INDEX

401(k) plans 176, 188, 588n166 age); under democracy in costs vs. pension plans, 102, AOL Time Warner, 176 America 574n45 Apple Computer, 15–16, 559n65 B deferred, for CEOs, with Appleton, Lynn, 242 Bacon, Sir Francis, xviii insurance/interest paid, Applied Magnetics, 562n159 Baechle, Raymond and Carla, 61 45–46 Applied Micro Circuits, 47 Bagdikian, Ben, 399 government protection of, 381 Aramony, William, 540 Bagehot, Walter, 333 Arbusto Energy Inc., 85 Bairoch, Paul, 360 A Archer, Bill, 451 Baker, Dean, 233 AARP, 524 Archibald, Nolan, 43 Baker, Laurie, 375 ABB Ltd., 206, 207 Arizona, election spending in, 395 Baker, Raymond, 378 ABC Carpet & Home, xi Armey, Dick, 451 Baltimore, Maryland, living wage Abramson, Jerry, 128 Arno, Peter, 315 law, 535–536 Abramson, Leonard, 33, 285, Arthur Andersen, 281–282 Balzar, John, 28, 470 602n61 arts, the Bank of America, 33, 39 accountants, 278–282, 601n31 attendance statistics, 144 Banks, W. N., 441 Acheson, Sir Donald, 324 education and, 147–149 Barach, Michael, 594n151 Ackerman, Bruce, 460, 462 funding, 142–151, 583n76 Barbour, James, 417 Adams, John, 416 future of, 144–145, 148–151 Barksdale, James and Sally, 127 Adams, Richard, 174 mid-sized organizations, Barnett Banks, 175 Adelphi University, 291, 603n90 144–145 Barnevik, Percy, 206, 207 Adler, Felix, 481 museum attendance, 141 Barrett, Craig, 63–64, 172–173 Aetna, 33 performing artists employ- Bartlett, Bruce, 468 AFL-CIO, 530–531. See also ment, 144–145 Barzun, Jacques, xiv, 554n51 unions symphony ticket sales, 141 Baumol, William, 142 Agassi, Andre, 305 Ten Times Rule, effect on, Baxter International, 18, 560n81 airlines industry, 177, 379, 512–513 Beattie, Dick, 12 587n114 Artzt, Russell, 25–27, 561n117 Beck, Audrey Jones, 141 Akst, Daniel, 524 Aspen effect, 257 Becker, Nancy, 70–71 Alarcon, Richard, 545 AT&T, 211 Bellamy, Edward, xvi, 426, 549 Albeda, Randy, 199, 200, 230, Athanasiou, Tom, 362 Bellamy, Michael, 549 231 athletes career length, 304–305. The Bell Curve (Hernstein and Alcoa, 36 See also sports industry Murray), 352 Aldrich, Nelson, 431 athletes salaries. See also sports Belle, Albert, 296 Allaire, Paul, 188 industry BellSouth, 61 Allen, Paul, xii–xiii, 226, 302, 403, average, 2001, 304 Benabou, Roland, 199 468 average vs. median, 308 benefactors, the greedy as, 93–94. Alm, Richard, viii, 113, 248 income gap, fans vs., 296, 307, See also greed; wealth inequity Alstott, Anne, 460, 462 605n70 Benioff, Marc, 189 Amazon.com, 36, 69–71, 183, isolation linked to, 306 Benjamin, Brent, 150 570n122, 570n125. See also limits to, 299, 487 Bennis, Phyllis, 542 Bezos, Jeff performance/compensation Benson, P. George, 3–5 American Airlines, 298 link, 307–310 Beresford, Dennis, 11 American Express, 36 as tax deduction, 296, 604n48 Berlusconi, Silvio, 400 American Online (AOL), 13–14, attorneys, 274–278, 289, Bernhardt, Annette, 105, 106, 458 176, 188, 588n166 487–488, 601n21 Bernsen, Thordjorn, 363 AMF, 178 Audet, Christopher, 463 Bernstein, Aaron, 214, 477, Anderson, Basil, 53 automobile industry, 250–253, 593n93 Anschutz, Philip, 227 363–365, 598n71, 613n33 Bernstein, Peter, 221 AOL (America Online), 13–14, average citizens. See families (aver- Bertelsmann, 206, 207

639 Originally published in Greed and Good: Understanding and Overcoming the Inequality That Limits Our Lives by Sam Pizzigati (Apex Press/Rowman & Littlefield, 2004). For more, see Inequality.org. 640 Greed and Good

Bertelsmann, Carl, 207 Brandeis, Louis, xix, 170 campaign pledges, 452, 460 Bertrand, Marianne, 82 Brazil, 232–233, 375–376, 403, connections role in success of, Bezos, Jeff, 69–71, 569n118, 595n190, 615n93 84–87 570n135. See also Amazon.com Breeden, Richard C., 48 election spending, 384, 429 Bezruchka, Stephen, 315 Breslau, Karen, 122 estate tax effect on, 391 Biggs, Morton, 221 Breyer, Stephen, 289–290 fundraising success, 385 Bijan, xi Bristol-Myers Squibb, 188, 531 Bussmann, W. Van, 251 Bill and Melinda Gates Britain, 64, 321–324, 326 Byron, Christopher, 222 Foundation, 128, 580n6 Broad, Eli, 131 billionaires, ix, 120, 361, 362 Brobeck, Stephen, 117 C Bingaman, Jeff, 537 Broder, David, 400, 470 California. See also specific cities Bittker, Boris, 484 Bronfman, Edgar, 89 arts funding, tax cuts affecting, Black & Decker, 43 Brooke, James, 596n210 146 black Americans. See also discrimi- Brooklyn, New York, housing costs charitable giving in, 135 nation; slavery in, 256 Code for Corporate academic achievement gap, Brown, Jeff, 31 Responsibility, 545–546 352–354, 611n89, 611n97, Brown, Sir Henry Phelps, 482, commuting times in, 257–258 611n100 483 election spending in, 388 vs. white Bruhn, J. G., 320 housing costs, 121–122, accumulated wealth, Brundtland, Gro Harlem, 367 255–256, 579n181–182 354–356, 612n103 Brungs, Heinz, 161 Kerala compared to, 372–373 financial assets, 353–354, Bryan, Williams Jennings, 426, public goods and services 612n103 428–429 funding in, 348 income, 1940-1960, 443 Buffet, Warren uninsured statistics, 121 Blackwell, Ron, 530 described, 267 universities vs. prisons built in, Bloom, Matt, 168, 186, 308 on estate tax, 626n274 1980-2000, 357 Bloomberg, Michael, 388 on his children’s inheritance, wealth inequity in, 120–122 Bluestone, Barry, xxi, 213, 214, 266 California Teachers’ Retirement 215, 464 philanthropy philosophy of, System, 633n20 boards of directors, corporate. See 128 Callinicos, Alex, 58, 495 also corporate America; share- on revenue padding, 589n177 CalPERS (California Public holders on stock options as compensa- Employees’ Retirement System), compensation consultants used tion, 11 39, 633n20 by, 28–29, 75–76, 562n135 Burch, Marc, 369 Caminer, David, 173 conflicts of interests in, 28, Burkhauser, Richard, 96 Canada, health care in, 327 562n129 Burns, James MacGregor, 450 Cappellas, Michael, 167 control over management, Burns, Scott, 118 Cappelli, Peter, 54 29–31 Burtless, Gary, 204, 356 Caraway, Hattie, 437 election procedures, 39–40 Bush (George H. W.) administra- CareFirst, 540 repricing risks taken by, 34–35 tion, 448–449 Carnegie, Andrew, 129, 266, 424 shareholders, accountability to, Bush (George W.) administration Carnegie Hall, 140 39–40, 564n200 campaign finance reform legis- Carroll, Sidney, 482, 483, 484 on stock options as compensa- lation, 393 Carter, Gary, 296 tion, 10–14 Iraq War, 2003, 542, 635n71 Carter, Jimmy, 62, 133, 446 union efforts to unseat, 532 loans to executives, legislation Case, Steve, 13–14, 188, 563n184 boards of directors, nonprofits, prohibiting, 18 Casper, Barry, 392 290–292 millionaires in cabinet of, 390, Castle, John K., 58–59, 254 Boatmen’s Bancshares, 175 618n75 Cawley, Charles, 45 Boesky, Ivan, 93 tax cuts for the wealthy Cello Technologies, 174 Bok, Derek, 274, 275 $1,000,000 income or Cendant, 34 Bonilla, Bobby, 296 greater, 382–383, Central Maine Power, 181–182 Bonior, David, viii 616n31 CEOs. See also boards of directors; Bonsignore, Michael, 174 $200,000 income and corporate America; perform- Booth, Melvin D., 557n126 greater, 616n28 ance/compensation link, CEOs; Borosage, Robert, 384, 392, $50-$75,000 income, specific individuals 618n82 616n31 of colleges/universities, 291 Boswell, Thomas, xiv, 302, 309, Congress, votes approving consultants used by, 28–29, 310 in, 626n276 31, 75–76, 87, 562n135 Boulding, Kenneth, 367 estate tax, 382 control (sense of) felt by, 57, Bowen, William, 142 richest 1%, 415, 620n6 323 Bowles, Erskine, 390 tax-free investment foreign vs. U.S., 63–64, 75, bowling alone syndrome, 332 income, 477 205–208, 235 Boyce, James, 361 tax plan 2001, 452–455 post-WWII, characteristics of, Bradsher, Keith, 252 Bush, George W. xx Index 641

Ten Times Rule, effect on, 558n20 627n7, 627n11 504–506, 514–515, 631n1 Computer Associates health care for, 350 CEOs, income. See also specific example, 25–28, latchkey, 247, 332 individuals 561n117 in Norway, 350 1980s-2000, xxiii–xxiv, 217, critics of, 11–12 poverty rates, 336–337 563n179 gains, 1999, 42–43, preschooler education, caps proposed for, 37, 48–49, 564nn214–215 461–462 61, 571n161. see also income reforms, 16–18, 560n74 children of the wealthy caps propsals reloadable, 36 Baby Boomers, 572n214 company size-compensation stock repricing, 34–35 black vs. white, 354–355, 356 link, 170–182 CEOs, income statistics. See also economic mobility of, 458 competitive benchmarking in specific individuals inherited wealth, 88–90, 260, determining, 30–31 1980s-1990s, 37, 38, 558n2, 263, 266, 514, 599n130 at corporate health care 559n59 parental worries regarding, 265 empires, 285 1980s vs.1990s, 36 Ten Times Rule, effect on, 514 corporate profits vs., 10, 2000-2004, 41–43, 44, in the workplace, 265–266, 14–15 564n205, 564n226 290 deferred (401k) with insur- public disclosure requirement, Chiles, Eddie, 85 ance/interest paid, 45–46 564n200 China, bowling in, 178 foreign vs. U.S. executives, school superintendents vs., Chirac, Jacques, 359, 360 63–66, 173, 568n79, 60–61 Christian, Jeff, 52 569n88 U.S. Presidents vs., 60–62 Chrysler, 9, 63 limits placed on CEOs, wealth of. See also specific Churchill, Brent, 181–182 for airline bailout funds, individuals Cisco Systems, 11, 43, 164, 227, 380, 615n6 connections role in, 84–87 564n214 benchmark compensation corruption tied to, 227–228 Citigroup, 45, 64, 227 caps, 542 downsizing as source of, Clean Money campaign, 395 government compensation 180–182 Clear Channel Communications, limits, 635n71 fraudulent accounting practices 176–177, 587n109 by IRS, 486, 540–541, in, 187–191, 285, 588n166, Clendenin, John L., 61 629n22 589n177 Cleveland, Grover, 427, 428 by public officials, 486 luck as contributor to, 81–83 Cleveland Browns, 302–303 shareholder resolutions for, for media executives, 399 Clikeman, Paul, 280 531–532 PayWatch Web site monitor- Clinton (Bill) administration, 37, in nonprofit sector, 290–292, ing, 530–531 382, 537–538, 616n24 539–541, 634n67 power factor in, 90 Clinton, Bill (William Jefferson), reform efforts, 36–40, 61, public opinion on, 533 vii, 97, 297, 385, 390 531–534 support staff role in, 87 CNET, Inc., 84 shareholder profit vs., 15 talent shortage affecting, 14, Coca-Cola, 565n230 stock options in lieu of, 15–16 29–31, 51–52, 73–75, Cochrane, Peter, 211 as tax deduction, 37, 539 570n148, 570n153, Coffman, Vance, 542 CEOs, income additional to salary 571n158–159 Cohen, Randy, 405–406 bonuses, 21, 30, 37, 43, tax dollars funding, 534–536 Coleman, 55–56 562n140, 563n179, 603n85 CFOs (corporate financial offi- Collins, Chuck, 451, 464 business school education, cers), salary, 280 Collins, Jim, 192 570n154 Chambers, John, xxiv, 43 Collins, Robert, 444 financial planning services, 45 Chambless, Jerry, 53 Collison, David, 24 golden parachute, 33, Chandler, Asa, 590n25 Colombia, South America, 372, 562n154–155 Chang, Chee Jen, 315 614n68 life insurance premiums, 46 charitable giving. See philanthropy Colton, Charles, xviii lifetime annuities, 77 Chase Manhattan Bank, 180 Colvin, Geoffrey, 168 loans for stock purchases, 18, Chasin, Barbara, 374 Comcast, 81–82 560n88 Chemical Bank, 180 Comerica Inc., 20 long-term compensation, 44 Cheney, Dick, 131, 385, 391 community, alleigence to corpora- perks, 45–46 Chesterton, G. K., 347 tions vs., 403 personal assistants, 45 children community as stakeholder, 25, stock grants, 31–32, 562n147 arts education for, 147–150 511–512, 561n104 stock options black, academic achievement community involvement, 1970s, 9–10 gap in, 352–354, 611n89, 246–247, 331–333. See also rela- 1980s, 7–10 611n97, 611n100 tionships; society 1990s, 10–14, 563n179 child care costs, 576n100 Compaq Computer, 13, 167 2000 stock market crash, education for poor, 213, Computer Associates, 25–27, 532, effect on, 43 335–336, 459–461, 464, 561n117 Bonus Unit awards, 593n93, 609n31, 609n33, Conley, Dalton, 353 642 Greed and Good

