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Educational opportunity and mobility in the EU countries compared to the U.S. and Britain. Germany and France have maintained access to educational opportunity as a path to upward mobility for people of all classes in society. The deterioration in educational opportunity and access in the U.S. has long term consequences. It is also rarely mentioned in comparisons with Europe. Both sides of the Atlantic still espouse the same ideals for access to education for all, part of the ideals for their framework for democracy, even as the U.S. falls behind in practice. Better educated societies across all classes of society with upward mobility can also make more informed and better choices for society and government.

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Republican Jeb Bush's address to the 2013 CPAC conference focusses on the decline of social and educational mobility in the U.S. to its lowest point since 1945. In this address he points out that " the central mission of conservatives is to reignite social mobility in this country- restoring the right to rise." His focus on restoring the right to rise is on doing everything to increase opportunities for "quality education," an issue on which he focussed as governor of Florida. He sees technolgy and relative youthful population compared to China and other countries in Europe, as giving America a unique advantage. On this and individual efforts he pins the broad hopes of the middle class revival he sees. He puts the problems of America's middle class and working class as wages declined and the economy suffered from misallocation of resources in stark terms- "Today, the sad reality is that if you're born poor, if your parents did'nt go to college, if you don't know your father, if English isn't spoken at home- then the odds are stacked against you. You are more likely to stay poor today than at any other time since World War II." And he sees Conservatives having a response to this situation, and restoring the idea of America as a land of opportunity for all....

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U.S. Federal Reserve chairwoman Janet Yellen's speech at the Federal Reserve Bank of Boston conference on inequality was remarkable in the clear focus on the increase in inequality of the last three decades. Yellen calls it "the most sustained rise in inequality since the nineteenth century." Yellen also described the stark inequality between the lower half of households and those at the top- "The lower half of households by wealth held just 3 percent of wealth in 1989 and only 1 percent in 2013. To put that in perspective... the average net worth of the lower half of the distribution, representing 62 million households, was $11,000 in 2013. About one fourth of these families reported zero wealth or negative net worth, and a significant fraction of those said they were "underwater" on their home mortgages, owing more than the value of the home." Without saying this explicitly Yellen has accepted the Fed's own role in this situation under Greenspan and Bernanke. Under Bernanke Yellen was vicechairwoman. Yellen participated in many of the decisions of the Fed that kept interest rates low- hurting savers and those who could not take the risks of a volatile stock market. Yet Yellen has shown courage in stating the problem with all the facts she could muster, and making clear that Fed sees the long term unemployed as a critical driver for Fed policy....

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The WSJ's Monica Langley provides insights into Donald Trump's campaign strategies, some of them right out of his book "The Art of the Deal." His target voter is from a think big strategy to get voters across a broad spectrum using the slogan "Make America Great Again," with a knack of tapping into a deep well of voter frustration with the political establishment. How to get attention in the media is the next step Trump tackled by using social media to the fullest - using Twitter often, making statements that attract attention such as the ones on China, Mexico, Senator McCain and Muslims that tap into failure of political correctness to address voter frustration on trade and jobs, immigration and terrorism. The Trump campaign has 14 million followers on Twitter, and 50 million "engagement" accounts on Facebook- that cost very little. Social media is to Trump in 2016 what community networking on the PC dashboard was to Obama in 2008. As the WSJ pointed out in an editorial, the splitting of the Republican vote among many candidates, and the failure of candidates to grasp the nature of the unconventional campaign waged by Trump- descending into attacks based on target groups of voters on every candidate except Trump- created the opportunity Trump has grasped with his knack for improvising along the way. Commonsense campaigning without sophisticated strategies, improvising often along the way, using the available medium of social media at little cost to get the message and slogan across, helped Trump make the deal with voters to upset the political establishment. The Sanders campaign is also based on careful repetition of the same slogan and facts about inequality and lobbyists, over and over again, offering strong action on health care and college tution just as Trump offers strong action on China trade, immigration with the idea of the wall, and barring entry of Muslims for terrorism till "we figure out what's happening." The difference being that Trump thinks big and targets the entire electorate of his party's voters in the primaries from the beginning, and a broad based campaign on many issues. Underestimating your opponent carries many risks in politics, never more so than when you are out of touch or not listening to voter frustration, and fail to speak up to it....

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A 2011 survey by Universum shows technology firms such as Google, Apple and Facebook as the most preferred choice of university graduates during campus recruiting. Financial firms lag far behind, with J.P. Morgan Chase ranking 41st in that list. At Harvard Business School only 17% of the class went into investment banking and finance. Students from the University of Texas at Austin to Yale, say they want to build something tangible or follow their dream project.

