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Tag Archives: Redistribution


Harris, Warren Present Plans For Government To Redistribute Wealth By Race

By Tristan Justicethe Federalist

U.S. senators and 2020 presidential rivals Elizabeth Warren (D-Mass.) and Kamala Harris (D-Calif.) both announced new plans over the weekend for government to redistribute private wealth differently according to recipients’ race.

Both announced these plans at a cultural and music festival hosted by Essence Magazine, a monthly magazine for African-American women. The festival attracted several high-profile speakers, including former first lady Michelle Obama and six 2020 White House hopefuls: Harris, Warren, U.S. Sens. Cory Booker (D-N.J.) and Michael Bennet (D-Colo.), former U.S. Rep. Beto O’Rourke (D-TX.), and New York City Mayor Bill de Blasio.

Harris and Warren took the opportunity to showcase new proposals aimed at government picking economic winners and losers according to race and sex.

Harris Pledges $100 Billion to Subsidize Homeownership

Harris’ plan targets homeownership, pledging a $100 billion grant to support black families and individuals to secure homes in communities where financial institutions have historically denied loans to people of color, a practice known as red-lining. The money, Harris says, would be used to cover down payments and closing costs for as many as four million families or individuals.

“A typical black family has just $10 of wealth for every $100 held by a white family,” Harris told the audience. “So we must right that wrong and, after generations of discrimination, give black families a real shot at homeownership – historically one of the most powerful drivers of wealth in our country.”

The program Harris proposed would be administered by the Department of Housing and Urban Development and provide home buyers of certain racial backgrounds up to $25,000 each from taxpayers. Families making more than $100,000 annually or $125,000 per year in high-cost areas would be ineligible for these taxpayer subsidies. The cap is lower for individuals, at $50,000 and $75,000 for those living in what bureaucrats would define as high-cost places.

Harris’ proposal also calls for more government interference in alleged housing discrimination and new taxpayer funding for financial literacy. The California senator also proposed changes to how credit scores are calculated. Credit scores are based on people’s financial decision-making histories, and lenders use them to decide loan interest rates and eligibility.

Credit scores today are calculated based on individuals’ payment histories for debt such as credit cards, student loans, and mortgages. Harris wants to require credit-scoring agencies to take other payments into account including rent, phone bills, and utilities.

Harris also wants to change the way applicants’ debt is calculated when applying for a home, from the debt-to-income ratio being based on one year of income to a monthly basis. The change to a debt-to-income ratio based on monthly expenses would affect approximately 7.5 million black households and 5 million Latino households, according to Harris.

According to the Harris campaign, giving taxpayer money to black and Latino Americans to buy houses and forcing financial institutions to use politically calculated standards for lending would shrink the wealth gap between black and white households by 31 percent and bring up the median wealth of black households by approximately $32,000, and by $29,000 for Latino households.

Warren Proposes New Regulations for Gov’t Contractors

Warren’s plan aims at creating new rules for contractors working for the federal government, which employs approximately one-quarter of the nation’s workers. Warren released her plan Friday and discussed it at the Essence Festival Saturday, calling on an executive order to require federal contractors to increase their employment of people who are not white and getting government involved in deciding what women and minorities should be paid.

“It’s up to the federal government to say what the terms of those contacts are,” Warren asserted to the festival crowd. “It’s not enough to talk the talk about equal pay for equal work. It’s not enough to talk the talk about the diversity of your work force. You’ve got to walk the walk, or you’re not getting those federal contracts.”

Under Warren’s plan, companies seeking federal contracts would be prohibited from asking potential hires about previous salaries or criminal history. Contractors would also be barred from using forced arbitration and non-compete clauses,

The proposals from the two top-tier presidential candidates come as both senators have picked up steam following well-received performances in the first round of presidential debates held in Miami last month. Their campaign momentum has come at much of a cost to Democratic front-runner former Vice President Joe Biden and U.S. Sen. Bernie Sanders (I-Vt), both of whom have seen their support drop in the polls but remain competitive in the race.

Harris saw her poll numbers jump the most out of any other candidate following the debate, practically doubling her support from pre-debate levels at 7 percent to above 14 percent, according to Real Clear Politics’ latest aggregate of polls. The California senator garnered positive attention when she attacked Biden on stage for the former Delaware senator’s opposition on forced busing and for his recent remarks touting friendships with segregationist senators as examples of civility.

Even so, Biden remains the front-runner by a solid lead. The latest polling on display from Real Clear Politics still shows Biden with an average ten-point lead ahead of every other candidate.


Socialism’s Bloody History Shows Millennials Should Think Twice Before Supporting It

Socialism demands that we place blind trust in whoever takes the power to distribute society’s goods and services. History shows those who have this power abuse it in horrific ways.

by Stella Morabito     •     The Federalist

Nikolai Bukharin was executed by shooting in Moscow on March 15, 1938. He had been revered as a giant of the Bolshevik Revolution in Russia, as one who even worked side by side with Vladimir Lenin himself. Alas, Bukharin’s Marxist chickens had come home to roost by the time he was shot like a dog during Josef Stalin’s reign of terror. His execution marked the pinnacle of Stalin’s show trials of high-level officials.

