The Price of Inequality: How Today's Divided Society Endangers Our Future (68 page)

   labor supply and, 53, 55, 80

   nutrition and, 102, 308

   parental circumstances’ effect on, 18, 20, 76, 94, 108, 307

   states’ funding of, 195, 263, 304

   
see also
student loans

Egypt, 138, 291

Einstein, Albert, 41

Eisenhower, Dwight, 366

elderly:

   population growth of, 279

   poverty among, 17, 26, 74, 227, 306

   retirement income of, 177, 244

elections, U.S., 134, 170, 251–52

   
see also
campaign finance; politics, U.S.; voting

emerging markets, 54, 143, 181, 233, 383

employment, 50, 69, 75, 76, 189, 211

   parental circumstances’ effect on, 18, 76, 307

   restoring, 222, 225, 257, 278–81, 284, 285, 380, 396

   
see also
labor; unemployment

energy industry, 51

   corporate recklessness in, xviii, 99, 189, 339, 374

   and global warming, xviii, 160

   lobbying by, 95, 185, 338

   rent seeking by, 40, 49–50, 99, 272, 367

   subsidies to, 179, 180, 189, 214, 367

Enlightenment, 30, 156

Enron, 177–78

environment:

   costs to, 98–99, 100, 185, 188–89, 272, 339, 374

   protection of, 122, 141, 178, 184, 217, 283

   
see also
global warming; resources

environmental justice movement, 184, 308

equilibrium fictions, 150, 157, 356, 358

Ericcson, 203

estate taxes, 73, 76, 88, 166, 167, 274, 361, 395

ethanol subsidy, 50–51, 180, 320

euro, 220, 391

Europe, 22, 55, 105, 141, 155, 280, 286

   economic mobility in, 18, 117, 265

   financial crisis in, 24, 138, 141, 182, 219, 220, 231, 235–36, 254–56, 369, 381, 389–91

   globalization’s effect in, 63, 64

   inequality in, xiv, 5, 23

   inflation in, 241, 255, 259, 393

   unemployment in, 278, 291

European Central Bank (ECB), 138, 182, 220, 249, 255, 256, 390, 391, 393

European Commission, 214

exchange rates, 280

Exxon, xviii, 160

Exxon Valdez,
374

fairness:

   changing views of, 67, 148, 153–55, 347

   economists’ perceptions of, 161

   importance of, xiv, 114, 117, 126–27, 135, 163, 214, 266

   in labor, 103–4, 127

Fannie Mae, 158, 284, 356, 363, 397

Federal Bureau of Investigation (FBI), 197, 372

Federal Communications Commission (FCC), 47, 335

Federal Deposit Insurance Corporation (FDIC), 247

Federal Reserve, U.S., 71, 245, 248, 249, 252, 253, 258, 266

   appointees to, 47, 48, 133, 249–50, 319, 388

   bank lending by, 37, 49, 243, 245–46

   financial sector’s favoring by, 37, 49, 243, 245–48, 249, 251–54, 258, 264, 324, 385–86

   monetary policies of, 85, 86, 88, 133, 177, 208, 234, 239–40, 243–45, 248, 250, 251, 252, 254, 257–58, 259, 262, 264, 279, 380, 382, 385, 389, 392

   Open Market Committee of, 252

   oversight of, 251, 252

   political nature of, 250, 251

   regulatory position of, 246, 247, 248, 387, 388

Ferguson, Thomas, xxiv

Fields, Alex, 283

filibusters, 132–33, 286, 350, 351

Financial Accounting Standards Board, 110

Financial Crisis Inquiry Commission,
see
Angelides, Phil; National Commission on the Causes of the Financial and Economic Crisis in the United States

financial crisis of 2008, x, xiv, xvii, xix, xxii, xxiii, 1, 3, 13, 33, 49, 61, 77, 79, 91, 152, 155, 166, 167–69, 171, 174, 175, 180, 213, 232, 246, 254–55, 260, 314

