Working Notes: On trust at work, income inequality, and the fate of U.S. democracy

Dear readers, here are three studies worthy of our attention:

1. APA Work and Well-Being Survey

The American Psychological Association’s 2014 Work and Well-Being Survey reveals that a lot of American workers distrust their employers. Here’s a brief summary from Good Company, the newsletter of the APA’s Center for Organizational Excellence:

Despite the rebound in the U.S. economy and an improving job market, nearly one in four workers say they don’t trust their employer and only about half believe their employer is open and upfront with them, according to the American Psychological Association’s 2014 Work and Well-Being Survey released today.

While almost two-thirds (64 percent) of employed adults feel their organization treats them fairly, one in three reported that their employer is not always honest and truthful with them. “This lack of trust should serve as a wake-up call for employers,” says David W. Ballard, PsyD, MBA, head of APA’s Center for Organizational Excellence. “Trust plays an important role in the workplace and affects employees’ well-being and job performance.”

2. Thomas Piketty’s Capital

It’s not every day that a tome on economics is rising to the top of the bestseller charts, but French economist Thomas Piketty’s Capital in the Twenty-First Century (2014), an exhaustive study of income inequality in some 20 nations (including the U.S.), is doing just that. Using over a century’s worth of income and tax return data, Piketty provides a thorough, data-driven assessment of how unbridled capitalism has led to huge concentrations of wealth benefiting the super rich.

Piketty’s call for more progressive wealth tax and income tax rates to reverse these deep inequalities may play better in Europe than in the U.S. However, as Jennifer Schuessler reports for the New York Times, he is not calling for the end of capitalism:

…Mr. Piketty, who writes in the book that the collapse of Communism in 1989 left him “vaccinated for life” against the “lazy rhetoric of anticapitalism,” is no Marxian revolutionary. “I believe in private property,” he said in the interview. “But capitalism and markets should be the slave of democracy and not the opposite.”

The book is becoming a sensation within economic and policy circles, with many hailing it as a seminal work toward understanding modern economics. For an extended review essay of Capital by Paul Krugman in the New York Review of Books, go here.

3. Gilens & Page on American Oligarchy

Political scientists Martin Gilens and Benjamin Page have conducted an extensive empirical study confirming what so many have believed through observation of, and participation in, our political system: America is becoming an oligarchy ruled by the wealthy, rather than a democracy in which political power is shared. The BBC did a quick summary:

The US is dominated by a rich and powerful elite.

So concludes a recent study by Princeton University Prof Martin Gilens and Northwestern University Prof Benjamin I Page.

This is not news, you say.

Perhaps, but the two professors have conducted exhaustive research to try to present data-driven support for this conclusion. Here’s how they explain it:

Multivariate analysis indicates that economic elites and organised groups representing business interests have substantial independent impacts on US government policy, while average citizens and mass-based interest groups have little or no independent influence.

In English: the wealthy few move policy, while the average American has little power.

The study (go here for pdf) will be published this fall in Perspectives on Politics.

***

Hmm, we’ve got widespread worker distrust of employers, widespread wealth inequality, and widespread differences in political power between the wealthy and everyone else. It doesn’t take much to connect the dots, does it?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: