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So what’s causing the U.S.’s current income inequality and why hasn’t the recent economic recovery benefited “Joe six pack?”
The answer is it’s not even a nasty political party but rather a cycle modern development and economic pattern: “When the rate of return of on capital exceeds the rate of growth of output and income, as it did in the nineteenth century and seems quite likely to do again in the twenty-first, capitalism automatically generates arbitrary and unsustainable inequalities that radically undermine the meritocratic values on which democratic societies are based,” Thomas Piketty. The rub is we’re alive and struggling today not just for good pay but globally to survive as a nation … we don’t have 50-100 years for the next cycle.
Put simply, banks, the “1percent” (wealthy) and IT industry makes money while manufacturing and service lags behind. The profit from investing in financial products produces practically no jobs or general financial benefit to the rest of Americans. Or put another way all those who espouse the “trickle down” theory to help America get back on its feet are just plain nuts. The 300 year’s of research in Thomas Piketty’s best-seller, “Capital in the 21st Century” has the outraged the Republican right. Their economic theory turns out to be just a bunch of pocket-pool whooey.
Let’s add human nature and a little complexity to this economic impasse; How does the average young person get ahead? Today, college tuition loans bury them for their key initial lifetime income profile, yet a degree has never been more important. Couple that with few folks are motivated to voluntarily cut back on their wealth creation or choose to give their assets to someone other than their children or pay more taxes or take the risk of a business with their financial profits … how do you think America can reopen the doors of opportunity … there are answers.