Index

• Abbott decisions, 124
• Abolitionists, 51, 54, 58
• Abortion, 57–58, 72
• Acosta, John, 172n14
• Adelson, Sheldon, 85, 92
• Advertising, 44, 59, 68, 70, 72, 83, 108–109
• Affordable Care Act, xv, 18, 57, 91–92, 95, 141–142
• African Americans
  • as abominable, 51
  • Brown v. Board of Education and, 116, 119, 171n16
  • cities and, 129–133
  • civil rights and, 15, 20, 22, 27, 53, 56–59, 67, 72, 94, 104, 113, 133, 142
  • community dysfunction and, 55
  • concepts of government and, 88, 91, 94
  • conservatives and, 56, 58–59
  • cross-country comparison and, 148
  • debt and, 142, 144
  • discrimination and, 15, 20–21, 38, 51–54, 56, 58, 66, 89, 105, 117, 153, 171n29
  • dual economy and, 9–13
  • equal protection clause and, 58, 67, 102
  • farming and, 50–51
  • fear of plots by, 51
  • Fifteenth Amendment and, 15, 56, 58
  • Forbes 400 list and, 77, 82–83, 85, 92
  • FTE (finance, technology, and electronics) sector and, 15, 20, 22
  • full citizenship and, 15, 22, 159
  • Great Migration and, xii, xiv, 20, 27–29, 34–35, 52–55, 104, 116–117, 125
  • integration and, 13, 34, 80, 82, 106, 115–117, 120, 122, 128, 142, 157, 159
  • Investment Theory of Politics and, 61, 64–67
  • Jim Crow policies and, 27, 49, 51–53, 58, 65–66, 104, 107, 154
  • jury duty and, 56, 59
  • legal exclusion of, 53
  • Lewis and, 49
  • low-wage sector and, 27–29, 34–40, 50–54, 153–154, 171n19
  • mass incarceration and, xv–xvi, 101–109, 112, 153
  • Medicaid denial to, 91
  • NAACP and, 116–117
  • New Deal and, 52
  • new immigrants grouped with, 53
  • Obama and, 25, 38, 81–84, 91, 96, 127, 175n12
  • police shootings and, 56–58, 60, 102–103, 179n7
  • population demographics of, 49
  • public education and, xiv, 115–122, 125–128, 154, 157
  • public office challenges of, 82–83
  • segregation and, ix, 27, 34, 53, 80, 117–121, 131, 153–154, 171n16
  • slavery and, xi, 50 (see also Slavery)
  • speed traps and, 103
  • transition and, 41–42
  • unions and, 20–21
  • very rich and, 77–78, 82
  • voting rights and, 56, 180n11
  • War on Drugs and, 27, 37–38, 53, 55, 104, 106
• Agee, James, 52
• Agriculture. See Farmers
• Alcohol, 39, 154
• Alexander, Michelle, xvi, 27
• Al Qaeda, 143
• American Legislative Exchange Council (ALEC), 19, 37, 83, 95, 110–111
• American Society of Civil Engineers (ASCE), 133
• Amtrak, 134
• Anti-communism, 83
• Antitrust standards, 31
• Apple, 31, 82
• Arcidiacono, Ryan, 127
• Articles of Confederation, 62
• Asians, 6, 9, 32, 144
• Autocracy, 87–88, 92–97
• Autor, David, 155

• Baby boomers, 69, 104, 128
• Bailouts, 33, 80, 135
• Baker, Charlie, 135
• Bank of America, 139
• Bankruptcy, 33, 44–45, 81, 89–90, 113
• Ban the Box campaigns, 38
• Bargaining power, 31
• Bartels, Larry, 71–73, 78–79, 174n20
• Becker, Gary, 165
• Big Short, The (Lewis), 128
• Birther movement, 38, 175n12
• Blacks. See African Americans
• Block grants, 21, 35, 129
• Boehner, John, 80
• Bomb robots, 102
• Booker, Cory, 122
• Border issues, 55, 103
• Bowman, John-David, 25, 46
• Brennan Center for Justice, 74
• Bretton Woods, 15–16, 23–24, 32
• Bridges, 133–137, 158, 163
• Broad, Eli, 121
• Brown, Michael, 57, 102
• Brown v. Board of Education, 116, 119, 171n16
• Brunner test, 44
• Bubbles, 128, 154–155
• Bureau of Labor, 170n31
• Bush, George H. W., 17, 35, 71, 129
• Bush, George W., 71–72, 89, 95, 127, 142–143
• Bush, Jeb, 95
• Bush v. Gore, 89, 95

• Camels, ix, 67n1
• Capital
  • concepts of government and, 93
  • defining, 164
  • FTE (finance, technology, and electronics) sector and, 11–13, 23–24, 42–45, 153, 164
  • housing and, 10 (see also Housing)
  • infrastructure and, 11
  • kinds of, 166 (see also Human capital; Social capital)
  • Lewis model and, 6–7, 153
  • low-wage sector and, 29, 32, 39, 42–45
  • race and, 52
  • role of in growth, 165
  • very rich and, 161–162
• Capital gains, 24
• Capital-income ratio, 181n3
• Capital in the Twenty-First Century (Piketty), x, 3, 156, 161
• Capitalists, 6–8, 11, 44, 62, 126, 153, 163, 168n13
• Capital-labor ratio, 163, 181n3
• Carter, Jimmy, 16
• Cato Institute, 18, 22
• Charter schools, 120–123
• Cheney, Dick, 71
• Cherlin, Andrew, 35
• China, 6, 34, 148, 150, 180n6
• Christie, Chris, 124, 134
• Chrysler, 33–34
• Cities, xvi
  • African Americans and, 129–133
  • apartments and, 131–132
  • bridges and, 133–137, 158, 163
  • Bush administrations and, 35
  • city planners and, 131–132
  • college and, 129, 133
  • debt and, 138, 141
  • defensible space and, 131–133
  • emergency managers and, 35–36, 129–130
  • federal funding and, 35, 37, 93
  • Flint, Michigan, water crisis and, xv, 35–36, 129–130
  • FTE (finance, technology, and electronics) sector and, 130, 135–136, 179n18
  • Great Migration and, 20
  • Greek, 87
  • housing and, 131–132
  • infrastructure issues and, 129–137, 156–158, 163
  • Latinos and, 133
  • lead contamination and, 35–36, 129–130
  • Lewis model and, 132
  • low-wage sector and, 130, 135–136
  • mass transit and, 133–135
  • Milliken v. Bradley and, 116–117, 129, 142
  • mobility and, 133
  • New Federalism and, 35–36
  • Nixon and, 35–36
  • North and, 132–134
  • old school buildings and, 129–130
  • police and, 132
  • poverty and, 13, 131–132
  • public education and, 115–133, 136
  • Reagan and, 35
  • segregation and, 131
  • slavery and, 133
  • social capital and, 131–133
  • taxes and, 129–130, 134–136
  • toxic buildings and, 132
  • tunnels and, 134–135
  • unemployment and, 132
  • U.S. v. Yonkers and, 131
  • water systems and, 35–36, 129–130
• Citizenship, 15, 22, 159
• Citizens United, 84–85, 95, 158–159
• Civil rights
  • code words and, xii
  • full citizenship and, 15, 22, 159
  • Investment Theory of Politics and, 67, 72
  • Johnson and, 15, 27, 53, 59, 89, 126, 168n2
  • mass incarceration and, 104, 113
  • race and, 15, 20, 22, 27, 53, 56–59, 67, 72, 94, 104, 113, 133, 142
• Civil Rights Act, 15, 20, 58, 133
• Civil War, ix, xi, 15, 17–18, 51, 65, 88, 94, 107, 180n13
• Clinton, Bill, 94–95, 104, 138
• Coates, Ta-Nehisi, 49
• Cocaine, 37, 104
• Code words and, xii, 18
• College, 168n10
  • cities and, 129, 133
  • debt and, 139–140
  • dual economy and, 3, 8, 10–11
  • FTE (finance, technology, and electronics) sector and, 10, 24–25, 41–46
  • GI Bill and, 34, 43, 52, 65
  • inadequate resources of, 42–46, 116
  • infrastructure reform and, 157
  • low-wage sector and, 29, 122
  • mass incarceration and, 101–102, 105, 108, 110
  • need for refinancing, 157
  • Pell Grants and, 43
  • race and, 52, 119–121
  • student loans and, 43–45, 137, 140, 172n14
  • transition and, 41–46
  • tuition costs and, 43, 46, 105, 150
  • undue hardship and, 44
  • women and, 57, 116
• Columbus Day, 67
• Competition
  • border issues and, 55, 103
  • China and, 32
  • globalization and, 8, 28–29, 33, 55, 148, 151, 155, 161
  • Head Start and, 127
  • immigrants and, 31–32, 103
  • Investment Theory of Politics and, 68
  • Japan and, 32
  • labor and, 32, 103, 127
  • low-wage sector and, 31–34
  • mass incarceration and, 110–112
  • mutual funds and, 31
  • public education and, 127
  • tariffs and, 21, 32–33
  • very rich and, 85
• Concepts of government
  • Affordable Care Act and, 91–92, 95
  • African Americans and, 88, 91, 94
  • autocracy and, 87–88, 92–97
  • capital and, 93
  • conservatives and, 89, 96–97
  • democratic, 64–65, 75, 87–96, 137, 156, 158–160, 175n1
  • Democrats and, 88, 95–96
  • discrimination and, 89
  • federalism and, 21–22, 35, 44, 65, 83, 103, 110
  • financial crisis of 2008 and, 91, 95
  • FTE (finance, technology, and electronics) sector and, 87, 92, 94, 96
  • Greeks and, 87
  • health care and, 92
  • industry and, 87, 93
  • inequality and, 87–88, 94
  • insurance and, 89–90
  • Investment Theory of Politics and
  • kleptocracy and, 93
  • Latinos and, 91
  • Lewis model and, 89
  • Lincoln and, 87
  • low-wage sector and, 89, 92
  • mass incarceration and, 95
  • Medicaid/Medicare and, xv, 91, 93, 142
  • New Deal and, 21, 52, 65, 80–81, 101, 141
  • North and, 88, 94
  • oligarchy and, 65, 72, 87–89, 93–97, 115, 159
  • privatization and, 16, 19, 21–22, 44, 101, 110, 112, 120–122, 134, 158
  • product liability law and, 91
  • risk reduction and, 89–91
  • Romans and, 87, 97
  • slavery and, 88, 94
  • South and, 88, 91, 94
  • taxes and, 89–92, 95
  • voting and, 88–89, 94–96
  • wages and, 89–92
  • women and, 94
  • World War I era and, 94
  • World War II era and, 88, 92
• Congressional Budget Office, 22–23
• Conservatives, 159
  • ALEC and, 19, 37, 83, 95, 110–111
  • Cato Institute and, 18, 22
  • concepts of government and, 89, 96–97
  • Dallas, Texas, and, 80–81
  • equal protection clause and, 67
  • federal power and, 21–22
  • FTE (finance, technology, and electronics) sector and, 16–22
  • John Birch Society and, 83
  • mass incarceration and, 110
  • military and, 16, 22, 71
  • production and, 80–81
  • public education and, 124
  • race and, 56, 58–59
  • supremacist organizations and, 169n9
  • very rich and, 80–85
  • welfare state and, 21
• Constitutional Convention, 62–64
• Consumer Financial Protection Bureau, 91
• Consumption, 4, 16, 79, 139–140, 158, 161
• Corrections Corporation of America, 110
• Corruption, 74, 93
• Cotton, xi, 59, 115
• Coverture, 56
• Cross-country comparison
  • African Americans and, 148
  • financial crisis of 2008 and, 150–151
  • FTE (finance, technology, and electronics) sector and, 147, 149
  • income distribution and, 147–151
  • inequality and, 147–151
  • labor and, 148, 151
  • Lewis model and, 147
  • low-wage sector and, 147–150
  • middle class and, 147, 151
  • poverty and, 149
  • slavery and, 148
• Curiel, Gonzalo P., 66

