PDA

View Full Version : A Failed Experiment: The top 1 percent of Americans now have greater collective net worth




squarepusher
11-23-2012, 11:52 AM
http://www.nytimes.com/2012/11/22/opinion/kristof-a-failed-experiment.html?_r=0

Op-Ed Columnist A Failed Experiment
Published: November 21, 2012


In upper-middle-class suburbs on the East Coast, the newest must-have isn’t a $7,500 Sub-Zero refrigerator. It’s a standby generator that automatically flips on backup power to an entire house when the electrical grid goes out.

http://graphics8.nytimes.com/images/2010/09/16/opinion/Kristof_New/Kristof_New-articleInline-v2.jpg
Damon Winter/The New York Times Nicholas D. Kristof






Read All Comments (607) » (http://www.nytimes.com/2012/11/22/opinion/kristof-a-failed-experiment.html?_r=0#comments)



In part, that’s a legacy of Hurricane Sandy. Such a system can cost well over $10,000, but many families are fed up with losing power again and again.
(A month ago, I would have written more snarkily about residential generators. But then we lost power for 12 days after Sandy — and that was our third extended power outage in four years. Now I’m feeling less snarky than jealous!)
More broadly, the lust for generators is a reflection of our antiquated electrical grid and failure to address climate change. The American Society of Civil Engineers gave our grid (http://www.infrastructurereportcard.org/fact-sheet/energy), prone to bottlenecks and blackouts, a grade of D+ in 2009.
So Generac (http://www.generac.com/), a Wisconsin company that dominates the generator market, says it is running three shifts to meet surging demand. About 3 percent of stand-alone homes worth more than $100,000 in the country now have standby generators installed.
“Demand for generators has been overwhelming, and we are increasing our production levels,” Art Aiello, a spokesman for Generac, told me.
That’s how things often work in America. Half-a-century of tax cuts focused on the wealthiest Americans leave us with third-rate public services, leading the wealthy to develop inefficient private workarounds.
It’s manifestly silly (and highly polluting) for every fine home to have a generator. It would make more sense to invest those resources in the electrical grid so that it wouldn’t fail in the first place.
But our political system is dysfunctional: in addressing income inequality, in confronting climate change and in maintaining national infrastructure.
The National Climatic Data Center has just reported that October was the 332nd month in a row (http://www.ncdc.noaa.gov/sotc/global/2012/10) of above-average global temperatures. As the environmental Web site Grist reported (http://grist.org/news/if-youre-27-or-younger-youve-never-experienced-a-colder-than-average-month/), that means that nobody younger than 27 has lived for a single month with colder-than-average global temperatures, yet climate change wasn’t even much of an issue in the 2012 campaign. Likewise, the World Economic Forum ranks American infrastructure 25th in the world (http://reports.weforum.org/global-competitiveness-report-2012-2013/), down from 8th in 2003-4, yet infrastructure is barely mentioned by politicians.
So time and again, we see the decline of public services accompanied by the rise of private workarounds for the wealthy.
Is crime a problem? Well, rather than pay for better policing, move to a gated community with private security guards!
Are public schools failing? Well, superb private schools have spaces for a mere $40,000 per child per year.
Public libraries closing branches and cutting hours? Well, buy your own books and magazines!
Are public parks — even our awesome national parks, dubbed “America’s best idea” and the quintessential “public good” — suffering from budget cuts? Don’t whine. Just buy a weekend home in the country!
Public playgrounds and tennis courts decrepit? Never mind — just join a private tennis club!
I’m used to seeing this mind-set in developing countries like Chad or Pakistan, where the feudal rich make do behind high walls topped with shards of glass; increasingly, I see it in our country. The disregard for public goods was epitomized by Mitt Romney’s call to end financing of public broadcasting.
A wealthy friend of mine notes that we all pay for poverty in the end. The upfront way is to finance early childhood education for at-risk kids. The back-end way is to pay for prisons and private security guards. In cities with high economic inequality, such as New York and Los Angeles, more than 1 percent of all employees work as private security guards, according to census data.
This question of public goods hovers in the backdrop as we confront the “fiscal cliff” and seek to reach a deal based on a mix of higher revenues and reduced benefits. It’s true that we have a problem with rising entitlement spending, especially in health care. But I also wonder if we’ve reached the end of a failed half-century experiment in ever-lower tax rates for the wealthy.
Since the 1950s, the top federal income tax rate has fallen (http://www.nytimes.com/2012/10/04/opinion/kristof-why-let-the-rich-hoard-all-the-toys.html) from 90 percent or more to 35 percent. Capital gains tax rates (http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=161) have been cut by more than half since the late 1970s. Financial tycoons now often pay a lower tax rate than their secretaries.
All this has coincided with the decline of some public services and the emergence of staggering levels of inequality (granted, other factors are also at work) such that the top 1 percent of Americans now have greater collective net worth than the entire bottom 90 percent.
Not even the hum of the most powerful private generator can disguise the failure of that long experiment.

