Presented at Thoreau Society Annual Gathering Higher taxes in Europe result in more income equality than in the US. Invisible hand of Adam Smith's economics versus the Tragedy of the Commons Golden Rule of Economics: Those who have the gold make the rules.

1. Wage Serfs:
Principles & Politics Trumping People
Paul H Carr, PhD
Physicist, Philosopher, Photographer
Mystic, Transcendentalist,
Natural Philosopher

2. Thoreau, in his
Economy Chapter
of “Walden:”
“I see young men,
my townsmen,
whose misfortune
it is to have
inherited farms,
houses, barns,
cattle, and farming
tools….Who made
them serfs of the
soil?”

3. Thoreau might have
resonated with
NICKEL and DIMED:
On (Not) Getting By in
America
Experiencing living on minimum
wage jobs (2011).
Author Ehrenreich worked as a
Walmart clerk, house cleaner,
home health-aid, and hotel maid.
In order avoid living on the street,
she needed two minimum wage
jobs.

4. “Wage serfs” must
work so many hours
that they do not have
the time and energy to
get the education to
qualify for a living-wage
job.

5. • Wages of those with education
beyond a bachelor’s degree
has doubled since 1964.
High school dropouts are earning
less now than in 1962
Average US Income in
2012 dollars.
Top 10% $254,449
Bottom 90% $ 30,439

6. "There are a thousand hacking at the
branches of evil (symptoms) to one who is
striking at the root (cause).” Thoreau.

7. FAULTY ECONOMIC PRINCIPLES
• Belief in:
• “Invisible Hand,” Adam Smith (1776), which
guided the pursuit of individual gain towards the
public interest.
“The self-correcting power of the free market.”
( Alan Greenspan’s Laissez Faire Economics )
Ignoring:
• “Tragedy of the Commons,” William Forster
Lloyd (1833), in which the pursuit of individual
gain leads to negation of the common good.

8. Tragedy of the Commons
William Forster Lloyd (1833), Garrett Hardin (1968)
The pursuit of individual gain leads to negation of the
common good.
Lloyd was familiar with herdsmen who all grazed their cattle on a common for free.
Each individual gained by adding more cows to his own herd. As each pursued his
individual gain, the commons became overgrazed, resulting in the tragedy
malnourished cows.

9. ETHICS GOLDEN RULE:
Do unto others as you would have
them do unto you.
ECONOMICS GOLDEN RULE:
Whoever has the gold makes the
rules.

10. Since 1980, income inequality in the US increased, but not Europe.

11. Corporate rate of
48% decreased to
35%
Top individual tax
rate of 70%
decreased to
28%
21%
1980. 1990
Clinton
Tax
Increase,
US
Budget
Surplus
90% Tax rate
starting in 1942
1940 1970
2017
Decrease
For
Corporations
POLITICS The 1980 tax cuts for the wealthy did not trickle down.
It increased both income inequality and the national debt.

12. • The Dot-Com boom, plus tax increases, and lower
government spending fueled the 2000 budget surplus.
• National debt increased after the 1980 tax cuts.
1998-
2001
Surplu
s
1998-
2001
Surplus

13. Higher taxes in European counties buy:
• Free college and vocational education.
- No student loan debts.
• College and vocational education in
the US increases wages
• Problem with increased student
debt
• Teacher salaries should be higher
Higher taxes in European counties buy:
• Free college and vocational education.
- No student loan debts.
• College and vocational education in
the US increases wages
• Problem with increased student
debt
• Teacher salaries should be higher

14. ECONOMIC INEQUALITY: THE RELATIONAL-ETHICAL CHALLENGE
US TAX STRUCTURE
-Higher taxes in Europe contribute to better income equality than US
- US Tax Cuts have increased Income Inequality
20% of 65+ cannot afford to retire, doubled since 1985.
- “Trickle-Down” economics has increased our US debt.
- ”Trickle-Up” is better. It will eventually “Trickle Up”

15. EDUCATIONAL REQUIREMENTS
-Most of the increase in productivity and wealth (GDP) is due
to increases in digital computer technology.
- Bill Gates of Microsoft and Jeff Bezos of Amazon are now
wealthiest.
- Digital computer technology requires a college-equivalent
education.
POLITICAL TAX STRUCTURE
-The 1980 tax cuts for the rich increased inequality & US debt.
- Europe’s higher taxes on the rich brough more economic
equality than in the US.
PRINCIPLES & POLITICS TRUMPING PEOPLE
PRINCIPLES
-Balance individual liberty with laws and regulations.
ECONOMIC THEORIES
– Individual Gain not always a Common Social Good.

16. TWEET
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18. 10/9/15
Bill Gates Recommends this.

19. • Income inequality increased
dramatically in the 1980s
• Root causes of inequality.
• “Trickle-Down Economics vs.
“Trickle-Up.
• 20% of 65+ old seniors
cannot afford to retire,
doubled since 1985.

20. 20
1929
Recession
2008
Recession
What caused
1981
Inequality
Increase?