Today in inequality reading: What's your CEO making?

The AFL-CIO has launched a new website focused on CEO pay:

The site, 2011 Executive Paywatch, notes that total compensation for C.E.O.’s averaged $11.4 million in 2010, up 23 percent from the previous year, based on the most recent pay data for 299 major companies.

The Web site notes that the C.E.O.’s at those 299 companies received a combined total of $3.4 billion in pay in 2010, enough to support 102,325 jobs paying the median wage.

The Web site notes that chief executives’ compensation is 343 times the median pay — $33,190 — of American workers. It adds that the $11.4 million average for C.E.O.’s is 28 times the pay of President Obama, 213 time the median pay of police officers, 225 times teacher pay, 252 times firefighter pay, and 753 times the pay of the minimum-wage worker.

Did you do 23 percent better in 2010 than 2009? I sure didn't. Did your company add that much value to its bottom line? Maybe, maybe not.

I don't doubt that CEOs create value for their companies, and they're always going to make more money than rank-and-file workers. But they didn't used to outstrip the pay of their workers by quite so much, and it's hard for me to find a good economic reason why that's so now. My free-market friends will roll their eyes, but I think oligarchic brand of capitalism is--and probably should be--simply unsustainable.

Why? Because CEO pay continues to skyrocket when stuff like this is happening to regular American families:

7. Employer-provided health insurance benefits continue to disappear. The share of people with employer-provided health insurance dropped from 64.2 percent in 2000 to 55.8 percent in 2009. This is the lowest share since 1987 when the Census started to track these data.

8. Family incomes drop sharply in the recession. Median inflation-adjusted household income fell 3.6 percent in 2008 and by another 0.7 percent in 2009. It stood at $49,777 in 2009, its lowest level in inflation-adjusted dollars since 1997. White family income stood at $54,461, compared to African-American family income, which was $32,584, or 59.8 percent of white income. Hispanic family income was $38,039 in 2009, or 69.8 percent of white income.

9. Poverty continues to rise. The poverty rate stood at 14.3 percent in 2009—its highest rate since 1994.

You can't blame this on Barack Obama. The employer benefits were dropping in 2009--before ObamaCare passed. I guess we can argue about the stimulus in regards to the other numbers, but count me as somebody who suspects things would've been much worse without it.

That's not the point. The point is that a society chooses to organize itself along free-market lines because a free market helps the vast majority of citizens sustain themselves. For most of American history--and there have been exceptions--that has been the case. If the system only works at the top, if the rest of us have only bread and circuses to console us, then trouble is coming ... and all the Ayn Rand movies in the world won't change that. Defenders of the free market should concern themselves with inequality issues because that's probably how they can best defend free markets.

Thomas Sowell doesn't know what he's talking about in Philly schools

Thomas Sowell says the key to stopping bullying is empowering educators to dispense with the bullies without due process or fear of lawsuits. As proof of educational namby-pambyness, he throws in this aside:

For years, there have been stories in New York and Philadelphia newspapers about black kids beating up Asian classmates. But do not expect anybody to do anything that is likely to put a stop to it.

If these were white kids beating up Hispanic kids, cries of outrage would ring out across the land from the media, the politicians, the churches, and civic groups. But it is not politically correct to make a fuss when black kids beat up Asian kids.

But there was a huge fuss in Philadelphia. It was on the cover of Philadelphia Weekly, and when a mini-riot happened at South High, it resulted in weeks of media coverage—I covered a couple of the protests myself—and a change in the school's administration. That led to the Philadelphia Inquirer's huge week of stories this spring about violence in Philly schools more broadly. If Sowell wants to suggest that Arlene Ackerman's administration hasn't done enough to solve the problem, I'll join him. But he suggests that "the media, the politicians, the churches, and civic groups" are ignoring it—and ignoring it because we're afraid of saying bad thing about black kids. But he's wrong.

So what happened at South High, anyway? It looks like things are getting better, but it's taking real effort.

And for what it's worth, that effort doesn't involve booting the bullies post haste. Instead, it involves taking steps to keep students safe in the moment and creating a better atmosphere at the school:

The doors of student bathrooms are kept propped open - a screen blocks direct sight inside - but staff can hear if trouble starts.

