Richer countries have most available vaccine doses as the global recovery becomes K-shaped

vaccination
A woman receives the Johnson & Johnson vaccine in the US, which is ahead of vaccination compared to other countries.

  • The wealthiest countries are vaccinating 25 times faster than the poorest countries, per Bloomberg.
  • Wealthier countries were snapping up doses in November, creating a vaccine shortage.
  • Poorer countries may not have enough vaccine supply until 2024, a Duke University analysis found.
  • See more stories on Insider’s business page.

The vaccine race has intensified wealth inequality across the globe.

Bloomberg’s Vaccine Tracker found that the world’s wealthiest countries are vaccinating at 25 times the rate of the poorest countries. The database has thus far tracked more than 726 million doses administered in 154 countries.

So far, per the tracker, about 5% of the global population is able to get fully vaccinated. But the vaccines have been unevenly distributed, with 40% going to 27 wealthy countries that comprise 11% of the global population and 1.6% going to the countries comprising the poorest 11%.

Consider Pakistan. It has 2.7% of the world’s population, but has only received 0.1% of the vaccines. Meanwhile, the US, which accounts for 4.3% of the world’s population, has nearly a quarter of the world’s vaccines.

As of Thursday, the US has vaccinated nearly 20% of its population. It’s set to have enough vaccines for 75% of Americans by the end of June, per Bloomberg.

The pandemic has widened many wealth gaps

Patchy vaccine distribution is just the latest way the pandemic is exacerbating wealth inequality. In the US, the divide between the rich and the poor deepened as the economy’s recovery turned K-shaped, with higher-earning Americans recovering and lower-income Americans continuing to struggle.

From nabbing coronavirus tests when there was a shortage during the first stages of the pandemic to taking advantage of loopholes to get vaccinated early, the system has been working for the wealthy since the pandemic began.

The same dynamic has manifested on a global scale. While the global economy is expected to grow by 6% in 2021, according to IMF’s World Economic Outlook, that growth is projected to be uneven. Lower-income countries are expected to see an average annual loss of 5.7% per capita GDP from 2020 to 2024, but advanced economies will see a smaller loss of 2.3% in the same time frame.

“Recoveries are diverging dangerously across and within countries,” wrote Gita Gopinath, chief economist for the IMF.

Wealthier countries were snapping up “billions of doses” as early as November, reported The Washington Post’s Emily Rauhala, creating a supply shortage for poorer countries that could last until 2024.

She cited an analysis from researchers at Duke University’s Global Health Innovation Center that suggested these priority-supply deals between countries and drug manufacturers were undermining the World Health Organization’s initiative to equitably distribute vaccines.

The Biden administration committed $4 billion in February to Covax, a global vaccine alliance dedicated to ensuring equitable vaccine distribution, to help bolster the worldwide vaccine effort. More than 190 countries are participating.

“It’s unconscionable,” Zain Rizvi, an expert on access to medicine at Public Citizen, told Rauhala in a follow-up story. “Many countries will be lucky if by the end of the year they are close to where the US is now.”

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Billionaires around the world added $4 trillion to their wealth during the pandemic

tax the rich protest US billionaires
  • A new report from the Institute for Policy Studies analyzes billionaires’ gains during the pandemic.
  • The world’s 2,365 billionaires added $4 trillion to their collective wealth, it found.
  • A January Oxfam report said billionaires’ global gains could pay for everyone’s vaccine.
  • See more stories on Insider’s business page.

From March 18, 2020, to March 18, 2021, the world’s billionaires added $4 trillion to their wealth, according to a new report from the left-leaning Institute for Policy Studies (IPS).

That’s a 54% increase for the world’s 2,365 billionaires, who now have $12.39 trillion. The wealthiest 20 billionaires alone added $742 billion to their collective wealth during a pandemic – a 68% increase.

A January Oxfam report, which tracked global billionaire gains through December 31, 2020, found that the world’s billionaires had added $3.9 trillion to their wealth during the pandemic – an increase that could pay for the entire world’s vaccinations and prevent anyone from falling into poverty. That report found that recovery for people at the bottom could take up to a decade, with 200 million to 500 million people falling into poverty in 2020.

Now, according to the IPS report, which analyzes data from Forbes, Bloomberg, and Wealth-X, those billionaire gains have grown.

