 |
| Prof. Jackie Brux introduced by Bernie Brohaugh |
On May 10, 2018, River Falls Area Retired Educators' Association hosted retired UW-River Falls Professor of Economics Jacqueline Brux for some quick lessons in economic issues. While some wanted to hear about how the new tax policies will affect taxpayers in this country, some were also interested in Jackie's research into economic initiatives in East Africa. So, we got a little of both.
TAXES: Jackie began her talk by providing us with some specific information about taxes--before and after the most recent Congressional actions. She pointed out the fact that tax brackets are temporarily lower for most taxpayers, though the largest breaks come to those Americans with the most income. The poorest 5th of our nation will receive just 1% of the tax benefits while the top 1% will receive 34% of the benefits.
Corporate taxes have been reduced from a rate of 35% to 21%, a change that will be permanent unless a new Congress changes the laws again. Despite the claims by many politicians, American taxpayers do not pay higher taxes than other citizens of the major western industrialized countries. Our maximum personal income tax rate of 37% is the second lowest (only Canada pays less at 33%). Denmark, Finland, Sweden, and the Netherlands, for instance, all pay above 50%--and have many more social benefits (health care coverage, parental leave, childcare, and retirement benefits) than we do. As Jackie and others pointed out, it will be interesting to see whether these changes have the positive effects on our economy that have been projected.
EAST AFRICAN WOMEN: The economic conditions in East Africa are a focus of Jackie's most recent research. She is particularly interested in how small investments in women's entrepreneurial endeavors changes families' lives. She has examined, for instance, small cooperatives composed of as few as ten women who all contribute a small amount of money, which is then invested in various enterprises to improve their and their families' lives.
Banks in this part of the world require collateral in order to receive a loan. The cooperatives, on the other hand, require no collateral and charge small interest on the loans. The women themselves makes sure the loans are repaid. A condition of the loan is often initial investment in something that will benefit the community, e.g., a contribution to the establishment of a cistern, which will reduce the hours required of women collecting and carrying water from great distances.
With a small investment for women to resell used goods, charcoal, or wood, for instance, women's cooperatives are redistributing assets and income, creating a sustainable economy, and earning enough money to pay their children's school fees, thereby improving their own and their children's lives.
Thanks to Jackie for sharing her knowledge and research with us.
The River Falls Retired Educators' Association likes to end the year with something fun. Changing the tradition of the last couple of years when we visited an area winery, we are going to learn something about beer making and have a great lunch at Bobtown Brewhouse in Roberts. 