   causes of, xi, 33, 34, 37, 49, 90, 175, 213, 258, 264

   criminal prosecution for, xv–xvi, 70, 119, 199, 372, 373

   economic situation prior to, 53–54, 84–85

   
see also
Great Recession; subprime crisis

financial markets:

   deregulation of, 5, 49, 60, 81, 89–92, 102, 152, 157, 175–76, 177, 181–82, 240, 246–48, 249, 258, 387

   distributive impact of, 173–74

   equilibrium fictions in, 152, 175

   failures in, xi–xiii, xvii, xviii, 6, 34, 41, 90, 107–8, 173, 241, 291, 313

   globalization in, 59–61, 139–40, 141–42, 181–82, 277, 280, 324, 325

   government regulation of, xiii, xx, xxi–xxii, 28, 33–34, 35, 36, 37, 38–39, 40, 44, 47–48, 80, 87, 119, 136–37, 141–42, 152, 155, 170, 173, 178–79, 192–93, 247, 248, 250, 269–70, 324, 369, 388

   ideological perceptions of, 154, 155, 156–57, 158, 163–66, 172–79, 186, 257, 258, 261, 313, 317, 356

   information asymmetries in, 36–37, 110, 124, 165–66, 313, 388

   international debt in, 139

   legal underpinnings of, 42, 43

   price discovery in, 164–65

   transparency in, 35–36, 247, 269, 390

   
see also
bankers; business; economy, U.S.; stock market

financial sector, 49, 87, 169, 170, 219, 226, 228, 382

   abusive credit card practices in, 37, 40, 90, 96, 98, 119, 124, 164, 240, 246, 269, 270, 274, 314

   anticompetitive behavior in, 35–36, 46–47, 247, 269, 270, 318;
see also
monopolies

   criminal behavior in, 198, 199, 200–201, 204–6, 372, 373

   Federal Reserve’s favoring of, 37, 49, 243, 245–48, 249, 251–54, 258, 264, 324, 385–86

   government bailouts in, xiv–xv, 37, 60, 74, 101, 155, 166–69, 171, 172, 175, 180, 193, 198, 213, 233, 234, 245–46, 252–53, 258, 269, 324, 361, 362

   government lending to, 37, 49, 110, 243, 245–46

   growth of, 79–81, 240, 246–48, 271

   hidden subsidies to, 222, 223, 240, 247, 387

   incentive pay in, 78–79, 87, 109–10, 342

   international influence of, 181–82, 186–87

   legal system’s favoring of, 191–202, 203, 204–6

   moral deprivation in, xvii–xviii, xxiii, 37–38, 70, 197–98, 201, 314

   political power of, 34, 37, 41, 48, 61, 135, 136–37, 193, 194, 200, 202, 319, 324, 338

   predatory lending by, xvii, 37, 40, 58, 70, 90, 119, 124, 191–93, 194, 197–98, 201, 239, 246, 249, 269–70, 313, 314, 333, 369

   purpose of, 62, 96, 142, 175, 281, 314

   ratings agencies in, 192, 217, 219

   rent seeking by, 36–39, 40, 41, 166, 270

   securities fraud in, 204–6

   student loan practices in, 94, 195, 196, 201, 323, 371

   taxes on, 213–14, 215, 247, 248

   trust in, 123–24, 346

   undercapitalization in, 247, 256, 386

   
see also
bankers

Finland, 18, 19

fiscal policy, 278–79, 285

   
see also
government, U.S., macroeconomic policies of

flash trading, 165–66

food stamps, 74, 211, 277, 305, 306

foreclosures, x, xii, xv, 1, 10, 13, 23, 169–70, 197–202, 271, 293, 302, 362, 363, 369, 374, 388

