It is hard to believe that the Economy has recovered from the 2008 recession. With jobs still scarce, it is an unequal recovery. As Vince commented, the growing income inequality and shrinking middle class is leading to more social resentment. Bill commented that Globalization is one of the primary drivers of the loss of US jobs. Something drastic may need to be done. We may be ready for a discussion of Capitalism vs Socialism, as suggested by Norm.
Here is a TED Talk that claims that the data shows Inequity on is own is detrimental to society. Warning, there are a lot of graphs in this talk.
This is not an original thought but I believe another driver of the loss of US jobs is the Wall Street mentality that focusses on short term profits and enriching the shareholders at the expense of employees. Corporate management bonuses and benefits are linked to profits so they will decrease costs of production by finding labor overseas and/or using technology to reduce the amount of labor if the jobs can't be exported.
ReplyDeleteGood point Norm. CEOs can increase short term profits by laying people off. Unfortunately, share prices usually go up when lay-offs are announced.
ReplyDeleteIncome Inequality in the USA is among the highest and getting higher. Why? In my opinion the wealthy (generalization - there are always exceptions)individuals and corporations have gained greater control over public policy, especially over the tax code (a major policy tool). Our tax code is riddled with subsidizes, better known as loop holes that benefit those with power, not those in need. Our (USA) political system is fragmenting with legislative majorities finding it more difficult to pursue policies for the common good.e.g. tax reform, gun safety, global warming, high unemployment rates and so on.
ReplyDeleteVince
Vince, your point on the tax code and government subsidies favoring the rich is well taken. The sad part is that the current political debate is about taxes and subsidies favoring the poor. The public is mostly unaware of all the government handouts that are given to the rich.
ReplyDeleteGood back ground information can be found in the books by David Cay Johnston,
- Perfectly Legal: The Covert Campaign to Rig Our Tax System to Benefit the Super Rich--and Cheat Everybody Else
- Free Lunch: How the Wealthiest Americans Enrich Themselves at Government Expense (and StickYou with the Bill)
- The Fine Print: How Big Companies Use "Plain English" to Rob You Blind