Inequality for All Robert Reich is on a mission to change the economic status of America. In his documentary Inequality for All he illuminates some of the loopholes in the US Government laws, as well as confirm and justify the increasing hardship the middle class is facing. He starts the discussion with the Suspension Bridge Effect. In the year 1978, the average American middle-class worker made about 48,302 dollars a year, while the average wage for the top one percent was 390,000 dollars a year. Fast forward to more recently 2010, the average middle-class worker wage drops to 30,000 dollars while the top one percent rises to about one million. Emmanuel Saez and Thomas Piketty studied the IRS tax data from as far back as 1928. They found When the economy starts to flourish, money began to concentrate into the hands of fewer people. As a result, the middle class began to spend more money to maintain living statuses drawing deeper and deeper into debt. Soon the bubble of debt pops, hence the great depression. According to Reich, an economy 's stability is dependent on the prosperity of its middle class. The cause of the depression was the growing wages and money not being returned to the middle class. The Virtuous Cycle of a healthy economy occurs in 6 steps: productivity growth, wage increase, more jobs, tax revenues increase, government investments, and educated workers. A healthy economy is possible, but it is not our reality today. The two factors that lead to flattening wages in the 1970 's are globalization and technology. Walmart, Exxon, and Apple are a few of the companies that have succumbed to globalization. As a result, there are fewer jobs in America. Fewer jobs in America leads to less money in circulation and higher wages. The middle class is the heart of the economy, and if they are struggling then our I understood yes, education and family trust favored some people. I just could not understand why my mother was working hard and her bosses who sat behind a desk made more money than her. I found this documentary most interesting, captivating and inspiring. The comparisons from the 1978 and 2010 crash were shocking, considering history is taught in schools to prevent it from occurring again. I also found Riech to be very passionate about his fight for equality. I would have enjoyed hearing some the opposing views more. I did not want to have a biased view on the subject. After watching Inequality for All, I returned to my dorm in search reasonable oppositions to Professor Reich 's data and claims. Most comments agreed this documentary is truthful and well done. While other comments stated Reich knew nothing about the economy and it is all just rubbish, these comments had no events or reason to back them up. Lastly, rare.us uniquely takes some of the key points in Reich 's argument and combats them one-by-one. Overall, it was very difficult for me to find valid responses to his arguments. This documentary has left me with three questions: what is the most logical solution to fix this problem, how to prevent this problem from occurring in the future, and does the increase in population affect the data in any
3. What are the effects of this wealth inequality in the US and what causes it, as well as some possible solutions and their ramifications, will all be discussed and answered below. There has always been a wealth gap between the richest and poorest in society. However, in the past decade, the wealth gap between the richest and poorest citizens in the US has been growing rapidly. In the 70s and 80s, the wealth and income growth rate for both poor and rich people were similar, however, between the years 2009 and 2012 the top 1% income increased 31% while for the bottom 20%, their income actually dropped and for the vast majority of Americans, the average yearly income only increased by 0.4% [4].
Inequality, itself, may seem like an aspect that is surrounding the academic subject of history. An American economist, Paul Krugman, substantiates that inequality exists within our society through connections to several important historical movements. “One of the best arguments I’ve ever seen for the social costs came from a movement [...].” (Page 562) He implies how inferior inequality could be, and discusses why he along with a wide array of an American audience, may give some attention to its rising. Krugman makes “Confronting Inequality,” interesting, challenging, and enjoyable. This author approaches the audience by giving a powerful inception, and appealing to the senses of ethos and pathos.
The essay “RIP the Middle Class: 1946-2013” was written by Edward McClelland. Edward McClelland is an American journalist. In this essay, McClelland is trying to prove a point that at some point there wouldn’t be the middle class and there would only be the rich and the poor, unless the government intervenes to balance out the economy.
Some say that the great depression was caused partially by social democracy and planned economies. And although this could be true, it originally started from debts from World War I, and of course the stock market crashing in 1929.
In the documentary “inequality for all”, Robert Reich examines the overall state of inequality in America, and explains the intricate processes involved in the economy, which determines the distribution of wealth, and how both the middle and upper classes utilize it. During the introduction of the documentary, Reich states “I like having a Mini Cooper. I sort of identify with it…. We are sort of together, facing the rest of the world”. Although Reich is making a comparison between the size of his car and himself, the overall inference of this quote refers to the immense scale of the American economy. In this sense, Reich acknowledges that he, and many other Americans, are unequal to upper class residents; although, the inequality itself isn’t labeled as a negative consequence. In fact, Reich acknowledges that “some inequality is just inevitable”, meaning that inequality within an economy is an intended consequence of American capitalism which, if done correctly, can create prosperity for any economic class. Instead of seeing inequality as either black or white, Reich examines the different effects of inequality at different magnitudes, and asks whether inequality can be a problem, and if so, when it becomes one. To do
One of the studies that he included is on the percent of household income going to the richest one percent. In this study it showed that in 1979 7.5% of household income went to the top one percent, and in 1997 it jumped to 13.6%. Another fact from the article is a study conducted by Lars Osberg from Dalhousie University. It found that the poor in America worked more hours than their poor counterparts in Canada, Britain, Sweden, France, and Germany. The third fact that I think is relatively important is that since 1979, the tuition at America's public colleges has risen faster than most parents' income.