Hackney also changed how Southern handles complaints of harassment and assault, which Asian students say were often not taken seriously. Now, students can write incident reports in their first language, crucial for those learning English.

Something else is different too: There's no trash on the floor. Staffers still bend over to pick up the occasional wrapper, but last year the litter seemed ankle-deep.

As the story indicates, the new principal is willing to get rid of students who make problems—but he's also more focused on stopping violence before it starts. A carrot-and-stick approach seems to be more effective—and proven—than Sowell's stick-first approach.

I'm happy to criticize the district for what it has failed to do. Honesty compels acknowledgement of where things are going right. But Sowell doesn't even bother to check the facts. He's got his headlines and his assumptions, and nothing else seems to matter.

Prop 8 and Judge Vaughn Walker: Gay judges are automatically unqualified

Ed Whelan makes the case in National Review that Judge Vaughn Walker's decision overturning Prop 8 in California be set aside because Walker has recently come out of the closet and thus can't be considered impartial:

Two weeks ago, former federal district judge Vaughn Walker, who ruled last summer in Perry v. Schwarzenegger that California’s Proposition 8 is unconstitutional, publicly disclosed for the first time that he has been in a same-sex relationship for the past ten years. A straightforward application of the judicial ethics rules compels the conclusion that Walker should have recused himself from taking part in the Perry case. Further, under well-established Supreme Court precedent, the remedy of vacating Walker’s judgment is timely and necessary.

As a practical matter, I'm unsure if Whelan's thinking will carry the day. As a broader matter, I find it discomfitting: Would we ask an African-American judge to step aside in a race discrimination case? A female judge to step aside in a sex discrimination case? Not automatically, no. There is a suggestion in Whelan's argument—a spirit that pervades Prop 8 itself—that gay Americans cannot be full citizens with the full rights and duties of citizenship. The only impartial, qualified judge is, well, a heterosexual judge.

But is that really the case? Remember that one of the key arguments made by Prop 8 supporters was that gay marriages threaten straight marriages. Judge Walker cited such arguments in his ruling last year, quoting from the California voter education guide:

And:

The foundation of Prop 8, in other words, is not that gay marriage should be prohibited for any old reason—but because it threatens to undermine female-male marriages.

Seems to me then, that any judge who is married or has been married or who might want to be married someday—be they gay or straight—thus finds him- or herself possibly compromised in this matter. Who is to say a straight judge wouldn't be acting to protect his or her marriage from the destabilizing influence of gay unions? The only person capable of passing a good judgement would be a demonstrably asexual judge—and while that's not impossible to imagine, let's just concede it's unlikely. There's nobody who can escape the appearance of a conflict of interest here if Whelan's logic is being applied to everybody. Otherwise, "straight white male" is the default standard of impartiality; everybody else is just an interest group, compromised by their biases.

The anti-immigration movement: Brought to you by eugenicist John Tanton

One recurring theme in the anti-abortion movement is that organizations like Planned Parenthood are the fruits of bad seeds—irrevocably tainted by events that happened decades ago. And so you see frequent invocations of "eugenicist Margaret Sanger" in these debates. By that standard, then, I guess it's fair to accompany every single mention of the modern anti-immigration movement with a reference to eugenicist John Tanton—who helped create Numbers USA, the Federation for American Immigration Reform, and the Center for Immigration Studies.

Here's a key excerpt from Sunday's profile in the New York Times:

But if anything, Dr. Tanton grew more emboldened to challenge taboos. He increasingly made his case against immigration in racial terms.

“One of my prime concerns,” he wrote to a large donor, “is about the decline of folks who look like you and me.” He warned a friend that “for European-American society and culture to persist requires a European-American majority, and a clear one at that.”

Dr. Tanton acknowledged the shift from his earlier, colorblind arguments, but the “uncomfortable truth,” he wrote, was that those arguments had failed. With a million or more immigrants coming each year — perhaps a third illegally — he warned, “The end may be nearer than we think.”

