I haven’t written on economic subjects but it appears that
the time has come.
The subject of INCOME INEQUALITY IN AMERICA has been raised
on a number of levels including in my own household with my wife (the
socialist) eager to argue her point every time an article comes up in the paper
addressing the issue.
I think everyone can agree that income equality or at least
narrowing the great gap / divide in income in this country is a good idea not
only for our economy (fuels growth) but for the welfare of individual Americans
and their families.
Fact: Income
inequality is the highest since the 1920s; the income gap between the top 1%
and the remaining 99%.
The cause(s) of this growing income gap and the solutions to
narrow it are what the discussions / arguments are all about since there is no
definitive data available to guide us; all we know is that the gap is wide and
widening.
I have been reading about a number of approaches to this
problem with one from the left being income distribution. Put into plain
language, this means taxing the rich to give to the poor or rob Peter to pay Paul
(Robin Hood philosophy).
These same people want a return of union power which would
compel industry to raise wages by threatening strikes. They want to raise the
minimum wage and institute a maximum wage based on a ratio of top to bottom wage
amounts.
Another approach talks about educating Americans to be able
to take the skilled labor jobs that now go wanting or are filled by foreign
workers.
There is no question that we have seen a sea change in labor
with globalization. No more high paying unskilled jobs which the middle class
depended on to be in the middle class; having some type of skill in demand by
the marketplace is now basically a must.
I do not have an answer to how best to narrow the income gap
in this country but I do know that paying more for unskilled labor ($15/hour
demanded by fast food workers) is counter-productive; it will contribute to
inflation and will lead to more automation and therefore higher unemployment.
Income Inequality is the economic issue of 2014 and I will
be following the discussion / debate closely because it will impact our society
in a major way…so glad I am a boomer and retired…feel bad for the younger
generation but hey, they are young and have time to adjust.
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