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Introduction 1 Notes Introduction 1. “Economic Focus: Marathon Machine,” The Economist, November 25, 2011, 84. 2. Rana Foroohar, “What Ever Happened to Upward Mobility?” Time, November 14, 2011, 34. 3. “Average Hourly and Weekly Earnings in Current and Constant (1982) Dollars, by Private Industry Group, 1970– 2007,” U.S. Bureau of Labor Statistics, Employment and Earnings Monthly, http:// www.census.gov/compendia/statab/cats/income_expenditures _poverty_wealth.html. 4. “The Next China,” The Economist, August 6, 2010, 49. 5. James Haggerty, “U.S. Factories Buck Decline: Sector Creating More Jobs than It’s Cutting; ‘Shining Star,’” The Wall Street Journal, January 19, 2011. 6. Time, November 14, 2011, 30. 7. Michael Spence, “The Impact of Globalization on Income and Employ- ment,” Foreign Affairs 90, no. 4 (July/August 2011): 28. 8. Ibid., 30 9. Robyn Meredith, The Elephant and the Dragon: The Rise of India and China and What It Means for All of Us (New York: W. W. Norton, 2008): 212. 10. Alan Blinder and Jagdish Bhagwati, Offshoring of American Jobs: What Response from U.S. Economic Policy? The Alvin Hansen Symposium on Public Policy— Harvard University (Cambridge: MIT Press, 2009): 98. 11. David Barboza and Nick Bunkley, “G.M. Shines in China,” The New York Times, July 22, 2010, 1. 12. David Wessel, “Big U.S. Firms Shift Hiring Abroad: Work Forces Shrink at Home, Sharpening Debate on Economic Impact of Globalization,” The Wall Street Journal, April 19, 2011. 13. Anand Giridharadas, “India’s Edge Goes beyond Outsourcing,” The New York Times, April 4, 2007. 14. David Wessel, “Big U.S. Firms Shift Hiring Abroad: Work Forces Shrink at Home, Sharpening Debate on Economic Impact of Globalization,” The Wall Street Journal, April 19, 2011. 15. Ibid. 16. Rana Foroohar, “What Ever Happened to Upward Mobility?” Time, November 14, 2011, 34. 172 The Shrinking American Middle Class 17. Clyde Prestowitz, Three Billion New Capitalists (New York: Basic Books, 2005), 148 18. Arianna Huffington, Third World America: How Our Politicians Are Abandoning the Middle Class and Betraying the American Dream (New York: Crown, 2010), 48 19. Dennis Cauchon and Barbara Hansen, “Typical U.S. Family Got Poorer during the Past 10 Years,” USA Today, September 11, 2011. 20. Francis Fukuyama, “The Future of History: Can Liberal Democracy Sur- vive the Decline of the Middle Class?” Foreign Affairs 91, no. 1. (Janu- ary/February 2012): 53. 21. Niall Ferguson, “The Inequality Dodge,” Newsweek, February 8, 2012, 25. Chapter 1 1. Nicholas Kristoff, “Obama’s Inauguration,” The New York Times, Janu- ary 20, 2009. 2. F. A. von Hayek, In Law, Legislation, and Liberty: The Mirage of Social Justice, vol. 2 (Chicago: University of Chicago Press, 1976). 3. Ibid. 4. F. A. von Hayek, “Social Security,” in The Constitution of Liberty (Chi- cago: University of Chicago Press, 1960). 5. William Safire, “No . Left Behind,” The New York Times, February 2, 2006. 6. Herbert Spencer, “The Man versus the State,” (London: Williams and Norgate, 1884). 7. Garret Hardin, “The Tragedy of the Commons,” Science 162, no. 3859 (1968): 1243– 48. 8. Kara Scannell and Sudeep Reddy, “Greenspan Admits Errors to Hostile House Panel,” The Wall Street Journal, October 24, 2008. 9. Definition of justice from the Free Merriam-Webster Dictionary, http:// www.merriam-webster.com/dictionary/justice. 