   
see also
mortgage restructuring; subprime crisis

foreign policy, U.S., 101

framing, cognitive, 149–50, 160, 163, 186, 360

France, 18, 22, 97, 183, 214, 351, 385

Freddie Mac, 158, 284, 363

Friedman, Milton, 44, 157, 257, 258, 317, 391

Friedman, Stephen, 388

FUD, 45

G-8, 143

G-20, 143, 185

Galbraith, Jamie, 81

Galbraith, John Kenneth, 128

game theory, 44, 68

Gates, Bill, 42, 315

GE, 222, 330, 331

Geithner, Tim, 48

George, Henry, 212

Georgia, 191–92, 368

Germany, 18, 23, 214, 230, 259, 280, 351, 385

gerrymandering, 132, 135, 286

Gettysburg Address, 137

GI Bill, 5, 55

Gini coefficient, 23–24, 303, 309, 310

Glass-Steagall Act, 90, 387

globalization, 58–64, 79, 80, 156, 184, 259, 260

   competition in, 60, 141, 142

   democracy and, 138–45

   drawbacks of, 60, 62, 63, 142, 324

   financial, 59–61, 139–40, 141–42, 181–82, 277, 280, 324, 325

   inequality and, 60, 63–64, 79, 80, 140, 142, 144, 145

   labor and, 56, 59–60, 61, 63, 64, 80, 233, 277, 278, 280, 281, 324, 325

   management of, xiii, 61, 64, 80, 137, 142, 144, 145, 277–78

   taxes and, 62, 63, 142, 278

Globalization and Its Discontents
(Stiglitz), 61, 181

global warming, xii, xiii, 144, 160, 341

   
see also
environment

Golden Rule
(Ferguson), xxiv

Goldman Sachs, 61, 124, 205, 253, 353, 388

Google, 174, 203

government, U.S.:

   bank bailouts by, xiv–xv, 37, 60, 74, 101, 155, 166–69, 171, 172, 175, 180, 193, 198, 213, 233, 234, 245–46, 252–53, 258, 269, 324, 361, 362

   budget cuts in, 207, 216, 221, 226–28, 229, 230–36

   budget of, 207–37

   collective action through, 82, 93, 107, 117, 121, 125, 281–82

   ideological perceptions of, 93–94, 154–55, 156–57, 158, 172–79, 186, 257, 258, 261, 356

   inequality-supporting policies of, 6, 28, 31, 32, 52, 57–58, 74, 75–76, 77, 79, 81, 82, 153

   investment by, 23, 40, 80, 84, 88, 92–94, 102, 114, 115, 155, 174, 216, 217, 218, 230, 232–33, 263, 267, 273, 279, 281, 282–83, 381

   litigation by, 203, 204

   macroeconomic policies of, 38, 62, 64, 80, 82, 85, 86, 102, 133, 225, 230, 231, 236, 237, 238–64, 279, 379, 392

   market regulation by, xiii, xx, xxi–xxii, 5, 28, 34, 35, 36, 37, 38–39, 44, 47–48, 49, 60, 80, 81, 87, 89–92, 102, 119, 136–37, 141–42, 152, 170, 173, 175–76, 177–79, 192–93, 246–48, 250, 258, 269–70, 324, 369, 387, 388

   media’s relationship with, 128, 135, 136, 252

   military spending by, 40, 101, 176, 209, 210, 211, 216, 218, 224, 340

   munificence of, 32, 40, 42, 48–51, 97, 99, 101, 136, 173, 176, 179–80, 189, 191, 210, 211, 213, 214, 215, 216, 222, 224, 228, 271–73

   research funded by, 78, 92, 93, 102, 174, 216, 283, 337

   size of, 93–94, 155, 156–57, 216, 221, 236–37, 251, 256, 257

   social spending by, 2, 5, 14, 15, 16–17, 26, 63, 74, 77, 79, 84, 85, 86, 108, 173, 208, 210, 211, 215–16, 226–28, 231–32, 237, 276–77, 299, 365, 380

   
see also
politics, U.S.

