Fight Rising Inequality by Pushing Back on Tip Theft!

Posted in:

Hello from Paris everyone!

I will resist here posting pictures of me eating fancy cheeses and drinking wine.

I’m in Paris with my long-time co-author Estelle Sommeiller for a presentation of our preliminary findings on top incomes across U.S. states and counties at the first conference of the World Wealth and Income database (The Economic Policy Institute will release the final version of our paper in the New Year). The database hosted at the Paris School of Economics and is an open source effort by dozens of scholars from around the world to assemble a complete picture of trends in the distribution of wealth and income in every country in the world. 

The conference kicked off with the release of the World Inequality Report (the executive summary / the full 300+ page report).  One of the important message to emerge from the report is that although income and wealth inequality are rising in much of the world, to borrow a phrase from our colleagues in Ohio, policy matters.  You can see that in the two figures below which plot out the share of income held by the top 1% and the bottom 50% in the U.S. and Western Europe. The share of income captured by the top 1% is rising in both places but it is rising much faster in the U.S. because economic policy in the U.S. has been much more favorable to the top 1% with steep cuts in taxes for the top, a falling minimum wage and the declining power of unions.

Of course, these are the trends through the last several years there is wide agreement here that the tax plan emerging from Congress will make sure that a large share of the benefits of economic growth in the future continues to flow to the top 1% (see the impact in Pennsylvania).  Similarly, a Trump proposal to allow employers to pocket the tips you leave for your server is bound to put more downward pressure on the incomes of bottom 50% of people. Visit the Restaurant Opportunities Center to find out how you can help push back on this effort to legalize wage theft.



0 comments posted

Post new comment

Comment Policy:

Thank you for joining the conversation. Comments are limited to 1,500 characters and are subject to approval and moderation. We reserve the right to remove comments that:

  • are injurious, defamatory, profane, off-topic or inappropriate;
  • contain personal attacks or racist, sexist, homophobic, or other slurs;
  • solicit and/or advertise for personal blogs and websites or to sell products or services;
  • may infringe the copyright or intellectual property rights of others or other applicable laws or regulations; or
  • are otherwise inconsistent with the goals of this blog.

Posted comments do not necessarily represent the views of the Keystone Research Center or Pennsylvania Budget and Policy Center and do not constitute official endorsement by either organization. Please note that comments will be approved during the Keystone Research Center's business hours.

If you have questions, please contact [email protected]

The content of this field is kept private and will not be shown publicly.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd> <p> <img>
  • Lines and paragraphs break automatically.