Here are the 50 states, ranked from “most shortchanged” to “least shortchanged” by the U.S. government. The ranking is based on an index combining: (i) votes in the Electoral College per state resident and (ii) benefits received per tax dollars paid to the federal government.
Source: New York Times.
What has the flawed financial system cost the U.S. economy? Here’s your receipt:
Read the accounting by Econ4’s Jerry Epstein together with Juan Montecino here. Excerpt follows:
A healthy financial system is one that channels finance to productive investment, helps families save for and finance big expenses such as higher education and retirement, provides products such as insurance to help reduce risk, creates sufficient amounts of useful liquidity, runs an efficient payments mechanism, and generates financial innovations to do all these useful things more cheaply and effectively. All of these functions are crucial to a stable and productive market economy. But after decades of deregulation, the current U.S. financial system has evolved into a highly speculative system that has failed rather spectacularly at performing these critical tasks.
What has this flawed financial system cost the U.S. economy? How much have American families, taxpayers, and businesses been “overcharged” as a result of these questionable financial activities? In this report, we estimate these costs by analyzing three components: (1) rents, or excess profits; (2) misallocation costs, or the price of diverting resources away from non-financial activities; and (3) crisis costs, meaning the cost of the 2008 financial crisis.
It’s time to start sharing some of the great entries we’ve received in the Econ4 Video Remix Contest. Stay tuned for more!
Entries received by February 1, 2016, are eligible for cash prizes. You can enter here.
Econ4’s Gar Alperovitz on building the new economy from the bottom up:
Deepening economic and social pain are producing the kinds of conditions from which various new forms of democratization—of ownership, wealth and institutions—are beginning to emerge. The challenge is to develop a broad strategy that not only ends the downward spiral but also gives rise to something different: steadily changing who actually owns the system, beginning at the bottom and working up.
Read more here.
A primer on the defects of GDP as a measure of economic well-being, from Econ4’s James Boyce:
Source: The Real News Network.
Stephen Colbert finds common ground between liberals and conservatives: blame immigrants for climate change.
Hear Robert F. Kennedy’s words, just as compelling today as when they were spoken shortly before his assassination in 1968:
A new video from the Center for a New American Dream.