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A recent book "The Spirit Level" has become popular in Britain. It says that countries with greater disparities in income also do worse in a number of social indicators, from higher murder rates to lower life expectancy. It also affects the consensus in society which is a necessary underpinning for sustained economic development and economic growth. Inequality when it affects the middle class and reduces the size of incomes in the middle, or creates stagnation in incomes, poses large risks for society and affects economic growth. In the US the home foreclosure crisis and the lack of bargaining power of wage earners in the middle class has created this problem. This is exacerbated by the banking crisis and bad loans in the banking system. Studies show that slow growth in college graduating rates in the USA after 1970 compared to the period 1900-1970, has increased inequality, especially with today's knowledge economy. Germany is also affected by this problem as wages for workers have remained stagnant with the labor reforms. Interestingly a combination of economic growth and payments to the poor have increased the size of the middle class and its incomes in Brazil. The austerity policies in Britain will affect incomes and income growth in Britain for the middle class. In China the gap is widening quickly between the urban areas and the rural areas. And the policy of residency permits- the hukou system-which limits internal mobility from rural areas to the cities and towns, makes the inequality all the more glaring. The lack of democratic election makes the situation worse in China compared to Brazil, because free elections in Brazil enabled leaders from the working classes such as Luiz Inacio Da Silva and Ms. Rousseff to emerge as heads of government. These leaders pursued policies that would explicitly bring a more shared prosperity in Brazil compared to the leadership in China. In China policies are determined by entrenched interests in its model of development- the state-owned companies and banks and their managers, local and government officials of the Communist party, and businesses with the networks and connections with the Communist party and local governments. This is why the ginni coefficient which measures inequality has dropped significantly in China, putting it in the rank of developing countries with poor records in equality. Inflation in China, India and Africa also affects the poor and lower middle classes to a greater extent. Current trends suggest that rebuilding the middle class in the developed countries and providing fairer distribution in developing countries will be of serious importance in coming years. Especially with the likelihood of more economic crises which tend to adversely affect the middle and lower classes disproportionately....

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Krugman comments on Governor Jindal's remarks at a post election Republican gathering. Jindal told Republican leaders: "We must not be the party that simply protects the well off so they can keep their toys. We have to be the party that shows all Americans how they can thrive." Jindal's policies do not match this rhetoric, says Krugman. He cites Jindal's push to eliminate the state income tax in Louisiana and make up lost revenue by increasing sales taxes, which fall more heavily on the middle class and poor.

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Some of the crude rhetoric at Donald Trump rallies, and use of coarse language, according to the NYT. Working class and older Americans show their anger at a system that appears to have left them behind with slogans, stickers, T-Shirts. The idea of the wall figures in much of this and shows that the wall has become not jut about Mexico but a metaphor that captures this anger, that reflects this anger. Another aspect of the 2016 campaign is that those most vulnerable and most in need of help have not sought the comfort of knowing about programs to improve middle class and working class wages, incomes, to build infrastructure, create jobs, stop companies from shifting jobs overseas, plans for improving accesss to health care and education, to ask for specifics and delivery. This is the supreme irony of the 2016 election campaign that not enough attention is going to what will be done for the middle and working class, and what specifics will be delivered, in what time frame- which is essential for restoring the condition of the American middle and working class to where it was in the 2 decades after the Second World War. ...

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This WSJ article provides a detailed account of the positions of Clinton and Trump on Wall Street, the financial industry, banks, Dodd-Frank, regulatory reform, 6 weeks before the U.S. presidential election.

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During the primaries Trump appealed to blue collar voters of a white working class that felt neglected by leaders and policies of both parties that did not seem to work for ordinary people. Having caught onto this early long before Republican candidates, Trump registered a series of wins in the Republican primaries. He continued this theme in his acceptance speech at the Republican National Convention on July 21, 2016, saying- "The forgotten men and women of our country- people who work but no longer have a voice: I am your voice." The idea was to couple this with the theme of law and order and put perception of Hillary Clinton as part of the rigged system of the past that Trump would change, with Clinton's legacy described in terms of "death, destruction, terrorism and weakness." As a change agent Trump described his entering the political arena in terms of coming into this election only to help blue collar people "so that the powerful can no longer beat up on people that cannot defend themselves." The two themes for the rest of the election season- law and order, and blue collar lives- and who can best defend them a traditional Democratic politician with a fighting spirit for traditional Democratic values, or a blustery newcomer adept with slogans and the public mood and ironically representing the Democratic values of representing the working class to become the  Republican nominee, with the law and order theme thrown in. The voter or independent listening in to all this will hopefully ask what all this means. As the WSJ, July 19, 2016, pointed out in a recent look at economc policies under the two candidates- on Glass Steagall Act being reinstated to increase safety of the banking system that caused many of today's problems through the 2008 financial crisis both Trump and Clinton are similiar, on opposing trade agreements similiar except that Trump's bluster is a riskier approach, on infrastructure building similiar with Clinton's $275 billion plan spelled out out for source of financing and Trump's unclear as to source of financing. On immigration the candidates are different, on the minimum wage which impacts low income people Clinton supports $15 minimum wage and Trump has not taken a stand. On ISIS and the Middle East Clinton is in reality a hawk and not much difference in the candidates, on law and order more chance of divisions in the country with Trump than Clinton. Overall for the working class and blue collar voter his life will take a decade or more to rebuild, with both candidates commiting to go in that direction. And the bluster and ads to come- just that.  ...

