‘Austerity Kills': Tens of Thousands March in London Against Brutal Cuts

Nation-wide rally demands an ‘alternative to austerity and to policies that only benefit those at the top’

By Sarah Lazare

From across the United Kingdom, tens of thousands of people took to the streets of London Saturday to demand an end to brutal—and deadly—austerity measures.

The mass march, still ongoing at the time of publication, comes just over a month after the Conservative (Tory) Party’s election wins.

The independent anti-austerity forum, the People’s Assembly, declared ahead of the march that protesters aim to send a “clear message to the Tory government; we demand an alternative to austerity and to policies that only benefit those at the top.”

“We’ll be assembling the demonstration in the heart of the City of London right on the doorstep of the very people who created the crisis in the first place, and marching to the doorstep of Parliament,” said the assembly.

Huge numbers heeded this call, with people from diverse backgrounds and numerous families with children taking to the streets with banners and signs that read “Austerity kills” and “No cuts.” Numerous placards urged an end to the scapegoating of immigrants, people of color, and urged investment in common goods that ordinary people depend on, including education, health care, and other public services.

Tobi Seriki, a 28-year-old from Depford, told the Guardian she is marching because “Austerity isn’t working at all and we need to change track.’

Labor unions, environmental groups, and migrant and economic justice organizations could be seen marching through the streets. Celebrities spotted in the crowd include comedian Russell Brand and musician Charlotte Church.

The mass march can be followed on Twitter: #EndAusterityNow

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Washington in Wonderland: Down the Iraqi Rabbit Hole (Again)

American leadership in the world, writes Bacevich, “ought to mean something other than simply repeating and compounding past mistakes. It should require more than clinging to policies that have manifestly failed. To remain willfully blind to those failures is not leadership, it’s madness.” (Photo: via Pentagon Watch)

By Andrew Bacevich

There is a peculiar form of insanity in which a veneer of rationality distracts attention from the madness lurking just beneath the surface. When Alice dove down her rabbit hole to enter a place where smirking cats offered directions, ill-mannered caterpillars dispensed advice, and Mock Turtles constituted the principal ingredient in Mock Turtle soup, she experienced something of the sort.

Yet, as the old adage goes, truth can be even stranger than fiction. For a real-life illustration of this phenomenon, one need look no further than Washington and its approach to national security policy. Viewed up close, it all seems to hang together. Peer out of the rabbit hole and the sheer lunacy quickly becomes apparent.

Consider this recent headline: “U.S. to Ship 2,000 Anti-Tank Missiles To Iraq To Help Fight ISIS.” The accompanying article describes a Pentagon initiative to reinforce Iraq’s battered army with a rush order of AT-4s. A souped-up version of the old bazooka, the AT-4 is designed to punch holes through armored vehicles.

Taken on its own terms, the decision makes considerable sense. Iraqi forces need something to counter a fearsome new tactic of the Islamic State of Iraq and Syria (ISIS): suicide bombers mounted in heavily armored wheeled vehicles. Improved antitank capabilities certainly could help Iraqi troops take out such bombers before they reach their intended targets. The logic is airtight. The sooner these weapons get into the hands of Iraqi personnel, the better for them — and so the better for us. (more…)

IMF Report Admits IMF’s Obsession with Capitalism Is Killing Prosperity

“By releasing this report, the IMF has shown that ‘trickle-down’ economics is dead; you cannot rely on the spoils of the extremely wealthy to benefit the rest of us.”

By Jon Queally

In light of how the International Monetary Fund has spent most of its existence parading around the world telling governments to make their economies more friendly for multinational corporations by suppressing wages, restricting pensions, liberalizing industries, and more or less advocating they ignore the popular will of workers and the less fortunate—all in the name of market capitalism and endless economic growth—a new report released by the IMF on Monday contains an ironic warning: stop doing all that.

