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Congressman John Campbell

“Increasing Income Disparity”

State of the Economy, Part 3 – “Increasing Income Disparity”: Last week, I laid out for you the case that “income inequality” should really be called “increasing income disparity” and suggested that it is a worldwide phenomenon. I also debunked commonly expressed “solutions” for this problem you often hear from leaders in Washington. However, I have not yet presented solutions of my own. Before I do, let’s first examine the factors at work here that I believe are causing this phenomenon.

There were a number of serious recessions during the Industrial Revolution of the late 19th and early 20th centuries. No one alive today has ever talked to anyone who experienced the beginning of the Industrial Revolution. So, with the exception of historians, it doesn’t get as much coverage in contemporary discussion as say, the Great Depression. What you may not know is that the Industrial Revolution caused a large job displacement at first. When the jobs on the farm went away, they were not immediately replaced in a factory. It took time before people figured out what to do with the extra disposable… Read More

Congressman John Campbell

Does Income Inequality Exist?

Last year, President Obama started raising the issue of “income inequality” as a new problem in America. He then proposed to fix this problem using the same “solutions” that he and other Democrats have been pushing for 40 years: Raise the minimum wage and increase unemployment insurance payments. He also used it to further advocate for wealth redistribution via the tax code.

Republicans generally responded that the issue was made up or trumped up by Obama and that this problem either doesn’t exist or is not as big a deal as he suggests. A few Republicans acknowledged the issue and proposed we fix it with tax cuts, which of course was the remedy said Republicans have been pushing for 40 years.

In my opinion, both sides are wrong. Obama is clearly using “income inequality” as a new reason to advocate for the same things he wanted long before “income inequality” ever entered the vernacular. In the same way, Republicans using it to advocate for our standard policy choices is equally inappropriate. So, what do I think we should or should not be doing… Read More

Katy Grimes

EDD computers must be fixed by Dec. 31 – Part ll

This is Part 2 of a series on the EDD. Part 1, an interview with Spokesman Dan Stephens, ishere.

Just after the Labor Day weekend, the California Employment Development Department released a $100 million computer upgrade. Itcrashed.

Without warning,150,000 joblessCalifornians were cut from unemployment benefits. The EDD blamed a computer glitch and said it would take weeks to fix.

November hearings in the Legislature produced promises to fix the system. In response,Henry Perea, D-Fresno, the chairman of the Insurance Committee, senta letterto EDD Director Hilliard demanding fixes by Dec. 31. Perea identified five… Read More