Renewed calls for a wealth tax

One of the Oxfam report’s possible solutions for creating a “better world” was imposing a wealth tax.

The IPS report found that American billionaires account for less than a third of that total wealth. But a wealth tax like the one proposed by Sen. Elizabeth Warren – where households with a net worth of over $50 million would see a 2% tax, and those with over $3 billion would see a 3% tax – would still raise $120 billion per year, according to the report.

From the end of 2019 to the end of 2020, the top 1% of Americans added just about $4 trillion to their wealth, while the bottom 50% held just $2.49 trillion in total household wealth by the end of 2020.

However, a wealth tax may still be a ways off in the US. President Joe Biden’s new infrastructure package is paired with an accompanying tax hike. But that increase would only target corporations, raising the corporate tax from 21% to 28%, and seek to enact a global minimum tax rate of 21%. It leaves wealth individuals alone, for now, although Biden’s administration has said it wants to tax households making $400,000 a year and up.

“I’m open to other ideas, so long as they do not impose any tax increase on people making less than $400,000,” Biden said in his speech introducing the package.

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The Oscar Mayer heir who gave away his fortune reveals how the rich hide their wealth – and how to stop them

chuck collins
Chuck Collins.

  • New research has shown that the wealthiest Americans hide away their money from tax collectors.
  • Researcher Chuck Collins has written a whole book on how the wealthy hide their fortunes.
  • He told Insider it’s a fixable problem, but one that requires closing loopholes.
  • See more stories on Insider’s business page.

Chuck Collins knows how rich people hide their money.

Collins was an heir to the Oscar Mayer wiener fortune, an inheritance that he gave away completely. But that meant he learned firsthand how the wealthy (even the very charitable) hold onto their fortunes. It’s one thing to give up your income, he learned, and another to compromise the principal – and deprive future generations of accrued wealth – completely.

He opted to give it all away. Today, he’s the director of the program on inequality and the common good at the Institute for Policy Studies, where he delves deep into billionaire gains, income inequality, and how the ultrawealthy dodge taxes in America.

The situation is likely worse than widely appreciated. Recent research found that America’s highest earners may have been hiding billions from the IRS – far more than assumed. In fact, the report found that the top 1% of Americans don’t report 21% of their income, and the figure might be twice as high for the top 0.1%. That research comes from the government itself in the form of the Internal Revenue Service (IRS), along with academic economists.

Sen. Bernie Sanders has introduced legislation that would increase taxes and cut loopholes, and The Wall Street Journal reported that Biden is looking into beefing up the IRS. (Sanders wrote a blurb fo Collins’ book.)

In his upcoming book, “The Wealth Hoarders,” Collins dives into what he calls the Wealth Defense Industry: The army of tax attorneys, family offices, accountants, and more who are devoted to protecting clients’ wealth – and circumventing taxes. His thesis implies that this industry is an inevitable outgrowth of financialization, in which the financial sector grows out of proportion to the rest of the economy. But he argues it’s not too late to reverse it.

Ahead of its publication, Insider spoke to Collins about his own history, the book, and what needs to come next.

The current state of the ‘Wealth Defense Industry’

Collins writes that the Wealth Defense Industry has “mushroomed” in size since his first introduction to it in 1983. For instance, there are now over 10,000 family offices worldwide, he writes.

Collins said that legislation like that introduced by Sanders, Biden’s election, and the blue wave of the 2020 election, led wealth advisors to urge clients to move their money into “new forms” that would be more difficult for tax collectors to find.

“I feel like we’re kind of in a moment where this industry has been growing and growing and accelerating really in the last 15 years – the number of family offices, the number of planners, the number of dynasty trusts,” Collins said. “And it’s reaching this pinnacle moment because, for the first time in a long time, there’s a meaningful discussion about taxing the very wealthy.”

What ordinary people may not understand about how wealth is hidden

Collins told Insider that there’s an outdated image of wealth hiding, where it’s all stored offshore. But the US is the number two destination for “global kleptocratic capital.” Instead of storing money offshore, he said, the wealthy can turn to places like South Dakota, Wyoming, or Delaware.

“The thing I think we don’t understand is we are now the tax haven,” Collins said.

In the book, Collins details the myriad, complex systems that the so-called “Wealth Defense Industry” uses to obscure money. One is “artports,” or art-storage facilities that could be in your neighborhood, full of incredibly valuable paintings.

