Monday, April 29, 2013

NYT Notices Disparities

I blogged last week on how Obama's money leveraging policies were driving increases in the wealth gap between upper and lower economic strata and how the gap seeps into racial divides.  Here comes the New York Times, noticing as well,

As of 2010, white families, on average, earned about $2 for every $1 that black and Hispanic families earned, a ratio that has remained roughly constant for the last 30 years. But when it comes to wealth — as measured by assets, like cash savings, homes and retirement accounts, minus debts, like mortgages and credit card balances — white families have far outpaced black and Hispanic ones. Before the recession, non-Hispanic white families, on average, were about four times as wealthy as nonwhite families, according to the Urban Institute’s analysis of Federal Reserve data. 
By 2010, whites were about six times as wealthy.The dollar value of that gap has grown, as well. By the most recent data, the average white family had about $632,000 in wealth, versus $98,000 for black families and $110,000 for Hispanic families. 
“The racial wealth gap is deeply rooted in our society,” said Caroline Ratcliffe, one of the authors of the Urban Institute study. “It’s here, it’s not going away, and we need to care about it.”

As one might expect given its liberal blinders, the Times is blissfully ignorant of how Obama's print, borrow and spend policies have spurred increased disparities by inflating the values of financial assets, be that as it may.  

Two mitigation tactics are mentioned.  First, end the home mortgage interest income tax deduction (a huge middle and upper class tax subsidy) .  Second, sponsor some sort of savings program that helps working families build nest eggs of their own.  I support both, subject to irony.  Irony 1 is that ending the home mortgage interest deduction is exactly the sort of thing the could have/would have happened under a Romney style tax reform where tax rates are reduced.  There is no chance of that type reform occuring under Obama.  Irony 2, is George W Bush's social security reform proposal included a very generous government sponsored savings and investment program.  It was killed from the left.  Again, there is no chance of that type of reform under Obama.  Indeed, Obama's idea of reform is to punish people for saving too much.  Obama supporters -- you get what you vote for, as do the rest of us.

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