Take Up the Rich Man’s Burden

June 17, 2014
Posted by Jay Livingston

Pity the wealthy. How their burden has increased. At least that’s what Mark Perry would have us believe. The income tax burden, he says in the title of this chart that he tweeted today, has become “more progressive.”

It certainly looks as though the rich man’s burden has increased.  Perry is careful not to say that “taxes” have become more progressive. That would mean that rates have increased more on the wealthy than on others. Instead he says that the “burden” has become more progressive. 

The burden might have become more progressive, but did tax rates on the wealthy increase? No.

Except for the period from 1990 to 1993, tax rates fell or were level.

Why then did the burden increase?  Since it’s unlikely that the wealthy were voluntarily kicking extra bucks into the IRS coffers, there’s only one explanation: the wealthy were getting an increasing share of income. This possibility seems not to have occurred to Perry.

It has occurred to Piketty and Saez, who have been providing us with information on the income shares of those at the top.  Here is a chart of the top 10%.

From 1985 to 2010, their share of income increased from roughly 34% to 47% – a 38% increase. Their tax burden rose by only 29%. 

And the 1%.

Their income share increased from 12% to 20% – a 67% increase. Their share of the tax burden increased by only 45%.

According to the bio at the American Enterprise Institute website, “Mark J. Perry is concurrently a scholar at AEI and a professor of economics and finance at the University of Michigan's Flint campus.”

A scholar. Is this what passes for scholarly work at the AEI? I am not an economist or a finance expert. But even I know enough to see that the chart and its title are deliberately misleading. 

(And with apologies to Kipling)
.

Take up the rich man’s burden, and shower him with praise,
For at the AEI, this style of economics pays.

The Shabbos Goy – Solidarity or Shanda

June 14, 2014
Posted by Jay Livingston

The shabbos goy used to annoy me. I don’t mean the goy himself; I never met one. I mean the whole concept.  The Bible says, “Ye shall kindle no fire throughout your habitations upon the sabbath day” (Exodus 35:3). The shabbos goy was the person Jews hired to light their ovens on the Sabbath so they could still cook without technically violating the commandment. Strictly observant Jews extend the fire-kindling prohibition to anything that might start an electric current – turning on the lights, or pushing an elevator button.  Somewhere today, no doubt, a shabbos goy has gone into an Orthodox home, turned on the TV, and tuned it to ESPN for the World Cup.

This legalistic ploy allows Jews to keep the letter of the law while violating its spirit, and I always found it embarrassing. Is this what we want others to see in how Jews practice their religion?  A shanda fur die goyim. It’s sort of like getting around “Thou shalt not kill” by hiring a hit-man goy.  The purpose of the commandment, I thought, is to make everyday life more difficult so that Jews would spend their time worshiping God. Instead, they hire a shabbos goy so they can have their sabbath cake and bake it too.

It wasn’t just the hypocrisy that bothered me. It was the tone that accompanied it – at worst a smug satisfaction, more typically an amiable chuckle – as though there were virtue in putting one over on God.

How unsociological of me. How could I not have remembered Durkheim? Religion – its rituals and rules – is not about suffering or self-denial or carrying out God’s wishes; it’s about group solidarity. The point of the laws is to draw the boundary lines of the group. Like the funny clothes and hair styles, these laws separate Us from Them. These are our laws. They define who we are. It doesn’t matter so much that we believers have also evolved ways to circumvent them.

What reminded me of this was an article in the Atlantic (here) by Dominic Pettman.  (“Dominic, Dominic,” I can hear my grandmother rolling the name around in her head – “interrogating” it, as we might now say - and finally asking point blank: “Is he Jewish?”  I don’t know, Grandma.)  Pettman lives in a building with a shabbos elevator. It is programmed to stop at every floor so that the strictly Orthodox don’t have to push a button. Of course, if you live on a high floor, all those stops take forever.  Jews must suffer. Sometimes.

Pettman chides me for my accusations of hypocrisy.  “Certainly we cannot pretend to know if God is angered by the conceit of the Shabbos elevator, or if He chuckles at the elaborate nature of the solution.” True. Maybe God is totally cool with the shabbos goy, and I am wrong to think that the Jews who hire him are hypocrites. More important, the hypocrisy in this case is sociologically irrelevant.

