

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Americans are eating better — well, some Americans

Americans are eating better — well, some Americans

12 Sep 2014 5:13 PM

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Americans are eating better — well, some Americans

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Income gap! What are you doing here?! We’re trying to have a conversation about food and you just show up uninvited and unannounced, as usual.

Just kidding, obviously — since money is intrinsically tied to every part of our lives, the growing divergence between high- and low-income households can pretty much be expected to show up all the damn time.

A new study examining data from the National Health and Nutrition Examination Survey (NHANES) over the period of 1999 to 2010 found that Americans have somewhat improved our overall dietary quality. We’re eating more fresh produce, whole grains, and fish, and less meat and sugary treats. Great! People are also eating less meat, and when they do they increasingly choose pasture-raised animals.

This increase in overall dietary quality, however, is still modest. Don’t worry, America — you will still love McBrunch, no matter how terrible it is for you.

But — of course! — these modest improvements come with some larger backsliding. Positive changes in dietary health were made largely by folks who earn higher incomes. For lower-income individuals, dietary quality actually decreased from 2006-2010. So, the income gap — which has risen since the 1970s, as the wealthiest 1 percent of Americans earn 22.5 percent of the nation’s income while the bottom 90 percent makes do with less than 50 percent of that — is being paralleled in food choices.

To call it a “choice” however, isn’t entirely fair. The food that’s most accessible to people who make very little money tends to be highly processed, fatty and starchy, and relatively nutritionally vacant. The fact that the quality of food that one eats is so closely tied with income seems pretty intuitive, but that doesn’t mean it’s not alarming as yet another indicator of growing inequality in the U.S.

Ah, America, land of opportunity, liberty, and kale salad — providing you’re already loaded.

Source:
The Rich Are Eating Richer, the Poor Are Eating Poorer

, Mother Jones.

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Americans are eating better — well, some Americans

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California’s cap-and-trade program will fund environmental justice

Please, sir, may I have some more?

California’s cap-and-trade program will fund environmental justice

Jason Holmberg

Neighbors of refineries such as this one in Richmond will benefit from California’s cap-and-trade program.

Have poor Californians hit the environmental-health jackpot?

The money raised through the sale of carbon credits under the state’s young carbon-trading program is earmarked for projects that help the climate and the environment. And under a law passed a couple of years ago, SB 535, 25 percent of that money must go to programs that provide benefits to disadvantaged communities, with 10 percent to be spent on projects located directly within those communities. Disadvantaged communities are determined by the state based on pollution levels and socioeconomic factors. They are typically poor neighborhoods of color, where health is compromised and lives are cut short by pollution from the refineries and power plants whose greenhouse gas emissions are being capped.

A $156 billion budget signed recently by Gov. Jerry Brown (D) outlines how the state will spend $872 million expected to be raised over the coming year through the sale of carbon credits. (Note that the $832 million figure in the chart below excludes a $40 million emergency appropriation to help manage the drought.)

California Department of Finance

A quarter of $872 million is $218 million. That money will be spread across projects that benefit disadvantaged communities, such as efforts to reduce pollution from trucks that pass through them. The 10 percent, or $87 million, that must go toward projects inside those communities will help plant trees in cities, provide affordable housing near transit lines, and improve energy efficiency in homes.

Which is great. But, despite its sunny reputation as an environmental and social leader, California remains plagued by income inequality and environmental injustices, and these funds will go only a small way toward addressing those problems. As Vien Truong, an official with the Berkeley-based nonprofit Greenlining Institute, which helped draft the SB 535 bill and implementation plan, notes in a recent Harvard Civil Rights-Civil Liberties Law Review article:

Although there is a rising environmental movement — with corresponding social and financial investments in being “green” — the benefits of clean technology have been available and accessible almost entirely to the wealthy few who can afford them. Many in low-income communities are economically locked out of these resources, even though it could be argued that those areas are in greater need of the energy and cost savings from emerging, clean technologies.

As the wealth gap widens, there is a growing disparity between the effects of environmental policies on the ecological haves and have-nots. …

The passage of SB 535 is an example of a policy effort that is paying more attention to the resource gaps and needs of low- income communities. It is a start, but woefully insufficient. Greater efforts must be made to persuade all environmental policymakers and advocates — even those who are “mainstream” and not necessarily representing low-income communities and communities of color — to develop policies that are similarly responsive to the nation’s highest need communities.