• Dallas, Texas, 80–81, 84, 102
• Dark Money (Mayer), 83
• Dasgupta, Partha, 165–166
• Debt
  • Affordable Care Act and, 141–142
  • African Americans and, 142, 144
  • college and, 139–140
  • Fannie Mae and, 138
  • financial crisis of 2008 and, 138–141, 143, 154, 158
  • as form of oppression, 137–138
  • Freddy Mac and, 138
  • FTE (finance, technology, and electronics) sector and, 137–144
  • HAMP and, 139–140
  • housing and, 138–139
  • infrastructure and, 143
  • Latinos and, 144
  • low-wage sector and, 137–143
  • mortgages and, 34, 44–45, 69, 80, 117, 137–140, 154, 156, 179n5
  • national, 141–143
  • OPEC and, 143
  • personal, 137–141
  • police and, 139
  • Reagan and, 143
  • reform for, 156, 158
  • Social Security and, 141
  • student loans and, 43–45, 137, 140, 172n14
  • TARP and, 139, 179n4
  • taxes and, 138, 141, 158, 172n14
  • unemployment and, 141
  • universities and, 139–140
• Declaration of Independence, 18, 51
• Defensible space, 131–133
• Dell, Michael, 121
• Democracy
  • Civil Rights Act and, 15, 20, 58, 133, 142
  • concept of, 64–65, 75, 87–96, 137, 156, 158–160
  • FTE (finance, technology, and electronics) sector and, 21
  • Investment Theory of Politics and, 63, 65, 67
  • popular vote and, 62, 96
  • public education and, 115
  • security and, 155
  • social programs and, 162
  • state legislatures and, 19, 62–63, 95
  • very rich and, 81, 85
  • Voting Rights Act and, 15, 58, 65, 67, 89, 94, 142, 159
• Democratic National Convention
• Democrats
  • concepts of government and, 88, 95–96, 175n1
  • disorganization of, 159
  • Investment Theory of Politics and
  • low-wage sector and, 154
  • Northern, 59
  • public education and, 125
  • race and, 51, 58–59
  • Southern, 51, 59
  • very rich and, 80–81, 84
• Deregulation, 16–23, 32, 44, 85
• Developing countries, 6, 7–8, 21, 151, 163
• Dewey, John, 155–156, 159
• Dimon, Jamie, 62
• Discrimination
  • Brown v. Board of Education and, 116, 119, 171n16
  • concepts of government and, 89
  • elitism and, 52, 66, 74, 161
  • equal protection clause and, 58, 67, 102
  • FTE (finance, technology, and electronics) sector and, 15, 20–21
  • gender, 49 (see also Women)
  • Investment Theory of Politics and
  • Jim Crow policies and, 27, 49, 51–53, 58, 65–66, 104, 107, 154
  • juries and, 56, 59
  • low-wage sector and, 38, 153
  • mass incarceration and, 105
  • mortgages and, 117
  • poll taxes and, 58, 65
  • public education and, 117
  • racial, 15, 20–21, 38, 51–54, 56, 58, 66, 89, 105, 117, 153, 171n29
  • redlining and, 34, 53
  • segregation and, 53 (see also Segregation)
  • statistical, 171n29
  • War on Drugs and, 27, 37–38, 53, 55, 104, 106
  • white rage and, 51, 101, 104
• Disengagement, 35, 117
• Diversity, 49, 51, 128, 156
• Dix, Dorothea, 107
• Dodd-Frank Financial Reform Act
• Dodd-Frank Wall Street Reform and Consumer Protection Act, 93
• Dow Jones Industrial Index, 23
• Draft, 16
• Dropouts, 42, 45, 108, 158
• Drug laws, 104, 171n24
• Dual economy
  • African Americans and, 9–13
  • college and, 3, 8, 11–12
  • farmers and, 6–11
  • financial crisis of 2008 and, 4, 9, 12
  • FTE and, 9–13, 168n10 (see also FTE [Finance, Technology, and Electronics] sector)
  • human capital and, 11–12
  • immigrants and, 10
  • income distribution and, 3–5
  • inequality and, 10
  • integration and, 13
  • labor and, 6–7
  • Latinos and, 9–10, 13, 54–55
  • Lewis model and, xiii, xvii, 5–12, 62, 82, 89, 124, 158
  • low-wage sector and, 4, 8, 9–13 (see also Low-wage sector)
  • social capital and, 12
  • taxes and, 10, 12
  • transition and, 41–46
  • wages and, 3–13
• Dukakis, Michael, 109
• Dylan, Bob, xii

• Elephant, 150
• Earned Income Tax Credit, 79
• Edwards, John, 3
• Elitism, 52, 66, 74, 161
• Emergency managers, 35–36
• Environmental Protection Agency (EPA), 84, 93, 130
• Environmental racism, xv
• Equal protection clause, 58, 67, 102
• Equity, 30, 111
• Eurodollars, 16, 23
• Evans, Walker, 52
• Exchange rates, 15–16, 23, 32, 169n3
• Expected wage, 8