Though it perpetuates the idea that economic growth is the master to whom all should bow, the new research—conducted by the IMF’s own economists and submitted under the title Causes and Consequences of Inequality (pdf)—argues that many of the policies promoted by the IMF have actually harmed nations by exacerbating widespread economic inequality. As many have noted, current disparities between the world’s richest and poorest represent a nearly unprecedented level of global inequality which the report described as the “defining challenge of our time.”

In order to strengthen economies, the report declares, nations should admit that “trickle-down” theories of wealth and prosperity do not work. In lieu of those, the study recommends raising wages and living standards for the bottom 20 percent, installing more progressive tax structures, improving worker protections, and instituting policies specifically designed to bolster the middle class.

“Fighting inequality is not just an issue of fairness but an economic necessity,” said Nicolas Mombrial of Oxfam International in response to the report. “And that’s not Oxfam speaking, but the International Monetary Fund.”

This is not the first time the IMF’s own research has bolstered the arguments of its biggest critics. According to the International Business Times, the new analysis on inequality “echoes previous IMF research that show that redistributive policies have a positive effect on countries’ economic output.”

But as the Guardian’s economics editor Larry Elliott notes, the new paper creates obvious “tension between the IMF’s economic analysis and the more hardline policy advice” it continually gives to countries seeking foreign assistance or development funds. With Greece as the most obvious example, Elliott cites details from the report and writes:

During its negotiations with Athens, the IMF has been seeking to weaken workers’ rights, but the research paper found that the easing of labor market regulations was associated with greater inequality and a boost to the incomes of the richest 10%.

“This result is consistent with forthcoming IMF work, which finds the weakening of unions is associated with a higher top 10% income share for a smaller sample of advanced economies,” said the study.

“Indeed, empirical estimations using more detailed data for Organization for Economic Cooperation and Development countries [34 of the world’s richest nations] suggest that, in line with other forthcoming IMF work, more lax hiring and firing regulations, lower minimum wages relative to the median wage, and less prevalent collective bargaining and trade unions are associated with higher market inequality.”

The study said there was growing evidence to suggest that rising influence of the rich and stagnant incomes of the poor and middle classes caused financial crises, hurting both short- and long-term growth.

No one should be fooled into thinking that the new research aims to alter the IMF’s central commitment to advancing the financial interests of the global elite.

In fact, part of the argument presented in the paper is that such enormous levels of global economic inequality could seriously undermine the institution’s public defense of capitalism’s overall supremacy. “For example,” the paper states, “[too much inequality] can lead to a backlash against growth-enhancing economic liberalization and fuel protectionist pressures against globalization and market-oriented reforms.”

According to a recent report by Oxfam International, almost half the world’s wealth is owned by one percent of the population, while the bottom half of the world’s population owns the same wealth as the richest 85 people in the world. For Oxfam’s Mombrial, who heads the international anti-poverty group’s office in Washington D.C., the IMF’s report is a welcome development that should put a nail in the coffin of the austerity-driven policies prescribed by governments and powerful financial institutions like the IMF, World Bank, and others.

“The IMF proves that making the rich richer does not work for growth, while focusing on the poor and the middle class does,” Mombrial said. “This reinforces Oxfam’s call on how we need to reduce the income gap between the haves and have-nots, and scrutinize why the richest 10 percent and top 1 percent have so much wealth. By releasing this report, the IMF has shown that ‘trickle-down’ economics is dead; you cannot rely on the spoils of the extremely wealthy to benefit the rest of us. Governments must urgently refocus their policies to close the gap between the richest and the rest if economies and societies are to grow.”

As Oxfam and other international campaigners have been saying it for decades, he concluded, “The IMF has set off the alarm for governments to wake up and start actively closing the inequality gap, not just between the rich and poor, but for the middle class too. Their message to them is pretty clear: if you want growth, you’d better invest in the poor, invest in essential services and promote redistributive tax policies.”