While one of those facilities could be mere blocks away from you, these ports are technically in Free Trade Zones, and the art never actually enters US commerce.

Gen Z musuem
Rather than a museum, art could be hiding in your backyard.

Or take, for instance, those brand-new glass towers in your downtown, where the wealthy could be parking their wealth by buying up units. Collins uses the Millennium Tower in Boston as an example. Those empty apartments, with their panoramic views, function as “wealth storage units” – and, Collins writes, over 35% of the units there are owned by shell companies and trusts.

On his own decision to give up his wealth, and the pressure that the wealthy face

“I would say the overwhelming cultural message for someone growing up in my class was ‘protect and preserve. You can do quirky things with your income, but don’t touch the corpus. Don’t touch the asset, let it just keep growing,'” Collins said.

For him to think differently meant going up against the “whole universe of wealth management” – and others in his position face an industry that has a self-interest in holding onto their assets and growing them. But Collins contends that there’s a certain point where people don’t need to keep accumulating or stockpiling wealth.

“There’s probably people out there that fundamentally think that they should pay more taxes, but their advisors, just it’s unthinkable, right?” Collins said. He said that there’s a whole culture surrounding the urge to utilize every possible tool and loophole to reduce taxes.

But there’s momentum for change

Collins said he thinks the “reform train” is moving, pointing to potential tax increases being put forward by the Biden administration. But even with new laws, he said, the agenda could be undermined by the Wealth Defense Industry, which underscores the need to shut down this hidden wealth system and close up loopholes.

Bernie Sanders
Senate Budget Committee Chairman Sen. Bernie Sanders (I-VT).

“it’s like we’ve had a wild party at this restaurant, and now the billionaires are going to slip out the kitchen door before the bill comes,” Collins said. “And we basically have to say, ‘Nope, everybody has to stay and we need you all to chip in from the bill here.'”

He later added: “This is totally fixable. Start with enforcement, outlaw the bad trusts, increase transparency in reporting and disclosure, and then join with our global partners to clean up the global system. We could reverse it in 10 years.”

Read the original article on Business Insider

The minimum wage would be $44 per hour if it had grown at the same rate as Wall Street bonuses

GettyImages 1207533986 Traders work during the closing bell at the New York Stock Exchange (NYSE) on March 17, 2020 at Wall Street in New York City. - Wall Street stocks rallied Tuesday on expectations for massive federal stimulus to address the economic hit from the coronavirus, partially recovering some of their losses from the prior session. (Photo by Johannes EISELE / AFP) (Photo by JOHANNES EISELE/AFP via Getty Images)
Wall Street employees based in New York City earned an average bonus of $184,000 last year – a 10% increase from the year before.

The chaos that the pandemic unleashed on America’s economy turned out to be a major boon for Wall Street traders, according to new data from the New York State comptroller’s office.

Wall Street firms paid their New York City-based traders an average bonus of $184,000 last year, a 10% increase from 2019, New York comptroller Thomas DiNapoli said in a press release Friday.

But those paydays have been skyrocketing for decades. Since 1985, Wall Street traders’ bonuses have grown 1,217% – and that’s just a fraction of their overall pay, which was more than $406,000 in 2019, according to data from DiNapoli’s office.

By comparison, the federal minimum wage has flatlined at $7.25 per hour – or $15,080 annually – for 12 consecutive years. When adjusted for inflation, it has actually decreased by 11% since 1985.

If the minimum wage had instead grown at the same rate as Wall Street bonuses, it would be $44.12 per hour today.

Unlike a majority of the US, Wall Street saw massive financial success in 2020, and experts say it exposed just how detached the industry has become from the rest of the country’s reality.

“It’s just another reminder that there’s a total disconnect between what happens on Wall Street and what happens in people’s everyday lives and in the real economy,” Sarah Anderson, director of the global economy program at the Institute for Policy Studies, told Insider.

Read more: Reddit day traders wanted to beat Wall Street to prove the system is rigged. Instead, they did it by losing.

The stock market blew past pre-pandemic levels months ago as millions of Americans still struggled to find work, while increased volatility in the markets led to record years for Wall Street firms that netted bank executives paydays of up to $33 million, even as many banks laid off workers despite promises not to during the pandemic.