Connecticut, corporate reform Enron collapse, 281, 531 CEOs on boards of directors, efforts, 537 HMOs, 285 28 Connif, Richard, 244 revenue padding, 9, 17, compensation consultants, 29 Conseco, 18 560n74, 588n166, 589n177 greed in CEOs, 36, 90 consumer exploitation. See also stock repricing, 35 income as motivator, 565n1 corporate America tax fraud, 187–191 income as power dynamic, 90 airlines industry, 177, corporate America, Information income related to company 587n114 Age size, 170 automobile industry, 251–252 bureaucracy as obstacle, Jack Welch’s compensation financial services industry, 175, 161–163, 586n64 package, 71, 570n139 380, 615n10 characteristics of, 170, 179, obscene pay levels, 482 sports industry, 298–300 191–193, 588n166, stock grants, 32 telecommunications industry, 589n177 supply-and-demand for CEOs, 176–177, 300–301, 380, deregulation/mergers and 571n158–159 587n109, 615n9 acquisitions in, 171–178, Csikszentmihalyi, Michaly, 523 Continental, 177 180–182, 193 CSX, 46 Contreras, Miguel, 357 gain-sharing plans, 168–170 Cullen, Mark, 318 Conwell, Russell, 264 requirements for, 586n71 Curley, John J., 399 Cook, Philip, 287 small firms success in, 170 Currall, Steven, 166 Cook, Wade, 222 workforce downsizing in, Curry, Eddy, 306 Cooke, Jack Kent, 261 179–182 CVS, 564n217 Coolidge, Calvin, 151, 435 corporate America, profitability in CoreStates, 175 CEO pay gains vs., 14–15 D corporate America. See also boards the ecology of commerce, Daimler-Benz, 63 of directors, corporate; CEOs; 359–360, 367–372, 374, Daisey, Mike, 183 consumer exploitation; employ- 612n4 Daly, Herman, 365–367, 368, ees; shareholders; taxes on corpo- low-wage workers in, 377, 525, 614n62 rations 113–115, 342–343 Daly, Martin, 231 auditing of, 280–282 stock options and, 9, 17, Daly, Sharon, 109–110 as community, allegience of 560n74 Daniels, Norman, 329–330 wealthy to, 403 stock repricing, 35 Danone, 206 “A Corp” status proposal, 537 corporate America, reforming for Daschle, Thomas A., 394 debt offset/reduction schemes, pay equity. See also income caps Dauten, Dale, 182 228–229 propsals Davis, Edward, 289 discrimination practices-gov- citizens movement, 544–545 Davis, Kenneth, 415 ernment contracts link, legislative proposals, 536–538, Davis, Marvin, 268 633n38 540–541, 545–546 Davis, William, 139 European corporations vs., living wage law, 535–536 Davos, 205 202–204, 206–207 pay equity ratio requirements Deavers, Ken, 96 health care empires of, 285 in government contracts, Debs, Eugene Victor, 430, 432 history of, 423, 544 535 deca-millionaires, ix investment capital, sources for, revoking corporate charters as DeFazio, Peter, 616n21 223–226, 517–520 means of, 544–546 Delevett, Peter, 241 market wisdom distortions, union efforts, 529–534 Dell, Michael, 46 19–23, 560n95, Cort, John, 235 Dell Computer, 46 560nn98–102 Corzine, Jon, 390, 404, 619n132 Deloitte & Touche, 282 mergers and acquisitions in, Costa Rica, 328, 403 de Loyola Brandao, Ignacio, 232 171–178, 180–182, 193, Costas, Bob, 301–302 Deming, W. Edwards, 168, 429–430, 586nn77–78 Cottey, Alan, 488 585n51, 587n125 operating capital, sources of, Coulter, David, 33, 562n155 democracy and inequality 24, 228–229, 595n177 Cox, W. Michael, viii, 100, 113, basic difficulties of, 400–401 political influence, 379–380, 248 citizenship undermined by, 382, 393–396, 428–429, Cravath, Swaine & Moore, 275, 402, 620n157 615n6, 616n23, 618n82 289 loss of community as result of, raiders restructuring of, 7–8, Crawford, Anthony, 355 403 33 Crèvecoeur, Michel Guillaume democracy in America. See also research and development Jean de, 420 United States; United States gov- investment, 210–212, 214, crime and wealth inequity, ernment 520 231–233 campaign finance reform as, success in, 23–25, 65, Crisman, Craig, 562n159 392–396, 618nn97–99 561n104 Crittenden, Ann, 261 civil rights movement as, 443 telecom phenomenon, Crowe, James, 227 corporate influence on, 226–228 Crystal, Graef, comments 379–380, 382, 393–396, corporate America, fraudulent Andy Grove’s compensation, 428–429, 615n6, 616n23, accounting practices 64–65 618n82 Index 643

free press vital to, 399–400, influenced, 427–428 corporate practices, 52–56, 619n126 Denmark, welfare state in, 566n11, 566n23 pay discrepancies endangering 338–339 fraudulent practices of, 53, quality of justice, 289–290 Department of Defense (DoD) 567n46, 567n49 Social Security privatization, schools, 461 wealth, importance to, 398–399 Depression years, 436–438 566n20, 566nn23–24 wealth inequity as threat to, de Vogel, Willem F. P., 26 Dunlop, M. H., 262, 264 400–402 DeVos, Dick, 397 Dunphy, T. J. Dermot, 22 democracy in America, citizens Diamandopoulos, Peter, 291, Dupont Chemical, 169 (average) 603n90 Durlauf, Steven N., 593n93 elected representatives respon- discrimination. See also black Durning, Alan, 239, 362, 370, siveness to, 381–382, 406, Americans; equal opportunity 526 617nn55–56 civil rights movement and, 443 Duten, Dale, 597n31 importance to, 384, 404–405, government contracts and, 618n82 535, 633n38 E participation in political Ten Times Rule, effect on, Earls, Gregory, 187 process, 384–385, 396–397, 516–517 Earned Income Tax Credit, 406–407, 430 Title IX funding and, 536 341–342, 610n62 political perspective of vs. wealth inequity and, 351–353 Eastman Kodak, 18 wealthy, 386–387, Disney. See Walt Disney Easton, George, 584n9 617nn55–56 Doerr, John, 223 Eaton, Robert, 97 voting by, 406–407, 429, Dole, Bob, xiv eBay, 221 620n157 Dole, Elizabeth, 384 Ebbers, Bernard, 48, 180–181, democracy in America, elected rep- Dole, Robert, 385 225 resentatives Domenici, Pete, 476–477 economic growth. See also produc- campaign fundraising/spend- Donahue, John, 405–406 tivity ing, 383–385, 388–389, Donahue, Tom, 472 1860s-1900 (Industrial Age), 392–396, 429, 618n82, Dost, Valesca, xii 201 619n132 Douglass, Katie Herbert, 482 as benefit of wealth inequity, corporate contributions, 382, Dovai, Karl, 502–503 197–201, 444–445, 590n9 616n23 Dowie, Mark, 405 defined, 200, 368 millionaires among, 387–388, Dow Jones effect, 19–20 demand for goods and services 618n75 Downs, Alan, 181 in, 215–216 responsiveness to voters, downsizing of employees. See also environmental unsustainability 379–383, 406, 617nn55–56 layoffs of employees and, 367–372, 374 wealth, desire for, 386, 617n53 1980-1993, 104 full employment vs. inflation, wealth-gap not addressed by, 1990s, 179–180, 584n15 1970s, 625n234 392 2001-2002, 181 increasing, methods of, democracy in America, history air traffic controllers, 217, 592nn74–75 1892 presidential race, 428 593n113 in Japan, 596n216 1896 presidential race, Deming on inevitability of, New Growth economists on, 428–429 587n125 212 1904 Congressional elections, forced rankings in, 72, economic growth theory. See also 430 570n144 wealth inequity 1910 Congressional elections, IRS staff, 616n25 equality-efficiency conflict in, 430 layoffs vs., 179–180 198, 590n9, 590n17 Federalists party, 418 management vs., 584n15 Kuznets, 197–198, 590n9 Jeffersonian party, 418, 421 outsourcing as method of, 104 Wall Street model, 208–210, Peoples/Populist Party, results of, 181–182, 588n139 215, 218, 230 426–428 U.S. vs. Europe, 591n55 wealth distribution in, democracy in America, wealth as Washington Post pressmen, 196–197 threat to 593n113 Economic Policy Institute, xxi, 110 historically, xv, xix, 547 Draper, Timothy, 397 Ecuador, equality and democracy laissez-faire doctrine and, 417, Drexler, Millard, 38, 563n184 in, 403 425 Dreyfuss, Robert, 390, 401 Edelman, Marian Wright, 334, by media control, 399–400 Drucker, Peter, 162–163, 182, 336 political climate altered, 533, 584n19 education 396–399, 403–406 D’Souza, Dinesh, 88, 241, 550 academic achievement gap of by political contributions, duckpin bowlers, 178–179 black students, 352–354, 384–385, 388–389, Duke, Doris, 261 611n89, 611n97, 611n100 393–396, 428–429, Duke, James Buchanan, xv civic role of public, 459–460, 617nn55–56 Dunea, George, 284 627n7, 627n11 positions of importance held Dunlap, Albert J. college graduates, hourly by wealthy, 390–391 admiration for, 52, 565nn6–7, wages, 463, 627n28 Supreme Court ruling of 1895 566n8 college students, enrollment, 644 Greed and Good

