In pursuit of economic equality: an interview with Dean Baker.

• Author: Bottari, Mary
• Position: Interview

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In a recent op-ed, published on the website Truthout, Dean Baker applied his analytical skills to one of the most vexing issues of our time: the rise of Donald Trump. He tried to get a bead on the economic anxiety of Trump's supporters, and took aim at those relatively well-off others who ridicule this choice.

"There is no excuse for supporting a racist, sexist, xenophobic buffoon like Donald Trump," Baker wrote. "But we should be clear; the workers who turn to him do have real grievances. The system has been rigged against them. And it is a bit hypocritical of those who have benefited from this rigging to be mocking the poor judgment of its victims."

Baker, who will turn fifty-eight in mid-July, is a macroeconomist and the co-author of Getting Back to Full Employment: A Better Bargain for Working People, among other books. He has written for publications including The Atlantic, The Washington Post, and the Financial Times.

In 1999, he co-founded the Center for Economic and Policy Research in Washington, D.C., whose goal is "to promote democratic debate on the most important economic and social issues that affect peoples lives."

I recently spoke to Baker about the presidential election, the Federal Reserve, and the Donald.

Q: On the Democratic side, there has been a lot of talk about Wall Street reform. Sanders wants to break up the banks. Clinton wants to crack down on "shadow banking." Is there anything being left out of this reform agenda?

Dean Baker: I think a financial transaction tax is far and away the most important reform we can have on Wall Street, because it would downsize the industry enormously and hugely affect inequality. Many of the highest paid people in the country are running hedge funds, traders at big banks. You would basically cut $100 billion to $150 billion a year in revenue for a narrowly defined section of the financial sector--securities and commodities trading--which is basically just a waste, a drag on the economy. This money could be productively employed elsewhere. It makes the financial sector more efficient by reducing the amount of resources going there, and it is a huge step forward in promoting equality. Sanders has sponsored a bill to implement a financial transaction tax. Clinton has proposed a tax on high frequency trading, which is significantly different.

Q: You have written a number of books on the Federal Reserve. There is not much talk about the Fed on the campaign trail...