Plutocrats: The Rise of the New Global Super-Rich and the Fall of Everyone Else (47 page)

A recent investigation of the direct employment impact of the iPod
Greg Linden, Jason Dedrick, and Kenneth L. Kraemer, “Innovation and Job Creation in a Global Economy: The Case of Apple’s iPod,”
Journal of International Commerce and Economics
3:1 (May 2011).

Even though the devices are made in China
Greg Linden, Jason Dedrick, and Kenneth L. Kraemer, “Who Captures Value in a Global Innovation System? The Case of Apple’s iPod,”
Communications of the ACM
52:3 (2007).

Consider, for example, the argument Caterpillar
See James R. Hagerty and Kate Linebaugh, “In U.S., a Cheaper Labor Pool,”
Wall Street Journal
, January 6, 2012.

“Under the law of competition”
Carnegie, “The Gospel of Wealth.”

“The economic theory is very clear”
CF interview with Joe Stiglitz, January 26, 2012.

“Well, first off, as a citizen of the world”
CF interview with Steve Miller, January 26, 2012.

“These things have been going on for a couple of decades”
Freeland, “Some See Two New Gilded Ages.”

“India’s gilded age is going to be a combination”
CF interview with Ashutosh Varshney, November 13, 2011.

The two gilded ages can also get in each other’s way
See Mark Landler, “Chinese Savings Helped Inflate American Bubble,”
New York Times
, December 25, 2008.

“In the long run, we are in good shape”
CF interview with John Van Reenen, January 13, 2012.

“This is an exciting story”
Jim O’Neill,
The Growth Map: Economic Opportunity in the BRICs and Beyond
(Penguin, 2011), pp. 251–52.

“Wealth will be created but also spent”
Reader feedback on “The Second Economy,” McKinsey Quarterly Facebook post, November 1, 2011. http://www.facebook.com/note.php?note_id=10150536805679908.

“I only hope you are right”
Ibid.

Until a few years ago, the reigning theory
Richard A. Easterlin, “Does Economic Growth Improve the Human Lot? Some Empirical Evidence,” in
Nations and Households in Economic Growth: Essays in Honor of Moses Abramowitz
, eds. Paul A. David and Melvin W. Reder (Academic Press, 1974).

“Surprisingly, at any given level of income”
Angus Deaton, “Income, Health, and Well-Being Around the World: Evidence from the Gallup World Poll,”
Journal of Economic Perspectives
22:2 (Spring 2008).

Two separate studies of China
See John Knight and Ramani Gunatilaka, “Great Expectations? The Subjective Well-Being of Rural-Urban Migrants in China,” Oxford University Economics Department Working Paper 332, April 2007; and Martin K. Whyte and Chunping Han, “Distributive Justice Issues and the Prospects for Unrest in China,” paper prepared for conference on “Reassessing Unrest in China,” Washington, D.C, December 11–12, 2003.

Betsey Stevenson and Justin Wolfers have found
Betsey Stevenson and Justin Wolfers, “Economic Growth and Subjective Well-Being: Reassessing the Easterlin Paradox” (Brookings Papers on Economic Activity, Spring 2008).

I caught a glimpse of it at a World Bank panel
“Global Development Debate: Jobs and Opportunities for All,” World Bank Institute conference, Washington, D.C., September 22, 2011.

“If you join the union”
Ariel Levy. “Drug Test: Can One Self-Made Woman Reform Health Care for India, and the World?,”
The New Yorker
, January 2, 2012.

Families in the top 0.01 percent
Saez’s complete data set available at http://elsa.berkeley.edu/~saez/TabFig2010.xls.

“A recent academic study of the
Forbes
list”
Wojciech Kopczuk and Emmanuel Saez, “Top Wealth Shares in the United States, 1916–2000: Evidence from Estate Tax Returns,”
National Tax Journal
, vol. 57, no. 2, part 2, June 2004, 482.

“Although comparable data on the past are sparse”
“Global Wealth Report 2011,” Credit Suisse Research Institute, October 2011.

93 percent of the gains
Saez, “Striking It Richer.”

“Probably if you had looked at the situation”
CF interview with Emmanuel Saez, February 24, 2011.

CHAPTER 2: CULTURE OF THE PLUTOCRATS

“Somebody ought to sit down”
Scott Turow,
Pleading Guilty
(Grand Central Publishing, 1994), p. 174.

“men like Henry George”
Albert Einstein, letter to Anna George de Mille, 1934. http://www.cooperativeindividualism.org/einstein-albert_letters-to-anna-george-demille-1934.html.