In a blog post for IPS on Monday, Anderson highlighted how deregulation of the financial industry has allowed firms to link traders’ pay packages to increasingly risky investing practices that are mostly only beneficial for Wall Street.

“So much of what is the most rewarded on Wall Street is the kind of trading activity that really doesn’t add a lot to the real economy and isn’t essential,” Anderson told Insider, adding that last year’s huge bonuses were “mostly because of market volatility, not necessarily because they’ve added a lot of value to the economy.”

After the 2008 financial crisis, lawmakers passed the Dodd-Frank Act, which banned pay packages with “inappropriate risks,” but Wall Street lobbyists have successfully blocked efforts to implement the rule for years.

IPS’ report also examined how Wall Street has made racial and gender pay disparities worse because they’ve disproportionately hired white male employees for decades while people of color and women are overrepresented in low-wage jobs.

“Nationally, securities industry employees are 80.5 percent white, 5.8 percent Black, 11.5 percent Asian, and 8.1 percent Latino. By contrast, whites make up an estimated 55.4 percent of people in jobs that pay less than $15 per hour,” Anderson wrote.

Wall Street’s risky, lucrative business models and pay practices are coming under increased scrutiny as the pandemic forces Americans to reckon with the country’s growing inequality.

“I just hope that it will lead to a real assessment of how skewed our values are when people doing these essential jobs are paid such a pittance compared to people on Wall Street,” Anderson told Insider.

Read the original article on Business Insider

One chart shows how the top 1% of Americans have grown their wealth in the last 20 years

unemployment insurance poverty job loss economic recession america coronavirus pandemic
New Yorkers in need wait in a long line to receive free produce, dry goods, and meat at Lincoln Center on July 29, 2020.

  • The top 1% of Americans increased their wealth by $4 trillion from the end of 2019 to the end of 2020.
  • That group of households together held wealth of $38.61 trillion at the end of last year.
  • In contrast, the bottom 50% held $2.49 trillion, or 2.0% of household wealth.
  • See more stories on Insider’s business page.

From the end of 2019 to 2020, the top 1% of Americans added just about $4 trillion to their wealth.

According to data from the Federal Reserve, the top 1% of Americans held about $34.58 trillion in the fourth quarter of 2019. By the fourth quarter of 2020, they had $38.61 trillion.

They gained just about that much in 2019 too; the top 1% had $30.35 trillion in the fourth quarter of 2018, and had $34.58 trillion by the end of 2019.

Meanwhile, the bottom 50% of Americans don’t even hold as much wealth in total as the top 1% gained in 2020. At the end of 2020, the bottom 50% had $2.49 trillion in total household wealth.

The bottom half increased their wealth by $0.47 trillion from the fourth quarter of 2019 to the fourth quarter of 2020. While that’s a far cry from the gains the top 1% saw, it’s still almost a 25% increase from the fourth quarter of 2019 to the fourth quarter of 2020.

The Federal Reserve provides data on household wealth for different groups, including broken down by wealth percentile. The following chart highlights household wealth by wealth percentile over the past two decades:

Even before 2020, household wealth did not increase much for the bottom 50%. The bottom 50% held 3.4% of wealth in the first quarter of 2000, higher than the 2.0% they held at the end of 2020.

Inequality has worsened during the pandemic

Broadly, the pandemic has seen a K-shaped recovery, where higher-income Americans see their wages and jobs grow, and lower-income Americans experience the opposite. But income inequality isn’t a new pandemic problem – as the chart shows, vast disparities existed prior to March 2020.

But low-wage and non-white workers have been continually hit the hardest throughout the pandemic. And post-pandemic prospects for low-wage workers are also murky: most of them may have to change careers, and pick up new skills to stay afloat.

Read the original article on Business Insider

Bernie Sanders and Elizabeth Warren want to tax CEOs who make 50 times more than their typical worker

Sens. Elizabeth Warren and Bernie Sanders talk before the tenth Democratic 2020 presidential debate in South Carolina.
Sens. Elizabeth Warren and Bernie Sanders talk before the tenth Democratic 2020 presidential debate in South Carolina.

  • Bernie Sanders and Elizabeth Warren are part of a group that introduced a bill to tax CEOs.
  • Similar initiatives have already brought in, or could bring in, millions for cities like Portland.
  • The bill comes as some billionaire CEOs have seen huge gains in wealth throughout the pandemic.
  • See more stories on Insider’s business page.

