Monday, December 2, 2013
The Tide is Turning
Inequality means you get screwed. Large gaps in educational achievement and racial divides all make the reduction in inequality difficult. The poorest states in the USA are Montana, Arkansas, Mississippi and West Virginia and most of these are Red states or considered Republican non-union, but right-to-work states. The Republicans will tell you wage slaves that inequality is desirable. Inequality gives wage slaves the incentive to work harder and invest. But at some point, which is where we are now, the inequality of income and wealth becomes so wide as to harm society. When most all the economic gains go to the top; the wage slaves and everyone aspires to join the top percentage, but they no longer have the purchasing power to keep the economy going. Moreover with the small number at the top 1 percent making most of the investment decisions the economy will go up and down. Also, with the 1 percent gains more wealth they also gain more political power in a disproportionate amount, which they can game the system by lower taxes and regulations. But in the long run this degree of inequality harms even the wealthy over the time. Just the inequality of education for the wage slaves will end up costing the 1 percent loses in production. The wealthy would do better in a society whose members readily join together to solve problems than one rife with dissention and conflicted, yet collaboration is difficult. Then people feel the game is rigged against them and that no matter how hard they work, they still can’t get ahead. But it seems that there might be a tipping point. Walmart is changing leadership and there is movement on the wages—some wages have even made it to the $15 an hour rate and Germany went to $11.55, California to $10 an hour, but mostly it is still being slow walked. However, the tide is turning and it will be better for all. Lastly, Obamacare is starting to work at the chagrin of the GOP!