• Facebook, 122
• Fannie Mae, 138
• Farmers
  • African Americans and, 50–51
  • agricultural issues and, xi, 6, 31, 63
  • cotton and, xi, 59, 115
  • dual economy and, 6–11
  • as economic maximizers, 168n13
  • indentured servants and, 50
  • Investment Theory of Politics and, 62, 66
  • migrant workers and, 11
  • poor, 6
  • race and, 50, 52
  • subsistence, 5–6, 8, 10, 62
• Federal funding, 35, 37, 93, 129
• Federalism, 21–22, 35, 44, 65, 83, 103, 110
• Federal Reserve System, 15–16, 93
• Ferguson, Missouri, 102–103
• Fernandez, Nelson, 103–104
• Fifteenth Amendment, 15, 56, 58
• Filibusters, 19
• Financial crisis of 2008
  • concepts of government and, 91, 95
  • cross-country comparison and, 150–151
  • debt and, 138–141, 143, 154, 158
  • dual economy and, 4, 10, 12
  • FTE (finance, technology, and electronics) sector and, 17
  • housing boom and, 164
  • Investment Theory of Politics and, 174n15
  • labor and, 158
  • low-wage sector and, 38
  • private equity firms and, 111
  • public education and, 118–119, 128
  • S&L crisis and, 17
  • transition and, 45
  • very rich and, 80
• Financial Times magazine, 61, 135
• FIRE (finance, insurance, and real estate) sector, 80
• Flint, Michigan, water crisis, xv, 35–36, 129–130
• Food stamps, 79
• Forbes 400 list, 77, 82–83, 85, 92
• Ford, Gerald, 168n2
• Foster, Timothy, 59
• 401(k) plans, 33–34
• Fourteenth Amendment, 51, 58
• Freddy Mac, 138
• Freeland, Chrystia, 3, 79
• FTE (finance, technology, and electronics) sector
  • African Americans and, 15, 20, 22
  • birth of, 27
  • capital and, 11–13, 23–24, 42–45, 153, 164
  • CEO earnings and, 24
  • cities and, 130, 135–136, 179n18
  • college and, 10, 24–25, 41–46
  • concepts of government and, 87, 92, 94, 96
  • conservatives and, 16–22
  • cross-country comparison and, 147, 149
  • debt and, 137–144
  • democracy and, 21
  • demographics of, 10
  • deregulation and, 16–23, 32, 44, 85
  • discrimination and, 15, 20–21
  • dual economy and, 9–13, 168n10
  • expansion of, 30
  • financial crisis of 2008 and, 17
  • globalization and, 29
  • Great Gatsby Curve, The, and, 46
  • Great Migration and, 20
  • hourglass job profile and, 28–29
  • human capital and, 23, 44
  • ignoring needs of poor by, 80, 135, 142, 153–155
  • immigrants and, 20
  • income distribution and, 22
  • industry and, 16, 18, 20, 23, 25
  • infrastructure and, 36, 154
  • Investment Theory of Politics and, 67–70, 74–75
  • labor and, 13, 19–21, 24, 153
  • Lewis model and, 20, 36, 101, 105, 153
  • liberals and, 17, 19, 21–22, 105
  • low-wage sector and, 11–13, 25, 27–29, 32–37, 153–155, 170n6
  • mass incarceration and, 101–106, 109, 112–114
  • middle class and, 96, 144, 147, 153, 155
  • military and, 102–104, 109–110, 112, 127, 143
  • North and, 20
  • political choice by, 153
  • public education and, 115, 117, 119, 122, 127–128
  • race and, 9–10, 49, 55
  • S&L crisis and, 17
  • slavery and, 17, 22
  • Social Security and, 33, 45, 52, 69–70, 79, 90, 93, 141, 174n15
  • South and, 15, 17, 20, 22
  • taxes and, 15, 17–18, 22–24, 155
  • transition and, 11, 41–46, 154
  • unemployment and, 16, 21
  • unions and, 18–22, 28–29, 32–34, 64, 80–81, 116, 120
  • very rich and, 77–81
  • wages and, 16, 20–23, 25
  • World War I era and, 20–21
  • World War II era and, 15, 21

• Garland, Merrick, 96
• Gates, Bill, 121
• Geithner, Timothy, 139
• General Motors (GM), 33–34
• Gerrymandering, 96
• GI Bill, 34, 43, 52, 65
• Globalization
  • competition and, 8, 28–29, 33, 55, 148, 151, 155, 161
  • FTE (finance, technology, and electronics) sector and, 29
  • low-wage sector and, 28–29, 33
• Goldin, Claudia, xiii
• Great Depression, 21, 52–53, 80, 93
• Great Gatsby Curve, The, 46
• Great Migration
  • African Americans and, xi–xii, xiv, 20, 27–29, 34–35, 52–55, 104, 116–117, 125
  • company boundaries and, 29–30
  • FTE (finance, technology, and electronics) sector and, 20
  • Latinos and, 55
  • length of, 20, 27–28
  • Lewis model and, 20
  • low-wage sector and, 27–29, 34–35
  • mass incarceration and, 104
  • Michigan and, 35
  • mortgages and, 34
  • public education and, 116–117, 125
  • urbanization and, 20
• Growth miracles, 6

• Halliburton, 143
• Hamilton, Derrick, 173n17
• Handlin, Mary, 50
• Handlin, Oscar, 50
• Hayek, Friedrich, 21–22, 81
• Head Start, 126–127, 156
• Health care
  • Aetna and, 142
  • Affordable Care Act and, xv, 18, 57, 91–92, 95, 141–142
  • concepts of government and, 92
  • low-wage sector and, 154
  • mass incarceration and, 108–109, 113
  • Medicare/Medicaid and, xv, 91, 93, 142
  • Piketty on, 156
  • universal, 79
  • women and, 56–57
• Heckman, James, 124
• Hedge fund managers, xv, 23–24, 82, 167n1, 179n5
• Helms, Jesse, 80
• Heritage Foundation, 17–18, 22
• Heroin, 104
• High school, 25, 119–121, 126
• Hispanics. See Latinos
• Home Affordable Modification Program (HAMP), 139–140
• Honda, 34
• Horton, Willie, 108–109
• Housing
  • boom in, 138, 164
  • bubble of, 154–155
  • cities and, 131–132
  • debt and, 138–139
  • fall in price of, 138
  • financial crisis of 2008 and, 10, 138, 164
  • HAMP and, 139–140
  • integration and, 34, 157, 159
  • low-wage sector and, 34, 153
  • mass incarceration and, 105–106, 112–113
  • mortgages and, 34, 44–45, 69, 80, 117, 137–140, 154, 156, 179n5
  • rethinking policies on, 157
  • segregation and, 153, 171n16
  • TARP and, 139, 179n4
  • very rich and, 131
  • white flight and, 34, 38, 117, 125, 179n7
• Human capital
  • dual economy and, 11–12
  • FTE (finance, technology, and electronics) sector and, 23, 44
  • inequality models and, 165–166
  • public education and, 121, 124, 126–127
  • transition and, 44
• Hungry Twenties, 155
• Hussein, Saddam, 71

• Immigrants
  • African Americans, 154 (see also African Americans)
  • border issues and, 55, 103–104
  • competition and, 31–32, 103
  • criminal, 173n4
  • deportation of, 104
  • dual economy and, 10
  • emigration and, 32, 50
  • English, x–xi, 173n4
  • fear of plots by, 51
  • FTE (finance, technology, and electronics) sector and, 20
  • Irish, 54
  • Jewish, 54, 120
  • Latinos, 154 (see also Latinos)
  • low-wage sector and, 27–28, 32, 35, 153
  • mass incarceration and, 103, 110, 112
  • military and, 103–104, 127
  • public education and, 123, 125, 159
  • race and, 50–55
  • success of some, 53–54
• Income distribution
  • capital-income ratio and, 181n3
  • cross-country comparison and, 147–151
  • dual economy and, 3–5
  • expected wage and, 8
  • FTE (finance, technology, and electronics) sector and, 22
  • Great Depression and, 21, 52–53, 80, 93
  • Investment Theory of Politics and, 72, 74
  • mass incarceration and, 109
  • median income and, ix–x, 9, 53, 144
  • public education and, 115
  • very rich and, 77, 79–80, 84
• Independent contractors, 31, 52, 65
• India, 148, 150
• Individual freedom, 17–19
• Industrial Revolution, 87, 155
• Industry
  • arms, 144
  • automobile, 33–34
  • brokerage, 23
  • concepts of government and, 87, 93
  • Dow Jones and, 23
  • exchange rates and, 23
  • FIRE (finance, insurance, and real estate) sector and, 80
  • FTE (finance, technology, and electronics) sector and, 16, 18, 20, 23, 25, 148
  • Industrial Revolution and, 87, 155
  • Investment Theory of Politics and, 63
  • Lewis model and, 163 (see also Lewis model)
  • low-wage sector and, 28–34
  • manufacturing and, 20, 32–35, 91, 170n10
  • mass incarceration and, 111
  • production and, 3, 6, 16, 20, 24, 27–28, 30, 32, 59, 80–81, 84, 138, 155, 164
  • public education and, 115–116
  • race and, 53
  • subcontractors and, 30–31, 57
  • tariffs and, 21, 32–33
  • transition and, 41, 43
  • very rich and, 80, 82, 84–85
• Inequality
  • civil rights and, 15, 20, 22, 27, 53, 56–59, 67, 72, 94, 104, 113, 133, 142
  • concepts of government and, 87–88, 94
  • cross-country comparison and, 147–151
  • discrimination and, 15, 20–21, 38, 51–54, 56, 58, 66, 89, 105, 117, 153, 171n29
  • dual economy and, 10
  • Great Depression and, 21, 52–53, 80, 93
  • Great Gatsby Curve, The, and, 46
  • human capital and, 165–166
  • income mobility and, 46
  • increase of, ix, 154
  • Investment Theory of Politics and, 61, 69–70, 72
  • Lewis model and, 162–166
  • mass incarceration and, 113
  • models of, 161–166
  • one-percenters and, 3, 9–12, 22–24, 77–85, 92, 96, 155, 170n28
  • Piketty and, 3, 156, 161–166, 181n3
  • production and, 164
  • public education and, 124, 128
  • race and, 49–60 (see also Race)
  • segregation and, ix, 27, 34, 53, 80, 117–121, 131, 153–154, 171n16
  • slavery and, 50 (see also Slavery)
  • social capital and, 165–166
  • taxes and, 161–162, 166
  • transition and, 46
  • women and, 12, 61 (see also Women)
  • World War I era and, 162
• Inflation, 16, 21–24, 43, 126
• Infrastructure
  • capital and, 11
  • cities and, 129–137, 156–158, 163
  • debt and, 143
  • FTE (finance, technology, and electronics) sector and, 36, 154
  • investment in, 154
  • Lewis model and, 10, 36
  • public education and, 157 (see also Public education)
  • repairing, 156–158
  • very rich and, 79
• Institute for New Economic Thinking, xvii, 85
• Integration
  • civil rights and, 142 (see also Civil rights)
  • dual economy and, 13
  • housing and, 34, 157, 159
  • public education and, 34, 80, 115–117, 120, 122, 128, 159
  • race and, 13, 34, 80, 82, 106, 115–117, 120, 122, 128, 142, 157, 159
• Investment Theory of Politics
  • African Americans and, 61, 64–67
  • competition and, 68
  • concepts of government and, 89
  • Constitutional Convention and, 62
  • democracy and, 63, 65, 67
  • Democrats and, 73
  • discrimination and, 66
  • farmers and, 62, 66
  • financial crisis of 2008 and, 174n15
  • FIRE (finance, insurance, and real estate) sector and, 80
  • FTE (finance, technology, and electronics) sector and, 67–70, 74–75
  • income distribution and, 72, 74
  • industry and, 63
  • inequality and, 61, 69–70, 72
  • Lewis model and, 62, 89
  • low-wage sector and, 62, 65–70, 75
  • mass incarceration and, 66, 111
  • Median Voter Theorem and, xv, 61–62, 66–68, 71–74
  • mortgages and, 69
  • North and, 62–66
  • Republicans and, 61, 66
  • slavery and, 64
  • South and, 62–67
  • taxes and, 62, 65
  • unemployment and, 64
  • unions and, 64
  • U.S. Constitution and, 62–65
  • very rich and, 77–80, 84–85, 158–159
  • voting and, 61–75
  • wages and, 62, 65–67, 69–70, 72
  • women and, 61, 64–65, 67
  • World War I era and, 67
  • World War II era and, 69
• Iraq, 71–72, 92, 95, 102, 143
• Irish Americans, 54
• ISIS, 95, 143

• Japan, 6, 32, 34
• Jews, 54, 120
• Jim Crow policies, xvi, 27, 49, 51–53, 58, 65–66, 104, 107, 154
• John Birch Society, 83
• Johnson, Lyndon B.
  • civil rights and, 15, 27, 53, 59, 89, 126, 168n2
  • Head Start and, 126
  • Law Enforcement Assistance Administration (LEAA) and, 168n2
  • Vietnam War and, 15–16
  • Voting Rights Act and, 89
  • War on Poverty and, 17, 27, 126, 168n2
• Johnson, Ron, 97
• JPMorgan Chase, 62, 139
• Juries, 56, 59

• Kalebu, Isaiah, 108
• Katz, Lawrence, xiii
• Kausser, Morgan, 67
• Kelley, Liz, 45
• Kellogg, Brown & Root, 143
• Kennedy, John F., 15, 59, 81, 140
• Keynesianism, 21–22, 161, 163, 169n3
• Keyssar, Alexander, 65, 67
• King, Martin Luther, xii, 67
• Kleptocracy, 93
• Koch brothers
  • ALEC and, 19
  • Cato Institute and, 18
  • costs of production shifted to employees by, 84
  • Forbes 400 and, 83, 92
  • Mayer on, 83
  • Powell Memo and, 18, 83
  • secrecy of, 85
  • Senate investigation of, 84
  • very rich and, 17–19, 83–85, 92, 97, 110–111, 158–159, 169n12, 175n17
• Kuznets, Simon, 164, 181n4

• Labor, xiv–xv
  • Autor on, 155
  • bargaining power and, 31
  • border issues and, 55, 103
  • Bureau of Labor Statistics and, 170n31
  • capital-labor ratio and, 163, 181n3
  • competition and, 31–34, 103, 127
  • cross-country comparison and, 148, 151
  • domestic, 52
  • dual economy and, 6–7
  • equity for, 30
  • expected wage and, 8
  • factory jobs and, 6–7, 18, 29–30, 32, 117
  • farmers and, 6 (see also Farmers)
  • financial crisis of 2008 and, 158
  • 401(k) plans and, 33–34
  • FTE (finance, technology, and electronics) sector and, 13, 19–21, 24, 153
  • Great Migration and, 27–28 (see also Great Migration)
  • hourglass job profile and, 28–29
  • immigrants and, 10 (see also Immigrants)
  • independent contractors and, 31, 52, 65
  • inequality models and, 163, 165
  • labor and, 103
  • low-wage sector and, 28–34, 37, 44
  • manufacturing and, 20, 32–35, 91, 170n10
  • mass incarceration and, 106
  • OSHA and, 90
  • pensions and, 31, 33, 69
  • production and, 3, 6, 16, 20, 24, 27–28, 30, 32, 59, 80–81, 84, 138, 155, 164
  • race and, 50, 55
  • reform and, 19
  • retirement and, 11, 25, 29, 33–34, 45, 90, 141, 156, 172n14
  • slavery and, xii (see also Slavery)
  • Social Security and, 33, 45, 52, 69–70, 79, 90, 93, 141, 174n15
  • Solow model and, 163
  • subcontractors and, 30–31, 57
  • tenure and, 31, 52, 65
  • unemployment and, 104
  • unions and, 18–22, 28–29, 32–34, 64, 80–81, 116, 120
  • unskilled, 34
  • U.S. Constitution and, 20
  • very rich and, 80
  • wages and, 3 (see also Wages)
  • women and, 59–60
  • workers’ compensation and, 4
  • working conditions and, 18, 20
• Labor share, 33
• Latin America, xii, 6, 9, 32
• Latinos, xiv, 157
  • cities and, 133
  • concepts of government and, 91
  • debt and, 144
  • dual economy and, 9–10, 13, 54–55
  • Great Migration and, 55
  • increase of, 53
  • integration and, 159
  • low-wage sector and, 35, 38–39, 55, 153–154, 171n19
  • mass incarceration and, 103–104, 106
  • Medicaid denial to, 91
  • NAFTA and, 55
  • population demographics of, 54
  • public education and, 118, 123, 127
  • War on Drugs and, 55, 110
• Law Enforcement Assistance Administration (LEAA), 168n2
• Lawyers, 20, 24, 60, 109, 116
• Lead contamination, 35–36
• Let Us Now Praise Famous Men (Agee), 52
• Lewis, Michael, 128
• Lewis, W. Arthur, 160
  • dual economy and, xiii, 5–12
  • FTE (finance, technology, and electronics) sector and, 20
  • Jim Crow movement and, 49
  • low-wage sector and, 28, 36
  • Nobel Prize of, 7, 49, 162
  • race and, 49
• Lewis model, 168nn3,8
  • capital and, 6–7, 153
  • capitalists and, 6–8
  • cities and, 132
  • concepts of government and, 89
  • cross-country comparison and, 147
  • democratic model and, 160
  • developing countries and, 6, 8
  • Dewey and, 155
  • dual economy and, xvii, 5–12, 62, 82, 89, 158
  • expected wage and, 8
  • FTE (finance, technology, and electronics) sector and, 36, 101, 105, 153
  • Great Migration and, 20
  • impact of, 8
  • inequality models and, 162–166
  • infrastructure and, 11, 36
  • Investment Theory of Politics and, 62, 89
  • low-wage sector and, xiv–xv, 103
  • Median Voter Theorem and, 62
  • moving on from, 160
  • parts of countries and, 5–6
  • production and, 6
  • public education and, 124, 168n10
  • spotty economic progress and, 5–6
  • taxes and, 153
  • transition and, 44
  • very rich and, 82
• Liberalism and Social Action (Dewey), 155
• Liberals
  • ALEC and, 19
  • Dewey and, 155–156, 159
  • FTE (finance, technology, and electronics) sector and, 17, 19, 21–22, 105
  • industrialization and, 155
  • Massachusetts and, 105
  • neoliberalism and, 17, 21–22
  • Powell and, 21
  • Reagan and, 22
  • taxes and, 174n15
• Libertarian Review journal, 84
• Lincoln, Abraham, 51, 87
• Loans
  • bankruptcy and, 90
  • education, 137
  • forgiving, 172n14
  • government, 49, 174n15
  • nonperforming, 139
  • redlining and, 34, 53
  • S&L crisis and, 17
  • Social Security and, 174n15
  • student, 43–45, 137, 140, 172n14
  • writing down, 158
• Lobbying, 15, 18, 24, 44, 83, 110–111
• Low-wage sector
  • African Americans and, 27–29, 34–40, 50–54, 153–154, 171n19
  • bargaining power and, 31
  • birth of, 27
  • capital and, 29, 32, 39, 42–45
  • cities and, 130, 135–136
  • college and, 29, 122
  • company boundaries and, 29–30
  • competition and, 31–34, 103
  • concepts of government and, 89, 92
  • cross-country comparison and, 147–150
  • debt and, 137–143
  • Democrats and, 154
  • demographics of, 10
  • discrimination and, 38, 153
  • disengagement and, 35, 117
  • dual economy and, 4, 8, 9–13
  • federal grants and, 35
  • financial crisis of 2008 and, 38
  • 401(k) plans and, 33–34
  • FTE (finance, technology, and electronics) sector and, 11–13, 25, 27–29, 32–37, 153–155, 170n6
  • Great Gatsby Curve, The, and, 46
  • Great Migration and, 27–29, 34–35
  • health care and, 154
  • hourglass job profile and, 28–29
  • housing and, 34, 153
  • ignored needs of, 80, 135, 142, 153–155
  • immigrants and, 27–28, 32, 35, 153
  • independent contractors and, 31, 52, 65
  • industry and, 28–34
  • infrastructure issues and, 157–158
  • Investment Theory of Politics and, 62, 65–70, 75
  • labor and, 27–40, 44, 103
  • Latinos and, 35, 38–39, 55, 153–154, 171n19
  • Lewis model and, xiv, 28, 36, 103
  • literacy tests and, 65–66
  • mass incarceration and, 38, 101, 103, 105, 107, 112–114, 153–154, 156
  • middle class and, 38
  • mortgages and, 34
  • North and, 27–29, 32, 34
  • pensions and, 31, 33, 69
  • police and, 39–40
  • poll taxes and, 58, 65
  • poverty and, 27, 35, 39–40
  • public education and, 115, 117, 119–128, 130, 153–154, 160, 170n6
  • race and, 49, 55, 153–154
  • reform for, 156–159
  • Republicans and, 154, 170n1
  • retirement and, 11, 25, 29, 33–34, 45, 90, 141, 156, 172n14
  • segregation and, 27, 34
  • service workers and, 29–30
  • slavery and, 27
  • social capital and, 39, 153
  • Social Security and, 69–70
  • South and, 27–29, 34–35, 142, 170n1
  • subcontractors and, 30–31, 57
  • taxes and, 31, 36
  • transition and, 11, 41–46
  • unemployment and, 34, 37, 157
  • unions and, 28–29, 32–34
  • very rich and, 79–81, 84, 158
  • voting and, 40, 170n1
  • World War I era and, 27
  • World War II era and, 34
• Luce, Edward, 61
• Luddites, 155
• Lynch, Loretta, 106

• Majority minority oxymoron, 101, 110, 124, 154, 156
• Malaysia, 6
• Manufacturing, 20, 32–35, 91, 170n10
• Marginal product, 6
• Market booms, 128, 138, 164
• Martin, Trayvon, 56–57
• Martin Luther King Jr. Day, 67
• Mass incarceration
  • African Americans and, xv–xvi, 101–109, 112, 153
  • ALEC and, 110–111
  • bail and, 40, 105–106
  • Ban the Box campaigns and, 38
  • Clinton and, 104
  • college and, 101–102, 105, 108, 110
  • competition for, 110–112
  • concepts of government and, 95
  • conservatives and, 110
  • Corrections Corporation of America and, 110
  • cost of, 105–106
  • discrimination and, 105
  • drugs and, 104–110, 112
  • federal funding and, 37
  • FTE (finance, technology, and electronics) sector and, 101–106, 109, 112–114
  • Great Migration and, 104
  • health care and, 108–109, 113
  • housing and, 105–106, 112–113
  • immigrants and, 103, 110, 112
  • income distribution and, 109
  • industry and, 111
  • inequality and, 113
  • Investment Theory of Politics and, 66, 111
  • Jim Crow tradition and, xvi, 53, 104
  • labor and, 106
  • Latinos and, 103–104, 106
  • lobbyists and, 110–111
  • low-wage sector and, 38, 101, 103, 105, 107, 112–114, 153–154, 156
  • Nixon and, 104, 109
  • North and, 104
  • police and, 102–103, 110, 112, 127, 157, 176n3
  • private prisons and, 110–112, 177n21
  • public education and, 119, 126–128, 156
  • rape and, 108–109
  • Reagan and, 104
  • reform for, 110–113, 156
  • rural areas and, 66
  • social capital and, 103, 107, 156
  • social control and, 38
  • societal functions of, 111–112
  • taxes and, 101, 103, 105
  • terrorists and, 95
  • two-tiered system of punishment and, 109, 113
  • unemployment and, 104, 113
  • U.S. Constitution and, 108
  • U.S. Supreme Court and, 107–108
  • very rich and, 109
  • voting and, 103–104, 112–113
  • War on Drugs and, xv–xvi, 104, 106, 110, 132
  • white rage and, 51
  • women and, 103, 106, 157
• Mass transit, 133–135, 158, 179n18
• Mayer, Jane, 83
• McConnell, Mitch, 97
• Median income, ix–x, 9, 53, 144
• Median Voter Theorem, xv, 61–62, 66–68, 71–74
• Medicaid, 91, 93, 142
• Medicare, xv, 91, 93
• Mergers, 31
• Metro, Washington, D.C., 135
• Mexico, xii, 9, 54–55, 149
• Michigan
  • Detroit, 36, 116–117, 121, 123, 130
  • Flint water crisis and, xv, 35–36, 129–130
  • State Department of Education and, 121
• Microsoft, 31, 122
• Middle class
  • critical role of, ix
  • cross-country comparison and, 147, 151
  • decrease of, x, 3, 9–10, 113
  • developing world and, 79
  • divisioned economy effects and, 155
  • financial crash of 2008 and, 10
  • FTE (finance, technology, and electronics) sector and, 24–25, 29, 96, 144, 147, 153, 155
  • growing income inequality and, ix (see also Inequality)
  • life style of, 24–25
  • post–Great Depression building of, 53
  • postwar growth of, 88, 162
  • social programs for, 118
  • voter turnout and, 64
• Milanović, Branko, 151, 180n6
• Military, 180n13
  • arms industry and, 144
  • bomb robots and, 102
  • border issues and, 103–104
  • Central America and, 32
  • draft and, 16
  • FTE (finance, technology, and electronics) sector and, 102–104, 109–110, 112, 127, 143
  • high expenditures of, 23
  • immigrants and, 103–104, 127
  • Iraq and, 71–72, 92, 95, 102, 143
  • national defense and, 17–18, 93
  • police and, 103, 110, 127
  • private public oxymoron and, 143–144
  • privatization of, 16, 22
  • technology and, 29
• Milliken v. Bradley, 116–117, 129, 142
• Mincer, Jacob, 165
• Minimum wage, 62, 72, 79
• Minow, Martha, 111, 134
• Mobility, 7, 32, 46, 133, 154, 159
• Mortality, 33, 39–40, 58, 126, 154
• Mortgages
  • bubbles and, 154–155
  • discrimination and, 117
  • Fannie Mae and, 138
  • FIRE sector and, 80
  • forgiving, 156
  • Freddy Mac and, 138
  • Great Migration and, 34
  • HAMP and, 139–140
  • hedge funds and, 179n5
  • housing and, 34, 44–45, 69, 80, 117, 137–140, 154, 156, 179n5
  • Investment Theory of Politics and, 69
  • low-wage sector and, 34
  • race and, 117
  • reform for, 156
  • restricted access to, 117
  • security and, 138
  • transition and, 44–45
• Mundell-Fleming model, 169n3
• Murray, Charles, 132
• Mutual funds, 31

• NAACP, 116–117
• National defense, 17–18, 93
• National Federation of Independent Business, 97
• National Review magazine, 51
• National Rifle Association, 97
• Native Americans, xi, 84
• Neoliberalism, 17, 21–22
• New Deal, 21, 52, 65, 80–81, 101, 141
• New Federalism, 21–22, 35, 44, 83, 103, 110
• New Jim Crow, 27, 49, 104, 154
• New Jim Crow, The (Alexander), xvi
• Newman, Oscar, 131–132
• New Yorker magazine, 83, 135
• New York Times newspaper, 125
• Nineteenth Amendment, 56, 58, 67
• Nixon, Richard M.
  • depletion allowance and, 81
  • floating exchange rate and, 15
  • Ford and, 168n2
  • Johnson and, 15, 27, 168n2
  • Kennedy and, 81
  • mass incarceration and, 104, 109
  • military draft and, 16
  • New Federalism and, 21–22, 35, 44, 83, 103, 110
  • Powell and, 17, 27, 117
  • Project Independence and, 16, 71, 143
  • public education and, 117
  • Rehnquist and, 95, 142
  • Roberts and, 142
  • segregation and, 27
  • Southern Strategy and, 15, 27, 35, 81, 117, 142
  • War on Drugs and, xv–xvi, 15, 37–38, 53, 55, 104, 106, 110, 132
• Nixon Shock, 169n3
• Nobel Prize, 7, 49, 124, 162, 164
• North
  • cities and, 132–134
  • concepts of government and, 88, 94
  • FTE (finance, technology, and electronics) sector and, 20
  • Great Migration and, 20, 27–28 (see also Great Migration)
  • Investment Theory of Politics and, 62–66
  • low-wage sector and, 27–29, 32, 34
  • manufacturing jobs in, 20
  • mass incarceration and, 104
  • public education and, 119, 125
  • race and, 51–53, 55, 59
  • unions and, 20
• North American Free Trade Agreement (NAFTA), 55
• Northeast Corridor, 134
• Norway, 149

• Obama, Barack, 25, 38, 81–84, 91, 96, 127, 175n12
• Occupational Safety and Health Administration (OSHA), 90
• Offshoring, 28, 32
• Oil, 80–81, 180n13
  • depletion allowance of, 81
  • Koch brothers and, 17–19, 83–85, 92, 97, 110–111, 158–159, 169n12, 175n17
  • OPEC and, 16, 143
  • Project Independence and, 16, 71, 143
  • shock of, 16
• Oligarchy, 65, 72, 87–89, 93–97, 115, 159
• One-percenters
  • CEO salaries and, 24
  • Reagan and, 22–23
  • tax cuts for, 22–23
  • very rich and, 3, 9–12, 22–24, 77–85, 92, 96, 155, 170n28
• Organization of Petroleum Exporting Countries (OPEC), 16, 143
• Oxymorons, 15, 101, 110-111, 156. See also Majority minority oxymoron; Private public oxymoron