Several legislators – including Sens. Bernie Sanders and Elizabeth Warren – announced on Wednesday that they’re introducing a bill to raise taxes for companies where top executives are paid 50 times more than their median workers.

It’s called the “Tax Excessive CEO Pay Act,” and, according to a press release, it’s targeted toward tackling corporate greed. Sanders and Warren are introducing the bill with Sens. Ed Markey and Chris Van Hollen, as well as Reps. Barbara Lee and Rashida Tlaib.

“At a time of massive income and wealth inequality, the American people are demanding that large, profitable corporations pay their fair share of taxes and treat their employees with the dignity and respect they deserve,” Sanders said in a press release. “That is what this legislation will begin to do.”

The legislation is targeted at larger public and private companies; only those with “with average annual gross receipts of at least $100 million for the three preceding years” would be subject to the tax.

Companies where CEOs make between 50 and up to 100 times the median worker’s pay would have their corporate taxes increase by 0.5%. For those CEOS paid between 100 times and up to 200 times more than the median worker, taxes would increase by 1%, with a 1% increase for every order of 100. The highest increase would be 5%, for companies where CEOs make over 500 times their typical worker.

The legislation was discussed on Wednesday during a Senate Budget Committee hearing, chaired by Sanders, called “The Income and Wealth Inequality Crisis in America.” The hearing also discussed unionization efforts by Amazon workers in Alabama.

Sarah Anderson, the Global Economy Program Director at the Institute for Policy Studies (IPS), testified at the hearing about the CEO and worker pay divide.

“What this bill would do is it would change the incentives by encouraging corporations to share their wealth – and discourage the outrageous CEO paychecks that have led to outrageous CEO behavior,” she told Insider.

Some cities have already implemented similar measures

Anderson highlighted that the city of Portland, Oregon has had a similar initiative for years. NBC News reported that that tax penalty brought in about $4 million in 2018, and it was projected to bring in a similar amount in 2019. It also inspired some skepticism from academics in the area, according to NBC News, with some saying it didn’t raise significant revenue or bridge a wealth gap.

San Francisco also passed a similar tax as a ballot measure in November 2020, which was projected to bring in around $60 million to $140 million a year. According to the press release, the bill could raise up to $150 billion in 10 years.

Anderson said, “I think we can send a message about our national priorities and values through our tax code and other public policies.” She framed the disparity between CEO pay and their workers as a self-esteem and morale issue, with frontline workers – like those working at grocery stores – not being rewarded for the work they’re doing.

The bill also comes as some billionaire CEOs have seen huge gains throughout the pandemic, with American billionaires adding $1.3 trillion to their collective net worths since March 2020.

“I think that a lot of people just haven’t ever thought about the fact that we are the richest country in the world. And so why can’t we get rid of poverty?” Anderson said. “And I think, unless we get rid of the concentration of so much money and power at the top, we won’t be able to get rid of poverty because it means that so much of our nation’s resources is flowing upwards.”

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Amazon billionaire Jeff Bezos has turned down an invite from Bernie Sanders to testify before the Senate about income inequality

sanders bezos amazon senate budget
Sen. Bernie Sanders, left, invited Amazon CEO Jeff Bezos, right, to appear before the Senate Budget Committee.

  • Billionaire Jeff Bezos has snubbed Bernie Sanders’ invite to testify before the Senate on inequality.
  • At the hearing, an Amazon employee who is part of a unionization push is scheduled to speak.
  • Sanders criticized Bezos for not attending and for trying to prevent workers from unionizing.
  • See more stories on Insider’s business page.

Amazon CEO Jeff Bezos has turned down an opportunity to testify before the Senate Budget Committee on Wednesday, according to CNN.

The world’s richest person declined an invite from Sen. Bernie Sanders to speak at a hearing on wealth and income inequality, a spokesperson for Sanders told the media outlet.

An Amazon representative said that while Bezos is unavailable to appear before the committee, he supports Sanders’ efforts to address inequality.

“We fully endorse Senator Sanders’ efforts to reduce income inequality with legislation to increase the federal minimum wage to $15 an hour for all workers, like we did for ours in 2018,” the spokesperson told CNN.

