Inequality
According to the film, economic inequality has been widening in the U.S. since the 1970s. Discuss at least two central causes of this process as outlined by Robert Reich.
There are many causes identified as contributing to the widening economic inequality. Featuring prominently are market factors and policy issues which have combined to make the income gap wider. Several market factors contribute to inequality; educations disparities, where the highly educated earn more than the less educated while the skilled and unskilled workers also earn different incomes. Another market factor is globalization where imports and exportation of goods influence the profitability of the US markets which in turn influence payment of workers. The other marketplace place factor is race and gender disparities where income inequality exists between different groups.
Policy issues are also cited as the other cause of income inequality. The US tax policy does not adequately allocate tax between the high and lower income earners. There has also been a reduction on capital gains tax(Inequality for All)which has widened the gap by reducing tax for high earners who form the majority of capital gains owners.
The income inequality has led to the shrinking of the American middle class(Lansley). The number of people who fall in the middle class has reduced. A reduction in the middle class and an increase the lower class cadre affects the economy by reducing the buying power. Once the buying power reduces, businesses suffer and this also impacts the economy negatively. Inequality also leads to less investment on important things like education(Lansley).
What does Reich mean when he claims that rising social inequality has the potential to undermine democracy? Discuss the connection between wealth inequality and political influence in America.
Inequality has connection to political influence, and threatens democracy in two ways. To begin with, the elite will often struggle to maintain their grip on power and to influence policy and governance processes. For this reason, their effort to self-preserve may undermine the freedom of institution and may influence politics. Secondly, the disgruntled masses will often protest and put the state and political elite under siege, which may lead to policies and decisions made in their favor, thereby undermining democracy as would be seen on a level field of equality.
Do you think it is possible and/or necessary to achieve greater economic equality in the US? If so, how might this be achieved?
The effects of inequality on the economy and the lives of citizens is great, making it necessary to level the play field. One way of achieving equality is to reexamine the policies and change them to try and narrow the gap. It is also important to assess government programs and see how they contribute to inequality and which ones can be used to alleviate inequality.
Works Cited
Inequality For All. Hollywood: Jacob Kornbluth, 2013. DVD.
Lansley, Stewart. "The Middle Class Faces Extinction—So Does The American Dream". Alternet. N.p., 2013. Web. 3 Feb. 2013.
