President Obama delivered a State of the Union address Tuesday that was deeply saturated with the message of income inequality, a populist idea that the White House hopes will resonate on the campaign trail.
In a stunning achievement for unionists and Democrats, critics of the Wisconsin governor Scott Walker marshaled over a million signatures for a petition that has made it possible for Walker to lose his office in a recall election this spring. If so, that would be the first successful gubernatorial recall in Wisconsin history and only the third in that of the United States.
In yet another push to define the Democrats as defenders of the middle class, a top economic adviser for the Obama administration outlined Thursday the massive growth in income inequality and its ramifications on the nation. Alan Krueger, chairman of the president's Council of Economic Advisers, said that inequality is now causing an unhealthy division in opportunities and is posing a threat to economic growth. Economic mobility has decreased and the middle class has shrunk.
No one who is remotely familiar with American demographics should be surprised to hear that Anglo families, on average, are wealthier than black or Latino families. Nonetheless, the magnitude of the disparity revealed by a new study is staggering.
Raghuram Rajan wasn't the only economist who warned of the financial crisis before it struck. He was, however, the sole one brave enough to make this prediction in front of Alan Greenspan at a 2005 Jackson Hole Conference devoted to celebrating the legacy of the once-seemingly infallible Fed chief.