government procurement, 40, 49, 101, 176, 210, 224

Great Depression, 5, 56–57, 90, 156–57, 175, 231, 233, 257, 267, 383, 385, 391

Great Recession 51, 70, 118, 165, 195, 227, 234

   causes of, 197, 202, 252, 280

   deficit consequences of, 207, 210–11

   effects of, 1–2, 9–17, 27, 82, 91, 197, 238–39, 276–77, 287, 357, 383

   ideological interpretations of, 157, 158, 161, 175

   jobless recovery from, 244–45, 264

   labor outcomes of, 57, 65, 124–25, 241–42, 250, 301, 380

   monetary policy in, 240, 257–58

   profit-making in, 29, 67, 110, 241

   resource waste in, 90, 241

   savings depleted by, 1, 13, 70

   stimulus package in, 86, 211, 232–34, 236, 382

   wage share in, 29, 57, 65, 67, 328

   worsening of, 217, 230

   
see also
financial crisis of 2008

Greece, 22, 142

   financial crisis in, 138–39, 141, 182, 219–20, 231, 255, 316, 390

Greenspan, Alan, 48, 88, 208, 246, 248, 251, 258, 376, 387

gross domestic product (GDP), 182–85, 268

   
see also
economy, U.S., gross domestic product in

gross national product (GNP), 184–85

Güth, Werner, 126

Hacker, Jacob S., xxiv

Halliburton Corporation, 101, 210, 272

Hammonds, Tim, 338

Harrison, John, 109

health care, 12, 44, 155, 222, 263

   cost of, 10, 97, 109, 265, 273, 274, 276, 301, 317, 353, 378, 380

   government assistance with, 14, 23, 31, 70, 74, 226, 276;
see also
Medicare

   inefficiency in, 176, 183, 228, 380, 395

   Obama’s reform of, 14, 163, 276

   racial discrimination in, 70, 303

health industry, 95, 97, 176

   
see also
pharmaceutical industry

Hemsley, Stephen, 42

Hewlett-Packard (HP), 203, 360

Hispanics:

   discrimination against, 68, 70, 328, 369

   wealth of, 13, 329, 384

Holder, Eric, 199

homeownership, 76, 108, 152, 157, 161, 171, 223, 379

Hoover, Herbert, 231

House of Representatives, U.S., 93, 100, 134, 207

   Financial Services Committee of, 136

   
see also
Congress, U.S.; Senate, U.S.

housing discrimination, 70–71, 308

housing market:

   bubble in, 54, 85, 88–89, 183, 191–93, 211, 232, 243, 262, 378, 388

   collapse of, 3, 8, 13, 89, 91, 169, 198, 223, 285, 294, 296, 302, 311, 314, 363

   recovery in, 284–85

   
see also
foreclosures; mortgage restructuring; predatory lending; subprime crisis

housing subsidies, 74

human rights, 59, 155

ideas:

   democracy and, 185

   evolution of, 156–59, 160

immigration, 53, 227, 296

imprisonment, 15, 70, 303, 304–5

incentive pay, 78–79, 87, 107, 108–14, 153–54, 163, 173, 205, 342, 343, 347

income redistribution, 85, 211

   criticisms of, xxii, 106

   government’s role in, 30–31, 71–76, 155, 238, 279

   political limitation of, 32, 77

India, 152–53, 196–97, 249

Industrial Revolution, 30, 105, 345

inequality:

   alternative models of, 81–82

   consequences of, 83–117, 125, 133–35, 147, 148, 186, 187–206, 233

   deficit reduction and, 221–24

   determinants of, xii, 28, 30–31, 33–39, 79–82, 267, 271, 276

   educational, xiv, 19, 20, 30–31, 68, 75, 94, 102, 108, 160, 307–8, 322

   efficiency and, 106–16, 117

   globalization’s effect on, 60, 63–64, 79, 80, 140, 142, 144, 145

   government’s role in, 6, 28, 30–32, 52, 57–58, 74, 75–76, 77, 79, 81, 82, 147, 153, 172–73, 190, 207