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There's one detail I'd like to address: > I actually think we simply handed this conversation over to the free market in the 20th C and that answer isn't goin
by hackuser 11y ago
There's one detail I'd like to address:
> I actually think we simply handed this conversation over to the free market in the 20th C and that answer isn't going to work in this century.
The free market / globalization dogma only took hold in the 1980s, under Reagan (in the US) and Thatcher (in the UK). Before that, the economy was much more highly regulated, taxes were over 80% in some categories, labor was much more powerful, and governments ran or controlled many industries.
(Remember that under these conditions, in the 1950s and 60s, the U.S. experienced possibly its greatest period of economic performance ever. The 1970s were a period of recession, at least partly driven by OPEC's oil embargo on the West.)
The issues you attribute to the 21st C have existed since the 1980s: The economy has grown but only for a very small minority. Everyone else's incomes have stagnated (while costs have increased, especially for health care and higher education). The benefits never 'trickled down' as promised (and what a condescending economic strategy!) and inequality has exploded. With labor weakened, ordinary workers have much less voice in business and government - and not surprisingly, they've been less able to secure the benefits of economic growth while those with a stronger voice have done exceptionally well.
I should say: The adoption of these policies and the stagnation of wages are coincident, but I don't know enough to say there is a causal relationship. I do know the problem has been around since the 1980s; it's just that the consequences have accumulated: What was argued be a temporary problem is now, decades later, proven to be a structural one, and the inequality has widened to a chasm.