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The Sunday Times’ Snowden Story is Journalism at its Worst — and Filled with Falsehoods

By Glenn Greenwald

Western journalists claim that the big lesson they learned from their key role in selling the Iraq War to the public is that it’s hideous, corrupt and often dangerous journalism to give anonymity to government officials to let them propagandize the public, then uncritically accept those anonymously voiced claims as Truth. But they’ve learned no such lesson. That tactic continues to be the staple of how major US and British media outlets “report,” especially in the national security area. And journalists who read such reports continue to treat self-serving decrees by unnamed, unseen officials – laundered through their media – as gospel, no matter how dubious are the claims or factually false is the reporting.

We now have one of the purest examples of this dynamic. Last night, the Murdoch-owned Sunday Times published their lead front-page Sunday article, headlined “British Spies Betrayed to Russians and Chinese.” Just as the conventional media narrative was shifting to pro-Snowden sentiment in the wake of a key court ruling and a new surveillance law, the article (behind a paywall: full text here) claims in the first paragraph that these two adversaries “have cracked the top-secret cache of files stolen by the fugitive US whistleblower Edward Snowden, forcing MI6 to pull agents out of live operations in hostile countries, according to senior officials in Downing Street, the Home Office and the security services.”

Read the full column on The Intercept.

UPDATE: The Sunday Times has now quietly deleted one of the central, glaring lies in its story: that David Miranda had just met with Snowden in Moscow when he was detained at Heathrow carrying classified documents. By “quietly deleted,” I mean just that: they just removed it from their story without any indication or note to their readers that they’ve done so (though it remains in the print edition and thus requires a retraction). That’s indicative of the standard of “journalism” for the article itself. Multiple other falsehoods, and all sorts of shoddy journalistic practices, remain thus far unchanged.

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© 2015 The Intercept / First Look Media

Red Cross Holds a Press Conference In Haiti. It Doesn’t Go Well.

Haitian reporters demand answers from the Red Cross but don’t get many.

By Justin Elliot

Haitian journalists grilled an American Red Cross official Wednesday about the group’s Haiti program, but the official declined to provide any new details of how it spent nearly $500 million donated after the 2010 earthquake.

The Red Cross called a press conference, held at the Le Plaza Hotel in downtown Port-Au-Prince, in response to ProPublica and NPR’s story published last week revealing a string of Red Cross failures in Haiti.
The American Red Cross official at the press conference was repeatedly interrupted by Haitian reporters frustrated that he would not give specifics on its spending.

The official, Walker Dauphin, criticized our story for making “misleading allegations” and said that “in total, more than a hundred projects were implemented.”

But Haiti’s most prominent newspaper, Le Nouvelliste, wrote that Dauphin was merely “retracing the broad strokes of the interventions and expenses … while avoiding going into detail.” The paper ran the story on its front page under the headline, “When the Red Cross drowns the fish,” a reference to sidestepping a touchy subject.

Jean-Max Bellerive, who was prime minister of Haiti when the earthquake hit, also publicly criticized the American Red Cross, telling Le Nouvelliste that the Haitian government must “take legal actions to demand accountability.”

In the United States, Rep. Rick Nolan, D-Minn., has called for the House oversight committee to hold hearings on the Red Cross’ Haiti program. The story has also prompted anger and calls for investigation in a number of states. Watch this video where an activist and Georgia state senator interrupt a Red Cross spokesman: “They do not deny anything that’s been said and just direct you to some website,” said Sen. Vincent Fort.

Red Cross spokeswoman Jana Sweeney said in a statement: “The Red Cross is happy to talk with any member of Congress who has questions about our relief work in Haiti, or elsewhere.”

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UN’s Ban Ki-Moon Caves In, Takes Israel Off List of Serious Child Abusers

By Ali Abunimah

UN Secretary-General Ban Ki-moon has caved in to pressure from Israel and the United States and taken the Israeli military off an official list of serious violators of children’s rights, in this year’s report on children in armed conflict.

In doing so, Ban rejected an official recommendation from his own Special Representative for Children and Armed Conflict Leila Zerrougui and numerous human rights organizations and child rights defenders.

