The Rich and the Poor
Robert Reich is a specialist in policy studies, focusing on economics. Specifically, in Reich’s work, “Why the Rich Are Getting Rich and the Poor, Poorer”, Reich presents his examination of America’s present economy and its economic future. He begins by stating that “All Americans used to be in roughly the same economic boat.” and adds “We are now in different boats, one sinking rapidly, one sinking more slowly, and the third rising steadily” (para. 1).
In Reich’s examination of America’s economy, he presents his theory and uses a metaphor of boats rising or falling with tides, and he explains that the structure of the economy sits in three separate boats; one of which is sinking rapidly, the second sinking more slowly, and the third steadily rising. The first boat, which Reich claims is sinking rapidly, contains the “routine producers.” Reich observes that industries are turning to the global webs and outsourcing production. Outsourcing is a direct consequence to competition; routine producers in other countries offer labor at much cheaper wages than in the United States. The “core corporations” are constantly reviewing quotes to determine the most economical way to assemble their product, in the fastest manner possible, to allow the product’s quicker appearance on the market. Outsourcing is not happening only in the factory production world, but in other fields such as data processing. Companies can hire operators located anywhere on the planet to punch in data via satellites. Inexpensive production has a positive impact to consumers; products are available faster, cheaper, and at varying qualities. On the other hand, outsourcing has basically made unions in the workforce obsolete. There is no need for bargaining to make fair incentives for laborers; labor is cheap and easy to come by due to routine producers sending jobs into global webs instead of keeping the jobs at home.
The second boat in the said metaphor is carrying...
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