• Page, Benjamin, 78–79
• Panama Papers, 82
• Participation rates, 141, 179n2
• Pell Grants, 43
• Pelosi, Nancy, 80
• Pence, Mike, xv
• Pensions, 31, 33, 69
• Pew Research Center, x, 3, 9, 168n10, 170n30, 171n19
• Pfizer, 82
• Philanthropy, 85, 121
• Piketty, Thomas
  • Capital in the Twenty-First Century and, x, 3, 156, 161
  • inequality models and, 3, 156, 161–166, 181n3
• Planned Parenthood, 57–58
• Plutocrats, 3, 79, 87–88, 94–96, 131, 139
• Police
  • bomb robots and, 102
  • Dallas sniper and, 102
  • debt and, 139
  • drug laws and, 104, 171n24
  • inner cities and, 132
  • low-wage sector and, 39–40
  • mass incarceration and, 102–103, 110, 112, 127, 157, 176n3
  • militarization of, 103, 110, 127
  • race and, 56–60
  • shootings by, 56–58, 60, 102–103, 179n7
  • speed traps and, 103
• Politics
  • Affordable Care Act and, xv, 18, 57, 91, 95, 141–142
  • anger toward, x
  • autocracy and, 87–88, 92–97
  • Bill Clinton and, 94–95, 104, 138
  • birther movement and, 38
  • Carter and, 16
  • Civil Rights Act and, 15, 20, 58, 133, 142
  • competition and, 85
  • corruption and, 74, 93
  • Democrats and, 154 (see also Democrats)
  • deregulation and, 16–23, 32, 44, 85
  • federalism and, 21–22, 35, 44, 65, 83, 103, 110
  • filibusters and, 19
  • Ford and, 168n2
  • George H. W. Bush and, 17, 35, 71, 129
  • George W. Bush and, 71–72, 89, 95, 127, 142–143
  • Golden Rule of, 75
  • House of Representatives and, 19, 62–64, 66, 80, 94, 96
  • Investment Theory of Politics and, 61–75 (see also Investment Theory of Politics)
  • Johnson and, 15, 27, 53, 59, 89, 126, 168n2
  • Kennedy and, 15, 59, 81, 140
  • kleptocracy and, 93
  • Lincoln and, 51, 87
  • lobbying and, 15, 18, 24, 44, 83, 110–111
  • Median Voter Theorem and, xv, 61–62, 66–68, 71–74
  • NAACP and, 116–117
  • New Deal and, 21, 52, 65, 80–81, 101, 141
  • New Federalism and, 21–22, 35, 44, 83, 103, 110
  • Nixon and, 81 (see also Nixon, Richard M.)
  • Obama and, 25, 38, 81–84, 91, 96, 127, 175n12
  • poll taxes and, 58, 65
  • Reagan and, xii, 22–23, 35, 38, 44, 53, 83, 95, 104, 129, 142–143, 171n27
  • Republicans and, 19 (see also Republicans)
  • Senate and, 19, 52–53, 59, 62–66, 72, 74, 80–84, 96–97, 107, 123
  • shopping and, 67–69
  • Southern Strategy and, 15, 27, 35, 81, 117, 142
  • state legislatures and, 19, 62–63, 95
  • Truman and, 81
  • Trump and, xii, 66, 81–82, 92, 154, 174n11
  • War on Drugs and, x, xv–xvi, 15, 27, 37–38, 53, 55, 104, 106, 110, 132
  • War on Poverty and, 17, 27, 126
• Poll taxes, 58, 65
• Pollution, 84
• Popular vote, 62, 96
• Poverty
  • children and, 157
  • cross-country comparison and, 149
  • FTE (finance, technology, and electronics) sector and, 15
  • growing, 116
  • inner cities and, 13, 131–132
  • low-wage sector and, 27, 35, 39–40
  • persistent, 44
  • public education and, 116–117, 123–124, 126
  • War on Poverty and, 17, 27, 126, 168n2
• Powell, Lewis
  • ALEC and, 19
  • memo of, 83
  • neoliberalism of, 21
  • Memo of, 17–18, 77, 169n6
  • Nixon and, 27
  • U.S. Supreme Court and, 17–22, 27, 77, 83, 111, 116–117, 169n6, 170n2
• Prejudice, 20, 38, 60
• Preschool, 123–127, 156–157
• President’s Council of Economic Advisers, 46
• Presidents Day, 67
• Princeton University, 49
• Private prisons, 110–112, 177n21
• Private public oxymoron, 101, 110–111, 156
• Private public schools, 101, 110–111, 120–121, 127, 140, 143, 156
• Privatization
  • colleges and, 44, 101, 120–122
  • concepts of government and, 16, 19, 21–22, 44, 101, 110, 112, 120–122, 134, 158
  • mass transit and, 134
  • military and, 16, 22
  • prisons and, 22, 101, 110, 112, 120
  • public services and, 19
  • state enterprises and, 21
• Production
  • Bretton Woods and, 24, 32
  • conservatives and, 80–81
  • economic growth and, 3, 138
  • Industrial Revolution and, 87, 155
  • inequality models and, 164
  • Lewis model and, 6
  • offshore, 28, 32
  • Project Independence and, 16
  • subcontractors and, 30–31, 57
  • very rich and, 80–81, 84
  • women and, 59
  • World War I era and, 20, 27–28
  • World War II era and, 80–81
• Professional Air Traffic Controllers Organization (PATCO), 22
• Project Independence, 16, 71, 143
• Property rights, 57, 81
• Property taxes, 43, 103, 130
• Public education, xvi
  • Abbott decisions and, 124
  • African Americans and, xiv, 115–122, 125–128, 154, 157
  • benefits of early, 156–157
  • Broward County, Florida and, 118–119
  • Brown v. Board of Education and, 116, 119, 171n16
  • charter schools and, 120–123
  • cities and, 129–130
  • competition and, 127
  • conservatives and, 124
  • declining state support for, 42–44
  • democracy and, 115
  • discrimination and, 117
  • drop outs and, 42, 45, 108
  • failure in, 118–120
  • federal grants and, 129
  • financial crisis of 2008 and, 118–119, 128
  • FTE (finance, technology, and electronics) sector and, 115, 117, 119, 122, 127–128
  • GI Bill and, 34, 43, 52, 65
  • Great Migration and, 116–117, 125
  • Head Start and, 126–127, 156
  • high school and, 25, 119–121, 126
  • human capital and, 121, 124, 126–127
  • immigrants and, 123, 125, 159
  • inadequacies of, 42–46, 116, 118
  • income distribution and, 115
  • industry and, 115–116
  • inequality and, 124, 128
  • integration and, 34, 80, 115–117, 120, 122, 128, 159
  • Latinos and, 118, 123, 127
  • Lewis model and, 168n10
  • long payoff of, 11
  • low-wage sector and, 115, 117, 119–128, 130, 153–154, 160, 170n6
  • mass incarceration and, 119, 126–128, 156
  • Milliken v. Bradley and, 116–117, 129, 142
  • Newark and, 122–123, 127
  • Nixon and, 117
  • North and, 119, 125
  • old school buildings and, 129–130
  • philanthropy and, 121–122
  • poverty and, 116–117, 123–124
  • preschool and, 123–127, 156–157
  • private public schools and, 101, 110–111, 120–121, 127, 140, 143, 156
  • prosperity and, xiii
  • reform for, 118–119, 122, 125–127, 130, 135, 156–160
  • resources for, 116
  • segregation and, 117–121, 154
  • slavery and, 133
  • social capital and, 117, 124, 126–128, 156
  • South and, 119, 125
  • spending on, 121, 126
  • STEM subjects and, 120
  • student loans and, 43–45, 137, 140
  • taxes and, 46, 117–119, 124, 172n14
  • teacher salaries and, 25, 116, 118, 121, 170n31
  • testing and, 118–122, 127
  • tutoring and, 121, 178n18
  • Union City and, 123–127
  • unions and, 116, 120
  • U.S. Constitution and, 124
  • U.S. v. Yonkers and, 131
  • voting and, 115
  • women and, 115–116, 118, 120
  • World War I era and, 133
• Putin, Vladimir, 93
• Putnam, Robert, 11–12, 39, 165

