Rising inequality in America is causing the economy to sputter

By Naomi Wolf
The Daily Star, Lebanon

Story Summary

The hit of this year’s Sundance Film Festival was a low-key affair called “Inequality for All,” in which Robert Reich, a labor secretary in the Clinton administration, explains how rising income inequality and the demise of the middle class is causing so many Americans to suffer.

This, Reich argues, is the “virtuous cycle” that we see in strong economies such as Germany, in which workers are highly skilled and educated unions are protected, and the middle class has leisure and money to spend.

So, the “trickle-down” story that the middle and working classes are told every election cycle in America – that cutting wealthy people’s taxes means more job creation in America – is simply not true.

Or could Reich’s retro prescriptions, which he has affirmed for decades, be taken up again? Could they bring back the affluent years of the early Clinton era, when it seemed as if domestic policies could actually influence and even benefit the U.S. economy?

Looking at the affluent German middle class from the U.S., where a quarter of jobs pay wages that place workers at or below the poverty line, Reich’s recommendations seem worth fighting for

Read more: http://www.dailystar.com.lb/Opinion/Commentary/2013/Feb-12/206064-rising-inequality-in-america-is-causing-the-economy-to-sputter.ashx#ixzz2KfzF9fmN
(The Daily Star :: Lebanon News :: http://www.dailystar.com.lb)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.