So, no, California’s poor have not hit a jackpot. But at least the state’s high-profile carbon-trading program is paying some dividends for those who are hurt the most by polluters.


Source
Calif. Budget to Make Historic Climate Investments in Low-Income Communities, Greenlining Institute
Addressing Poverty and Pollution: California’s SB 535 Greenhouse Gas Reduction Fund, Harvard Civil Rights-Civil Liberties Law Review
Calif. Earmarks a Quarter of Its Cap-and-Trade Riches for Environmental Justice, Inside Climate News

John Upton is a science fan and green news boffin who tweets, posts articles to Facebook, and blogs about ecology. He welcomes reader questions, tips, and incoherent rants: johnupton@gmail.com.

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Income Inequality Has Spurred a Boom in Private Security

Mother Jones

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This is a truly fascinating chart: countries with lots of income inequality—driven largely by the gains of the ultra-rich—also spend more and more of their money on security services. Gotta keep the hoi polloi at bay somehow, after all. However, the researchers who produced the chart also add some appropriately scholarly cautions:

Does the graph show that inequality causes a country to devote more of its labor force to guard labor? It is hard to be sure. It could be that people with a strong commitment to economic justice are, for some unknown reason, also more law-abiding, explaining the difference between Denmark and the United States. But the correlation evident in the graph could be evidence that economic disparities push nations to devote more of their productive capacity to guarding people and property. Fear and distrust of one’s neighbors and fellow citizens fuel the demand for guard labor. Economic disparities can contribute to both. Among the countries shown, a common measure of distrust of strangers is strongly correlated with both the guard-labor fraction and inequality.

Social spending, also, is strongly and inversely correlated with guard labor across the nations shown in the graph. There is a simple economic lesson here: A nation whose policies result in substantial inequalities may end up spending more on guns and getting less butter as a result.

Perhaps this is our dystopian, Piketty-esque future: a small class of ultra-wealthy rentiers; a breakdown of public safety because the rich employ their own private security forces and don’t feel like funding anything further; a retainer class of managerial drones; and then everyone else—sullen and resentful, but kept in line by the hard men in dark glasses toting automatic weapons and driving armored limos.

Actually, probably not. Eventually robots will provide better security services than fragile human beings, so the security forces will be out of jobs too. By then, however, even the ultra-wealthy won’t care if robots produce enough to make life lovely for everyone. Sure, they’ll still want their share of the still-scarce status goods—coastal property, penthouse apartments, original Rembrandts—but beyond that why should they care if everyone lives like kings? They won’t, and we probably will. As long as we don’t all kill ourselves first.

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Income Inequality Has Spurred a Boom in Private Security

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Donald Rumsfeld Will Never Overpay His Taxes

Mother Jones

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Via Steve Benen, I see that Donald Rumsfeld sends the IRS a letter every year when he files his taxes. Here it is:

I have sent in our federal income tax and our gift tax returns for 2013. As in prior years, it is important for you to know that I have absolutely no idea whether our tax returns and our tax payments are accurate. I say that despite the fact that I am a college graduate and I try hard to make sure our tax returns are accurate.

The tax code is so complex and the forms are so complicated, that I know I cannot have any confidence that I know what is being requested and therefore I cannot and do not know, as I suspect a great many Americans cannot know, whether or not their tax returns are accurate. As in past years, I have spent more money that I wanted to….

Etc. Two things here:

As a longtime feeder at the public trough, Rumsfeld is surely aware that the IRS isn’t responsible for the complexity of the tax code. Congress is. He needs to write an annual letter to his representative in Congress instead. As a resident of Washington DC, of course, he doesn’t really have one, but that’s a whole different story. However, I’m sure Rep. Eleanor Holmes Norton would be delighted to receive his letter anyway.
The big reason taxes are complicated is because people do complicated things with their money—often with the express aim of lowering their taxes. Nobody is forced to do this. If you want, you can just add up all your income and pay the statutory rate without worrying about deductions and loopholes and capital gains rates and so forth. That will make your taxes easy. But if you’re the kind of person who has enough money to hire expensive accountants to manage your carefully tailored investments, then you have enough money to pay those accountants to do your taxes too.

In any case, none of this really matters. No matter how much Rumsfeld pays in taxes, it will never be enough to make up for the damage he’s done to this country over his lifetime. He should stop whining. He owes us.

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Donald Rumsfeld Will Never Overpay His Taxes

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