• Race
  • African Americans and, 50 (see also American Americans)
  • Asian, 6, 9, 32, 144
  • capital and, 52
  • civil rights and, 15, 20, 22, 27, 53, 56–59, 67, 72, 94, 104, 113, 133, 142
  • Civil War and, ix, 15, 17–18, 51, 65, 88, 94, 107, 180n13
  • class and, xii
  • college and, 52, 119–121
  • conservatives and, 56, 58–59
  • Democrats and, 51, 58–59
  • discrimination and, 15, 20–21, 38, 51–54, 56, 58, 66, 89, 105, 117, 153, 171n29
  • diversity and, 49, 51, 128, 156
  • equal protection clause and, 58, 67, 102
  • farmers and, 50, 52
  • Fifteenth Amendment and, 15, 56
  • FTE (finance, technology, and electronics) sector and, 10, 49, 55
  • full citizenship and, 15, 22, 159
  • Great Migration and, xii, xiv, 20, 27–29, 34–35, 52–55, 104, 116–117, 125
  • immigrants and, 50–55
  • industry and, 53
  • inequality and, 49–60
  • integration and, 13, 34, 80, 82, 106, 115–117, 120, 122, 128, 142, 157, 159
  • Irish, 54
  • Jews, 54, 120
  • Jim Crow policies and, 27, 49, 51–53, 58, 65–66, 104, 107, 154
  • jury duty and, 59
  • labor and, 50, 55
  • Latinos, 9–10 (see also Latinos)
  • Lewis and, 49
  • low-wage sector and, 49, 55, 153–154
  • mortgages and, 117
  • North and, 51–53, 55, 59
  • police shootings and, 56–58, 60, 102–103, 179n7
  • public education and, 115–128
  • racecraft and, 50–55, 61, 66, 82–83, 88, 91, 101, 109, 115, 153, 155, 176n12
  • Republicans and, 56, 59
  • scientific evidence and, 49–50
  • segregation and, ix, 27, 34, 53, 80, 117–121, 131, 153–154, 171n16
  • slavery and, xii, 17 (see also Slavery)
  • South and, 50–59
  • supremacist organizations and, 169n9
  • unemployment and, 52–53
  • universities and, 52
  • voting and, 51, 56–59, 170n1
  • wages and, 49, 55, 60
  • white flight and, 34, 38, 117, 125, 179n7
  • witchcraft analogy and, 50
• Race between Education and Technology, The (Goldin and Katz), xiii
• Rail, 133–134, 158
• Rand, Ayn, 21, 81
• Rankine, Claudia, 56
• Rape, 56–57, 108–109
• Rawls, John, 92
• Reagan, Ronald, xii, 44, 83, 95
  • debt and, 142–143
  • federal grants and, 35, 129
  • full citizenship of African Americans and, 22
  • mass incarceration and, 104
  • neoliberalism of, 22
  • one-percenters and, 22–23
  • taxes and, 22
  • unions and, 22
  • War on Drugs and, 53
  • Welfare Queens and, 38, 171n27
• Real wages, 3–4, 21, 32–33
• Reconstruction, 27, 51, 65, 67, 159
• Redlining, 34, 53
• REDMAP, 96
• Reform
  • debt and, 156, 158
  • Dodd-Frank Financial Reform Act and, 18
  • Dodd-Street Wall Street Reform and Consumer Protection Act and, 93
  • infrastructure issues and, 129–137, 156–158, 163
  • labor law and, 19
  • low-wage sector and, 156–159
  • mass incarceration and, 156
  • mentally ill and, 107
  • police and, 102
  • prison and, 110–113
  • public education and, 118–119, 122, 125–127, 130, 135, 156–160
  • Social Security and, 69–70
  • tax and, 22
• Rehnquist, William, 27, 95, 116, 142
• Republicans
  • ALEC and, 19
  • control of state legislatures by, 95–96
  • Investment Theory of Politics and, 61, 66
  • low-wage sector and, 154, 170n1
  • packing attempts by, 96
  • race and, 56, 59
  • REDMAP and, 96
  • very rich and, 80, 95–97
• Republican State Leadership Committee (RSLC), 95
• Retirement, 11, 25, 29, 33–34, 45, 90, 141, 156, 172n14
• Rice, Condoleezza, 71
• Road to Serfdom, The (Hayek), 21
• Roberts, John, 142
• Roe v. Wade, 58
• Romney, Mitt, 24
• Roosevelt, Franklin D., 21, 52, 65, 80–81, 101, 141
• Rubin, Robert, 113
• Rural Renaissance, 20
• Russakoff, Dale, 123
• Russell Sage Foundation, xvii
• Russia, 58, 93
• Rust Belt, 20

• Salaries, 8, 24–25, 45, 116, 118, 121
• Savings, 7, 12, 17, 105–106, 161–163
• Savings and Loan Associations (S&Ls), 17
• Scaife, Richard Mellon, 17
• Scalia, Antonin, 96
• Schorr, Lisbeth, 115
• Seawright, Jason, 78–79
• Second Reconstruction, 159
• Securities and Exchange Commission, 93
• Segregation
  • African Americans and, ix, 27, 34, 53, 80, 117–121, 131, 153–154, 171n16
  • Brown v. Board of Education and, 116, 119, 171n16
  • cities and, 131
  • housing, 153, 171n16
  • Jim Crow policies and, 27, 49, 51–53, 58, 65–66, 104, 107, 154
  • legally enforced, 53
  • low-wage sector and, 27, 34
  • Milliken v. Bradley and, 116–117, 129, 142
  • Nixon and, 27
  • public education and, 117–121, 154
  • very rich and, 80
  • World War II era and, 171n16
• Service workers, 29–30
• Seventeenth Amendment, 63
• Shaw v. Reno, 67
• Shelby County v. Holder, 65, 89, 142, 159, 180n11
• Slavery, xi–xii, 159
  • abolitionists and, 51, 54, 58
  • cities and, 133
  • Civil War and, ix, 15, 17–18, 51, 65, 88, 94, 107, 180n13
  • concepts of government and, 88, 94
  • conservatives and, 56
  • cross-country comparison and, 148
  • equal protection clause and, 58, 67, 102
  • expansion of, 50–51
  • FTE (finance, technology, and electronics) sector and, 17, 22
  • indentured servants and, 50
  • Investment Theory of Politics and, 64
  • Irish Americans and, 54
  • legacy of, xiii, 133
  • Lincoln and, 51
  • lower human status and, 51
  • low-wage sector and, 27
  • public education and, 133
  • voting rights and, ix
  • white rage and, 51
• Snyder, Rick, xv, 36
• Social capital
  • bridging vs. bonding, 171n31
  • cities and, 131–133
  • dual economy and, 12
  • inequality models and, 165–166
  • low-wage sector and, 39, 153
  • mass incarceration and, 103, 107, 156
  • public education and, 117, 124, 126–128, 156
  • Putnam on, 11–12, 39, 165
  • transition and, 42
• Social Security, 33, 45, 52
  • debt and, 141
  • government loan for, 174n15
  • phasing out of, 93
  • reform for, 69–70
  • standard of living and, 90–91
  • Trust Fund of, 69
• Solow, Robert M., 162–165, 181n3
• Soros, George, 85
• South
  • concepts of government and, 88, 91, 94
  • FTE (finance, technology, and electronics) sector and, 15, 17, 20, 22
  • Great Migration and, 20 (see also Great Migration)
  • Investment Theory of Politics and, 62–67
  • Jim Crow policies and, 27, 49, 51–53, 58, 65–66, 104, 107, 154
  • low-wage sector and, 27–29, 34–35, 142, 170n1
  • oligarchy of, 88
  • public education and, 119, 125
  • race and, 50–59
  • Reconstruction and, 27, 51, 65, 67
  • slavery and, 94 (see also Slavery)
  • very rich and, 80–81
  • voting rights and, 142, 170n1
• Southern Strategy, 15, 27, 35, 81, 117, 142
• Soviet Union, 22
• Spain, 149
• Stagflation, 16, 20–21
• Stanford University, 57
• State Department of Education, 121
• State legislatures, 19, 62–63, 95
• STEM (science, technology, engineering, and mathematics)
• Student loans, 43–45, 137, 140, 172n14
• Subcontractors, 30–31, 57
• Suffrage, 58, 64, 67
• Switzerland, 149
• Syrian refugees, 148

• Tariffs, 21, 32–33
• Taxes
  • capital gains and, 24
  • cities and, 129–130, 134–136
  • concepts of government and, 89–92, 95
  • cuts in, 15, 19, 22, 71, 79
  • debt and, 158, 172n14
  • dual economy and, 10, 12
  • Earned Income Tax Credit and, 79
  • FTE (finance, technology, and electronics) sector and, 15, 17–18, 22–24, 155
  • government benefits and, 10
  • incentives and, 10
  • increase of, 17, 79, 91–92, 103, 141, 155, 174n15
  • inequality models and, 161–162
  • Investment Theory of Politics and, 62, 65
  • Kennedy and, 15
  • Lewis model and, 153
  • liberals and, 174n15
  • loopholes and, 24, 81–82
  • low-wage sector and, 31, 36
  • mass incarceration and, 101, 103, 105
  • one-percenters and, 22–23
  • Panama Papers and, 82
  • poll, 58, 65
  • property, 43, 103, 130
  • public education and, 46, 117–119, 124, 172n14
  • Reagan and, 22
  • reform and, 17, 22
  • S&L crisis and, 17
  • sales, 103
  • Social Security and, 33, 45, 52, 69–70, 79, 90, 93, 141, 174n15
  • tariffs and, 21, 32–33
  • very rich and, 79–82
• Technology. See also FTE (finance, technology, and electronics) sector
  • bomb robots and, 102
  • driverless cars and, 31
  • low-wage sector and, 28–30, 32
  • Luddites and, 155
  • mass transit and, 179n18
• Tenure, 31, 52, 65
• Tepper, David, 82
• Terrorism, 83, 95, 143
• Texas, 57–58, 80–81, 84, 102
• Theory of Justice, A (Rawls), 92
• Toyota, 34
• Transition
  • African Americans and, 41–42
  • capital and, 42–45
  • college and, 41–46
  • financial crisis of 2008 and, 45
  • FTE (finance, technology, and electronics) sector and, 11, 41–46, 154
  • human capital and, 44
  • industry and, 41, 43
  • inequality and, 46
  • Lewis model and, 44
  • low-wage sector and, 11, 41–46
  • mortgages and, 44–45
  • social capital and, 42
  • student loans and, 43–45
  • very rich and, 148, 151
  • wages and, 41–46
• Troubled Asset Relief Program (TARP), 139, 179n4
• Truman, Harry S., 81
• Trump, Donald, xii, 66, 81–82, 92, 154, 174n11
• Trump University, 66
• Tuition costs, 43, 46, 105, 150
• Tunnels, 134–135
• Tutoring, 121, 178n18
• Twitter, 38