10. Definition of lawfulness from the Free Online Dictionary, http://www .thefreedictionary.com/lawfulness. 11. Anatole France, Chapter 7 in The Red Lily, 14th ed. [Le lys rouge, qua- torzième édition] (Calmann-Lévy: 1894), 1– 30. 12. Tami Luhby, “Obama Wants to Cut Mortgage Interest Deductions for the Rich,” Money.CNN.com, February 15, 2011. 13. Dina El Boghdady, “HUD Budget Would Drop to $41.7 Billion under Obama Proposal,” The Washington Post, February 15, 2011. 14. Organisation for Economic Co- operation and Development, “Grow- ing Income Inequality in OECD Countries: What Drives It and How Can Policy Tackle It?” OECD Forum, Paris, May 2, 2011, http://www .oecd.org/dataoecd/32/20/47723414.pdf. 15. “Shame on them,” The Economist, July 15, 2011, 13. Notes 173 16. “International Financial Statistics, May, 2010,” International Monetary Fund. Statistics Department. 17. Jeffrey Sachs, “How to Tame the Deficit,” Time, February 15, 2010, 38. 18. “Federal Government Receipts by Source, 1934–2008,” Budget of the United States Government: FY 2009, Office of Management and Budget 19. Christopher Chantrill, “Comparison of State and Local Government Spending and Debt in the United States.” usgovedebt.us. 20. “National Income and Product Accounts of the United States,” US Bureau of Economic Analysis. 21. David Leonhardt, “The Deficit, Real vs. Imagined,” The New York Times, June 21, 2011. 22. “Spare a Dime,” The Economist, April 10, 2009, 14. 23. Ibid., 11. 24. Ibid. 25. “Average Hourly and Weekly Earnings in Current and Constant (1982) Dollars, by Private Industry Group, 1970– 2007,” Statisti- cal Abstract: Income, Expenditures, Poverty, & Wealth, US Bureau of Labor Statistics, Employment and Earnings Monthly. http://www .census.gov/compendia/statab/cats/income_expenditures_poverty _wealth.html. 26. “GDP in Current and Constant (2000) Dollars 1960–2007,” US Bureau of Economic Analysis, National Income and Product Accounts of the United States. 27. “Spare a dime,” The Economist, April 10, 2009, 15. 28. Ibid., 11. 29. Ibid., 13. 30. Ibid., 4. 31. Nelson D. Schwartz and Louise Story, “Pay of Hedge Fund Managers Roared Back Last Year,” The New York Times, March 31, 2010. 32. The Sales Tax Clearinghouse, http://thestc.com/STrates.stm. 33. SocialSecurity.gov, “2012 Social Security Tax Rate and Maximum Taxable Earnings,” http://ssa-custhelp.ssa.gov/app/answers/detail/a_id/240/ ~/2012-social-security-tax-rate-and-maximum-taxable-earnings. 34. Tax Policy Center, “Tax Topics: Payroll Taxes,” http://www .taxpolicycenter.org/taxtopics/Payroll-Taxes.cfm. 35. Warren Buffet, “Stop Coddling the Super Rich,” The New York Times, August 14, 2011. 36. OECD, Growing Unequal? Income Distribution and Poverty in OECD Countries (Paris: OECD, 2008). 37. Median Household Income for States: 2008 and 2009 American Com- munity Survey (ACS BR/09– 2). US Census Bureau: Income, http:// www.census.gov/hhes/www/income/income.html. 38. Thomas Pikety and Emmanuel Saez, “Income Inequality in the United States, 1913– 1998,” National Bureau of Economic Research, Septem- ber 2001. 174 The Shrinking American Middle Class 39. Joel Kotkin, “The End of Upward Mobility?” Newsweek, January 26 2009, 64. 40. Michael Spence, “The Impact of Globalization on Income and Employ- ment,” Foreign Affairs, July/August 2011, 40. Chapter 2 1. “The Rich and the Rest,” The Economist, January 28, 2011, 13. 