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I would suggest that the growing gap you describe is a symptom of continued application of neoliberal policies. It is not that there was a status quo for the la
by wycx 11y ago
I would suggest that the growing gap you describe is a symptom of continued application of neoliberal policies. It is not that there was a status quo for the last 40 years, it is that the last 40 years has seen accelerating erosion of the conditions/social contract established in western countries in the post depression/WW2 era.
Placing the rights of capital above all others, particularly giving capital a level of mobility that is not afforded labour, combined with an unquestioning embrace of trade liberalisation results in a race to the bottom for labour.
It is only due to the stranglehold of neoliberal thinking on modern economic thought that globalisation is considered inevitable.
- XorNot 11y agoNow there's an interesting thought experiment: what does a country with high internal labor mobility look like?
- dnautics 11y agoI would suggest that the growing gap comes because government steals from the poor and gives to the rich through inflation. One ought to have seen a dividend for the working guy due to lowered prices from increased efficiency brought about by technology, but instead the Fed has chosen to favor "stable prices" which is done by lowering interest rates (I.e. making it easier for rich people to access capital)
- thisislame 11y agoDeflation, not inflation, steals from the poor and gives to the rich. Deflation depresses wages and increases the value of assets (including outstanding debts! rich people use debt, poor people have debt.)
- dnautics 11y agopoor people either aren't in debt (because no one will lend to them), or have debt on such short timescales or high interest rates that inflation has a negligible effect on the real value of their indebtedness.
- underdown 11y agoI'd argue both hurt poor people. Wage growth typically lags behind inflation.
- deleted 11y ago[deleted]