inequality for all
Economy Scale
In the Documentary Inequality for All, scholar Robert Reich dissects the staggering facts on an unequal distribution of wealth between classes and its shattering effects on the American economy. He focuses on the fact that our middle class, which makes up 70% of our economy, is being kept on a tight leash from the wealthy that only make up the miniscule 1% of society, making the same amount of income as half of the country. He begins explaining how In the late 1970s inequality became a prominent issue, not necessarily on a declining economy, in contrast he clarifies that the GDP (gross domestic product) kept on increasing. The problem arises from the unparalleled income of the American workforce compared to the increasing prices of health care, housing, college and everyday costs of living. As expenditures increased for American households so should of workers wages, but instead many dropped or remained the same throughout the economic boom and even until now in our current date. This “huge gap” as Reich describes, between wages and rising economy became a problematic concern to all Americans constituting the middle class.
The economy entered a vicious cycle as Reich explains it to be, a cycle on which low wages cause low consumer spending thus leading to a troubled economy for all. At first the middle class leaned on to borrowing from banks to get through their struggle balancing high living prices and low wages, another coping mechanism that kept the middle class going for a while was that women began entering the workforce to aid in the responsibilities of their households. Yet, these efforts weren’t enough for the two underlying issues; globalization and new technology whom were responsible for contributing to the flattening wages since 1970. An example of this can be seen with Amazon.com, a company that is responsible for taking out of the market many small businesses. The businesses that once performed the same work that Amazon.com does
In the Documentary Inequality for All, scholar Robert Reich dissects the staggering facts on an unequal distribution of wealth between classes and its shattering effects on the American economy. He focuses on the fact that our middle class, which makes up 70% of our economy, is being kept on a tight leash from the wealthy that only make up the miniscule 1% of society, making the same amount of income as half of the country. He begins explaining how In the late 1970s inequality became a prominent issue, not necessarily on a declining economy, in contrast he clarifies that the GDP (gross domestic product) kept on increasing. The problem arises from the unparalleled income of the American workforce compared to the increasing prices of health care, housing, college and everyday costs of living. As expenditures increased for American households so should of workers wages, but instead many dropped or remained the same throughout the economic boom and even until now in our current date. This “huge gap” as Reich describes, between wages and rising economy became a problematic concern to all Americans constituting the middle class.
The economy entered a vicious cycle as Reich explains it to be, a cycle on which low wages cause low consumer spending thus leading to a troubled economy for all. At first the middle class leaned on to borrowing from banks to get through their struggle balancing high living prices and low wages, another coping mechanism that kept the middle class going for a while was that women began entering the workforce to aid in the responsibilities of their households. Yet, these efforts weren’t enough for the two underlying issues; globalization and new technology whom were responsible for contributing to the flattening wages since 1970. An example of this can be seen with Amazon.com, a company that is responsible for taking out of the market many small businesses. The businesses that once performed the same work that Amazon.com does