He corresponded with Sam G. Dickson, a Georgia lawyer for the Ku Klux Klan, who sits on the board of The Barnes Review, a magazine that, among other things, questions “the so-called Holocaust.” Dr. Tanton promoted the work of Jared Taylor, whose magazine, American Renaissance, warned: “America is an increasingly dangerous and disagreeable place because of growing numbers of blacks and Hispanics.” (To Mr. Taylor, Dr. Tanton wrote, “You are saying a lot of things that need to be said.”)

Beyond immigration, he revived an old interest in eugenics, another field trailed by a history of racial and class prejudice.

“Do we leave it to individuals to decide that they are the intelligent ones who should have more kids?” he wrote. “And more troublesome, what about the less intelligent, who logically should have less. Who is going to break the bad news to them?”

I don't believe that everybody who favors tight restrictions on immigration and the forever treatment of immigrant children as outlaws is a racist or a secret eugenicist. (I do think they're wrong.) But by the standards of our modern discourse, though, none of that really matters. John Tanton's ties to modern-day anti-immigration organizations are deeper than Margaret Sanger's to modern Planned Parenthood—he's still alive, and sitting on the board of FAIR. As the Times piece noted, his colleagues in those organizations have been mostly reluctant to distance themselves from him and his views. (Probably out of politeness, like how you tolerate a racist relative at Thanksgiving, but still.) If the fruit of a bad seed is forever tainted, then today's anti-immigration organizations can't remove John Tanton's outrageous racism from their DNA.

Billy Eger returns

I was worried he'd stopped paying attention. Billy Eger's latest:

Your definitely not an accounted,your definitely a communist liberal loser,you have 2 braincells an 1s out looking for the other one.Joel you really can't be this stupid ,but ,then again you think your a journalists,far, far,far from it.its ok,cause soon thier won't be print media an your stupidity will NOT grace the paper anymore unless sum1 goes online too read your immature beliefs,wich I doubt they will do.have a crappy day Asshole .oh all those loser government workers who enslave themselves to the sleeper cell in the whitehouse,fuck them,those people need to get a life ,its all corrupt DEMS an Republicans,don't need to be in public schools or tell me what too eat,drive or breath,this was created by banks that didn't even need to be bailed out. It's the next ponzi scheme,they ran out of tax dollars because of layoffs an jobs leaving country they have to devise way to tax u so they can have their martini in Belize.I feel sorry for stupid people like you,even more for your kids if you have any,they'll probably even laugh at how stupid you are an how they can pull the wool over your eyes an closed mind.later loser,1 more thing ,all you media assholes play with peoples emotions instead of just printing facts.your ALLLLLLLLLLLLLL losers. Fuck off an .........
billy from wickliffe

Today in inequality reading: Barlett and Steele return

In short, corporate America does not come close to paying its fair share of government's cost. Nor, obviously, is it called upon to make any human sacrifice. As for all those hundreds of billions, they simply were and are added to the national debt, a tab that will be borne disproportionately by working Americans.

What kind of corporation escapes responsibility for any of these bills? Carnival Cruise Lines for one, a Miami company whose glitzy megaships have names like Carnival Fantasy, Ecstasy, Elation, and Paradise. From 2005 to 2010, Carnival - the world's largest cruise carrier - racked up $13 billion in profits. The company's tax bill for those years? Chump change of $191 million. That's million. And that included U.S. income tax, foreign income, and local income tax. The overall tax rate came in at 1.4 percent. This even though the ships sail out of Miami and are inspected by the Coast Guard.

Middle America has not fared nearly so well, thanks to a Congress that likes to sock it to ordinary people, the same people who are and will be hammered even more as lawmakers target them to be a scapegoat for the ballooning deficits. Though corporate profits have continued to climb, the wages of working people remain frozen in time. In 2008, according to IRS data, 10 million working individuals and families filed tax returns reporting incomes of between $30,000 and $40,000. Their effective tax rate: 6.8 percent - nearly five times the Carnival rate.

via philly.com

Songs on my iPod with 'America' in the title

• "America" by Neil Diamond.

• "America" by Simon & Garfunkel.

• "America (Reprise)" by Neil Diamond.

• "An American in Paris" conducted by Leonard Bernstein.

• "American Music" by Violent Femmes.

• "The American Patrol" by The Glenn Miller Orchestra.

• "American Wedding" by Gogol Bordello.