• Uber, 31
• Ukraine, 58
• Unemployment
  • cities and, 132
  • debt and, 141
  • FTE (finance, technology, and electronics) sector and, 16, 21
  • Investment Theory of Politics and
  • low-wage sector and, 34, 37, 157
  • mass incarceration and, 104, 113
  • participation rates and, 141, 179n2
  • race and, 52–53
  • very rich and, 78–79
• Union City, 123–127
• Unions
  • African Americans and, 20–21
  • autoworkers and, 33–34
  • FTE (finance, technology, and electronics) sector and, 18–22, 28–29, 32–34, 64, 80–81, 116, 120
  • Heritage Foundation and, 18
  • individual freedom and, 17–19
  • Investment Theory of Politics and
  • low-wage sector and, 28–29, 32–34
  • public education and, 116, 120
  • Reagan and, 22
  • very rich and, 80–81
• United States Institute for Peace, 18
• Universities
  • debt and, 139–140
  • FTE (finance, technology, and electronics) sector and, 43–46
  • inadequate resources of, 116
  • need for refinancing, 157
  • race and, 52
  • student loans and, 43–45, 137, 140, 172n14
  • teacher salaries and, 170n31
  • transition and, 42–46
  • tuition costs and, 43, 46, 105
  • undue hardship and, 44
  • women and, 57
• University of Manchester, 5
• University of Phoenix, 43
• U.S. Chamber of Commerce, 17, 27, 95
• U.S. Constitution
  • abortion and, 57–58
  • Affordable Care Act and, 141–142
  • Articles of Confederation and, 62
  • autocracy and, 96
  • balanced budget and, 169n20
  • bankruptcy and, 81
  • choosing senators and, 62–63
  • citizenship and, 15, 22, 159
  • compromises in, 62–64, 88
  • democratic framers of, 88
  • Fifteenth Amendment and, 15, 56
  • Fourteenth Amendment and, 51, 58
  • ignoring of, 97
  • individual rights and, 81
  • Investment Theory of Politics and, 62–65
  • Jim Crow laws and, 65
  • labor and, 20
  • mass incarceration and, 108
  • Nineteenth Amendment and, 56, 58, 67
  • public education and, 124
  • Seventeenth Amendment and, 63
  • slavery and, 94
  • Voting Rights Act and, 65, 89
• U.S. Department of Justice, 102–103
• U.S. House of Representatives, 19, 62–64, 66, 80, 94, 96
• U.S. Postal Service, 134
• U.S. Senate
  • concepts of government and, 96–97
  • Finance Committee and, 81
  • Investment Theory of Politics and, 62–66, 72, 74
  • labor law and, 19
  • mass incarceration and, 107
  • public education and, 123
  • race and, 52–53, 59
  • state legislature election of, 62–63
  • very rich and, 80–84
• U.S. Supreme Court
  • abortion and, 57–58, 72
  • Affordable Care Act and, 141–142
  • Brown v. Board of Education and, 116, 119, 171n16
  • Bush v. Gore and, 89, 95
  • Citizens United and, 84–85, 95, 158–159
  • equal protection clause and, 58, 67, 102
  • mass incarceration and, 107–108
  • Milliken v. Bradley and, 116–117, 129, 142
  • Powell and, 17–22, 27, 77, 83, 111, 116–117, 169n6, 170n2
  • Rehnquist and, 27, 95, 116, 142
  • Roberts and, 142
  • Roe v. Wade and, 58
  • Scalia and, 96
  • Shaw v. Reno and, 67
  • Shelby County v. Holder and, 65, 89, 142, 159, 180n11
  • U.S. v. Yonkers and, 131
  • vacancy on, 96–97
  • War on Drugs and, 17
• U.S. v. Yonkers, 131

• Very rich
  • Affordable Care Act and, 91–92
  • African Americans and, 77–78, 82
  • capital and, 161–162
  • capital gains and, 24
  • CEO earnings and, 24
  • competition and, 85
  • conservatives and, 80–85
  • democracy and, 81, 85
  • Democrats and, 80–81, 84
  • financial crisis of 2008 and, 80
  • Forbes 400 and, 77, 82–83, 85, 92
  • FTE (finance, technology, and electronics) sector and, 77–81
  • hedge funds and, 23–24
  • housing for, 131
  • income distribution and, 77, 79–80, 84
  • industry and, 80, 82, 84–85
  • infrastructure and, 79
  • Investment Theory of Politics and, 77–80, 84–85, 158–159
  • Koch brothers and, 17–19, 83–85, 92, 97, 110–111, 158–159, 169n12, 175n17
  • labor and, 80–81
  • Lewis model and, 82
  • low-wage sector and, 79–81, 84, 158
  • mass incarceration and, 109
  • national product and, 3–4
  • one-percenters and, 3, 9–12, 22–24, 77–85, 92, 96, 155, 170n28
  • plutocrats and, 3, 79, 87–88, 94–96, 131, 139
  • political contributions by, 79–80
  • preferences of, 77–85
  • production and, 80–81, 84
  • Republicans and, 80, 95–97
  • segregation and, 80
  • South and, 80–81
  • taxes and, 24, 79–82
  • transition and, 148, 151
  • unemployment and, 78–79
  • unions and, 80–81
  • wages and, 79–81, 84
  • World War II era and, 80–81
• Vietnam War, 15–16
• Volcker, Paul, 16, 20
• Voting, xv
  • choice of Tuesday for, 66
  • concepts of government and, 88–89, 94–96
  • Fifteenth Amendment and, 15, 56, 58
  • information for, 67–75
  • Investment Theory of Politics and, 61–75
  • literacy tests and, 65–66
  • low-wage sector and, 40, 170n1
  • mass incarceration and, 103–104, 112–113
  • Median Voter Theorem and, xv, 61–62, 66–68, 71–74
  • picture ID requirements and, x, 65–66
  • poll taxes and, 58, 65
  • popular vote and, 62, 96
  • prisoners and, 66
  • public education and, 115
  • race and, 51, 56–59, 58, 170n1
  • restriction of, ix–x, 65–66, 142–143, 159, 180n11
  • Seventeenth Amendment and, 63
  • Shaw v. Reno and, 67
  • Shelby County v. Holder and, 65, 89, 142, 159
  • slavery and, ix (see also Slavery)
  • timing of elections and, 67–68
  • turnout rates and, 63–65
  • women and, 56, 58, 64–65, 67, 94
• Voting Rights Act, 15, 58, 65, 67, 89, 94, 142, 159

• Wages
  • concepts of government and, 89–92
  • dual economy and, 3–13
  • FTE (finance, technology, and electronics) sector and, 16, 20–23, 25, 41–46
  • growth and, 3–4
  • Investment Theory of Politics and, 62, 65–70, 72, 75
  • low-wage sector and, 3, 27–41, 41–46 (see also Low-wage sector)
  • race and, 49, 55, 60
  • real, 3–4, 21, 32–33
  • transition and, 41–46
  • very rich and, 79–81, 84
• Walker, Scott, xv
• Wall Street, 24, 93
• Walmart, 122
• Walton family, 121
• Warmth of Other Suns, The (Wilkerson), 20
• War on Drugs, x, xv–xvi, 15, 27, 37–38, 53, 55, 104, 106, 110, 132
• War on Poverty, 17, 27, 126, 168n2
• Warren, Elizabeth, 53
• Washington Consensus, 21
• Water systems, 35–36, 129–130
• Welfare Queens, 38, 171n27
• Welfare state, 21, 80, 101, 104
• Whistle blowers, 84
• White flight, 34, 38, 117, 125, 179n7
• White rage, 51, 101, 104
• White supremacist organizations, 169n9
• Wilkerson, Isabel, 20
• Wilson, William J., 34–35, 39, 132
• Witchcraft, 50
• Within Our Reach (Schorr), 115, 124
• Women, 12, 156
  • abortion and, 57–58, 72
  • bodily integrity and, 56–58
  • civic identity of, 56
  • college and, 57, 116
  • concepts of government and, 94
  • coverture and, 56
  • employment and, 59–60
  • English family law and, 56
  • equal protection clause and, 58, 67, 102
  • Fifteenth Amendment and, 15, 56
  • health care and, 56
  • inequality and, 12
  • Investment Theory of Politics and, 61, 64–65, 67
  • jury duty and, 59
  • mass incarceration and, 103, 106, 157
  • occupations available to, 59–60, 116
  • pregnancy and, 58
  • production and, 59
  • property rights of, 56–57
  • public education and, 115–116, 118, 120
  • rape and, 56–57, 108–109
  • suffrage and, 58, 64, 67
  • universities and, 57
  • voting rights and, 56, 58, 64–65, 67, 94
• Worcester Polytechnic Institute, 57
• Workers’ compensation, 4, 90–91
• World War I era, ix, xi
  • concepts of government and, 94
  • FTE (finance, technology, and electronics) sector and, 20–21
  • inequality and, 162
  • Investment Theory of Politics and
  • low-wage sector and, 27
  • municipal water systems and, 129
  • production and, 20
  • public education and, 133
  • voting restrictions and, 67
• World War II era, ix
  • baby boomers and, 69, 104, 128
  • Bretton Woods and, 15
  • concepts of government and, 88, 92
  • conservative business movement and, 80–81
  • FTE (finance, technology, and electronics) sector and, 15, 21
  • GI Bill and, 34, 43, 52, 65
  • Investment Theory of Politics and, 69
  • low-wage sector and, 34
  • postwar prosperity and, 54, 88, 92, 162–164
  • production and, 3, 80–81
  • segregation and, 171n16
  • very rich and, 80–81

• Zuckerberg, Mark, 122
• Zucman, Gabriel, 82