One of the most pressing issues in the last two decades has been the economy. After the collapse of the housing market bubble, many economists have postulated on what caused the collapse. But more importantly, how America can recover. Although we are nearing the end of the recession, families and more importantly the middle class does not feel like it’s over. Robert Reich, one of the greatest economist of his time, postulates very generally that the problem is the growing gap between the rich and the poor, and the disappearance of the middle class.
One of the reasons Reich believes the middle class is feeling the brute of the recession even nearing the end is that although the average wage has slowly risen, the purchasing power of the average American has dropped especially during the recession. What this means, very generally, is that the dollar is worth less so Americans buy less. Meanwhile the average CEO, millionaires and billionaires are becoming richer and richer, while the Middle class slowly becomes the poor class. While this has always been a narrative, especially with Sen. …show more content…
As the world continues to grow one the most inevitable process is globalization. While current rhetoric, especially from certain parties, is complete opposed to globalization Reich describes a time when this party applauded globalist policies. Globalization, the process of become more inclusive in the global economy, actually grows under capitalist society. These large corporations in effort to increase profit, and reduce overhead went overseas with their money and jobs where labor and regulations are less costly and less stringent. At the same time, technology greatly exaggerated globalization as the world became more connected with a larger labor force, at the same time eliminating jobs where a machine or computer could do
One of the reasons Reich believes the middle class is feeling the brute of the recession even nearing the end is that although the average wage has slowly risen, the purchasing power of the average American has dropped especially during the recession. What this means, very generally, is that the dollar is worth less so Americans buy less. Meanwhile the average CEO, millionaires and billionaires are becoming richer and richer, while the Middle class slowly becomes the poor class. While this has always been a narrative, especially with Sen. …show more content…
As the world continues to grow one the most inevitable process is globalization. While current rhetoric, especially from certain parties, is complete opposed to globalization Reich describes a time when this party applauded globalist policies. Globalization, the process of become more inclusive in the global economy, actually grows under capitalist society. These large corporations in effort to increase profit, and reduce overhead went overseas with their money and jobs where labor and regulations are less costly and less stringent. At the same time, technology greatly exaggerated globalization as the world became more connected with a larger labor force, at the same time eliminating jobs where a machine or computer could do