Sanders responded to the invite snub on Twitter. “It’s unfortunate Mr. Bezos won’t join our hearing,” he wrote. “While he’s become $78 billion richer during the pandemic, families are struggling to survive, so why is he spending a whole lot of money to stop workers from organizing a union at an Amazon warehouse in Alabama?”

At the hearing, Amazon employee Jennifer Bates will speak. She is part of an effort to form a union at one of the company’s warehouses in Bessemer, Alabama.

If workers at the warehouse vote in favor of unionization, this would be the first Amazon workers’ union in the US.

Amazon has aggressively targeted workers and encouraged them to vote against unionizing, Insider’s Isobel Asher Hamilton previously reported. Banners and fliers have been put up in bathrooms and anti-union adverts on Twitch were published, Asher Hamilton reported.

“What you are seeing right now in Bessemer is an example of the richest person in this country spending a whole lot of money to make it harder for ordinary working people to live with dignity and safety,” Sanders told The Washington Post.

Sanders has a history of criticizing Bezos, who is worth over $180 billion. Before the news that the billionaire would not testify, Sanders told CNN that he is “in many respects emblematic of the unfettered capitalism that we are seeing in America today.”

In 2018, Sanders pressured the Amazon boss to raise the company’s minimum wage. He introduced a bill called Stop Bad Employers by Zeroing Out Subsidies, or “Stop BEZOS.” Amazon responded by raising its minimum wage in October 2018.

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Millennials need a lot more than a $1.9 stimulus package to heal their economic wounds

millennial
The stimulus will help millennials, but they also need longer-term solutions.

Are financially burdened millennials finally seeing the light at the end of the tunnel?

The House of Representatives passed the $1.9 trillion stimulus package on Wednesday, and President Joe Biden just signed it into law.

Designed to boost the economy during the worst crisis seen in generations, the law provides everything from additional funding for small businesses and vaccine distribution to housing and rental benefits, and a pot of money for state and local governments. An early analysis of the rescue plan indicates the vast majority of its benefits are squarely directed at middle and low-income households.

But it also has the potential to be a stepping stone that millennials need to help climb their way out of the affordability crisis they’ve been facing for most of their adulthoods, marked by two recessions before the age of 40.

Beefing up unemployment benefits to $300 a week will help many Americans, but especially the younger workers who have been hardest hit in terms of income loss during the pandemic. The older cohort of millennials in prime child-rearing years stand to benefit from a beefed-up child tax credit that will put up to $3,600 in the pockets of parents. And $1,400 checks will help cover the things millennials struggle with most: living costs like rent and debt.

While critics say the final American Rescue Plan is missing some key initiatives like a federal minimum wage hike and student-loan debt relief, it has overall received widespread support. A new Morning Consult poll found that 75% of voters support the package, including 59% of Republicans.

While it’s a good start, millennials need more to heal their economic wounds; they need solutions to restructure the broken economy they inherited.

Millennials have been facing an affordability crisis

Millennials are a generation of optimistic, hard-working people who have been dealt a bad hand, according to Jill Filipovic, author of “OK Boomer, Let’s Talk,” which explores how boomers created an economic crisis that will leave millennials the first generation worse off than their parents.

“None of this was an accident,” she told Insider back in August. “If we understand where millennials are and how we got here, we can have a better idea of how to fix things going forward.”

The oldest millennials came limping out of the Great Recession with crippled finances, and they were still dealing with its lingering effects a dozen years later, when the coronavirus recession hit.

The financial crisis left the oldest millennials with wealth levels 34% below where they would be if it didn’t occur, and it could have led to stagnant wages for the generation up to 15 years after graduation. Coupled with student-loan debt, soaring costs for things like houses and health care, and now, income loss due to the pandemic, it’s been a grim wealth-building journey.

millennial job loss
Many millennials have struggled with everything from rent to student-loan debt.

But these aren’t the only economic forces behind millennials’ economic plight.

A November Deutsche Bank Research report stated that younger generations have been hit hard while older generations have reaped benefits from the economy. Boomers, it said, saw an increased value in assets thanks to low interest rates and inflated housing prices. They didn’t have to pay as much for education as millennials have, nor will they face the cost for environmental damage caused by the carbon emission-releasing companies in which they’ve invested.

Boomers have been questioned by authors like Filipovic and news outlets ranging from Vox to the Guardian for their role in bankrupting the rich economy they inherited, leaving millennials to pick up the pieces. And they’re not actively setting up a framework to fix this.