For the Durkheimian angle, Pettman digs out a copy of a 2003 book by folkorist Alan Dundes, The Shabbat Elevator and Other Sabbath Subterfuges. I’m not sure I agree with all of Dundes’s ideas, for example the one about the “Jewish character” being “culturally and historically drawn to ingenuous workarounds.” Dundes takes the Durkheimian idea to places beyond where I would go. Solidarity, he says, comes not just from the special rules but also from the communal subterfuges for avoiding them and the collective rationalizations for this avoidance.  I disagree, on the basis of no evidence, probably because I would still be embarrassed to think that these “counter customs” (as Dundes calls them) are essential to Jewish solidarity* rather than merely incidental. 

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* I should add that I myself have never felt much solidarity with the Orthodox community.

Unintended Insights

June 12, 2014
Posted by Jay Livingston

Sometimes it’s hard to be a conservative, supporting a status quo that’s not working, at least not for large numbers of people.

Brad Wilcox’s latest defense-of-marriage op-ed, “One way to end violence against women? Married dads” (here), carried the seeds of its own destruction (or at least deconstruction).  It’s not just that Wilcox failed to control for things like age, social class, and time trend. The trouble was that while the article was, on its surface, a sermon on how marriage makes women safer, the subtext was a damning critique of the gender status quo. Wilcox did not make that critique explicit, nor did he intend the article to be a feminist document. Just the opposite: “So, women: if you’re the product of a good marriage, and feel safer as a consequence, lift a glass to dear old dad this Sunday.”

But by pointing out the relative safety of married women, Wilcox was also calling attention to the dangers faced every day by unmarried women. The karaoke track Wilcox wanted was “Stand By Your Man” – clear support for the benefits of marriage. But what he wound up singing was “Stand By Your Man . . . Or Else.”

This focus on threat was not accidental. The op-ed begins with the UC Santa Barbara shootings and the “millions of girls and women [who] have been abused, assaulted, or raped by men, and even more females fear that they will be subject to such an attack.” You could hardly blame his critics for homing in on the “Or Else.”

Wilcox moved on to laud “some other men [who] are more likely to protect women, directly and indirectly, from the threat of male violence: married biological fathers.” [Emphasis in the original.] It’s almost as though in response to Sandy Hook or other school shootings he had written an op-ed extolling the safety of home schooling.  It may be true, but “Home school your child . . . or else” ignores the way most parents think about the problem and its possible solutions.

It’s risky to point out dangers and then tell people to seek individual solutions. Urging those on the short end of the stick to keep holding on to it may work, but it may also lead them to the sociological insight that the problems are in the system. In the early years of this blog (here) I used “Stand By Your Man” as an example. National Review had put it among “the  50 greatest conservative rock songs.”*  Yet despite the song’s ostensible support for the status quo, it is also telling women what a crummy deal marriage is for them. Imagine a Saudi version that began the same way – “Sometimes it’s hard to be a woman” – and went on to list problems like jealous co-wives, no driving, no going outside alone or clothed in anything but a black tent, and so on.The resounding refrain of “Stand by your man” might ring a bit hollow.

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* The song is not rock; it’s pure country. If you are unfamiliar with this Tammy Wynette classic, you can hear and see her lip-sync it here.

Down These Mean Median Streets

June 11, 2014
Posted by Jay Livingston

For a quick illustration of the difference between mean and median, I often use the example of income. I choose a plausible average (mean) for the classroom population and review the math. “If Bill Gates walks into the room,” I say, “the average income is now in the billions. The median hasn’t has hardly moved, but the mean has gone way up.” So has the Gini coefficient.

Here’s a more realistic and global illustration – the net worth of people in the wealthier countries.  The US ranks fourth in average worth – $301,000 per person . . .

. . . but the median is far lower – $45,000, 19th out of the twenty nations shown.  (The graph is from Credit Suisse via CNN )

The US is a wealthy nation compared with others, but  “average” Americans, in the way that term is generally understood, are poorer than their counterparts in other countries.

But as with so many things, most Americans are unaware of how life is lived in other countries.  In our ignorance and arrogance, we just know that, although things may not be perfect here, they are in all respects better than anywhere else.  As Sen. Marco Rubio put it at the 2012 Republican convention, speaking about Democratic proposals on things like inequality and health care, “These are ideas that threaten to make America more like the rest of the world instead of making the rest of the world more like America.”

The key word, of course, is “threaten.”  Affordable health care for all,  a higher median net worth – are these a threat? Only in America – or, more accurately, Republican America.