“the battle cry for all”
Joanne Reitano,
The Restless City: A Short History of New York from Colonial Times to the Present
(Taylor & Francis, 2006), p. 101.

“Not even Lincoln had a more glorious death”
“Expressions of Regret: The Comments of Many Prominent Persons in New York Upon the Death of Henry George,”
New York Times
, October 30, 1987.

“I stopped a man”
Henry George, Jr.,
The Life of Henry George
(Doubleday and McClure Company, 1900), p. 149.

“Why should there be”
Ibid., pp. 468–69.

“The present century has been marked”
Henry George,
Progress and Poverty
(D. Appleton and Co., 1886), pp. 3–4.

“We are coming into collision”
Ibid., p. 5.

“Some get an infinitely better”
Ibid., p. 7.

“show that their sympathies”
Edward Robb Ellis,
The Epic of New York City: A Narrative History
(Carroll & Graf, 2005), p. 382.

“born rich”
F. Scott Fitzgerald, “The Rich Boy,” in
The Short Stories of F. Scott Fitzgerald
, ed. Matthew J. Bruccoli (Charles Scribner’s & Sons, 1989), p. 317.

“The ordinary progress of a society which increases in wealth”
John Stuart Mill,
Principles of Political Economy with Some of Their Applications to Social Philosophy
(Longmans, Green and Co., 1848), Book V, Chapter 2, Section 5.

“Fat cats who owe it to their grandfathers”
Freeland, “The Rise of the New Global Elite.”

“As a consequence, top executives”
Thomas Piketty and Emmanuel Saez, “The Evolution of Top Incomes: A Historical and International Perspective,”
American Economic Review
96:2 (May 2006), p. 204.

Speaking at a Columbia University conference
Paul Sullivan, “Scrutinizing the Elite, Whether They Like It or Not,”
New York Times
, October 15, 2010.

“Capital income excluding capital gains”
“Trends in the Distribution of Household Income Between 1979 and 2007,” Congressional Budget Office study, October 2011, Section XI, p. 17.

This is true even at the very, very top
Jon Bakija, Adam Cole, and Bradley T. Heim, “Jobs and Income Growth of Top Earners and the Causes of Changing Income Inequality: Evidence from U.S. Tax Return Data,” working paper, April 2012, p. 4, footnote 3.

“While I have been richly rewarded”
Leon G. Cooperman, “An Open Letter to the President of the United States of America,” November 28, 2011. http://www.thestreet.com/tsc/common/images/pdf/Omega%20Advisor1.pdf.

“We are fighting the caste system with capitalism”
Lydia Polgreen, “Scaling Caste Walls with Capitalism’s Ladders in India,”
New York Times
, December 21, 2011.

“We have witnessed substantial changes”
Oliver H. Holiet, “Torsten Müller-Ötvös, CEO of Rolls-Royce,”
Luxos
(Germany), Fall/Winter 2011–2012, p. 46.

“During that 80-year period”
Goldin and Katz,
Race Between Education and Technology
, p. 4.

In one example, the wage premium
Ibid.
,
p. 50.

Getting a college degree
Anthony P. Carnevale, Stephen J. Rose, and Ban Cheah, “The College Payoff: Education, Occupations, Lifetime Earnings,” Georgetown University Center on Education and the Workforce, August 5, 2011.

wage premium for a college education
Thomas Philippon and Ariell Reshef, “Wages and Human Capital in the U.S. Finance Industry: 1909–2006,” National Bureau of Economic Research, working paper no. 14644, March 2011.

“Most of the increase in wage inequality”
Thomas Lemieux, “Postsecondary Education and Increasing Wage Inequality,”
American Economic Review
96:2 (May 2006), pp. 195–99.

That contest has prompted absurdities like the story of Jack Grubman
“The Wall Street Fix,” PBS
Frontline
, May 8, 2003.

“With those numbers in mind”
John Quiggin, “Cutthroat Admissions and Rising Inequality: A Vicious Duo,”
Chronicle of Higher Education
, September 11, 2011.

“There’s a kid. You know”
CF interview with Larry Summers, November 22, 2011.

“have the courage to follow your heart and intuition”
Steve Jobs, Stanford University commencement address, June 12, 2005.

“Don’t park ten blocks away”
Drew Gilpin Faust, “Living an Unscripted Life,” 2010 baccalaureate speech, Memorial Church, Harvard University, Cambridge, Massachusetts, May 25, 2010.