1945-1970 corporate revenue state- Enrico, Roger, 409 Department of Defense (DoD) ments and, 189 Enron collapse schools, 461 defined-contribution plans, accounting firms participating equal opportunity from, 101–102 in fraud, 277, 281–282, 531 459–463, 627n7 Enron losses of, 633n20 corporate/political leaders, government funding for, government protection of, effect on, 208 212–213, 303, 381, 381 executive compensation affect- 461–462, 627n23 revenue padding, effect on, ed by, 47 income link to achievement, 589n177 pension funds, losses, 633n20 353–354 at Wal-Mart, 107 pension funds safety, effects for poor children, 213, for temporary/part-time work- on, 381 335–336, 459–460, 464, ers, 105 shareholder voting practices 593n93, 609n31, 609n33, employee empowerment affected by, 531–532 627n7, 627n11 bureaucracy as obstacle, stock analysts, conflicts of for preschoolers, 461–462, 586n64 interests and the, 22, 23 627n23 at Hewlett-Packard, 164–165 tax evasion and, 190–191 school voucher system, at Intel, 163, 165 Ensign, John, 390 396–398 management belief in, 167, environmental advocacy, 363 student loan debt, 277 179, 584nn11–13 environmental degradation teachers, inadequate pay for, the mantra of, 159–161 benefits to participants in, 287–288, 603nn70–72 Ten Times Rule, effect on, 361–362 Ten Times Rule, effect on, 520 505–506, 514–517 damage statistics, globally, 360 Title IX funding and, 536 employees. See also downsizing of by disinvestment in public universities vs. prisons built, employees; income inequity; lay- services, 348–349 1980-2000, 357 offs of employees; wages; work- the ecology of commerce, egalitarianism place 359–360, 612n4 Danish welfare reform failure, anger in, 191 economic growth/development 338–339 child care costs for, 576n100 choice in, 367–372, 374 in European business, 66, commuting times of, 257–258 economic policy supporting 202–208 equality for, U.S. vs. Europe, global, 376–377 Europeans admiration of in 202–208 industrial production rates, early U.S., 420 exploitation of 367 in Japan, 233–235 clean room workers, 58 Sao Paolo, Brazil, 375–376 literature on, xvi ergonomics legislation, 380 sustainable alternatives in Norway, 350–351 excessive work hours, (Kerala), 372–375, 376–377, United States belief in, histori- 181–182, 588n139 615n95 cally, 416–421, 620n7 immigrant labor, 113–115 Ten Times Rule, effect on, Ehrenreich, Barbara, 243 job security, 202, 233, 525–526 Einstein, Albert, 80 587n124, 596n210 U.S., consumption/waste in, Eisenhower, Dwight D., 442 jobs redefined, 1960s vs. 363–364, 366–367, 614n41 Eisner, Michael, 13, 67–69, 126, 1990s, 104 environmental protection legisla- 177, 569n111, 579n209 performance rewards, effective- tion, 365, 371 Eliot, Samuel, 129 ness of environmental sustainability, Elliott, Robert, 265 Deming on, 585n51 377–378, 525–526, 614n62 Ellison, Larry, 13, 44, 189–190, gain-sharing plans for, Epstein, Gene, 493 269 168–170 Epstein, Helen, 323, 326 Elmendorf, Steve, 385 management belief in, Epstein, Lisa, 161 Ely, Leonard, 131 167–168 Equality and Efficiency (Okun), Emanuel, Ezekiel, 329 motivation in, 585n44 198 employee benefits negative results, 168, equal opportunity. See also discrim- 401(k) plans 193–194, 585n48 ination costs vs. pension plans, proof of, 585n45 asset building movement, 102, 574n45 puzzle players example, 460–462, 627n11 deferred, for CEOs, 45–46 184 barriers to, 462–463 government protection of, public sector, 288–290 education’s role in, 459–463, 381 retail, 105–108, 214 627n7, 627n11 death benefits, 107 service sector, 214 the poor and, 458–459 employer expenditures, 1973 temporary/part-time, 105, sabbath economics, 466–467 vs. 1992, 574n36 114, 575n63 Title IX funding for, 536 health insurance, 100–101, Ten Times Rule, effect on, 524 Ernst & Young, 282 106–107 theft by, 191 ESPN, 309 retirement turnover, costs of, 185–186 Esrey, William, xxiv, 557n124 1979 vs. 1998, changes to, wages and benefits, U.S. world estate tax 101 ranking, 1995, 204 1861, Civil War levy, 422 Index 645

1898, Spanish-American War- families (average), financial assets union membership in, 203 time levy, 429 1998 vs. 2001, 578n162 Frank, Robert, on 1916 tax act, 433 home ownership, 115–117, the Aspen effect, 257 1917, War Revenue Act, 433 255–256, 578n146 effects of income on career 1935, Wealth Tax Act, 439 retirement savings, 102–103 choice, 287 Buffet on, 626n274 stock market investments, happiness from well-main- Bush (GW) administration, 118–119, 222, 573nn12–13, tained public commons, 382, 391, 453 578n153 610n66 Carnegie on, 425 families (average), income. See also income equality, 524, 525 Clinton administration, taxes on average families luxury fever, 241 451–452 1920s, 435–436 material possessions and happi- Gates Sr. on, 80–81, 404 1939-1945, 441 ness, 245 politicians against repeal of, 1970s-2000, 121 middle class purchasing, 248 404 median model feature creep, 254 Rockefeller affected by 1935 1980 vs. 2000, 98 opportunities for progress, Act, 624n196 1990s, 450, 579n187 195–196 Roosevelt (Theodore) proposal families (average), lifestyle progressive consumption tax, for, xvii 1920s, 435–436 474–477, 629n73 Ten Times Rule, effect on, community involvement, self-interest vs. community 513–514 331–333 well-being, 486 eToys, 225, 594n155 leisure time available, 243, wealth and satisfaction, 239 Etzioni, Amitai, 246–247 247, 332, 509–510, 597n31, Franke, Richard, 374 Europe. See also specific countries 597n49, 597n53 Frankfurter, George, 24 CEOs, vs. U.S., 205–207 workweek hours, 99, 243–244, Franklin, Benjamin, xviii employee equality, vs. U.S., 597n28 Frazier, Owsley Brown, 127 202–208 Fang, Jing, 315 Frick, Henry Clay, 428 incarceration rates, 231 Fannie Lou Hamer standard, 394 friendships. See community murder rates, 231 Feingold, Russell, 393, 395 involvement; relationships shareholder vs. stakeholder Feinstein, Diane, 388 Fromstein, Mitchell, 267 position, 24 Feldstein, Martin, viii Frumkin, Peter, 292 voting rates, 620n157 Fidelity effect, 20–21 Fuente, David, 57 executives. See CEOs Filene, Edward, 471 Fujimori, Alberto, 402 Filo, David, 20 Fuller, Millard, 259 F Financial Accounting Standards futility thesis of social change, families (average). See also middle Board, 11, 35, 560n74 489–493 class; taxes on average families; Fiorina, Carly, 166–167 the poor; the wealthy Fireman, Paul, 10–11 G in California, 121–122 firing of employees. See downsizing Galbraith, James, 336, 338, 341, happiness of, 239–242, of employees 455, 625n234 246–247 First Union, 175 Galbraith, John Kenneth, 435, 477 political perspective of vs. Fisher, George, 18 Galli, Joseph, 36 wealthy, 386–387, Fitzgerald, F. Scott, 261 Galvin, Christopher, 73 617nn55–56 Fitzhugh, George, 418–419 Galvin, Paul V., 570n151 reference group comparisons, Flanigan, James, 531 Gandhi, Mahatma, xviii 241–243 Fleishmann, Ernest, 141 Gans, Curtis, 406–407 families (average), economics of. Florida Marlins, 309 The Gap, 38 See also taxes on average families flower industry takeover, 519–520 Gates, Bill. See also Microsoft consumer debt, 117, 122, 218 Flynn, John T., 624n204 about, 78–79 consumption pressures, 218, Forbes, Malcolm, xii art collection of, 139–140 242–245, 248–250, Forbes, Steve, 129–130 charitable giving of, 128, 356 509–510 Forbes magazine list of 400, ix–x, wealth of housing costs, 121–122, 470, 554n23 vs. all African Americans 255–257, 579n181 Ford Motor Co., 21, 25 combined, 356, New Deal effect on, 438–439 Forstmann, Theodore, 396–398 612n116 families (average), exploitation as Foster, John Bellamy, 367 growth rate, ix, consumers France 553nn19–20 airlines industry, 177, child poverty rates, 336 progressive tax rates and, 587n114 downsizing statistics, 591n55 468 financial services industry, 175, incarceration rates, 231 Gates, Bill Sr., 80–81, 404, 451 380, 615n10 income caps, public support Geffen, David, 127 sports industry, 298–300 for, 528 General Electric, 46, 71–73, 174, telecommunications industry, murder rates, 231 570n139 176–177, 300–301, 380, unemployment compensation, General Mills, 47 587n109, 615n9 590n27 Genuine Progress Index, 370. See 646 Greed and Good

also quality of life Gordon, Edmund, 352 Harrison, Benjamin, 428 George, Henry, xvi–xvii, 424, 426, Gore, Al, 384, 429, 460 Harrison, Bennett, 213, 214, 215, 429 Gorin, Stephen, 327 464 Germany The Gospel of Wealth (Carnegie), Harrison James, xi CEO income, vs. U.S., 63 424 Hart, Peter, 537 downsizing statistics, 591n55 Gould, Jay, xv Harvard Business School, 74 employee wages and benefits, Graff, Steffi, 305 Hasan, Malik, 285 204, 590n27 Grassi, Anthony, 504–505 Hassett, Janet and Christopher, mergers and acquisitions in, greed. See also benefactors, the 346–347 586n88 greedy as; wealth inequity Hastert, J. Dennis, 379 pay gaps, executive-employee, basic ideas supporting need for, Haughey, John, S.J., 260 66 4–5, 557n1 Hawken, Paul, 359–360 productivity vs. U.S., 214 benefits from, 93–94 Hawkes, Albert, 441 union membership in, 203 employee, 191 Hayes, Rich, 371 work year length vs. U.S., 99 as incentive, 5, 564n223 health Gerstner, Lou, 58, 563n184 research as captive of, 211–212 psychosocial dimension of, Getty, J. Paul, 141, 261–262, 489 Greed: The Series (television), xiv 319–320, 325–328 Getty, J. Paul III, 261 Greeley, Andrew, 452 tax dollars spent on, 608n107 Gibson Greeting, 12 Greenberg, Stan, 264 in U.S. vs. other industrialized Gilded Age (1870-98) Greens/Green Party program, 546 nations, 316–317, 326–327, described by Twain, 422 Greenspan, Alan, 87–88, 464 606n10, 607n40 isolation of the wealthy during, Greider, William, xxiv, 391 Whitehall study (Britain), 262 Grier, Peter, 249 321–322 philanthropy in, 129 Grieve, Paddy, 222 health, links to good politics influenced by wealth Griffey, Ken Jr., 296 income/wealth, 311–318, in, xv, xix, 547 Grove, Andy, 64–65, 165, 172 606n12, 606n16, 606n23 social justice crusades, 481, Grubman, Jack, 227 social cohesion, 319–320, 502 Guatemala, equality and democra- 325–328 Gilded Age (1990s), 126, 262, cy in, 403 social status, 321–326, 264, 306 Guerrand-Hermes, Mathias, xii 607n63, 608n77 The Gilded Age (Twain), 422 Gunther, Robert, 468 health care Gillespie, Ed, 384 for children in Texas, 350 Gingrich, Newt, 450 H for-profit corporations, 285 Glassman, James, 130, 221 Hacker, Andrew, 130, 489–490, government funding for, 381 Global Crossing, 188 493 HMOs, 285 Goizueta, Roberto, 565n230 Haft, Herbert, 259, 599n130 Medicare/Medicaid, 283, Golbart, Stephen, 263 Hall, Peter, 128, 129 335–336 golden parachute, 33, Hall, Steven, 73 U.S. vs. other industrialized 562n154–155 Hall, Uriel, 427 nations, 283, 350 Goldin, Claudia, xx Hamilton, Alexander, 418, 621n15 health care industry’s government Goldman Sachs, 178, 254 Hammer, Armand, 261 influence, 382 Goldstein, Rob, 150 Hamptons, housing costs in, 256, health care reform, 284, 602n58 Goodman, Ellen, 24 599n109 Heard, Jamie, 46 goods and services. See also pro- Hanna, Mark, 383, 384, 428 Hearst, William Randolph, 439 ductivity happiness Heckman, James, 458 production and distribution of, 1975 vs. 1999, 246 Heineman, Fred, 385 365–366 components of, 524–525 Heinz, H. J., 47 wages and demand linked, desire for wealth and, 241–246 Hernes, Gudmund, 350 215–216, 219 friendships/community and, Hernstein, Richard, 352 goods and services, demand for 246–247, 260–262, 331, Herodotus, 237 public 369 Hewlett, Bill, 164 environmental degradation material possessions and, Hewlett-Packard, 163–164, link to, 348–349 244–246, 248–250, 166–167 happiness and, 610n66 262–263, 369 Hickey, Dave, 150 lacking in unequal society, public services and, 610n66 Hightower, Jim, 90 345–351, 534 reference group comparisons, Hilbert, Stephen, 18, 259 September 11, 2001, attacks, 241–242 Hilfiger, Tommy, 220 357–358 satisfaction factor in, 238–239 Hill, Michael, 301 Ten Times Rule, effect on, wealth as causative, 237–239, Hilton, Rick and Kathy, 357 512–513 258–259 Hilzenrath, David, 278 Goodwin, Fred, 64 Harken Energy, 85 HIP, 540 Google, 83 Harlan, John, 427 Hiraide, Shoji, 234 Goolsbee, Austan, 494 Harrigan, Sean, 39 Hirschman, Albert, 489 Gordon, David, 162 Harrington, James, 620n7 Hirshhorn, Joseph, x, 554n25 Index 647

