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View Diary: The Bifurcated Recovery (193 comments)

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  •  The problem is bigger than globalization (14+ / 0-)

    That is only one of the factors contributing to the concentration of wealth at the top of our economy.  That concentration is the basic problem, because a top-heavy economy will not be as healthy as a broad-based one.  It will also not spread prosperity as widely, needless to say.

    Until Democrats embrace the "class warfare" charge Republicans hurl anytime any redistributive policy is proposed, a long-term broad-based recovery in the economy will be very unlikely.

    •  I don't agree (5+ / 0-)

      the concentration of wealth is occuring because wages are not keeping up with productivity growth.  This is occuring everywhere in the industrialized world. See several IMF reports, including one on Japan, for details.

      The reason for the increasing gap between productivity and wages is labor arbitrage resulting from offshoring or the threat of offshoring (which is accelerating automation).

      There are three policy options:

      1.  Do something to make offshoring look less attractive (ie a tax on places in the supply chain that are offshored or alternatively currency devaluation).
      1.  Redistribute wealth via the tax system.
      1.  Do nothing.

      We will almost certainly do 3, Europe will try to do number 2, but there are very real limits of that policy's effectiveness.  We need to do number 1, and quickly, but Obama doesn't get that.

      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 Mon Mar 01, 2010 at 08:53:12 AM PST

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      •  Another instance when ... (4+ / 0-)
        Recommended by:
        bara, chumley, 3goldens, goinsouth

        ...Karl Marx - a good describer, but poor prescriber - had it right. This globalized workforce expands the "reserve army of the unemployed." That army is one of the factors that puts pressure on wages downward.

        I refuse to accept "no can do" as a proper slogan for progressives.

        by Meteor Blades on Mon Mar 01, 2010 at 09:45:31 AM PST

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      •  I've been informed just this morning (9+ / 0-)

        that elementary school textbook composition, which we used to get $25-$45 (and more) a page for, will go to India unless we meet the $6 a page price they bid. I'm one of the very few people left in a field that was thriving not so long ago.

        My consumer purchases have gone way down. Multiply me by several thousand who used to be in my field.

        The publishers' profits, on the other hand, will skyrocket. They don't lower their prices much when selling the programs to the States.

        Until we break the corporate virtual monopoly on what we hear and see, we keep losing, don't matter what we do.

        by Jim P on Mon Mar 01, 2010 at 09:51:42 AM PST

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