Neil Howe, the economist, historian, and demographer who coined the term “millennial,” told Insider that boomers refuse to pay for institutional upkeep, preferring to spend money on things that change people’s lives now. He said this is a result of their coming-of-age experience, in which their parents, the GI generation, cared about building strong institutions and looking into the future. Boomers took that for granted and developed a “live-for-today attitude,” he said.

Consider when boomers entered the same life stage millennials are in now, in the 1980s. They supported the increasing financialization of the economy and a massive reduction of taxes, causing financial asset speculation to become both disconnected from and controlling of the real economy, Kurt Andersen, author of “Evil Geniuses: The Unmaking of America,” told Insider in February.

Millennials need a game plan and room at the table

Biden promised to “go big” on a stimulus package, and he delivered with a progressive historic bill that some have likened to FDR’s “New Deal” agenda of the 1930s. As Insider’s Juliana Kaplan wrote, it has the potential to inject the government into American life in unprecedented ways, while Insider’s Ben Winck reported that’s part of $5 trillion in stimulus going back to the early days of the pandemic during the Trump administration.

Putting cash in pockets and fattening unemployment benefits will inevitably be a leg up for many millennials suffering from economic hardships. But it needs to be followed up with longer-term action.

“Millennials would like to see a real game plan,” Howe said, adding that they ideally want to see society move in a more constructive way that ensures their future. The older generation, he said, is more focused on getting through the next six months than investing in a structural solution for the future.

Joe Biden
Biden needs to follow up the stimulus package with long-term action.

Take the question of student-loan debt, for example. Biden has advocated for canceling up to $10,000 of it while resisting the more progressive agenda to cancel up to $50,000. Biden claims he lacks the legal authority to do it.

Sen. Elizabeth Warren disagrees, and she was a cosponsor of a tax exemption in the stimulus on student-loan forgiveness through 2025. She argues it sets the stage for student loan forgiveness. While this would wipe out debt for 15.3 million Americans, it doesn’t solve the problem of the rising cost of tuition that leads to such massive student-debt burdens.

But millennials are by and large waiting for a political class from another generation to make these decisions.

Boomers have held tremendous political, cultural, and economic power for the past several decades, Filipovic said. “What millennials need is not just boomers imparting their wisdom and experience, but really making room at the table for us,” she added.

While the number of millennials in Congress rose slightly this year by 1%, they still only make up 7% of Congress with 31 out of 532 voting members, per the Pew Research Center.

“Unless millennials are at the table, we’re really not going to see the issues that are most important to us addressed,” Filipovic said. “You need people who are actually going to live in the future, who have a stake in the future, at the decision making table.”

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Senators who voted against a $15 minimum wage represent three-quarters of the workers who would benefit, study says

fight for 15 minimum wage protest
Demonstrators participate in a protest outside of McDonald’s corporate headquarters on January 15, 2021 in Chicago, Illinois.

  • A new report from the Economic Policy Institute looks at who would benefit from a $15 minimum wage.
  • It found that 24 million of the workers who would are in states where senators voted against it.
  • The wage hike wasn’t included in the stimulus package after 7 Democrats voted against it.
  • Visit the Business section of Insider for more stories.

Of the 32 million workers who would receive a raise under a $15 minimum wage, 24 million are in states where senators voted against it, according to a new report from the left-leaning Economic Policy Institute (EPI).

That works out to 75% of all the workers who would benefit from a higher federal minimum. The 32 million workers who would be impacted represent 21% of the overall workforce, according to the report.

Sen. Bernie Sanders’ push to include a provision for raising the wage to $15 by 2025 was voted down on Friday. Seven Democrats – including the moderates Joe Manchin and Kyrsten Sinema – joined Republicans in voting down the measure. Also voting against was independent Angus King of Maine, who caucuses with the Democrats.

The EPI report found that increasing the minimum wage to $15 by 2025 would also benefit America’s essential and frontline workers. It would be a wage hike for 19 million of them, around 60% of all workers impacted.

As Insider’s Grace Dean previously reported, almost a third of Black workers would get a raise under the policy; EPI also found that 26% of Hispanic workers would benefit from the bump.