Hochschild, Adam, 375 I income inequity. See also wealth Hockmeyer, Wayne T., 557n126 Iacocca, Lee, 9 inequity Hodges, Luther, 444–445 IBM, 58, 78–79, 189, 211 academic achievement link to, Home Depot, 253 Idealab, 225, 594n155 353–354 home ownership. See also housing immigrants, 113–115, 317, 336, athletes vs. fans, 296, 307, costs 607n40, 610n35 605n70 black vs. white, 353–354, 356 incentive CEOs vs. soldiers, 542 by middle class, 97, 115–117, greed as, 5, 564n223 entry-level professionals affect- 255–256 income alone as, 558n2, ed by, 286–290 Ten Times Rule, effect on, 565n1 health, correlation to, 506–509 reasonable and appropriate, 313–318, 320–321, 326, homes of the wealthy 5–6 327–330 castles, x striving for a better life, 3–4, murder rates relationship to, Gilded Age, xv 557n1 231–232 landscaping costs, xi incentives for leaving, CEOs school superintendents vs. Neo-Fortress Movement, 357, accelerated vesting, 32–33 CEO, 60–61 612n126 golden parachute, 33, U.S. vs. other industrialized prices of, x–xi 562nn154–155 nations, 63–66, 204 safe rooms, 230 incentives for performance. See also voting rates correlated to, 407, servants for, xiii, 554n49 CEOs, income additional to 620n157 square footage, 255–256 salary; performance/compensa- income inequity, executive- Ten Times Rule, effect on, tion link employee 506–509 Bonus Unit awards, 558n20 1960s, 66 Honeywell, 174 CEO incentive-setting system, 1980s-2000, xxiii–xxiv, 66, Hoover, Herbert, 437 28 569n95 Houghton, Amory, 389 stock ownership, 17–18, Drucker on, 162–163, 584n19 housing costs. See also home own- 560n79, 560n81 examples of, 125–126 ership; homes of the wealthy income caps, proposals. See also in gain-sharing plans, 169 California, 121–122, 255–256, corporate America, reforming for McDonough on increases in, 579nn181–182 pay equity; Ten Times Rule 479–480 for middle class, 115–117, for athletes, 487 morality in, 66–67, 480 255–256 for attorneys, 487 nonprofit sector, 291–292 national averages, 255 benchmark compensation caps, results of, 163, 165–166, in poverty calculations, 109 542 183–186, 192–193 Ten Times Rule, effect on, disincentives for creating, in stock options, 13–14, 506–509 492–493 164–165, 183 for the wealthy, x–xi for executives, xxvi, 37, 48–49, U.S. vs. other industrialized Houston Astros, 298, 302 61, 540–541, 546, 571n161 nations, 65–66, 234 Houston Museum of Fine Art, 141 public support for, 527–528 income inequity reform. See also Howard, Cynthia, 286 social acceptance of, 488–489 income caps proposals Howard, Milford, xix income caps, proposals by citizens movement, 544–545 Howard, Richard, 187 Adler, 481 importance of, 549–552 Howells, William Dean, xvi Flynn, 624n204 legislative proposals, 536–538, How Rich Is Too Rich? (Carroll and Keating, 433 540–541, 545–546 Inhaber), 484 Long, 437–438 living wage law, 535–536 Hubbard, Frank McKinney, 237 Mazzocchi, 546 pay equity ratio requirements Huffington, Michael, 388 McClellan, 571n161 in government contracts, Huizenga, H. Wayne, 268, Menendez, 541 535 309–310 Roosevelt (FDR), xxvi, 415, revoking corporate charters as Hunt, H. L., 470 440–441, 481, 620n5 means of, 544–546 Huston, James, comments on income distribution patterns, union efforts, 529–534 American belief in egalitarian- 482–485 income tax ism, 419, 455 income equity ratios. See also history, 547 American belief in monopoly, income caps proposals; Ten post-WWII, 442–443, 471, 425 Times Rule 624n223 industrialization in America, twenty times, 77–78, progressive structure for, 621n38 162–163, 546, 584n19 467–472 supply-and-demand for CEOs, Income Equity Act legislation, reforms of 1890s, 425–428 571n158–159 538–539, 634n57 Roosevelt (Theodore) on, those who counted in early twenty-five times, 634n57 430–431 America, 420 100 times, soldiers vs. CEOs, income tax legislation wealth distribution, historical- 542 16th constitutional amend- ly, xviii, 197, 416, 417 U.S. vs. other industrialized ment, 431–432 nations, 65–66, 203 1861, Civil War levy, 422 648 Greed and Good

1864, Civil War levy, 422 495–498 Kaplan, George, 313, 327 as 1894 tariff bill amendment, history, 422 Kapur, Akash, 372 427 limits to executive compensa- Kasich, John, 380, 384 1916 tax act, 433 tion, 486, 540–541, 629n22 Kaus, Mickey, 468 1917 War Revenue Act, 433 staff cuts, 616n25 Kavanagh, David, 258 1926 Revenue Act, 628n56 Isenberg, David, 211 Kawachi, Ichiro, 313–314, 1932 Revenue Act, 437 Ishi, Hiromitsu, 234 329–330 1935 income tax, 439–440 Italy, media ownership in, 400 Kay, Ira, 14, 42 1935 Wealth Tax Act, 439 Ivins, Molly, vii, 468 Kay, John, 64, 160 1942 Revenue Act, 441, 442 Kay Manufacturing, 170 1981 Economic Recovery Tax J Kazin, Michael, 428, 429 Act, 447 Jackson, Andrew, 419, 621n23 Keating, Edward, 433 1981 Revenue Act, 433 Jackson, Tim, 165 Kellcher, Herb, 173 1985 Supreme Court ruling, Jack: Straight from the Gut (Welch), Kelly, Marcy, 39 427–428 72 Kelly, Marjorie, 24, 545 1986 Tax Reform Act, 448 Japan Kemp, Jack, 446–447, 451, 477 1988 Revenue Act, 433 CEO income, vs. U.S., 63–66, Kennedy, Bruce, 313–314, 1997 Taxpayer Relief Act, 451 569n88 329–330 Kemp-Roth initiative, crime in, 231, 232–233, Kennedy, Edward, 453 446–447 595n185 Kennedy, John F., 444–445 Rockefeller affected by 1935 economic growth, 596n216 Kennedy, John Pendleton, 420 Act, 624n196 health in, 314, 316–317, Kenny, Shirley Strum, 28 Unlimited Savings Allowance 607n40 Keough, Keith, 335 Tax Act bill, 476–477 incarceration rates, 231 Kerala, India, 372–377, 614n68, Victory Tax, 441 job security in, 233, 596n210 615n95 independent sector. See nonprofit mergers and acquisitions in, Kerrey, Bob, 460 sector 586n88 Kersh, Russell, 53 index funds, 19–20 pay ratios, executive-employee, Keynes, John Maynard, 215 Index of Social Health, 370. See 65–66 Kimberly-Clark, 53, 566nn23–24 also quality of life shareholder vs. stakeholder Kimel, Martin, 289 Infinity Broadcasting, 587n109 position, 24 Kimsey, James, 14 infrastructure stock/real estate collapse, 233 King, Willford Isbel, 432 commons maintenance, wealth distribution, 233–235, Kinsley, Michael, 254 345–351, 357–358, 610n66 595n199 Kirsch, Steve, 127–128 elimination of firehouses, post work year length vs. U.S., 99 Klein, Ethel, 537 9/11, 358, 612n129 Jarrell, Sherry, 584n9 Kleiner Perkins Caufield & Byers, U.S. government investment Jasinowski, Jerry, 100 518 in, 213–214, 381–382, 520 Jefferson, Thomas, 417 Klepper, Michael, 468 Inhaber, Herbert, 482, 483, 484 Jehlen, Alain, 354 Klinger, Scott, 532 Institute for Policy Studies, 182 Jencks, Christopher, 313 Knight, Christopher, 147 insurance, medical, 100–101, Jenkins, Holman W. Jr., 290 Knight, Phil, 392 106–107, 121, 574n38. See also jeopardy thesis of social change, Koenig, Louis, 428–429 employee benefits 499–500 Kohn, Alfie, 194 Intel Jesus, xviii Koizumi, Junichiro, 234, 235 CEO compensation, 64–65 Jiacomin, Danielle, 570n153 Koogle, Timothy, 563n184 employee empowerment at, Jobs, Steve, 15–16, 559n65 Koors, Jan, 32 163, 165 job security. See unemployment Korten, David, 366 executive pay, 2000, 42–43 Joe Millionaire (television), xiv Kozlowski, L. Dennis, 47, 173 Late List, 165 Johnson, David Cay, 191 KPMG, 281, 282 mergers and acquisitions, Johnson, Lyndon B., 333, 445 Kraft, Alexander, x 172–173 Johnson, W. R., 47 Kravis, Henry, 174 stock options at, 9 Johnson & Johnson, 531 Kroc, Joan, 127 Internet commerce, 73, 225–226, Jones, Charles H., 427 Krugman, Paul, xxi, 281, 407 594n151, 594n155. See also Jones, Jesse H., 141 Kucinich, Dennis, 203 Amazon.com Jordan, Michael, 304 Kumar, Sanjay, 25–27, 561n117 investment capital, sources for, Jordan, Vernon E. Jr., 84 Kuttner, Robert, 405–406, 459 223–225, 517–520, 594n151, Josephson, Michael, 482 Kuznets, Simon, 197, 556n101 594n155 J. Paul Getty Museum, 141 Iraq War, 2003, 542, 635n71 judges, 289–290 L Ironite, 161 La Follette, Robert, 437–438 IRS K LaGuardia, Fiorello, 438 audits of poor vs. rich, 382, Kagann, Stephen, 113 Lake, Celinda, 386 616n26 Kalla, Susan, 227–228 Lamoureux, Patricia Ann, 467 capital flight controls, Kane, Eugene, 335 Lane, Robert, 240, 246, 247, 319 Index 649