Ban’s act is particularly egregious since the report found that the number of children killed in the occupied West Bank and Gaza Strip in 2014, at 557, was the third highest only after Iraq and Afghanistan and ahead of Syria.
“The revelation that Israel’s armed forces were removed from the annex of the annual report by Ban Ki-moon is deplorable,” Brad Parker, attorney and international advocacy officer at Defence for Children International-Palestine (DCI-Palestine), told The Electronic Intifada.

“The annual report and its annex, or children’s ‘list of shame,’ has been a strong evidence-based accountability tool proven to help increase protections for children in armed conflict situations. There is ample evidence on persistent grave violations committed by Israeli forces since at least 2006 that should have triggered listing,” Parker added.

“The secretary-general’s decision to place politics above justice and accountability for Palestinian children has provided Israeli forces with tacit approval to continue committing grave violations against children with impunity,” Parker said.

The top UN official’s decision will be greeted with relief by the Obama administration, Israel and others concerned with ensuring such Israeli impunity.

Obama pressure

“The draft 2015 report prepared by the Secretary-General’s Special Representative for Children and Armed Conflict, Leila Zerrougui, recommended adding Israel and Hamas to the annexed list of parties – the so-called ‘list of shame’ – due to their repeated violations against children,” Human Rights Watch (HRW) said in a statement on 4 June.

Human Rights Watch called on Ban to “list all countries and armed groups that have repeatedly committed these violations, and resist reported pressure from Israel and the United States to remove Israel from the draft list.”

But that pressure proved irresistible to Ban. Foreign Policy reported last week that the Obama administration had made a concerted effort to pressure him to drop Israel from the list for cynical political reasons.

According to an unnamed UN official quoted by Foreign Policy, the Obama administration was concerned about false accusations that “the White House is anti-Israel,” as the US completes sensitive negotiations over Iran’s civilian nuclear energy program.

False balance

Human Rights Watch supported calls on Ban to list Hamas as well as Israel, but this appears to have been a maneuver to look “balanced” and avoid baseless accusations of anti-Israel bias frequently leveled at the organization.

Sources familiar with the final report have told The Electronic Intifada that Hamas is not on the list either.

But the violations attributed to Palestinian armed groups, including the death of one Israeli child last summer due to a rocket fired from Gaza, can hardly be compared in scope to the systematic mass killings with impunity of Palestinian children in the Gaza Strip and West Bank by Israeli occupation forces.

Since Hamas and other Palestinian armed resistance groups are already under international sanctions and arms embargoes and listed by various countries as “terrorist organizations,” adding Hamas to the list would have meant little.

It is Israel whose violations continue not only with impunity but with assistance from the predominantly European and North American governments that arm it.

DCI-Palestine documented the killings of at least 547 Palestinian children during last summer’s Israeli assault on Gaza.

Human Rights Watch cites as part of Israel’s record the “unlawful killing of children” in the occupied West Bank, including Nadim Nuwara and Muhammad Abu al-Thahir, both 17, shot dead by snipers on 15 May 2014.

In April, a board of inquiry set up by Ban found that Israel killed and injured hundreds of Palestinians in seven attacks on United Nations-run schools in the Gaza Strip last summer.

Sabotage

In March, there was an outcry among Palestinian and international human rights advocates when it was revealed that UN officials appeared to be trying to sabotage the evidence-based process that leads to a recommendation of listing, after threats from Israel.

Palestinian organizations called on the mid-level UN officials accused of interfering with the process to resign.

This led to assurances from Special Representative Zerrougui that the decision-making process was still underway and indeed, after gathering all the evidence, Zerrougui did recommend that Israel be listed.

Such a recommendation comes after UN bodies collect evidence in collaboration with human rights organizations, according to specific criteria mandated in UN Security Council Resolution 1612.

But despite the months-long nonpolitical and evidence-based process, the final decision was always in Ban’s hands.

Partner in Israel’s crimes

There was much at stake for Israel and indeed for Ban if he had gone with the evidence instead of submitting to political pressure.

