Dean Baker wraps up his new book Rigged with the following,
the point of this book is that the distribution of income can be hugely altered by restructuring the market to produce different outcomes. This doesn’t dismiss the value of tax and transfer policies, but if the market is rigged to redistribute ever more income upward, it will be difficult to design tax and transfer policies to reverse this effect. And if the rigging efforts are never challenged, then they will impose an ever greater burden on those trying to reduce inequality through tax and transfer policy.
A couple paragraphs later, he finishes with,
The standard framing of economic debates divides the world into two schools. On the one hand, conservatives want to leave things to the market and have a minimal role for government. Liberals see a large role for government in alleviating poverty, reducing inequality, and correcting other perceived ill-effects of market outcomes. This book argues that this framing is fundamentally wrong. The point is that we don’t have “market outcomes” that we can decide whether to interfere with or not.
About $435 billion according to economist Dean Baker in his new book Rigged,
This strengthening of copyright law and altering its structure to adjust to digital technology and the Internet is interesting not only because of the costs involved for the larger economy but also because it highlights alternative ways in which society adapts to technological change. Technological change has destroyed many sectors of the economy. The spread of digital cameras essentially destroyed the traditional film industry, causing the collapse of two major U.S. corporations, Kodak and Polaroid, and leading to the loss of tens of thousands of jobs. While the collapse of these companies and the job losses were unfortunate, no one would have considered it a reasonable strategy to block the spread of digital cameras.
He continues a few paragraphs later with,
Table 5-6 shows projected 2016 spending and potential savings in areas where the costs of current monopolies are likely to be largest. Savings for recorded music and video material as well as recreational books are pegged here at 50 percent, under the assumption that the tax-credit system will make available a vast amount of free writing, music, and video material. Savings on educational books are pegged at 70 percent, under the assumption that the bulk of textbooks will be produced through the publicly funded system. The savings for prescription drugs are based on the calculation in Table 5-3 (see below). Savings in newspapers and periodicals, motion pictures, and cable TV are pegged at 20 percent. (With cable, many people may opt to rely on the Internet and cancel cable subscriptions.) The figure for medical equipment is loosely derived from the earlier calculation in Table 5-3; it is larger here because this figure reflects spending to purchase the equipment rather than the fees charged to patients. The total potential savings are $ 435 billion, or 2.4 percent of GDP.
According to Business Insider,
Interestingly enough, red states, which tend to advocate for a lesser influence by the federal government, are much more dependent on the federal government than blue states. Red states combined to form an average ranking of 18.3 (with 1 being most dependent and 50 being least dependent), while blue states combined to rank 33.2 overall.
This is particularly relevant with all of Trump's discussion of defunding "sanctuary cities and states". The backlash could be enormous, given that they take in less federal funding than they pay out to begin with. What reason would they have to continue paying federal taxes, which red states largely benefit from and they would no longer receive any of?