We’ve been talking about income inequality lately, and tied into that is the idea of upward mobility. The United States, in the myths of cock-eyed optimists everywhere, remains the land of opportunity, where everyone can get a fair shot at greatness. But that America hasn’t existed for a while. In fact, as Jason DeParle reports, upward mobility doesn’t really exist in this country anymore.

Today sees the rise of two key studies that reveal some fundamental truths about how an economy works, which are best looked at together. First, the CBO studied the question of how full employment would reduce the deficit. “Full employment” is defined here as a projection of what would happen if there wasn’t an “underutilization of capital and labor resources in the economy.” That’s pretty bloodless wonk-speak, but it means that the economy would be working to produce maximum output without idle labor sitting around collecting unemployment check. The unemployment rate they cite as the “full employment” rate is 5.2%. CBO estimates that the deficit would be 1/3 lower in 2012 as a result. This would result from an increase in tax revenue from higher employment, as well as a reduction in those qualifying for unemployment insurance and other social services.

Roger Simon looks at the Congressional Democrats trying to block the Obama-McConnell tax-cut-extensions-for-everybody-whether-they-need-them-or-not bill, and draws the only possible conclusion: Democrats hate rich people, and want everyone else to hate them too.

There’s a lot to despise about David Axelrod’s announcement of Obama’s capitulation to the oligarchs on tax cuts, not least that he made this announcement on the same day Obama’s Catfood Commission Chairs started the process of stealing from seniors to “fix” our deficit.

David Cay Johnston has a must-read piece on what the most recent payroll tax data shows about growing income inequality. He shows that total wages have fallen 5% since 2007, largely because so many fewer people are making any income.

“These are the times that try men’s souls.” Thomas Paine said that, and I wish I could ask him, “What times aren’t?” Still, whatever else they are these are our times. And, however obviously true that is, it is painful to confess.

Clearly, what’s needed now more than anything are another round of tax cuts.

The poor aren’t a threat to stable political communities according the Judge Richard Posner. He didn’t notice the real threat.

Technology makes it easier for entertainers and top execs to maximize their pay, while deregulation allowed the banksters to command huge salaries.

We’re Americans. We can dismiss the possibility we live in a banana republic as nonsense, right?