Lang, Eugene, 266 Lucky, Robert, 211 changes in news reporting, Larcker, David, 90 Luxury Fever (Frank), 474 619n126 Lardner, James, 315, 334 Lynch, John, 327 free press and democratic tra- Laski, Harold, 185, 401 Lynch, Lorenzo, 299 dition, 399–400 Lawler, Edward, 160, 161, 168, Lynch, Peter, 133 middle class depicted by the, 170, 584n12, 586n64 Lyons, Max, 96 242 lawyers. See under professionals wealthy depicted by the, 242 layoffs of employees. See also M media, influence on downsizing of employees Madison, James, 418, 457, 481 consumer spending, 242 airline employees, 379 Magma Copper, 584n13 desire for wealth, xiv downsizing vs., 179–180 Maine, election spending, 395 sports industry, 300–301, 309 post-9/11 attack, 379 Malone, John, 226 MedImmune Inc., xxiv, 557n126 U.S. vs. European restrictions, Mancuso, Frank, 562n161 Mellon, Andrew, 136–137, 435, 202, 591n31 Marcos, Ferdinand and Imelda, 623n158 layoffs of employees at 362 Menendez, Robert, 541 Amazon.com, 70–71 Marcus, George, 128, 129 Merrill Lynch, 222 BellSouth, 61 Marcus, Stanley, 262 Mesa, Armida, 58 Cisco Systems, 227 Marks, Mitchell, 180 Messier, Jean-Marie, 206, 207 Hewlett-Packard, 166–167 Marmor, Ted, 329 Metropolitan Museum, 139 Kimberly-Clark, 54 Marmot, Michael, 321–322, 323, Mexico, 361, 402 Nortel, 227 328 Meyerson, Harold, 121 Scott Paper, 52–54, 566n29 Marshall Industries, 169 MFS Communications, 174 Sunbeam, 54, 566n35 Martinez, Arthur, 35 MGM (Metro-Goldwyn-Mayer Washington Post, 593n113 Marx, Karl, 196 Inc.), 34, 562n161 Lazar, Edward, 193 Maryland, revoking corporate Michalos, Alex, 270 Lazard Freres & Co., 84 charters, 544–545 Microsoft, 11, 57, 78–79, 567n53, Lebowitz, Fran, 269 Maslow, Abraham, 168, 245 571n174. See also Gates, Bill Ledebur, Larry, 199 material possessions Middelhoff, Thomas, 206, 207 Ledecky, Jonathan, 140 conspicuous consumption of, middle class. See also families (aver- Lee, William, 584n11 474–478, 629n73, 629n76 age); taxes on the middle class; Leggett, William, 419 creating artificial need, 369 the poor; the wealthy Leno, Jay, xiv happiness and, 244–246, black Americans as, 351–353, Lerman, Robert, 113 248–250, 262–263, 369 612n103 Lerner, Alfred, 28 social pressure felt by families, consumer debt of, 244 Lesar, David, 542 218, 242–245, 248–250, defined, xxi, 385 Level 3 Communications, 227 344–345, 509–510 economic mobility of, 458, Levin, Carl, 394 Ten Times Rule, effect on con- 460, 464 Levin, Gerald, 30, 562n140 sumption standard, 509–510 emergence/decline of, xx, Levin, Jerry, 55–56, 563n184 maximum wage history. See also xxi–xxii, 97, 348, Levitt, Arthur Jr., 281 income caps proposals; Ten 555nn99–100, 556n101 Lewis, John, 393 Times Rule in Europe, 203, 338–339 Lewis, Michael, 67, 174, 264, 346 Mays, L. Lowry, 176–177 exploitation as consumers, Licklider, J. C. R., 523 Mazzocchi, Tony, 546 241–245, 251–252, 364, Liebling, A. J., 398–399 MBNA, 28, 45 598n71, 613n33 life, quality of. See happiness; qual- McAuliffe, Terry, 384 full employment vs. inflation ity of life McCain, John, 393, 395 in 1970s, 625n234 life, quantity of, 525 McCain-Feingold, 393–395 happiness of, 244–246 Lillak, Dale, 266 McClellan, Bill, 76, 481, 571n161 housing costs, 255–257, 358, Lily-Tulip, 52 McColl, Hugh, 39 506–509, 599n109 Linfante, Kristen, 145 McConnell, Mitch, 618n97 in Japan, 233 Linux software, 522–523 McDonough, William J., 479–480 lifestyle, 121–125, 300, 358 Lipman, Samuel, 141 McGill, William, 523 media depiction of, 242 Lippman, Walter, 445 McGinn, Richard, 43 reference group comparisons, Lloyd, Henry Demarest, 425 McGuire, Mark, 304 241–243 Lodge, Henry Cabot, 432 McGurn, Patrick, 47 Ten Times Rule, effect on, Lofton, Thomas, 291 MCI, 48–49. See also WorldCom 506–510 Long, Huey P., 437–439 MCI Center, 298, 299 the wealthy, beliefs regarding, Looking Backward (Bellamy), xvi, McIntyre, Robert, 453, 476 264–265 426, 549 McKibben, Bill, 364, 367, 374 middle class, financial assets Lorsch, Jay, 185 McKinley, William, 428–429 1998-2001, drop in, xxi–xxii. Los Angeles Lakers, 604n19 McNamee, Stephen, 88 see also taxes on the middle lottery payoff amounts, ix McPherson, Michael, 213 class Lowenstein, Louis, 229 Meany, George, 442 black vs. white, 353–354, Lucent Technologies, 43, 188 media 612n103 650 Greed and Good

home ownership, 97 Mongiovi, Gary, 229 Nordin, Jennifer, 378 net worth, 1992-2001, 119 Monks, Robert A. G., 38, Norris, George, 437–438 stock market investments, 97, 563n189 Norway, equality of goods and 117–119, 573nn12–13 Moore, Gordon, 165 services in, 349–351 middle class, income of the. See Moore, Stephen, 115 Novak, Robert, 264 also taxes on the middle class More than Money, 260 Novell, 82 1947(post-WWII) -1973, xx Morgan, J. Pierpont, 77–78, 139, Noyce, Bob, 163, 165 1947(post-WWII) -1997, 533 Nunn, Sam, 476–477 579n203 Morgan Stanley Dean Witter, 36 1960s vs. 1990s, 124 Morgenson, Gretchen, 227–228 O 1970s-2000, 121, 556n130 Morgenthau, Henry, 366, 476 Obey, David, 448 after tax losses, 1970s, Morocco, 372, 614n68 Odendahl, Teresa, 135 557n130 Morrill, Justin, 422 Office Depot, 57 gains Morris, Charles, 12 Okun, Arthur, 198 1947-1973, 125 Morrison, Bob, 149 Oliver, Melvin, 354 1979-2000, 113 Morrissey, Rick, 306 Olson, Floyd B., 437–438 median, annual, 1980 vs. Motorola, 20, 73, 570n151 O’Neill, Paul, 391 2000, 98, 113 Mott, David M., 557n126 Oracle, 13, 44, 189–190, 221 physicians vs., 284, 602n63 Mullainathan, Sendhil, 82 O’Reilly, Charles, 185 wage-earners/family, 99, murder rates outsourcing of employees, 104 243–244 income inequity and, 231–232 Overholder, Geneva, 552 Milken, Michael, 12, 57, 567n54 social status and, 325 The Overworked American (Schor), Miller, Ellen, 382 for women, Europe, 595n185 243 Miller, George, 454, 455 Murdoch, Rupert, 304 Ovitz, Michael, 67–68, 569n108 Miller, Heidi, 18 Murray, Charles, 352 Miller, Matthew, 75 Murray, Robert, 434, 435 P Miller, Mike, 464 Museum of Modern Art, 139 Packard, Dave, 164 Miller, Robert Jr., 88 Myers, Ched, 466–467 Packwood, Bob, 386, 617n53 millionaires My First Days in the White House Page, Benjamin, 458 in 1800s, 422, 423 (Long), 438 Page, Scott, 14 1919 vs. 1929, 436 Myths of Rich and Poor (Cox and Pagliocchini, Lisa and Steve, 123, as cabinet officers, 390 Alm), 100, 248 125 in California, 120 Palaima, Thomas, xvii in Congress, 387–388 N Palast, Greg, 115 globally, 2001, 362 Nacchio, Joseph, 227 Palter, Peggy, 35 growth rate, ix, 120, 253, Nader, Ralph, 516 Paraguay, equality and democracy 553n11 Nakao, Annie, 353 in, 403 public opinion on, 528 Nasser, Jacques, 21, 25 Parenti, Michael, 89 on the Supreme Court, 391 NationsBank, 33, 175 Parsons, Frank, 428 taxation of, 433 Naylor, Bart, 530 pay. See wages Milloy, Courtland, 356 Neiman Marcus retail, 262–263 Pearlstein, Steven, 49 Mills, D. Quinn, 225 Netscape Communications, Pechman, Joseph, 468, 628n50 minimum wage. See also Ten Times 220–221 Peirce, Neal, 303 Rule Newbold, Frank, xi Peltzman, Sam, 348 1950s-1960s, 216–217 NewTithing Web site, 133 Peltzman’s Law, 348 1968 vs. 2001, 217, 343 Newton, Sir Isaac, 80 Pelz, Michael, 518 1980s-1990s, 217 New York (state), election spend- Pen, Jan, 482 2003, 490 ing, 389 Peninsula Hotel, Hong Kong, xii cost of living vs., 110–111, New York, New York, 256, 258, Pen parade analysis of income dis- 593n111 315, 349, 536, 607n28 tribution patterns, 482–483 history of the, xx, 480 New York Yankees, 296, 307 pentamillionaires, 253, 598n79 incentives for increasing, Nicolosi, Richard, 53 PepsiCo, 11 484–485, 499 Nitec, 567n49 performance/compensation link. living wage law (Baltimore), Nixon, Richard M., 62 See also incentive 535–536 nonprofit sector. See also philan- for athletes, 305, 307–310 Ministry of Money, 260 thropy effectiveness for employees Minor, Halsey, 84 CEO pay in, 290–292, Deming on, 585n51 Minow, Nell, 40, 42, 52 537–539, 539–541, 634n67 gain-sharing plans for, Modell, Art, 302, 303, 307 funding by tax dollars, 168–170 Mogil, Chris, 260 142–143, 146, 150, management belief in, Mohn, Reinhard, 207 539–541, 583n76 167–168 Mondale, Walter, 448 political influence of, 405–406 motivation in, 585n44 Money, Meaning and Choices Ten Times Rule, effect on, negative results, 168, Institute, 260 512–513 193–194, 585n48 Index 651