2. Francis Fukuyama, “The Future of History: Can Liberal Democracy Sur- vive the Decline of the Middle Class?” Foreign Affairs 91, no. 1 (January/ February, 2012): 53. 3. Kevin Phillips, The Politics of Rich and Poor (New York: Random House, 1990), 241. 4. Ibid., 14. 5. Michael Katz, The Undeserving Poor (New York: Pantheon Books, 1989), 168. 6. Harrison Bennett and Barry Bluestone, The Great U- Turn: Corporate Restructuring and the Polarizing of America (New York: Basic Books, 1988), xi. 7. Alan Blinder and Jagdish Bhagwati, Offshoring of American Jobs: What Response from U.S. Economic Policy? The Alvin Hansen Symposium on Public Policy— Harvard University (Cambridge: MIT Press, 2009): 67. 8. Paul Krugman, The Age of Diminished Expectations: U.S. Economic Policy in the 1990s (Cambridge: MIT Press, 1992), 20. 9. “As Jobs Fade Away,” The Economist, May 8, 2010, 33. 10. Joel Kotkin, “The End of Upward Mobility?” Newsweek, January 26, 2009, 64. 11. “Unrest in Peace,” The Economist, October 28, 2011, 94. 12. L. McCall and J. Brash, “What Do Americans Think about Inequality?” (working paper, Demos, New York, 2004). 13. L. Osberg and T. Smeeding, “‘Fair’ Inequality? Attitudes to Pay Differ- entials: The United States, a Comparative Perspective,” American Socio- logical Review 71 (2006): 450– 73. 14. John Weeks, “Inequality Trends in Some Developed OECD Countries” (working paper 6, United Nations Department of Economic and Social Affairs, New York, 2005). 15. Matt Bloom, “The Performance Effects of Pay Dispersion on Individuals and Organizations,” Academy Management Journal 42 (1999): 25– 40. 16. Alberto F. Alesina and Roberto Perotti, “Income Distribution, Politi- cal Instability, and Investment (October 1993),” NBER Working Paper Series w4486 (1993), http://ssrn.com/abstract=227302. 17. H. C. Wallich, “Zero Growth,” Newsweek, January 24, 1972, 62. 18. “Spare a Dime: More or Less Equal,” The Economist, April 10, 2009, 13. 19. Jason DeParle, “Harder for Americans to Rise from Lower Rungs,” The New York Times, January 4, 2012. Notes 175 20. “Snakes and Ladders,” The Economist, May 27, 2006, 52 21. Jo Blandern, Paul Gregg, and Stephen Machin, Intergenerational Mobil- ity in Europe and North America (London: Center for Economic Perfor- mance, London School of Economics, 2005). 22. Rana Foroohar, “What Happened to Upward Mobility?” Time, Novem- ber 14, 2011, 29. 23. Thomas Hobbes, “Of the Natural Condition of Mankind as Concerning Their Felicity and Misery,” in The Leviathan (Paris: 1651). 24. Stephen G. Tibbetts and Craig Hemmens, Criminological Theory: A Text/Reader (Thousand Oaks: Sage Publications, 2010), 318. 25. P. Fajnzylber, D. Lederman, and N. Loayza, “Inequality and Violent Crime,” Journal of Law and Economics 45 (2002): 1– 40. 26. R. Wilkinson, “Why Is Violence More Common Where Inequality Is Greater?” Annals of New York Academy of Sciences 1036 (2004): 1– 12. 27. M. Daly, M. Wilson, and S. Vasdev, “Income Inequality and Homicide Rates in Canada and the United States,” Canadian Journal of Public Health, Revue Canadienne de Criminology 43, no. 2 (2001): 219– 36. 28. C. C. Hsieh and M. D. Pugh, “Poverty, Income Inequality, and Violent Crime: A Meta- Analysis of Recent Aggregate Data Studies,” Criminal Justice Review 18 (1993): 182– 202. 29. J. Gilligan, Preventing Violence (New York: Thomas and Hudson, 2001), 110.
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