Let's take it back to the past in regards to wealth distribution in this country. The fact is that the economy boomed from the end of WWII into the 1970's. “Incomes grew rapidly and at roughly the same rate up and down the income ladder, roughly doubling in inflation-adjusted terms between the late 1940s and early 1970s” (CBPP). Through the 70's economic growth slowed, and the wealth gap widened. Middle-class families were now considered lower class. People relied on the government to help them out with welfare programs. The middle-class class was weakened and the gap grew and grew. There were periods of positive fluctuation, however the middle-class simply never regained it's status that was held in more prosperous times in the past.
Inside of this video, this guy really targets an issue nobody has really been presented. He shows charts that talk about how we Americans think our wealth is distributed. We think distribution is doing alright. Americans think that the bottom 40% is getting a bit of money. They also believe that the middle class is doing reasonably well. Unfortunately, that is not the case. In the video, he breaks it down a little bit getter. He shows a graph that shows how money is actually being distributed. The poorest of poor don 't even register on the poverty line. The middle class is barely making it. And then there is this huge difference between "the rich" and the poor. It is proven that the 1% of America has 40% of the entire nation 's wealth ("Wealth Inequality in America."). The bottom 80% of America only share 7% of the nation 's wealth among themselves. The top 1% has 50% of the stocks, bonds, and mutual funds. The bottom 50% of Americans only own 0.5% ("Wealth Inequality in America."). The poor is not just getting by but they are scraping and fighting to get by. Now that it is clear that there is a lot of poor people in America, it is important to figure out how to fix
Michiel Horn is currently the Chairman of the History Department at York University. His interests in the Great Depression revolve around the history of taxation. Therefore, he is interested in making sure that this sequence of events is fully understood so that future generations never allow it to happen again.
Reich, Robert B. “Why the Rich Are Getting Richer and the Poor, Poorer.” A World of Ideas:
Income inequality has affected American citizens ever since the American Dream came to existence. The American Dream is centered around the concept of working hard and earning enough money to support a family, own a home, send children to college, and invest for retirement. Economic gains in income are one of the only possible ways to achieve enough wealth to fulfill the dream. Unfortunately, many people cannot achieve this dream due to low income. Income inequality refers to the uneven distribution of income and wealth between the social classes of American citizens. The United States has often experienced a rise in inequality as the rich become richer and the poor become poorer, increasing the unstable gap between the two classes. The income gap in America has been increasing steadily since the late 1970’s, and has now reached historic highs not seen since the 1920’s (Desilver). UC Berkeley economics professor, Emmanuel Saez conducted extensive research on past and present income inequality statistics and published them in his report “Striking it Richer.” Saez claims that changes in technology, tax policies, labor unions, corporate benefits, and social norms have caused income inequality. He stands to advocate a change in American economic policies that will help close this inequality gap and considers institutional and tax reforms that should be developed to counter it. Although Saez’s provides legitimate causes of income inequality, I highly disagree with the thought of making changes to end income inequality. In any diverse economic environment, income inequality will exist due to the rise of some economically successful people and the further development of factors that push people into poverty. I believe income inequality e...
I am well aware of the oppression that has faced many people of color in our society. I did learn a great deal about how our government is to blame for the racial segregation in our society. America has a history of placing laws and policies on non-whites, thus making it extremely hard for them to live a well-balanced life. I thought it was interesting that immigrants were far more likely to work in mining and industrial jobs than whites. I feel as though this a trend that continues today in America, thus it is evident that we still exclude certain ethnic groups in our society. Although I did not have any biases going into this documentary, I learned a lot about how our government has been the main contributor to white privilege in our
The gap in wealth between the rich and the poor continues to grow larger, as productivity increases but wages remain the same. There were changes in the tax structure that gave the wealthy tax breaks, such as only taxing for social security within the first $113,700 of income in a year. For CEOs this tax was paid off almost immediately. Free trade treaties broke barriers to trade and resulted in outsourcing and lower wages for workers. In “Job on the Line” by William Adler, a worker named Mollie James lost her job when the factory moved to Mexico. “The job in which Mollie James once took great pride, the job that both fostered and repaid her loyalty by enabling her to rise above humble beginnings and provide for her family – that job does not now pay Balbina Duque a wage sufficient to live on” (489). When Balbina started working she was only making 65 cents an hour. Another huge issue lies in the minimum wage. In 2007, the minimum wage was only 51% of the living wage in America. How can a person live 51% of a life? Especially when cuts were being made in anti-poverty and welfare programs that were intended to get people on their feet. Now, it seems that the system keeps people down, as they try to earn more but their benefits are taken away faster than they can earn. Even when workers tried to get together to help themselves they were thrown
If you could spend a day with one person in the film, who would you choose? What would you want to talk about with them? I would choose to speak with former Secretary of Labor Robert Reich who knows first-hand the history of the problems that this country faces concerning inequality in the workforce concerning wages. I woul...
Economics of Reich “Why the Rich are getting Richer and the Poor, Poorer” written by Robert Reich, describes as the title says, why the rich are getting richer and the poor, poorer. In Reich’s essay, he delves into numerous reasons and gives examples of each. It makes one wonder if the world will continue on the path of complete economic separation between the rich and the poor. One very important factor Reich examines in his essay is that large corporations are always trying to find the edge, whether that is new technology or cheaper wages. One may ask, how does that affect me?