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The good people at Too Much Online - a newsletter put out by the group Inequality.org have an interesting and provocative idea that would seem guaranteed to improve the image of  America’s nonprofit community (which has been suffering from depressed contributions of late) and help combat the nation’s runaway inequality: cap nonprofit CEO salaries.

“Jack Gerard, the CEO of the American Petroleum Institute, pulled down $13.3 million in compensation last year. Yet his Institute operates as a ‘nonprofit’ — and reaps a variety of tax benefits from that status. In effect, average Americans are subsidizing this lobbying giant for the fossil fuels industry. Back in 1998, a member of Congress from New Jersey, Robert Menendez, introduced legislation to cap the salary that nonprofit executives could grab at no more than the salaries of U.S. cabinet secretaries, currently just under $200,000. That legislation never moved. But economist Dean Baker recently resurrected the notion of limiting the executive pay nonprofits could dish out and still qualify for nonprofit status. That limit could be tied to the ratio between a nonprofit’s CEO and typical worker pay. The 2010 Dodd-Frank Act requires for-profit corporations to disclose this ratio. Menendez introduced this disclosure mandate provision.”

Sounds like a good idea to us. As economist Dean Baker notes in the column cited above (which discusses the idea of capping the pay of university presidents):

“The universities will also complain that they cannot get qualified people for $400,000 a year. This one should invite a healthy dose of ridicule. If we can get qualified people to run the Defense Department and Department of Health and Human Services for half this amount, perhaps their school is not the sort of institution that deserves taxpayer support if it can’t find anyone willing to make the sacrifice of running the place for twice the pay of a cabinet secretary.

Free market economics is so much fun!”

Commentary

The maddening data on wealth inequality in America have now gotten so ridiculously out of hand that the headline for this post really does sum up what ought to be the single, defining issue in today’s election. For confirmation, check out the following amazing graphic from the good people at Inequality.org.

Wealth inequality

Commentary

The good folks at Inequality.org continue to do a great job of documenting America’s obscene and metastasizing wealth and income gaps. This week, in their online newsletter Too Much, they highlight as fascinating comparison between French and U.S. households when it comes to wealth. As you can see, Americans top the French when it comes to average wealth because the rich here are so much richer and all of their holdings gets factored in. When one looks at median wealth however (i.e. the wealth of the most typical adult) the French leave us in la poussière.  This graphic from the Too Much website tells the grim story.

US France wealth stats

Commentary

The good people at Inequality.org have stashed several nuggets of powerful information in today’s edition of Too Much: An online weekly on excess and inequality that will make you want to pound the table, but the story on the newest edition of Forbes magazine’s richest 400 gazillionaires is perhaps the most amazing — especially this little vignette on one of the richest of the plutocrats, former Oracle CEO Larry Ellison:

Take Larry Ellison, the third-ranking deep pocket on this year’s Forbes list. Ellison just stepped down as the CEO of the Oracle business software colossus. His net worth: $50 billion.

What does Ellison do with all those billions? He collects homes and estates, for starters, with 15 or so scattered all around the world. Ellison likes yachts, too. He currently has two extremely big ones, each over half as long as a football field.

Ellison also likes to play basketball, even on his yachts. If a ball bounces over the railing, no problem. Ellison has a powerboat following his yacht, the Wall Street Journal noted this past spring, “to retrieve balls that go overboard.”

And if Ellison’s ridiculous wealth doesn’t get you a little fired up, check out this graph from the same story showing just how rapidly he and his peers are leaving the rest of us in their wake:

Billionaires graph

Falling Behind in NC, NC Budget and Tax Center, Poverty and Income Data 2013, Poverty and Policy Matters

New data released by the US Census highlight the pervasiveness of poverty nationally and in North Carolina. In 2013, one in six North Carolinians lived below the federal poverty rate – less than $24,000 a year for a family of four and  $12,000 a year for an individual. For communities of color, the poverty rate is far worse: 32.5 percent for Latinos, 28.9 percent for American Indians, and 28 percent for African Americans.

These daunting poverty rates highlight that far too many individuals and families across the state face economic hardship. The persistence of poverty has been accompanied by a rise in income inequality, which poses consequential implications for the overall economy and North Carolina’s state economy. The bulk of economic gains from the ongoing economic recovery have flowed to a small group of high-income earners. In the first three years of the economic recovery, the top 1 percent of income earners captured 95 percent of the income gains nationally. Here in North Carolina, income for the top 1 percent of income earners in the state grew by 6.2 percent from 2009 to 2011 while the bottom 99 percent saw their income decline by 2.9 percent. The latest US Census data show that this early post recovery trend is likely to hold. By 2013, the top 20 percent of households in North Carolina captured more than half of all income earned by all households in the state (see graphic below). Read More