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Inequality and Rent-Seeking in Housing

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“Suppose that there is a kind of income which constantly tends to increase, without any exertion or sacrifice on the part of the owners: those owners constituting a class in the community, whom the natural course of things progressively enriches, consistently with complete passiveness on their own part. In such a case it would be no violation of the principles on which private property is grounded, if the state should appropriate this increase of wealth, or part of it, as it arises. This would not properly be taking anything from anybody; it would merely be applying an accession of wealth, created by circumstances, to the benefit of society, instead of allowing it to become an unearned appendage to the riches of a particular class.” -           John Stuart Mill The quote from John Stuart Mill was penned in the 19 th century, but seems more relevant than ever. Every day, Americans are becoming more astutely aware of rising inequality ...
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To Help Syrian Refugees, Give Cash to the Women

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A new initiative  introduced by the White House and some of America’s prominent tech firms designed to increase aid to Syrian refugees has generated an outpour of support from the public. On Tuesday October 7 th Kickstarter launched a campaign to raise $1,225,000 for the United Nations Refugee Agency (UNHCR). By the time the campaign finished, they raised nearly $1.8 million from 27,669 supporters. Donors could give $15 to purchase a sleeping bag, or $160 to help build shelters. Instacart also got in the game, allowing customers to donate food to refugees after purchasing their own groceries. These campaigns display the amazing power of collective action, the influence of the tech sector, and the deep compassion moving Americans who feel a sense of moral obligation to come to the aid of the stranger in a time of crisis. While I am happy to witness this beautiful movement of empathy and action, there is still a flaw in the end product that needs to be addressed. Like most aid...
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Unions, Bargaining Power, and Income Inequality

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Yesterday the Bureau of Labor Statistics released their annual data on labor force unionization. It did not catch any headlines because it was not surprising. Union membership rates continued to decline in 2014 to 11.1% of the workforce. To many Americans, unions seem like relics. The labor union has become a fringe institution. But for the last few years, I have thought a lot about the connection between the decline of labor unions and the rise of income inequality in the United States. Income inequality has become a hot button issue this decade, but few are making the explicit connection between the declining bargaining power of labor and the widening gap between rich and poor. On November 4 th 2014 Eduard Porto had a piece in the NY Times on how best to mitigate the growing income inequality in the United States. Porto’s thesis is essentially that direct redistribution of wealth has not effectively created a more egalitarian society and different, alternative methods n...
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