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The rich-poor gap: If Brazil can address it, US can and should
Christian Science Monitor ^ | January 13, 2002 | Lawrence Harrison

Posted on 01/13/2003 2:27:17 AM PST by Cincinatus' Wife

MEDFORD, MASS - Brazil's President Luiz Inácio da Silva - "Lula," as he is widely known - has made Brazil's gaping gulf between its few rich and many poor a focus of his new administration.

The United States should do the same. While not as vast as Brazil's, the gap between the rich and the poor in the US is too wide - the widest among all the rich democracies.

According to World Bank data, the poorest 10 percent of Brazil's population receives just 1 percent of the country's total income, while the richest 10 percent receives almost half. In the US, the poorest 10 percent receives 1.8 percent of total income, while the richest 10 percent gets almost a third.

In no other rich democracy does the poorest 10 percent receive less than 2 percent of the total. (The average for rich countries is 2.9 percent.)

Don't leap to the conclusion that this extreme inequity in US income distribution reflects the policies of the Bush administration. The data are for a Clinton boom year - 1997.

In fact, Census Bureau data show a steady erosion of income inequity since the 1970s.

The Census Bureau estimates that in 2001, about 33 million Americans - 11.7 percent of the population and disproportionately African-American and Hispanic - lived below the poverty line. For a family of four, that meant an income of less than $18,000 per year, or $4,500 per capita.

At this level of affluence, the persistence of poverty for tens of millions of Americans is a national disgrace.

A national consensus is needed aimed at ending poverty, consistent with the vision of the late Harvard political philosopher John Rawls. For Rawls, the good society was the society in which a principal goal was the well-being of those worst off.

Progress toward the goal of eliminating poverty can be achieved through, for example, steady increases in the minimum wage (Lula has proposed increases that would double the Brazilian minimum wage in four years), progressive tax reform, and more extensive and effective unionism for low-wage workers.

Some will argue that a high minimum wage, a true living wage, would reduce the competitiveness of American products.

The Harvard Business School's Michael Porter has the right answer in his book "The Competitive Advantage of Nations": "The primary economic goal of a nation is to produce a high and rising standard of living for its citizens ... cheap labor [is not a] meaningful definition of competitiveness ... the ability to compete despite paying higher wages would ... represent a far more desirable national target."

The US also needs an immigration policy that reduces the flow - legal and illegal - of the more than 1 million people who come to the US annually, as the Commission on Immigration Reform urged in 1995. That report has since been ignored by both Democratic and Republican administrations.

The stream of mostly uneducated and unskilled immigrants increasingly feeds the reservoir of the poor, drives down wages and benefits at the low end, and competes for public services with poor citizens, adding severe pressure on beleaguered state and local budgets.

The Democrats are looking for a message, a vision. The goal of ending poverty and the measures necessary to achieve it fit well with Democratic Party ideology. At the same time, the Republicans are committed to a compassionate conservatism that should also embrace the goal.

Here's an opportunity for a national consensus to end a national disgrace.

o Lawrence Harrison teaches at the Fletcher School of Law and Diplomacy at Tufts University. He is coeditor with Samuel Huntington of 'Culture Matters.'


TOPICS: Business/Economy; Crime/Corruption; Culture/Society; Editorial; Foreign Affairs; Government; News/Current Events; Politics/Elections
KEYWORDS: thepoor
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To: Asclepius
I'd happily give all my employees a 30% raise. Just eliminate the income and payroll taxes and institute a national retail sales tax in its place and voila!
41 posted on 01/13/2003 8:19:18 AM PST by monkeyshine
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To: Cincinatus' Wife
This article, really, has nothing to do with Brasil. It's just a socialist shill to show how unfair capitalism is, and slander the US. There are NO solutions given, just whining. These people really are pathetic.
42 posted on 01/13/2003 8:22:42 AM PST by Republic of Texas
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To: Moonman62
American poor are like the poor in Venezuela and nothing like the poor in Brazil. Lulu has aroused the poor and is set on establishing the Soviet Republic of Brazil, eliminating the rich and modest middle-class. It's a tragedy of major proportions to Latin America.

The Admin had better get hacking or the whole region will become commie fast. Will Fox join Chavez, Lula and Fidel? If they do, it's adios to oil supplies from Latin America. Too far fetched? I think not.

43 posted on 01/13/2003 8:55:35 AM PST by Paulus Invictus
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To: Cincinatus' Wife
Well, no DUH that the income discrepancy has increased widely since the 1970s. So has illegitimacy. The two are *causally* related.

Basically, if you graduate from high school, stay off drugs, don't have illegitimate children, and don't have your first child until 21, you are *very* unlikely to be poor. Even in a bad economy. The income gap this article whines about is a *behavior* gap. Closing it means that individuals are going to have to change their own behavior of their own free will.

44 posted on 01/13/2003 9:19:55 AM PST by valkyrieanne
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To: Cincinatus' Wife
Getting students out from under teachers' unions would go a long way toward breaching the "gap."

Getting students out from under *each other* would do even more.

45 posted on 01/13/2003 9:21:19 AM PST by valkyrieanne
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To: Paulus Invictus
The Admin had better get hacking or the whole region will become commie fast.

I agree. If I saw this coming a few years ago, then our government should have seen the same.

46 posted on 01/13/2003 10:00:08 AM PST by Moonman62
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To: onetimeatbandcamp
Shilling for Latin American commies again eh. Go back to Tall Oaks and go stick instruments wherever...
47 posted on 01/13/2003 11:37:28 AM PST by weikel (Mercy to the Guilty is Cruelty to the Innocent)
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To: Paulus Invictus
It'll sure be a pain in the a** to occupy the region.
48 posted on 01/13/2003 11:38:12 AM PST by weikel (Mercy to the Guilty is Cruelty to the Innocent)
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Comment #49 Removed by Moderator

Comment #50 Removed by Moderator

Comment #51 Removed by Moderator

To: Cincinatus' Wife
"The US also needs an immigration policy that reduces the flow - legal and illegal - of the more than 1 million people who come to the US annually, as the Commission on Immigration Reform urged in 1995.

I believe what we need to do is seal the Entire Mexican Border and cut off ALL legal immigration for a couple of years.Just say " We're taking a break from all of you for a few years ". It would take a huge backbone to do this---unfortunately, this will never happen in my lifetime.So the gap between Rich and Poor ( in the U.S.A. ) will always be with us.If there was no gap, then we'd be living in a Socialist Society like the U.S.S.R. used to be, where everyone was given only what they needed. (Although, Hillary Rotten is a Senator now,isn't she.) 'Working Hard Is Not A Crime', although the Socialists in our Gov't would strongly have you believe otherwise.

52 posted on 01/13/2003 12:22:19 PM PST by Pagey (Hillary Rotten Clinton is her correct name!)
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