proof of, 585n45 William Smithburg, Quaker education for children of, 213, puzzle players example, Oats, 174 335–336, 459–461, 464, 184 W.R. Johnson, H.J. Heinz, 47 593n93, 609n31, 609n33, for risk, 57–58 Perkins, Frances, 440 627n7, 627n11 performance/compensation link, Perot, H. Ross, 449 environmental degradation by, CEOs. See also incentive Perotti, Roberto, 593n93 361–362 1980s, 7–10 Peru, elections in, 402 immigrants as, 113–115, 336, 2000 crash, effect on, 40–44 perversity thesis of social change, 610n35 boards of directors as factor in, 493–499 philanthropy as benefit to, 28–31 Petersen, Donald E., 13 135–136, 581n65 bonuses not requiring, 21, 30, Peyrelevade, Jean, 206 poor, beliefs about held by 562n140 Pfeiffer, Eckhard, 13, 136 economists, 111–113 Computer Associates example, philanthropy. See also nonprofit journalists, 264 25–28, 561n117 sector; under the wealthy lawmakers, 344 Fidelity effect on, 19–20 by Boston Brahmins, 128–129 politicians, 447, 458 post-WWII-1970s, 6–7 NewTithing Web site calcula- the wealthy, 263–264, 333, reform of WorldCom system, tor, 133 338 48 poor as recipients of, 135–136, poor, incomes of the. See also taxes stock analysts effect on, 21–23, 581n65 on the poor 560n95, 560nn98–102 purpose of, 129 1960s vs. 1990s, 124 stock options statistics 1977 vs. 1999, 556n130 1970s, 9–10 1960s, 130 1989-1999, California, 121 1980s, 7–10 1970 vs. 1999, 581n66 2001, 119 1990s, 10–14 1990s, 130, 134, 136, after taxes, 342 Bonus Unit awards, 580n27, 581n65 poorest 20%, 112–113, 558n20 2000, 133–134 124–125, 342, 628n34 Computer Associates as percentage of income, poorest 25%, 119 example, 25–28, 130–131 poorest 5%, 557n130 561n117 Ten Times Rule, effect on, poorest 90%, 557n131 reforms, 16–18, 560n74 508–509, 512–513, 519, post-WWII, xx stock ownership requirement, 631n6 poor, socioeconomic elements 17–18, 560n79, 560n81 the wealthy and anti-hunger campaign, performance/compensation link, giving by, 130–131, 343–345 CEOs lacking performance 133–136 budget calculations, minimum Carly Fiorina, HP, 166–167 untapped capacity of, needs, 109–110 David Rickey, Applied Micro 132–134 equal opportunity lacking, Circuits, 47 Philip Morris, 35 458–459 European CEOs, 206–207 Phillips, Kevin, 418, 423, 431, food bank usage, 111 George Shaheen, Webvan, 442, 443, 448 Food Stamps for, 336 76–77 Phillips Collection, 140 health care, 283, 335–336 Gerald Levin, Time Warner, 30 physicians, 282–286, 602n58, leveling up strategy for social insuring against, 33 602n63. See also health care justice, 457–459 Jack Welch, General Electric, Pierce, Gregory, 66 lifestyle, Gilded Age, xvi, 262 570n139 Pinchot, Amos, 433 material possessions and well- James Crowe, Level 3 Plutarch, xvii being of, 245 Communications, 227 plutocracy. See also the wealthy shelter request increases, 111 Jeff Bezos, Amazon, 70–71, 1870-98 (Gilded Age), xv social pressures faced by, 570n122, 570n125 1896 presidential race, a win 344–345, 509–510 John Ward, Russell Corp., for the, 428 Poppendieck, Janet, 343–345 562n145 1950s, xv Populist Party, xix Joseph Nacchio, Qwest, 227 1990s-2000, xv, 383, 404–405 poverty Larry Ellison, Oracle, 44 concerns regarding, 434, 445 defined, 108–109, 576n94, L. Dennis Kozlowski, Tyco by default of average citizen, 576n96 International, 173 407 equality-efficiency conflict for Michael Bonsignore, demise and resurgence of, eradicating, 198 Honeywell, 174 xiv–xv health linked to, 311–312, Philip Anschutz, Qwest, 227 politicians opposing, xvi–xvii 324–325 Richard Adams, Cello Populist crusade against, xix, in Japan, 233 Technologies, 174 428 leveling down strategy for alle- Solomon Trujillo, Qwest, 178 PNC Financial, 564n217 viating Stephen Sanger, General Mills, Pollans, Albert, 282 futility thesis of, 489–493 47–48 the poor. See also taxes on the jeopardy thesis of, Steve Jobs, Apple Computer, poor; working poor 499–500 559n65 in California, 121 perversity thesis of, 652 Greed and Good

493–499 Kerala, India, 372–375, 430, 624n196 progressive consumption 376–377, 614n68 Rockefeller Foundation, 129 tax, 474–478, 629n73, measurement indexes, 370 Rodin, Rob, 169 629n76 Ten Times Rule, effect on, Rodriguez, Alex, 296, 305, 308, progressive taxation, 524–525 309, 605n77 467–472 Quinn, Michelle, 270, 346 Rogers, James, 266 sabbath economics, Qwest Communications, 178, Rogers, Joel, 537 466–467 227–228 Rohr, James, 564n217 wealth tax, 472–474, Rooney, Mickey, 95 628n68 R Roosevelt, Franklin D., 61 murder rates relationship to, Raber, Roger, 28 income cap proposal, xxvi, 231–232 racism, 351–353, 611n93, 415–416, 440–441, 481, official guidelines for, 109–110 611n95. See also black 620n5 the war against, 333–334 Americans; discrimination New Deal, 436–439 poverty line, 216–217, 334, raiders restructuring of corporate tax increases for the wealthy, 576n110. See also working poor America, 7–8, 33 440, 624n196 Prada, xi Raines, Franklin, 390 Roosevelt, Theodore, xvii, 430, The Present Distribution of Wealth Rainwater, Richard, 85–86 432 in the United States (Spahr), 428 Rakoff, Jed, 48, 486 Rosen, Irwin, 263 Pressler, Margaret Webb, 244 Ran, Thomas, 564n217 Rosenberg, Claude, 132–134 Priceline, 18, 188, 221 Randolph, Joseph Fitz, 419 Rosenberg family foundation, 132 PricewaterhouseCoopers, 253, Raskin, Jamin, 384 Roseto, Pennsylvania, 319–320 279, 282 Raskob, John J., 436 Ross, Steve, 10, 12, 558n20 productivity. See also economic Ratner, Sidney, 429 Rossiter, Caleb, 389 growth; goods and services Rawls, John, 339–340 Roth, William, 446–447 equality as contributor to, 233 Raytheon, 279 Rove, Karl, 390, 618n75 increases, 435, 592n77 RCN Corporation, 17, 226, Rowe, Jonathan, 369 increasing, methods of, 560n74 Royal Bank of Scotland, 64 200–201, 212–215, 593n93, Reagan (Ronald), presidency of, Rubin, Robert, 390 593n97 217, 447–448, 541, 625n240 Rumsfeld, Donald, 391 Japanese enterprises, 233 Rector, Robert, 112 Ruppik, Erich, 207 research and development Reebok, 10–11 Rushin, Steve, 306 investment and, 210–212, Reed, Bruce, 130 Russell Corp., 562n145 214 Rees, William, 363 Russia, child poverty rates in, 336, security spending vs., 230–231 Rehnquist, William, 289, 391 337 speculative trading vs., Reich, Robert, 217, 450, 473, Ryscave, Paul, 216 228–229, 595n177 493, 537–538 U.S. vs. European rates of, 214 Reingold, Jennifer, 585n45 S wages relationship to, 214–215 relationships. See also community sabbath economics, 466–467 professionals. See also specific profes- involvement Sabo, Martin, 537–538, 634n57 sions, e.g. attorneys good health linked to, Salk, Jonas, xxiv characteristics of, 292–293 319–320, 325–326 Salomon, 227 effect of unequal rewards on happiness from, 246–247, Salzer, Myra, 263 entry-level, 286–290 260–262, 331, 369 Samuelson, Robert, 205, 487 salary gaps, results of, 289–290 of the wealthy, 260–262, 267, Sanders, Bernie, 454 satisfaction of, factors in, 306, 346 Sanford, Charles S. Jr., 489 273–274 Rendell, Ed, 111 San Francisco (Calif.) housing success defined by, 273–274 Rennert, Ira, x costs, 255–256 trust as vital to, 274, 282–283 Revlon, 12 Sanger, Stephen, 47 Progress and Poverty (George), xvi Ricardo, David, 196 San Jose (Calif.) commuting time, Progressive Party, xix–xx Rickey, David, 47 257–258 Prothrow-Stith, Deborah, Riley, Richard, 148 Sapolsky, R. M., 323–324 313–314 Ritz-Carlton Downtown, 346 Saraiva, Ellen, 232 psychosocial dimension of health, RJR Nabisco, 174 Sarbanes, Paul, 282 326–328 road rage, 258 Sarbanes-Oxley Act, 47, 565n247 public sector, reform efforts by Roberts, Brian, 82 Scanlon, Joseph, 168–169 unions and, 534 Roberts, Ralph, 81–82 Schacht, Henry, 217 Pulitzer, Joseph, 426 Robertson, Julian, 222 Schapiro, Morton Owen, 213 Putnam, Robert, 247, 331–332 Robertson, Pat, 442 Scheiber, Anne, 259–260 Robinson, Jackie, 296 Schervish, Paul, 267–268 Q Robinson, John, 597n31 Schlesinger, Arthur, 439 Quaker Oats, 174 Roche, James, 125, 579n209 Schmidt, Eric, 82–84 Qualcomm, 221 Rockefeller, David, 139 Schmidt, Ted, 218 quality of life. See also happiness Rockefeller, John D., ix, 81, 129, Schor, Juliet, 242, 243, 245, Index 653

248–249, 597n31 Simon, William, 12 tion funding, 461–462 Schrempp, Jurgen, 63 Sims, Jane, 107 Social Security Schumacher, E. F., 370 Singletary, Michelle, xiv black vs. white history, 356 Schwarz, Benjamin, 627n23 Skadden, Arps, Slate, Meagher & FICA payroll tax increases, 448 scientific management, 159 Flom, 275 general public vs. wealthy on, Scoones, Eric, 64 Skilling, Jeff, 22 387, 617n56 Scott, Richard, 285 Sklar, Holly, 118, 407, 543 history, xx, 439 Scott, Samuel, 73 Slater, Philip, 261, 262, 270 taxation of benefits, 448, Scott Paper, 52–54, 566n13, slavery, 419, 421, 621n25. See also 625n246 566n29 racism society. See also community Scripps. E. W., 433 Slavin, Robert, 461 involvement Seagate Technology, 32 Slim, Carlos, 402 cohesive, 247, 331–332 Sears, 35 Sloan, Allan, 46, 73 commons maintained in Seattle Mariners, 309, 605n77 Sloan Kettering Cancer Center, healthy, 345–351, 357–358, Sedgwick, Theodore, 419 291 610n66 Selig, Bud, 307 Slywotzky, Adrian, 229 Kerala, India, as example of Seligman, Ben, 435 Smeeding, Timothy, 204, 356 equality in, 372–377 Sen, Amartya, 231, 372, 407 Smith, Adam, 467–468 social/moral obligation in September 11, 2001, attacks Smith, George Davey, 326 civic role of public educa- airlines industry bailout, Smith, Goldwin, 422 tion, 459–460, 627n7, 379–380, 615n6 Smith, Logan Pearsall, 270 627n11 commemoration ceremony, Smith, Roy C., 8, 82, 287, 558n2 employee safety nets, 479–480 Smith, Tim, 38 201–202 elimination of firehouses fol- Smithburg, William, 174 food for all in America, lowing, 358, 612n129 Snapple, 174 343–345, 610n35 workforce layoffs after, 379 Snow, John, 46 living wage law, 535–536 Seward, William, 419 Snow, Tony, 521 self-interest vs. community Shaheen, George, 76–77, Soare, Anastasia, 268 well-being, 485–488 571n164, 571n168 social capital, 247, 331–332. See welfare reform, 334–336, Shanahan, John, 179 also community involvement; 342–343 Shapiro, Leonard, 305 relationships social status and Shapiro, Thomas, 354 social cohesion, link to good health, 321–326, 607n63, shareholder activists, 38, 531–532, health, 319–320, 325–326. See 608n77 563n189 also community involvement; material possessions, shareholders. See also corporate relationships 248–250 America; stock ownership social justice. See also Ten Times murder rates, 325 CEO income increases vs. Rule Sonnenfeld, Jeffrey, 171 profits of, 14–15 economic justice in, 529–534 Sooy, Richard, 390 market wisdom of individual leveling down for leveling up Sorenson, Georgia, 450 investors, 19 strategy Soros, George, 404, 593n123 power of management over, for education funding, Sosa, Sammy, 304, 306 39–40, 531–532, 564n200 462, 627n23 South Beach (New York) infant pre-eminence of, 24–25, historical belief in, mortality in, 315, 607n28 561n104 457–459, 481 Southwest Airlines, 173, 587n124 stakeholders vs. in importance, natural range of inequality, Spahr, Charles B., 428 24–28, 561n104, 561n117 484 Spinner, Percell, 299 takeover industry affecting leveling down strategy for Spitzer, Eliot, 545 wealth of, 33, 54–56, wealth distribution Spock, Mr., 126 566n35 futility thesis of, 489–493 sports industry. See also athletes; voting practices, 633n26 jeopardy thesis of, athletes salaries Shaw, Eric, 191 499–500 1960s vs. 1990s, 297–298 Shaw, George Bernard, 267, 271 of Native Americans, xvii media effect on, 300–301, 309 Sheen, Charlie, 269 perversity thesis of, pay gaps, athletes-average fan, Shellenberger, Lynn, 481 493–499 296 Sherman, John, 420, 427 progressive consumption sports industry fans. See also ath- Sherraden, Michael, 460, 461 tax, 474–478, 629n73, letes Shi, Leiyu, 318 629n76 anger in, 302 Shields, Mark, 392 progressive taxation, attendance statistics, 301, 307, Shriver, Sargent, 334 467–472 309–310 Shugart, Al, 32 sabbath economics, costs increasing for, 298–299, Sifry, Micah, 382 466–467 301–302, 604n19 Silber, John, 291, 603n85 wealth tax, 472–474, declining importance of, Silverman, Henry, 34 628n68 297–301 Simon, Neil, 270–271 leveling up strategy for educa- Fan Cost Index, 299 654 Greed and Good