squarepusher
11-23-2012, 12:09 PM
Posting to say I don't necessarily agree with the above editorial

http://www.reddit.com/r/politics/comments/13na2r/a_failed_experiment_the_top_1_percent_of/

Here is corresponding Reddit analysis. Sentiment is not to be unexpected from the site it was posted on.

juleswin
11-23-2012, 12:19 PM
Ah, I see Nicolas Kristof is no longer crying about the Sudanese "genocide" (or the many other so called genocide) and demonization of American enemies and is now talking economics. Anyway, if you want to understand why the rich is getting richer and why the policies he proposes will likely make it worse, you only need to watch this 3 mins video



http://www.youtube.com/watch?v=L_RU5wO8Fjw

matt0611
11-23-2012, 12:23 PM
So many fails in one article I don't even know where to start.

"failure to address climate change."

Yes, yes, because we all know if we just had just put the eco-facists in charge 30 years ago Sandy would have never happened :rolleyes:

Private schools == $40k per year.

First, I know plenty of decent private schools that cost <$20k per year, but of course many are going to be expensive, they cater to the more well off. Who's going to pay $5k -10k per year when they're already paying at least that much per student for their public schools.

Second, we are paying more for public schools per child than at any time in our history, FACT.

"Public parks, libraries, playgrounds shutting down"

I love how these progressive types are always complaining about government / public funded institutions.

Have you ever noticed its always our X is in bad shape, we need to invest more money in X. Where X is always some government run institution?

It's never "our grocery stores / cell phones / automobiles / theme parks / refrigerators / movies / computer software etc need rebuilding & more investment."

It's always government run areas that are failing us, our schools, our roads, airport security, parks, libraries, disaster response etc.
Hmmm, I wonder why?

Also, lol @ people needing private security and fenced-in communities, I thought we needed government for that sort of thing? But "without the government who would police the streets?". Government fail once again.

thoughtomator
11-23-2012, 01:08 PM
I would like to see a breakdown of wealth within segments of that 1%, I'd wager that even in that group alone there is a heavy skew towards the very wealthiest.

My guess is that there is a relatively small group, numbering no more than 20,000 total, which is the real, primary beneficiary of all the money that is being looted from the system, and that all their helpers are really just getting table scraps.

Brian4Liberty
11-23-2012, 01:43 PM
Hmmm. May need to invest in a generator company...

Edit: too late. Would have been a great play before Sandy.

LibertyRevolution
11-23-2012, 02:50 PM
Here is the problem, they string the power lines on poles through trees in wooded areas.

Do they know that tree branches will take out the lines? Sure they do.
So why not bury them under the ground to start with? JOB SECURITY.

Don't even try and tell me how burring power lines cost more..
Every time the wind blows you got to send out a crew to restring lines..
Linesman hours are not cheap.

Henry Rogue
11-23-2012, 03:18 PM
Title should be Failed Article. The richest are getting richer because of government intervention and lack of Sound money. The failed experiment is keynesian economics and social justice.

matt0611
11-23-2012, 04:08 PM
Here is the problem, they string the power lines on poles through trees in wooded areas.

Do they know that tree branches will take out the lines? Sure they do.
So why not bury them under the ground to start with? JOB SECURITY.

Don't even try and tell me how burring power lines cost more..
Every time the wind blows you got to send out a crew to restring lines..
Linesman hours are not cheap.

It costs more. Especially when there's problems with the buried lines.