You see, Bukharin invested in building a political system that inevitably puts the reins of power into the hands of just a few strongmen who end up calling all the shots. It’s a system in which suspicion and the smell of treason tend to hang in the air.

Socialism, by the way, is just such a system. This is the case whether you call it by any other name, whether communism, utopianism, or collectivism. Oh, go ahead and slap some lipstick on that pig and call it “democratic” socialism or “progressivism” or “communitarianism.” Continue reading


President Obama wants to limit your retirement savings — but not his own

by Allan Sloan     •     The Washington Post

Obama SmirkYou can’t keep a bad idea down. That’s my reaction to a terrible proposal in President Obama’s budget — limiting how much money can be set aside on your behalf in 401(k)s, pensions and other tax-favored retirement accounts.

The idea, of course, is to limit retirement-related tax breaks for “the rich.” The Treasury wants to limit the value of pensions and retirement accounts to about $3.4 million for a married couple, and something less than that (it doesn’t say how much) for single people. Continue reading


Nobody Is Pushing Thomas Piketty’s Policies to Combat Economic Inequality

By Michael Barone     •     RealClearPolitics

Money Hole TaxLast spring, you may remember, the French economist Thomas Piketty was all the rage in certain enlightened circles. His book “Capital” shot up to the No. 1 spot on bestseller lists, and many economists praised his statistics showing increased income and wealth inequality. Piketty argued that, absent a world war, returns to capital will exceed economic growth, inevitably producing growing inequality in the 21st century.

There are problems with Piketty’s — or anyone else’s — statistics. Reliance on U.S. income tax returns overlooks the fact that tax cuts encourage people to realize income and misses non-taxable income such as welfare and Social Security payments. Continue reading


A Recovery Stymied by Redistribution

Public policy intended to make layoffs less painful actually made layoffs cheaper and more common.

unemploymentby Casey B. Mulligan

Why has the labor market contracted so much and why does it remain depressed? Major subsidies and regulations intended to help the poor and unemployed were changed in more than a dozen ways—and although these policies were advertised as employment-expanding, the fact is that they reduced incentives for people to work and for businesses to hire.

You probably heard about the emergency-assistance program for the long-term unemployed that ended only a few months ago after running for almost six years. But there is also the food-stamp program. It got a new name and replaced the stamps with debit cards. Participants are no longer required to seek work and are not asked to demonstrate that they have no wealth. Essentially, any unmarried person can get food stamps while out of work and can stay on the program indefinitely. Continue reading


Obamacare will reduce incomes of most Americans

Money ObamaCareThere’s no doubt the Affordable Care Act will redistribute wealth in America. People at the top of the income ladder will pay more; people at the bottom will benefit. But how, exactly, will that work?

A new study finds that Obamacare’s redistribution will be stunningly lopsided. Scholars at the liberal Brookings Institution have discovered that Obamacare will increase the income of Americans in the lowest 20 percent of the income scale, and especially in the lowest ten percent. But all other income groups — even people who make very modest incomes in the $25,000 to $30,000 range, as well as all income brackets above that — will experience a decline in income because of Obamacare.

In other words, Obamacare is going to cost some of the very people it was designed to help. Continue reading


Rising incomes matter more than disparity

Rising TideEconomic growth benefits all. Obama’s focus on income brackets and disparity doesn’t create more growth, wealth or opportunity. It is merely focuses on redistribution. 

If President Obama is to be believed – and few conditional clauses give us more pause – the greatest economic challenge facing the nation is income inequality. He referred to it this month as “the defining challenge of our time,” the sort of superlative that always makes us suspect that a politician is up to something.

In this case, the strategy seems to be attempting to distract the nation from two undeniable realities that have much more plausible claims as “defining challenges”: an economy that has been lethargic for half a decade and a health care overhaul that may yet go down as the single-most conspicuous failure of big government in American history. Continue reading


Socialism’s Theme Park and Government Run Amok

Chrysler Transport worker Theisen carries a "Detroit Needs Jobs" sign as he joins a demonstration demanding jobs in DetroitThe fundamental transformation of Detroit is complete, as socialism’s theme park succumbs to government run amok, a reminder that government isn’t the solution to our problems but their cause.

The wisdom of President Reagan’s words have been lost under an administration that believes government is the entity from which all blessings flow. So has Margaret Thatcher’s observation that the problem with socialism is that eventually you run out of other people’s money.

Last Oct. 13, President Obama boasted in a weekly address about the bailed-out auto industry that, “We refused to throw in the towel and do nothing. We refused to let Detroit go bankrupt. I bet on American workers and American ingenuity, and three years later that bet is paying off in a big way.” Continue reading


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