A $15 minimum wage has broad support. In an Insider poll, over 60% of respondents said they would definitely or probably support a $15 minimum wage. Respondents were more split on when an increase should come into effect: 39% said that, were the increase to go into effect, a “$15 minimum wage should be implemented immediately.” Conversely, 50% would “prefer a phased rollout, gradually raising the minimum wage annually to $15 in 2025.”

Sanders’ Raise the Wage Act would have raised the federal minimum wage to $15 by 2025. Even that schedule wasn’t quick enough for some minimum wage workers.

Cynthia Murray, a Walmart associate and member of United for Respect, testified at a Senate budget committee hearing on the proposed increase.

“We’ve been talking about this issue for years, and not just a couple of years,” Murray told Insider after her testimony. “That’s why I’m saying: When is the time gonna come? 2025 is too late for me, as I see it, for all workers across the country. “

Overall, the EPI report finds that the $15 increase by 2025 would have resulted in an annual pay increase of $3,300 for those working year-round.

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With a federal wealth tax looking unlikely, states like New York could enact their own

FILE PHOTO: New York City Mayor Bill De Blasio speaks to the media during a press conference In the Queens borough of New York City, New York, U.S., April 10, 2020. REUTERS/Eduardo Munoz
New York City Mayor Bill De Blasio speaks to the media.

  • New York’s Democratic lawmakers may be able to push through a state wealth tax, Bloomberg reports.
  • Debate over a federal wealth tax continues, but some areas are taking matters into their own hands.
  • Places like Arizona and San Francisco have already enacted their own taxes.
  • Visit the Business section of Insider for more stories.

New York legislators may be able to push through taxes on the ultrawealthy amidst the turmoil surrounding Gov. Andrew Cuomo, Bloomberg reports

Cuomo previously outlined a worst-case scenario where New York’s wealthiest would see the country’s highest income rate taxes if the White House didn’t step in to help with the budget deficit. During the pandemic, Cuomo has said he wanted to make sure New York’s tax base was preserved, and wealth taxes would not help in that regard.

Now, according to Bloomberg, New York’s Democratic lawmakers are considering a package that would “go further,” given that the governor is embroiled in a sexual-harassment scandal and a federal investigation into his handling of nursing homes during the pandemic.

Progressives in New York have been champing at the bit to increase taxes on the wealthy. New York City Mayor Bill de Blasio previously called for a progressive tax and a tax on billionaires in his final State of the City address. And New York representative Alexandria Ocasio-Cortez has previously called to raise the top marginal rate on those earning over $10 million.

“New York City will fight for new progressive income taxes that establish brackets with increased tax rates for high earners and the ultra-wealthy,” de Blasio said in a release on the address. “And with more billionaires than any other city in America, New York City will push for a billionaires’ tax. The billions of dollars raised from these progressive taxes will go into investing in New York City’s schools, working families, and a recovery for all of us.”

The Wall Street Journal reported in mid-February that some Democratic lawmakers in New York were coalescing around what’s called a mark-to-market tax on billionaires. Those billionaires would pay capital gains taxes annually on appreciating assets, not just at their sales.

As talk of a federal wealth tax grows, some places have already enacted them

Sen. Elizabeth Warren recently renewed her calls for a wealth tax, introducing the Ultra-Millionaire Tax Act with several other progressives. Under Warren’s plan, households with a net worth between $50 million and $1 billion would see a 2% tax, and households with a net worth over $1 billion would see a 3% tax.

Treasury Secretary Janet Yellen has said that a wealth tax poses “difficult” implementation problems, and it’s not favored by President Joe Biden. But some places in the US have already taken matters into their own hands.

San Francisco voters passed a tax in November on business owners and top executives who earn at least 100 times more than one of their average workers. Those CEOs earning 100 times more than their average worker would be taxed an additional 0.1% on business tax payments. The surcharge also increases to 0.1% of however much more they earn. 

And Arizona passed an additional income tax on its high-earners; all of the money raised will go to public and charter schools. The creators of that proposition estimated that it could bring in $940 million annually.

In Washington state, lawmakers are considering a net-worth tax that could generate up to $4.9 billion in revenue. One millionaire, Dan Price, is out advocating for it. “I’ve been demanding to Washington State to tax me more,” he told Insider’s Hayley Cuccinello.

So, while there may not ultimately be a federal wealth tax, a patchwork of state and city taxes on the wealthy could arise to take its place.

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