“Inclusion of a party on the secretary general’s list triggers increased response from the UN and potential Security Council sanctions, such as arms embargoes, travel bans, and asset freezes,” Human Rights Watch notes.

“For a country or armed group to be removed from the list, the UN must verify that the party has ended the abuses after carrying out an action plan negotiated with the UN.”

Ban has a long history of using his office to ensure that Israel escapes accountability except for the mildest verbal censures that are almost always “balanced” with criticism of those who live under Israeli occupation.

At the height of last summer’s Israeli attack on Gaza, 129 organizations and distinguished individuals wrote to the secretary-general, condemning him for “your biased statements, your failure to act, and the inappropriate justification of Israel’s violations of international humanitarian law, which amount to war crimes.”

Ban’s record, they said, made him a “partner” in Israel’s crimes. His latest craven decision will only cement that well-earned reputation.

While Israel will celebrate victory in the short-term, the long-term impact will likely be to further discredit the UN as a mechanism for accountability and convince more people of the need for direct popular pressure on Israel in the form of boycott, divestment and sanctions (BDS).

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© 2015 Electronic Intifada

WikiLeaks Strikes Again: Leaked TISA Docs Expose Corporate Plan For Reshaping Global Economy

“It’s a dark day for democracy when we are dependent on leaks like this for the general public to be informed of the radical restructuring of regulatory frameworks that our governments are proposing,” said Nick Dearden, director of Global Justice Now. (Image created by Common Dreams)

Leaked Docs reveal that little-known corporate treaty poised to privatize and deregulate public services across globe.

By Sarah Lazare

An enormous corporate-friendly treaty that many people haven’t heard of was thrust into the public limelight Wednesday when famed publisher of government and corporate secrets, WikiLeaks, released 17 documents from closed-door negotiations between countries that together comprise two-thirds of the word’s economy.

Analysts warn that preliminary review shows that the pact, known as the Trade in Services Agreement (TISA), is aimed at further privatizing and deregulating vital services, from transportation to healthcare, with a potentially devastating impact for people of the countries involved in the deal, and the world more broadly.

“This TISA text again favors privatization over public services, limits governmental action on issues ranging from safety to the environment using trade as a smokescreen to limit citizen rights,” said Larry Cohen, president of Communications Workers of America, in a statement released Wednesday.

Under secret negotiation by 50 countries for roughly two years, the pact includes the United States, European Union, and 23 other countries—including Israel, Turkey, and Colombia. Notably, the BRICS countries—Brazil, Russia, India, China, and South Africa—are excluded from the talks.

Along with the Trans-Pacific Partnership (TPP) and Transatlantic Trade and Investment Partnership (TTIP) negotiations, which are also currently being negotiated, TISA is part of what WikiLeaks calls the “T-treaty trinity.” Like the TTP and TTIP, it would fall “under consideration for collective ‘Fast-Track’ authority in Congress this month,” WikiLeaks noted in a statement issued Wednesday.

However, TISA stands out from this trio as being the most secretive and least understood of all, with its negotiating sessions not even announced to the public.

Wednesday’s leak provides the largest window yet into TISA and comes on the heels of two other leaks about the accord last year, the first from WikiLeaks and the other from the Associated Whistleblowing Press, a non-profit organization with local platforms in Iceland and Spain.

While analysts are still poring over the contents of the new revelations, civil society organizations released some preliminary analysis of the accord’s potential implications for transportation, communication, democratic controls, and non-participating nations:

>Telecommunications: “The leaked telecommunications annex, among others, demonstrate potentially grave impacts for deregulation of state owned enterprises like their national telephone company,” wrote the global network Our World Is Not for Sale (OWINFS) in a statement issued Wednesday.

>Transportation: The International Transport Workers’ Federation (ITF), comprised of roughly 700 unions from more than 150 countries, warned on Wednesday that the just-published documents “foresee consolidated power for big transport industry players and threaten the public interest, jobs and a voice for workers.” ITF president Paddy Crumlin said: “This text would supercharge the most powerful companies in the transport industry, giving them preferential treatment. What’s missing from this equation is any value at all for workers and citizens.”

