Skip to main content

View Diary: Wealth Condensation: Why the Rich Get Richer (172 comments)

Comment Preferences

  •  I have posted this before (6+ / 0-)

    I do so again to suggest that this is a problem in all industrialized countries.  The US is handling it the worse, but similar forces are at work elsewhere.

    Note the share of income going to labor is declining everywhere.

    For a couple of decades after WW2 we seem to figured out how to generate a reasonable and improving standard of living for everyone. The reason why this has proven more difficult is complex: in my view over the last 30 years globalization has been the key driver.  A related reason has been too much capital investment, which has served to make labor more productive, but in a way that has made labor receive less of the value of the work (the distinction to investigate is labor saving versus labor augmenting technology).

    Anyway, very good post on an important topic.
    Photobucket

    The bitter truth of deep inequality has been disguised by an era of cheap imported goods and the anyone-can-make-it celebrity myth - Polly Toynbee

    by fladem on Sat Sep 24, 2011 at 09:22:19 PM PDT

    [ Parent ]

    •  extremely important distinction... (0+ / 0-)
      the distinction to investigate is labor saving versus labor augmenting technology

      "There's nothing serious about a plan that claims to reduce the deficit by spending a trillion dollars on tax cuts for millionaires and billionaires." - President Obama

      by fhcec on Sat Sep 24, 2011 at 10:58:09 PM PDT

      [ Parent ]

    •  it's the same issue, but on a globalized scale. (1+ / 0-)
      Recommended by:
      swellsman

      Wealth distribution from the G-7 to the new players in the game.

      And I think you're misssing the point fo this diary.

      For a couple of decades after WW2 we seem to figured out how to generate a reasonable and improving standard of living for everyone.

      The reason was fair and progressive taxes redistributing wealth combined with organized labor movements.

      As I see it, not only is it imperative that we institute a new progressive tax policy, but it is likewise important that we start to institute a new tariff policy as well. China will flip, but we have to take advantage of the limited and dwindling ace up our sleeve - our buying power - to negotiate a stop to the drain on jobs. We must propose and help China build  a better self-sustaining economy based around a growing middle class like we once had. Rather then continuing to rely on simply sucking the jobs and wealth from other nations as their economic model.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site