PA 50 Lecture 15-17

Public Affairs Overview

• Course Title: Public Affairs 50: Foundations and Debates in Public Thought

• Instructor: Professor Gary M. Segura

• Departments: Public Policy, Chicano Studies, Political Science

• Affiliation: Dean, Luskin School of Public Affairs

• Lectures: 15-17

Women Running for Office

• Candidate Emergence Processes: Different for men and women.

  • Structural Explanations:

    • Professional barriers preventing women's candidacy.

    • Impact of term limits.

  • Gatekeeping:

    • Systems designed to manage and sometimes suppress women's political ambition (e.g., party structures).

Women and Political Ambition

• Desire for Office: Fewer women exhibit interest in running for public office due to:

  • Three Stages:

    • Think: Less likely to conceive of running for office.

    • Believe: Doubts about winning. The notion of being plausible may be skewed.

    • Act: Reluctance to take action, often due to social conditioning.

• Candidate Recruitment: Favoritism towards men, further amplifies the lack of women in politics.

Women Winning Public Office

• Success Rates: Women win at rates comparable to men when controlling for predictors.

  • Disadvantages: Financial support and psychological/cultural biases impact women candidates.

  • Perception Biases:

    • Judged on criteria related to gender stereotypes, leading to unfair assessments on ambition, strength, and principled behavior against a backdrop of sexism.

Class and Inequality

Inequality and Justice

• Previous discussions on inequality linked to Justice and Fairness, referencing:

  • John Rawls: Inequality justified if it enhances everyone's well-being.

  • Concerns raised by various thinkers about the negative impact of inequality on democracy:

    • Schattschneider: Heavenly Chorus.

    • Dahl: Relative equal voices.

    • Madison: Permanent faction effects.

Wealth, Income, Structure, and Consequence

• Focus: Explore material inequality by distinguishing between wealth, income, and wages.

• Government Role: Examine how tax structures and policies impact political and socioeconomic outcomes.

Capitalism Basics

• Forms of Capitalism:

  • Mercantile, Agrarian, and Laissez Faire versions discussed but depth not required for this course.

• Core Assertions of Capitalism:

  • Commitment to private property.

  • Labor on capital creates wealth.

  • Market competition as a catalyst for efficiency.

Market Externalities and Failures

• Markets cannot correct several externalities:

  • Care for young and disabled, addressing social dislocation.

  • Necessary government interventions to correct or prevent market distortions, e.g., child labor, monopolies.

Inequality in Market Economies

• Taxation Implications:

  • Taxation affects market profitability and is used for public goods.

  • Debate on effective tax rates and their implications on social welfare.

Theories of Taxation and Expenditure

• Tax Systems: Flat vs. Progressive; Capital Gains Taxes; Effects of Marginal Tax Rates.

Historical Perspective on Tax Rates and Economic Growth

• Examination of the belief that higher taxes impede growth versus the reality of improved public infrastructure and redistributive policies positively affecting consumption.

Laffer Curve Implications

• Theory: Lowering marginal tax rates can lead to increased revenue through stimulated growth, yet many studies counter the idea of tax cuts paying for themselves.

• Historical estimates suggest revenue peaks occur much lower than often assumed.

Piketty's Views on Inequality

• Thomas Piketty's Argument: Rising inequality in developed nations can destabilize societies; wealth concentration occurs when investment profits outpace economic growth.

Income Inequality Trends (1910-2010)

• Top Income Share Analysis: Examining how income distribution among the top percentiles has drastically changed over the century.

The Effect of United States Tax Laws

• Current Tax Structures: Varied rates impact different income groups, especially in capital gains which are taxed at lower rates compared to ordinary income.

The Impact of the 2017 Tax Bill

• Consequences: Increase in inequality by favoring the highest earners while temporary cuts benefitting the middle class are set to expire.

Sources of Inequality

• Factors affecting wage growth: market dynamics, productivity shifts, and government policies influence income disparities.

Executive Compensation Trends

• CEO Pay Ratios: Growth from 42 times that of average worker pay in 1980 to 361 times today reflects increasing wage inequality.

Labor Organization's Impact

• Union Membership: Direct correlation observed between union membership rates and income inequality.

Role of Government in Inequality

• Not solely responsible, but does govern various economic factors that shape inequality such as tax policy and minimum wage laws.

Partisan Effects on Income Policies

• Democratic vs. Republican Economies: Historical data show Democrats create more favorable income growth and lower income inequality than Republicans.

Conclusion on Tax Policies Impact

• Importance: Democratic tax policies play a critical role in addressing inequality, ensuring that income growth is equitable across all strata.