>Bypassing democratic regulations: “Preliminary analysis notes that the goal of domestic regulation texts is to remove domestic policies, laws and regulations that make it harder for transnational corporations to sell their services in other countries (actually or virtually), to dominate their local suppliers, and to maximize their profits and withdraw their investment, services and profits at will,” writes OWINFS. “Since this requires restricting the right of governments to regulate in the public interest, the corporate lobby is using TISA to bypass elected officials in order to apply a set of across-the-board rules that would never be approved on their own by democratic governments.”

>Broad impact: “The documents show that the TISA will impact even non-participating countries,” wrote OWINFS. “The TISA is exposed as a developed countries’ corporate wish lists for services which seeks to bypass resistance from the global South to this agenda inside the WTO, and to secure and agreement on servcies without confronting the continued inequities on agriculture, intellectual property, cotton subsidies, and many other issues.”

The warnings follow concerns, based on previous leaks, that TISA poses a threat to net neutrality, internet freedoms, and privacy.

Moreover, global social movements charge that the deal poses a threat to democracy itself.

In a letter released in September 2013, 241 civil society groups from around the world aired concerns about the TISA deal: “Democracy is eroded when decision-making about important sectors– such as financial services (including banking, securities trading, accounting, insurance, etc.), energy, education, healthcare, retail, shipping, telecommunications, legal services, transportation, and tourism– is transferred from citizens, local oversight boards, and local or provincial/state jurisdiction to unaccountable trade’ negotiators who have shown a clear proclivity for curtailing regulation and prioritizing corporate profits.”

Analysts note that the leak underscores the intense secretiveness of the talks, whose texts are supposed to be kept completely secret for five years following the reaching of a deal or abandonment of the process.

“That the negotiating texts say they are supposed to stay secret for five years is quite shocking, and therefore it is really important that the text is made public,” Melinda St. Louis, international campaigns director for Public Citizen’s Global Trade Watch, told Common Dreams.

“It’s a dark day for democracy when we are dependent on leaks like this for the general public to be informed of the radical restructuring of regulatory frameworks that our governments are proposing,” said Nick Dearden, director of Global Justice Now, in a statement released Wednesday.

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Food, Water, Health, Life: UN Experts Warn of Threats Posed by Secret ‘Trade’ Deals

The human rights stakes are too high to keep so-called “free trade” deals secret, say UN experts. (Photo: Syd Stevens, Overhead Light Brigade San Diego)

‘All draft treaty texts should be published so that Parliamentarians and civil society have sufficient time to review them and to weigh the pros and cons in a democratic manner,’ say officials

By Sarah Lazare

Echoing the protests of civil society organizations and social movements around the world, a panel of United Nations experts on Tuesday issued a stark warning about the threats that secret international “trade” agreements such as the Trans-Pacific Partnership (TPP) pose to the most fundamental human rights.

“Our concerns relate to the rights to life, food, water and sanitation, health, housing, education, science and culture, improved labor standards, an independent judiciary, a clean environment and the right not to be subjected to forced resettlement,” reads the statement, whose ten signatories include Ms. Catalina Devandas Aguilar, Special Rapporteur on the rights of person with disabilities and Ms. Victoria Lucia Tauli-Corpuz, Special Rapporteur on the rights of Indigenous peoples.

In particular, the officials raise the alarm about the “investor-state dispute settlement” systems that have become the bedrock of so-called “free trade deals,” included in 3,000 agreements world-wide, according to the count of The New York Times. Popularly known as corporate tribunals, ISDS frameworks constitute a parallel legal system in which corporations can sue state governments for allegedly impeding profits and thereby supersede democratic laws and protections.