Besides for some problem areas and some densely populated areas and some residential neighborhoods its not really practical to bury all the lines. Could you do it? Yeah, but its mostly a massive waste of money.

osan
11-23-2012, 07:06 PM
Was there a reason for posting this great steaming pile, other than to attempt to induce nausea in the readers?

osan
11-23-2012, 07:29 PM
Here is the problem, they string the power lines on poles through trees in wooded areas.

Do they know that tree branches will take out the lines? Sure they do.
So why not bury them under the ground to start with? JOB SECURITY.

Don't even try and tell me how burring power lines cost more..
Every time the wind blows you got to send out a crew to restring lines..
Linesman hours are not cheap.

You have NO idea what you are talking about. This is epic and utter FAIL.

Burying lines costs HUNDREDS of times more than hanging them. Have you the least idea what it takes to properly bury telecom lines, not to mention those for power? One does not simply dig a trench, drop in a wire and cover it up. The lines MUST be placed into an armored conduit to protect them. Without it, events such as frost-heaving would destroy those lines in but a few short years. Abrasion from soil and rocks are another wear hazard. Then consider maintenance and repair (M&R). Locating a failure would become very difficult and costly. Then you have to dig up the line, open the conduit, possibly having to pull hundreds of yards of new line, which is not as easy as it sounds, then reseal the conduit and rebury. If the conduit is compromised, you end up with an even bigger mess because you then have to SEVER THE LINES in order to get the old section out and then resplice them. I would estimate repair costs close to three orders of magnitude higher than that for hung lines on the average.

I had an acquaintance who had his electrical buried from the pole to the house - less than 100'. Cost him over $2000. That is over $100K/mile and does not include provisions for distribution, which presents yet another unfeasibly difficult challenge. New installations would be murderously $$ and would still require overhead poles just to get power to customers, so you are still stuck with wood and hanging lines in the vast majority of cases.

Then consider burying lines in areas of solid rock - literally thousands of times the cost of putting in poles. After trenching and laying, what does one use as back-fill? Dirt? Any idea how $$ it would be to truck in all that soil? How is it confined in its trench? How is drainage and frost-heaving managed? Maintenance would be a nightmare.

I could go on down the longer list of troubles.

Lines are on poles PRECISELY because it is the best and most practical way to do it and not because corporations are EVILLE.

Get a grip.

Henry Rogue
11-23-2012, 10:00 PM
Ah, I see Nicolas Kristof is no longer crying about the Sudanese "genocide" (or the many other so called genocide) and demonization of American enemies and is now talking economics. Anyway, if you want to understand why the rich is getting richer and why the policies he proposes will likely make it worse, you only need to watch this 3 mins video



http://www.youtube.com/watch?v=L_RU5wO8Fjw
+ rep we can not stress the importance of Sound Money enough even on this Forum.

Agorism
11-23-2012, 10:03 PM
Ok I'm not a populist. I tend to think that 00.1% actually deserve the wealth and companies they've built.

For the liberals, they won't keep the wealth forever either. Everyone dies eventually.

matt0611
11-24-2012, 07:42 AM
Ok I'm not a populist. I tend to think that 00.1% actually deserve the wealth and companies they've built.

For the liberals, they won't keep the wealth forever either. Everyone dies eventually.

Yes. Think about it this way, if you want the "money" that the wealthy have. Make stuff that they want to buy and they'll give you money for it.

Wallrat
11-24-2012, 08:36 AM
It’s manifestly silly (and highly polluting) for every fine home to have a generator. It would make more sense to invest those resources in the electrical grid so that it wouldn’t fail in the first place.

While I agree with some of your points, the fact that you were out of power for more than a week shows that it's not only not 'manifestly silly' to have a back-up power source for your own home, no matter how humble, it's stupid not to. Noone here needs an example of how the Government has failed in its basic duties of maintaining infrastructure, or at helping after a natural disaster. You need to do that yourself. The Government is inept and negligent at any duties that do not revolve around its own interests. For $1000 you can power the basics in a home (Honda 2000 watt genset) will run the fridge, the freezer, some lights, if you have a care to run one appliance at a time. A 3000 watt will run everything with some restraint. Those can be had used for the same $1000, and new for less than $2000.