Inequality for All and Krugman questions

According to Reich, the United States has the most unequal distribution of income out of all countries. The richest 400 Americans have more wealth than the bottom 150 million US citizens combined. Inequality started to increase in the 1970’s-80’s. As income got more concentrated in fewer and fewer hands the financial sector bloomed on certain things. The middle class’s incomes were stagnating and so the middle class went deeper and deeper into debt to maintain their living conditions. Reich makes it a point that it is extremely necessary to have a strong vibrant and growing middle class in order to have a good economy. The problem isn’t that the rich spend too much its actually that they spend too little and this ultimately results in not enough economic activity. Instead they end up saving that money and become part of the global economic market rather than solely the United States economic market. Most of the return they get on their invested money doesn’t do anything for our economy it only gives return to their specific bank accounts, which is a huge issue. People would be less concerned about inequality and wealth if they were able to move up the income latter and make it financially. However as income inequality rises, upward mobility is way less likely than it was before. Inequality is clearly linked to higher education because it helps to lift people out of poverty. However by the 70’s higher education was becoming harder to obtain. Reich believes the most important thing is to invest in people, our work force and middle class. He believes if workers don’t have a voice then their wages will suffer. Big companies are not designed to create good jobs in the united states they are designed to make profit, and that’s an issue.  

·                                  Krugman believes that Americans do not have equal opportunity. Because children from low income families are usually uninsured they are now more likely to have health issues that could affect decisions they make throughout the rest of their lives. Inequality corrupts our politics. High levels of inequality also strains the bond that holds us together as a society. Krugman says “there is convincing evidence that growing inequality is behind our growing cynicism, which is making the united states seem growingly like a Latin American country” He believes that getting rid of inequality means undoing many of the tax cuts for the wealthy the movement conservatives pushed through since 1980. Krugman stated that he believes in order to progressively restore the tax system the Bush tax cuts for the very well off need to expire at the end of 2010 as planned. He also believes that a newly empowered US union movement would reduce inequality.