The UN experts warn that “ISDS chapters are anomalous in that they provide protection for investors but not for States or for the population. They allow investors to sue States but not vice-versa.” Under this framework, states have faced penalties for “for adopting regulations, for example to protect the environment, food security, access to generic and essential medicines, and reduction of smoking, as required under the WHO Framework Convention on Tobacco Control, or raising the minimum wage,” resulting in a “chilling effect,” the officials warn.

Notably, the experts declare that “All draft treaty texts should be published so that Parliamentarians and civil society have sufficient time to review them and to weigh the pros and cons in a democratic manner.”

The recommendation comes amid heightened controversy over the administration of President Barack Obama’s refusal to publicly disclose basic information about three mammoth pacts currently under negotiation: the TPP, the Transatlantic Trade and Investment Partnership and the Trade in Services Agreement.

Furthermore, the call was issued the same day that WikiLeaks took the unusual step of announcing a bounty of $100,000 for the full text of the TPP, declaring “the transparency clock has run out.”

Ultimately, the officials conclude, the human rights stakes are too high to keep these deals secret: “There is a legitimate concern that both bilateral and multilateral investment treaties might aggravate the problem of extreme poverty, jeopardize fair and efficient foreign debt renegotiation, and affect the rights of indigenous peoples, minorities, persons with disabilities, older persons, and other persons leaving in vulnerable situations.”

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Growing Global Inequality Gap ‘Has Reached a Tipping Point’

‘When such a large group in the population gains so little from economic growth, the social fabric frays and trust in institutions is weakened.’

By Nadia Prupis

With the gap between the rich and poor growing worldwide, a new study by the Organization for Economic Cooperation and Development (OECD) published Thursday suggests that the only way to reverse such rampant inequality is by implementing government measures aimed at balancing the playing field

Chief among those measures: Tax the rich and push for gender equality.

In its 34 member states, income inequality has reached record highs, the OECD found in its study, In It Together: Why Less Inequality Benefits All. The average income of the top 10 percent was 9.6 times higher than the bottom 10 percent, the OECD found. In the U.S., it was 19 times higher.

“We have reached a tipping point,” said OECD secretary-general Ángel Gurría. “The evidence shows that high inequality is bad for growth. The case for policy action is as much economic as social. By not addressing inequality, governments are cutting into the social fabric of their countries and hurting their long-term economic growth.”

“In recent decades, as much as 40% of the population at the lower end of the distribution has benefited little from economic growth in many countries,” the study found. “In some cases, low earners have even seen their incomes fall in real terms. When such a large group in the population gains so little from economic growth, the social fabric frays and trust in institutions is weakened.”

Working conditions have also deteriorated, largely due to the rise of a “non-standard” economy that incentivizes part-time work, self-employment, and temporary contracting.

“Between 1995 and 2013, more than 50 percent of all jobs created in OECD countries fell into these categories,” the OECD stated in a press release on Thursday. “Low-skilled temporary workers, in particular, have much lower and instable earnings than permanent workers.”

However, the study found that an increase in the number of women working “helped stem the rise in inequality, despite their being about 16% less likely to be in paid work and earn about 15% less than men.”

Inequality is highest in Chile, Mexico, the United States, Turkey, and Israel. It is lowest in Denmark, Slovenia, Slovak Republic and Norway.

Higher inequality also drags down economic growth by making opportunities more scant for the bottom 40 percent and often preventing low-income children from receiving quality education, or enough of it. The long-term rise of inequality “has indeed put a significant brake on long-term growth,” from developed nations to emerging economies, the OECD found.

“If the bottom loses ground, everyone is losing ground,” the report states.

The OECD recommends a wide range of solutions to reverse the growing wealth gap, including removing the obstacles that prevent mothers from working; doing more to provide youth with useful skills and allow workers to continue updating those skills over time; and redistribute wealth through taxes and transfers, which the report describes as a “powerful instrument to contribute to more equality and more growth.”

“In recent decades, the effectiveness of redistribution mechanisms has been weakened in many countries,” the OECD states. “To address this, policies need to ensure that wealthier individuals, but also multinational firms, pay their share of the tax burden.”

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