Skip to main content

Social Insurance and Leveling Incomes Is Pretty Easy

There's a new study out about income and life expectancy, and unsurprisingly it finds that rich people live much longer than poor ones — 15 years for men, 10 years for women. There's a smooth relationship between more money and more life, particularly at the very bottom of the income ladder, where there's a collapse of several years:


However, there are also apparently some geographic wrinkles here. Poor people do very badly in Nevada, West Texas, and Indiana, but much better on the west coast and Glenwood Springs. At the New York Times, Neil Irwin and Quoctrung Bui seize on locally-based policy as an interim step that would be much easier than fixing income inequality:
But the fact that some places have increased the life span of their poorest residents suggests that improving public health doesn’t require first fixing the broader, multidecade problem of income inequality. Small-scale, local policies to help the poor adopt and maintain healthier habits may succeed in extending their lives, regardless of what happens with trends in income inequality.
The sense of relief here is palpable. Thank Christ we don't have to change the distribution of income, because that is nigh-impossible.

But at least when it comes to policy design and implementation, the reverse is very obviously true. National-level programs to hand out checks to the poor — and thus level the distribution of income — are about the easiest policy it is possible to imagine. There is already a big check-writing bureaucracy, with detailed information about basically every person in the country. Adjust taxes a bit and send out more checks, the end.

Universal health insurance, or universal paid leave, or a child allowance would be somewhat more logistically challenging, but still easily within the remit of even the fairly incompetent American state.

By contrast, convincing thousands of local communities to drastically alter their local infrastructure and government programs would be a gargantuan political challenge. It means attention must be dispersed to thousands of simultaneous fights, tough in the best of circumstances — which this clearly is not, as most of the worst places are rural and conservative. Worst of all, local communities are generally far more resource-constrained than the national government. Poor people in Detroit do very poorly, for example. I'd say it's a safe bet this is because Detroit had most of its economic base torn out with a mellon baller a generation ago. Rest assured, Detroit knows all about this, and hasn't been able to do shit about it.

The only other obvious solution is that favored by conservatives: post-WWII-style population transfers from struggling to thriving communities. That would be hellishly expensive, probably not very popular, and has every chance of just creating a new struggling underclass in the previously-thriving location. San Francisco could not simply absorb all of Appalachia.

Anyway, that is not to say that improving local communities shouldn't be a high priority. It is, and should be. It's just vastly more difficult than using the tax system to shift money around, or creating universal social insurance.

I suspect Irwin is actually referring to wages when he says "income inequality," in keeping with the casual neoliberalism that dominates economics coverage in this country. This school of thought implicitly believes that wage labor is the only legitimate way of obtaining income (aside from capital rents, of course). Therefore whenever it might come up, welfare is either actively shunned, or more commonly excluded from the policy menu.

But the product of crummy social insurance and huge inequality is the exactly poor health and despair that is under discussion. So the "wonks" root around for any sort of wrinkle in the data that might suggest a course of action other than taxing the hell out of the rich and kicking the money down the income ladder. I dunno, tax credits for local wellness programs??

Don't be fooled. Simple transfers and universal social insurance are by far the most promising avenue for improving the lot of the American poor.

Comments

  1. I don’t waste my free time in watching movies except I go for to read posts on net and get updated from newest technologies. Personal insurance

    ReplyDelete

Post a Comment

Popular posts from this blog

Free will, part II

This post is dedicated to Mark Bedau , my philosophy professor at Reed, a great guy and a wonderful teacher, by far the least pretentious philosopher I've ever met. He is responsible for this post only insofar as he sparked my interest in the subject; its many shortcomings are mine alone. Who's ready for some unqualified philosophical rambling? I'm not going to do much more than summarize, as this is probably one of the five biggest problems in philosophy and the material quickly gets out of hand. Anyway—let's start with some terms, appropriately hefty philosophical ones. (I'm going to steal shamelessly from Wikipedia, as the free will article is very good.) Free will is "purported ability of agents to make choices free from constraints." Some call it the "ability to have done otherwise," but that definition runs into problems which I'll describe later. Determinism is the view that all events are caused by previous events, while indet...

On Refusing to Vote for Bloomberg

Billionaire Mike Bloomberg is attempting to buy the Democratic nomination. With something like $400 million in personal spending so far, that much is clear — and it appears to be working at least somewhat well, as he is nearing second place in national polls. I would guess that he will quickly into diminishing returns, but on the other hand spending on this level is totally unprecedented. At this burn rate he could easily spend more than the entire 2016 presidential election cost both parties before the primary is over. I published a piece today outlining why I would not vote for Bloomberg against Trump (I would vote for Sanders, Warren, Buttigieg, Klobuchar, or Biden), even though I live in a swing state. This got a lot of "vote blue no matter who" people riled up . They scolded me and demanded that I pre-commit to voting for Bloomberg should he win the nomination. The argument as I understand it is to try to make it as likely as possible that whatever Democrat wins t...

RIP Stephanie Chance, Niger Peace Corps volunteer

Our Peace Corps family has been suffering some tragedies lately. Stephanie Chance, a volunteer in Niger, has died of what appears to be natural causes. My thoughts are with her friends and family. Below I'm posting a letter from Director Aaron Williams. I am deeply saddened to write that Municipal Development Volunteer Stephanie Chance, an admired member of the Peace Corps family in Niger, died on Thursday, October 7, 2010. Stephanie, 26 years old, was found in her home in Zinder, and, at this time her death appears to be from natural causes. Her sudden passing is mourned by the entire Peace Corps community, including her fellow training group members, who were recently sworn in together as Volunteers on September 23, 2010. Stephanie was a native of Phoenix, Arizona, and she had arrived in Niger for training in July 2010. She had just arrived at her site in Zinder and was busy getting to know the community to help local officials better coordinate local government servi...