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A 93 year old hero of the French Resistance, Stephane Hessel, publishes a pamphlet called "Indignez-Vous!," released by a small publishing house from the publisher's home. He calls for resisting the "international dictatorship of the financial markets" and "defending the values of modern democracy." He protests France's treatment of illegal immigrants, the influence on the media by the affluent, cuts to the social safety net, French educational reforms. It was first published in October, and now has sold 1.5 million copies, all through word of mouth advertising. It has been translated into Spanish, Italian, Portuguese, and Greek. New editions are planned for Slovenian, Korean, Japanese, Swedish and other languages. In Britain, it was published with the title "Time for Outrage." The pamphlet is about 4000 words and only 14 pages of text. Its timing is good, as the French are debating what to do in their politics with an election approaching and Sarkozy's standing at new lows. The short length and low price are a big plus, at $4 it made a convenient Christmas gift. Britain, Spain, Portugal and Greece are going through austerity cuts. Public sentiment has been aroused by the cuts, and by the overarching influence of financial markets on the economies of these countries. Some of these countries referred derisively as piigs- Portugal, Ireland, Greece, Spain -countries in the financial markets. The economic impact has fallen disproportionately on the young, with high jobless rate for young people from Italy to Spain, and cuts in funding for universities and schools in the UK also fall heavily on young people. A sense that something has gone wrong in the free market system and the western world. Austerity cuts in spending in the U.S. create a similiar feeling and joblessness among young people is also high in the U.S....

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Working America, an arm of the U.S. trade union the AFL-CIO, conducted conversations with 350,000 voters in 17 U.S. states. Here a representative of Working America, says the overwhelming response to the question "does it make a difference whether Democrats or Republicans are in power for my well being," is reflected in one of the responses- "does it even matter?"

The suggested approach here is for Democrats in particular who have represented working class voters in the past, to start with a fresh approach by creating new conversations with working class Americans.

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Luigi Zingales of the University of Chicago Booth School of Business, compares the growing cronyism in the U.S. and the lack of social mobility to the situation in Italy where he grew up, and where the economy has stagnated over the last decade with fewer opportunities for the younger generation.

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David Brooks of the NYT says the Republican party is failing when it embraces Trump's version of populism with its racial division, tax plan that favors Republican donors and ignores fiscal conservative concern over deficits that affect future generations, supporting the election of Moore in Alabama, the constant Twitter comments that show prejudice. He says this will have destructive effects that could last an entire generation. This isn't the Republican party he has known for so long, says Brooks. The time is passed says Brooks when sensible republicans could go along in the middle by not agreeing with Trump, yet avoiding the task of opposing the elements of Trump policies that conflict with America's long held ideals shared by both parties. He calls its a corrupt deal that Republican party leaders in the Senate and Congress have agreed to make with Trump thinking that somehow this will all work out for them even if it doesn't for the party. Selling one's soul is somehow not an option that people would take in their right mid, so he wonders aloud what is happening in the party- and calls it a rot besetting the party of Lincoln, TR and Eisenhower that won't get it to any good place.   ...

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Census data show that 41% of all Mexican Americans in New York city schools have dropped out of school. Of Mexican American immigrants ages 19-23 only 6% are enrolled in college. This becomes significant considering that Mexican Americans are the fastest growing large immigrant group in the city, numbering 183,200, up from 33,600 in 1990, according to Census figures. These figures are worse than that of the Mexican American population as a whole, because of higher rates of illegal immigration, lack of stability in households, parents holding multiple jobs and lacking knowledge of English or contact with the school. Many are not aware that illegal immigrants who graduate from high school in New York State or earn a G.E.D. are allowed to attend the state public university system and pay in-state tution.

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U.S. House Speaker Paul Ryan, wins by 84% to his challenger's 16% of the vote in the Republican primary for his House seat of Janesville, Wisconsin. The challenger Nehlen, an executive at a water filtration company, adopted many of Trump's positions including building a wall and had the support of the group Tea Party Patriots. Trump lost to Ted Cruz in Wisconsin and lost in the 1st congressional district covering Janesville by 19 percentage points. Janesville, is a former industrial working class town that has lost many factory jobs over the years, and this election shows the trade issue is not the only issue on people's minds when they vote. That it is easy for a candidate to use it as wedge even when they do not mean what they say by outsourcing themselves, or have few real solutions- especially as public opinion in both parties is opposed to a shift of jobs overseas for the last decade. Ryan said about his win- "I'm a local guy, people know who I am, they know what I believe in and they know I mean what I say and I say what I mean and I don't do it in a mean way." Some Republican experts say Ryan's job of winning his seat very easily, protecting the congressional majority of Republicans, and dealing with Trump as the nominee, is the hardest job in politics. ...