income gap, athletes vs., 296 and, 17, 560n74 avoidance strategies, 343, 443, pay gaps, athletes-average fan, in lieu of salary, 15–16 468, 494–498, 500–502 296 management-employee gaps, capital flight option, 495–498 sports industry finances 13–14, 164–165, 183 Earned Income Tax Credit, Fan Cost Index, 299 taxation of, 9, 558n29 341–342 franchise revenue/value, 296, for telecom executives, 228 environmental, 359–360 307 stock ownership. See also share- income averaging for, owner profits, 301, 302–303, holders 507–508, 631nn4–5 307–308 1980s-1995, 573n13 IRS audits, 382, 616n26 owner salaries, 296 1983-2000, 573n12 Share-Our-Wealth movement, revenue, annual, 295–296 by middle class, 97, 117–119, 437–439 revenue gaps, 307 578n153 taxes, historical stadium costs, 298, 309–310, stock repricing, 34–36 1790 excise tax on distilled 403 success liquor, 418 tax breaks/deductions, 296 in corporate America, 23–25, 1861 Civil War levy, 422 taxes subsidizing, 302–303, 65, 561n104 1864, Civil War levy, 422 403 defined, 23–25, 65, 273–274 1873, post-Civil War, 422 television broadcast costs, individual vs. shared achieve- 1917 War Revenue Act, 433 300–301 ment in, 65–66, 79–80, 87 1920- (post-WWI) decreases ticket costs, 298–300, 604n19 leveling up strategy, 463 for the wealthy, 435, Sprague, O. M. W., 433, 623n136 social roots of, 80–81 623n158, 623n167 Sprint, 11, 35, 36, 180–181 Sudden Money Institute, 260 1932 Revenue Act, 437 Sreenivasan, Sreenath, 212 Sugar, Ronald, 542 1942 Revenue Act, 441 The Stakeholder Society (Ackerman Sullivan, Donald, 30 1948 Revenue Act, 442 and Alstott), 460, 462 Sullivan, Ken, 233 post-WWI, 435, 623n158, Starfield, Barbara, 329 Summers, Lawrence, 224, 613n38 623n167 Stauber, John, 619n126 Sumner, William Graham, 424 post-WWI decreases for the Staw, Barry, 161 Sunbeam, 54–55, 566n35, wealthy, 435, 623n158, Steinbrenner, George, 296, 301 567n37, 567n47 623n167 Steinmo, Sven, 471 Swartz, Mark, 280, 602n36 post-WWII, 527 Stevens, Rick, 257 Sweden, 231, 314, 336 war-time profits, 433, 440, Stevenson, Howard, 482 Sweeney, John, 183 542, 623n136 Stewart, Jill, 131 Switzerland, taxation in, 472 taxes on Stewart, William, 233 Sykes, John, 148–149 401(k) plans, 45–46, 102 St. Louis Art Museum, 150, bonds, state/municipal, 583n76 T 500–502 St. Louis Municipal Opera, Tabb, William, 349 capital gains, 343, 446, 448, 583n78 Taft, William Howard, 431 451, 625n250, 625n260 stock grants, 31–32, 562n147 Tawney, R. H., 255, 273, 292 net worth, 472–474, 628n68 Stockman, David, 447–448 tax deductions oil and gas production, stock market. See also Wall Street charitable organizations, 469–470, 628n56 Dow Jones effect on, 19–20 508–509, 539, 634n60 property, xvi, 150, 472 Fidelity effect on, 20–21 corporations, 37, 303, 539 savings, personal, 476–477 manipulation through IPOs, insurance premiums for death stock market gains, 343 223–226, 594n151, benefits, 107 stock options, 9, 558n29 594n155 sports industry, 296, 604n8 taxes on average families speculative trading, 228–229, tax dollars funding Bush (GW) administration, 595n177 Bill Gates, early computer 382, 452–455 telecommunications industry research, 79 FICA tax increases, 448 corruption and the, 226–228 CEO wealth, 534–539 IRS audits, 382 stock market analysts, conflicts of George W. Bush, Arlington Reagan administration, interests, 21–23, 560n95, Ballpark, 86 446–448 560n98–102 insurance company liability sports industry subsidized by, Stock Market Primer (Rosenberg), safety net, 380 302 132 nonprofit organizations, Ten Times Rule, effect on, stock options 142–143, 146, 150, 491, 520–521 Bonus Unit awards, 558n20 539–541, 583n76, 634n60 Victory Tax, 441 as compensation. see also Paul Allen, Seahawk Stadium, taxes on corporations CEOs, income additional to 302, 403 1981 Economic Recovery Tax salary public goods and services, Act, 447 critics of, 16–17 348–349 corporate welfare subsidies, restrictive nature of, 165 sports industry, 302–303 342, 380–381 supporters of, 10–11 taxes. See also estate tax; income “A Corp” status proposal, 537 corporate earnings statements tax deductions, 37, 303, 539 Index 655

environmental, 359–360 382, 449–450, 616n24, ity of, 532–534 fraudulent accounting for, 625n253 Ten Times Rule, effect on 187–191, 531, 588n166, public opinion on, 528 charitable giving, 508–509, 589n177 Victory Tax, 441 512–513, 519, 631n6 fraudulent reporting of profits, IRS audits, 616n26 education, 520 190–191 Kennedy administration, employee empowerment, oil depletion allowance loop- 444–445, 624n230 505–506, 514–516 hole, 469–470, 628n56 progressive consumption tax, employment, 500–502, 510 public opinion on, 381 474–478, 629n73, 629n76 environment, 525–526 stock options, 9, 558n29 public opinion on, 632n6, executives, 504–506, 514–515, taxes on the middle class 632n8, 632n10 631n1 Bush administration, 382–383 Reagan administration, families IRS audits, 616n26 446–448 housing, 506–509 Reagan administration, 449 richest 1%, 620n6 latchkey children, 511–512 Ten Times Rule, effect on, Rockefeller affected by 1935 leisure time, 510–511 484–485, 491 Act, 624n196 tax reductions/income taxes on the poor tax calculations using the Ten increases, 520–521 1790 excise tax on distilled Times Rule, 484–485, income averaging, 631nn4–5 liquor, 418 490–492 individuals under Bush administration, U.S. vs. Europe, 591n53 happiness of, 524–525 453, 616n28 taxes on the working poor, personal fulfillment, IRS audits, 382 341–342, 610n62 504–514 Ten Times Rule, effect on, tax fraud, 187–191, 588n166, talented, 505–506 484–485, 491 589n177 infrastructure, 500–502 taxes on the wealthy. See also estate tax loopholes, 469–470, 628n56 innovation/invention/motiva- tax; Ten Times Rule tax rates tion, 520–524, 525 Bush (GHW) administration, calculating using the Ten public goods and services/com- 449 Times Rule, 484–485, munity, 512–513 Bush (GW) administration 490–492 Texas, 135, 350 $1,000,000 income or for public goods and services, Texas Rangers, 85–86, 309 greater, 382–383, 350 The Gap, 38 616n31 rich vs. poor, 382–383 Thomas, Frank, 305 $200,000 income and on the wealthy, xx, 203, 470, Thomas, Michael, 356, 535 greater, 616n28 471–474 Thompson, Bob, 269–270 $50-$75,000 income, tax structure for social justice. See Thompson, Tommy, 335 616n31 also Ten Times Rule three-times rule, 109 congressional votes approv- progressive consumption tax, Thurow, Lester, xxv, 252, 401 ing, 626n276 474–478, 629n73, 629n76 TIAA-CREF, 39 estate tax, 382 progressive taxation, 467–472 Tiger Management, 222 richest 1%, 415, 620n6 wealth tax, 472–474, 628n68 Tilly, Chris, 199, 200, 230, 231 tax plan 2001, 452–455 Taylor, Frederick Winslow, 159 Time Warner, 30, 176, 562n140 Clinton administration, 382, Taylorism, 159 Tisch, Larry, 267 449–450, 451–452, Teach for America, 287 Title IX funding, 536 625n253, 625n260 Teixeira, Ruy, 384, 392, 618n82 Todd, Richard, xxvii, 264, 333 decreases Telecommunications Act, 176 total quality management, Bush (GW) administra- telecommunications industry, 160–161, 584n9 tion, 382–383, 415, 176–177, 226–228, 300–301, Tovalds, Linus, 522–523 452–455, 616n28, 380 Townsend, Washington, 422 616n31, 620n6, Ten Times Rule. See also income Trinity Yachts, xii 626n276 caps propsals; social justice Trujillo, Solomon, 178 Clinton administration, concept, xxvi–xxvii Truman, Harry, 442 451–452, 625n260 Greens/Green Party proposal, Trumka, Richard, 531 Economic Recovery Tax 546 Trump, Donald, 473 Act, 1981, 447 history of, 502–503 Trump International Hotel & Kennedy administration, income caps and taxation rates Towers, 346–347 444–445, 624n230 using the, 490–493, 631n49, Tuck School of Business, 74 Reagan administration, 631n51 Turner, Ted, 174, 176, 404 446–448 IRS revenue, increases from, Turner, Trevor, 265 Tax Reform Act, 1986, 490–492 Twain, Mark, 422 448 minimum wage as basis for, twenty-five times pay ratios, increases 484–485 538–539, 634n57 Bush (GHW) administra- tax rate calculations using the, twenty times pay ratios, 77–78, tion increases, 449 484–485 162–163, 533, 584n19 Clinton administration, union negotiating for, possibil- Twitchell, James, 250 656 Greed and Good

