Matthew Boudway April 16, 2014 - 5:32pm
The patterns in the data show that inequality is not a question of the more-educated gaining at the expense of the less-educated due to inevitable technological trends. Rather, it has been a story in which a small group of especially well-situated workers — for example, those in finance, doctors, and top-level corporate executives — have been able to gain at the expense of almost everyone else. This pattern of inequality will be little affected by improving the educational outcomes for the bottom quarter or even bottom half of income distribution.
Relative to other countries, tax rates in the U.S. are relatively low, even when you throw in local and state taxes and add them to federal levies. Overall, according to the Tax Policy Center and Center on Budget and Policy Priorities, which supplied the graph above, taxes in the U.S. are among the lowest in the developed world. The average for countries in the Organization for Economic Cooperation and Development, an organization of rich countries, is higher. And in countries like Sweden, Norway, and the Netherlands...the average is much higher. In those nations, taxes account for more than half of total national income.
That level may sound scary but, as many of us have written before, you could make a good case that the people of Scandinavia and Northern Europe know what they are doing. They are far more secure, thanks not only to national health insurance but also to generous provision of child care and unemployment benefits. And despite the high tax burden, their economies have historically been strong—in part, because the combination of investment and a secure safety net makes people more comfortable with a dynamic, ever-changing economy. The wonks used to call this economic model “flexicurity.”
If someone breaks his promise to drive you to the airport, causing you to miss your flight, then even if the flight crashes with no survivors your friend is not excused: he shouldn’t have broken his promise. The retrospective effects of later outcomes have to do not with justification but with affirmation or regret, which are independent of justification or its absence.
About the Author
Matthew Boudway is an associate editor of Commonweal.