Plunder and Blunder
Plunder and Blunder Essay
Recently, our class was asked to read a economical powerful book called “plunder and Blunder” by Dean Baker, which focuses on the finances of the U.S. economy after World War Two. He evaluates the concept that the economies productivity increased rapidly from 1947-1973. Baker quotes, “To appreciate the magnitude of this growth, consider the following: if we maintained the same rate of productivity growth in the United States experienced in the early postwar era, we would be able to take an additional 24 weeks of vacation each year, or reduce our average workweek to 21 hours, and still have the same income in 2030 as we do today”. Baker states such opinion because in the post war era, the average workers salaries were increasing, thus putting more money in people’s pockets. This also resulted in more purchasing, and productivity of business and the economy all around. I for one can definitely agree that with an increase in wages, comes an increase in economical growth.
Baker states that after 1973, productivity slowed down drastically. This resulted in the decrease of wages. He than gives multiple reasons why the money in society took a direct path to the rich and not to the overall work society, unlike in previous years before 1970. He argued that policy changes were drastic as the Reagan administration weakened labor unions by cutting funds. Baker also states that minimum wage was much to blame. Reagan failed to increase minimum wages with the increase of inflation, causing an unequal balance within society. Baker also says trade agreements left American workers competing with those wages of other workers in other countries. These other countries wages were far lower, resulting in another unequal balance. This also influenced the immigration policy in America, allowing more workers with lower wage requirements to work the same jobs. I can definitely agree with his, seeing especially in southern California, as immigrants hold a large
Recently, our class was asked to read a economical powerful book called “plunder and Blunder” by Dean Baker, which focuses on the finances of the U.S. economy after World War Two. He evaluates the concept that the economies productivity increased rapidly from 1947-1973. Baker quotes, “To appreciate the magnitude of this growth, consider the following: if we maintained the same rate of productivity growth in the United States experienced in the early postwar era, we would be able to take an additional 24 weeks of vacation each year, or reduce our average workweek to 21 hours, and still have the same income in 2030 as we do today”. Baker states such opinion because in the post war era, the average workers salaries were increasing, thus putting more money in people’s pockets. This also resulted in more purchasing, and productivity of business and the economy all around. I for one can definitely agree that with an increase in wages, comes an increase in economical growth.
Baker states that after 1973, productivity slowed down drastically. This resulted in the decrease of wages. He than gives multiple reasons why the money in society took a direct path to the rich and not to the overall work society, unlike in previous years before 1970. He argued that policy changes were drastic as the Reagan administration weakened labor unions by cutting funds. Baker also states that minimum wage was much to blame. Reagan failed to increase minimum wages with the increase of inflation, causing an unequal balance within society. Baker also says trade agreements left American workers competing with those wages of other workers in other countries. These other countries wages were far lower, resulting in another unequal balance. This also influenced the immigration policy in America, allowing more workers with lower wage requirements to work the same jobs. I can definitely agree with his, seeing especially in southern California, as immigrants hold a large