Tyco International, 173, 279, 280, 534–536, 633n38 productivity relationship to, 602n36 health care systems, 284, 214–216 Tyson, Don, 564n229 602n58 U.S. vs. other industrialized Tyson, Laura D’Andrea, viii war-time profits limitation, nations, 204, 234 Tyson Foods, 564n229 542, 635n71 wages, hourly welfare reform, 334–336, 338, 1970s-2000s, 99, 463, U 342–343, 609n27 574n25, 575n56 Ueberroth, Peter, 85–86 United States history for college graduates, 463, Umetani, Kenji, 234 McCarthyism, 443 627n28 unemployment national banks, 418–419, growth of vs. inflation, 1990s, 97 621n17 556n119 1997-2000, 104 New Deal, 438–439 temps vs. full-time workers, defined, 591n50 Red Scare, 434–435, 443–444 105 recipiency rates, 590n28 United States wars unions effect on, 216 U.S. vs. other industrialized Civil War, 421–423 at Wal-Mart, 575n80, 576n89 nations, 205, 233, 234 Cold War, 444–445 welfare reform legislation and, unemployment compensation, Spanish-American War, 429 342–343, 609n27 205, 590n27 WWI, 432–434 wages, weekly Unhealthy Societies (Wilkinson), WWII, 440 1915, 432 313 United Way, 540 1939-1945, 441, 624n217 unions UPS, 190 1973 vs. 2001, 99, 574n29, 1950s-1960s, 216 Uruguay, equality and democracy 575n56 1980s-1990s, 217 in, 403 Wallis, Jim, xviii contributions to elected repre- USHealthCare, 33 Wall Street. See also stock market sentatives, 382, 616n23 U.S. Technologies, 187 1929 crash, 436 history, xx, 430, 546 US West, 177–179 1980s-2000s (boom), 220–222 membership statistics, 534 UUNet Technologies, 174 2000-2002 crash, 40–44, reforms for pay equity, role in, 222–223, 564n199 529–534 V market wisdom distortions, strikers Vanderbilt, Cornelius, xv 19–23 1919 Red Scare, 434–435 Vanderbilt, George, xv raiders restructuring of corpo- 1995 World Series, 297 Vanderbilt, William, xv, 423 rate America, 7–8, 33 permanently replaced, 217, Varone, Antonio, 550 share prices 593n113 Vasdev, Shawn, 231 factors in 1990s boom, 16, U.S. vs. European restrictions, Vaughn, Mo, 67, 69 559n66 202–203 Veneman, Ann, 390 investor losses, 2000, wages/demand/productivity Venezuela, commons supported in, 564n199 and, 216, 464 350 profit distributions, 1997, United for a Fair Economy, 89, VHI Save The Music Foundation, 118 182 148–149 Social Security privatization, United States. See also democracy Vilas, Carlos, 402–403, 406 398–399 in America Vinson & Elkins, 276–277 stock analysts, conflicts of consumption/waste produc- Virginia (Fairfax County), 123, interests, 21–23, 560n95, tion, 366–367 135, 579n188 560nn98–102 crime in, 231, 595n185 Vivendi Universal, 206, 207 Wall Street brokerage houses, prison population, 230, 231, Vogel, Ezra, 234 income sources, 22 357, 373, 595n180 Volker, Paul, 289 Wall Street investment banks, security spending, 230–231, von Hoffman, Nicholas, 136, 262 223–226, 287 595n182 von Mises, Ludwig, 96 Wall Street model, 208–210, 215, United States government 218, 230 control of free press, 619n126 W Wal-Mart, 105–108, 575n80, Department of Defense (DoD) Wachtell, Lipton, Rosen & Katz, 576n89 schools, 461 275 Walt Disney, 13, 67–69, 177 education, investment in, Wackernagel, Mathis, 363 Walton, Alice, 259 212–213, 303, 381, Wade, Robert, 357 Walton, John, 397–398 461–462, 627n23 wages. See also CEOs, income; Walton, Sam, 107, 108, 468 infrastructure, investment in, minimum wage Walton family, 107 213–214, 381–382, 520 demand for goods and services Wang, Charles, 25–27, 561n117 United States government regula- relationship to, 215–216, Ward, John, 562n145 tions 219 Ward, Ralph, 49 compensation limitations for gain-sharing plans and, Warner, Mark, 388 CEOs, 542, 635n71 169–170 Warner Communications, 10, 12, contract requirements imposed happiness linked with increases 558n20 for corporate reform, in, 525 War on Poverty, 333–334 Index 657

Washington Post, 593n113 research communities, effect 624n223 Watson, Raymond, 67 on, 211–212 1970s, 216, 445–447, Watson, Tom, 426 wealth, distribution of. See also 557n130 Watt, George, 329 wealth inequity 1980s-1990s, xxii–xxiii, 217, wealth in economic growth theory, 219–223 burden of, 260, 262–263, 267 196–197 1998-2001, 557n131 defined, ix in Japan, 233–235, 595n199 Industrial Age-present, empowerment of, 267–270 in Native American society, xvi 360–361 excessive defined, 482–484 wealth, inherited. See also children the wealthy. See also children of the happiness linked to of the wealthy wealthy context defining, 238–239 black vs. white, 354–355, 356 the wealthy. See also families (aver- fallacy of, 258–261 as guarantee of wealth, 88–90 age); plutocracy; taxes on the by material possessions, guilt resulting from, 260, 263 wealthy; the middle class; the 244–246, 248–250, predictions for Baby Boomers, poor 262–263, 369 572n214 beliefs held regarding satisfaction factor in, wealth inequity. See also economic the middle class, 264–265 241–242 growth theory; greed; income the poor, 263–264, 333, Shaw on, 271 inequity; wealth, accumulation 338 health linked to, 311–318 of; wealth, distribution of Boston Brahmins, 128–129 hyperagency resulting from, athletes vs. executives, 304 in California, 120–121 268–269 automobile industry and, characteristics of, self- luck as contributor to, 51, 250–251 described, 51, 81, 129 78–79, 81–83, 266, 458 banking industry, conse- defined, ix–x, xxii, 617n51 wealth, accumulation of. See also quences from, 253–254 environmental degradation by, wealth inequity in California, 120–122 361–362 black vs. white, 354–356, crime rates relationship to, financial assets, 1980s-1990s, 612n103 231–233 xxii Hirschhorn on, x earnings distribution disparity, relationships of, 260–262, 267, post-Civil War, 423 557n129–130 306, 346 religion on, xvii–xviii, health and, 320–321, 606n12, Roosevelt (FDR) on, 440 465–467 606n16, 606n23 Roosevelt (Theodore) on, xvii wealth, believed deserved. See also literature on, xvi social roots of success, 80 Dunlap, Albert J. morality in, 90, 182, 276 voting rates, 407, 620n157 based on a just society, 264 need for/purpose of, 3–5, wealthy, charitable giving of belief of richest 1%, 263–264 557n1, 590n9 arts funding, 139–140, 142, as divine right of founder, progressive tax structure, effect 143, 148–151 77–79 on, 467–472 statistics, 127–137, 580n31 for hard work, 51, 59–61, public opinion on, vii–viii, Ten Times Rule, effect on, 77–79, 81, 88–90 528–529, 632n6, 632n8, 508–509, 512–513 for individual achievement, 632n10 untapped capacity of, 132–134 80–81, 193 racism and, 351–353, 419, wealthy, governmental influence of by information age executives, 621n25 by contributions, 384–385, 63 unions link to, 216 388–389, 393–396, inherited wealth vs., 260, 263 in Virginia, 123 428–429 for intelligence/genius, 51, wealth inequity, benefits perceived Gilded Age, xv, xix, 547 67–68, 77–79 from positions of importance held for risk, 51, 56–58 charitable works, 93 by, 390–391 for talent, 14, 29–31, 51–52, cultural achievement, 93, 140 Social Security cap, 387 73, 74–75, 505–506, economic growth, 197–201, wealthy, income of. See also specific 570n148, 570n153 521–522, 590n9 income groups e.g. millionaires for visionaries, 69–71, 84 job creation, 93, 95–96 1977 vs. 1999, 556n130 wealth, desire for to the middle class, 96 distribution patterns, 483–484 CEOs, other industrialized social advance, 424 global statistics, 613n12 countries, 205–207, 235 wealth inequity, chronologically income share, 1947-1973, 125 elected representatives, 386, 1600s, 219 sources of, 118, 493–494 617n53 1700s, 219 wealthy, insulation of environmental degradation in, 1700s-1800s, xviii–xix, 360, for athletes, 306 361–362 416–424, 620n7 from greater society, 262, 298, happiness and, 241–246 1800s-1900, 129, 262, 264, 346–347, 349, 403 historical/religious view of, 621n25 from intrusion by others, 268 xvii–xviii 1920s, 219 from poverty, 336 media influence, xiv 1945 (post-WWII)-1970s, from reality, 269, 333 as obsession, xiv xx–xxii, 216, 442–446, wealthy, lifestyles of the percentage of Americans, 237 464–465, 555nn99–100, art collections, 139–140 658 Greed and Good

clubs/memberships, 268–269, income share Wilson, Woodrow, 432 298 1915, 432, 623n132 Wilzig, Alan, x Gilded Age, 262, 423–424 1929, 436 Winnick, Gary, 188 home furnishings, xi, 244, 1977-1990s, xxv, 125 Winter, J. Burgess, 162, 584n13 253, 436 1980s-1990s, 125 Witte, John, 441 homes 1992-2001, 125, 579n207 Wolf, Stewart, 320 castles, x political influence of, 385 Wolff, Edward, comments on Gilded Age, xv tax cuts benefiting, 415, 451, growth rate of super rich, ix, landscaping costs, xi, 268 453 125 Neo-Fortress Movement, wealth believed deserved by, net worth of average American, 357, 612n126 90, 263–264 xxii prices of, x–xi, 256, wealth of, credited to, 51 net worth of wealthiest 1%, 599n109 wealthy, the richest 5% xxiii safe rooms, 230 income share, 125, 579n203, on retirement preparedness of servants for, xiii, 554n49 628n34 Americans, 103 square footage, 255–256 minimum income required, wealth tax proposal, 472, Ten Times Rule, effect on, 556n112 628n68 506–509 richest 1% compared, women personal needs and services xxii–xxiii, 556n115 murder rates, 595n185 beauty/grooming, 268 wealthy, the richest 20%, xxii, 121, Title IX funding for, 536 clothing, designer lines, xi, 242, 556n109 in the workplace, 242, 253 Wealthy and Wise (Rosenberg), 132 516–517 Neiman Marcus retail, Webber, Carolyn, 348 worker rights, U.S. vs. Europe, 262–263 Webster, Noah, xviii 202–208 private security, 230, 357, Webster, William, 187 working poor. See also the poor 595n182 Webvan, 76–77, 571n168 1920s, 435–436 servants, 268 Weill, Sandy, 45, 64, 140 full-time workers as, 105–108, transportation Weiman, Lori, xxiv 217 automobiles, 253, Weinstein, Michael, viii Santa Clara County, CA, 122 364–365, 629n76 Weisman, Steven, 431 taxing the, 341–342, 491, pay-for-speed lanes, 258 Welch, Jack 610n62 planes/yachts, xi–xii, 59 compensation package, xxiv, Wal-Mart employees as, travel, xii–xiii, 59 46, 570n139 105–108 wealth management services, connections role in success of, welfare reform and, 334–336, 253, 598n90 76 342–343, 609n27 wealthy, speculation by forced rankings process, 72, workplace. See also employees; pro- in Civil War, 423 570n144 fessionals by George Soros, 593n123 genius of, 71–73 egalitarianism vision of, xvi as investment capitalists as model for Barnevik, 206 history, 420–421, 621n38 (angels), 223, 594n151, welfare reform people of color in the, 594n155 Denmark, 338–339 516–517 in Japan, 233–234 United States, 334–336, 338, safety nets, U.S. vs. other post-Revolutionary war, 418 342–343 industrialized nations, 202, stock trading, 219–222, 229 wages and, 342–343, 609n27 233, 596n210 telecom investments, 226–228 Wexner, Leslie, 127 scientific management of the, Ten Times Rule, effect on, Wheeler, Phil, 537, 539 159 519–520 Whitehall study (Britain), wage-earners/family, 99 as venture capitalists, 223–226, 321–322 women in the, 242, 516–517 594n151, 594n155 Whitman, Walt, xix workweek, hours in the wealthy, the richest 1% Who Wants to Be a Millionaire (tel- 1979 vs. 1997, 243, 597n28 40 richest Americans of all evision), xiv, 69 excessive time, 468 Who Wants to Marry a Multi- for attorneys, 275, 277 accumulated wealth Millionaire (television), xiv downsizing driving, 1983-1998, xxiii Wigginton, Randy, 121–122 181–182, 588n139 1998, xxiii, 556n115 Wilbur, Colburn, 291 for immigrants, 114 2003, xxv Wildavsky, Aaron, 348 poor health related to, income gains Wilentz, Sean, 417, 447, 450, 318–319 1970s-2000, xxiii, 113, 621n23 Germany vs. U.S., 99 557n130 Wilkinson, Richard, 313, 322, for the middle class, 243–244 1990s vs. other 323, 325, 326, 328 Ten Times Rule, effect on, Californians, 120–121 Will, George, vii, 91, 307, 493 505, 510 1993-1997, 120 Wilson, Margo, 231 U.S. vs. other industrialized Index 659

nations, 99, 204 at Wal-Mart, 106 WorldCom, 48–49, 174, 180–181, 189, 486 WorldCom collapse, 633n20 Wozniak, Steve, 164 Wyly, Sam, 532 Wynn, Steve, 149

X Xerox, 187–188, 211, 281

Y Yahoo, 20, 221 Yang, Jerry, 20 Yazigi, Monique, 265 Yerger, Ann, 46 Yermack, David, 16

Z Zandi, Marc, 97