
This documentary is said to be the economy equivalent of what the 'Inconvenient Truth' is to the environment.
It is told through the viewpoint of Former Secretary of Labour under the Clinton administration. He is said to have to left the Government after his call for economic reforms were repeatedly denied. He is now lecturing at Berkeley.
He suffers from multiple epiphyseal dyplasia and stands at 4'10". He was a Rhodes scholar who studied in Oxford with Bill and Hillary Clinton..
For a start, inequality is good and it is inevitable. The fact that there is inequality amongst us is a fertile ground for people to be motivated and inventive. There is a desire for those in lower rung of equation to strive to come out of their comfort zone. The problem is when this gap becomes too wide a divide that it creates a big unattainable rift between the two.
For every economy to be stable, the middle class spending is of paramount importance since they constitute the bulk of the population. The rich 1% anyway do not spend enough.
The 1% are appreciated for their role in creating jobs for the masses, hoping that the trickle down economics will help stimulate the nation's economics.
After the second world war, the economy, wages and productivity started going on an upward trend all the way to the 70s when it stagnated. With better opportunity for education, the income gap declined and a virtuous cycle prosperity was created.
In the 70s, something happened. Globalisation and technology pulled away work from US. Private sector union also became less active silencing the voice of the middle income wage earners. Women had to enter the working force. In spite of the double income, disposable income became less. Wages (adjusted for inflation) became less. Big companies who were gulping up mum-n-pop type of shops employed less people.
People had to work longer hours. When that was inadequate, they started living on credit.
There was only so much the coping mechanism could take. The bubble soon burst.
The author shows the parallel comparison between the wide income gap in the years surrounding the Great Depression at the end of the 1920s and around 2008. The events surrounding the two eras are eerily similar - the collapse of the market, the euphoria before the fall, the wide income gap and the demonstration after which.
The widening of income gap this time around make it more difficult for the middle class to climb out of their cocoon. Education becomes more expensive and unattainable. The super-rich, despite of their high earnings, are taxed proportionately much less than the middle class. Inequality creates political polarisation. People retaliate. Their easiest scapegoat at the present time seem to be the Muslim and other minorities.
Billionaires, now with a large stash of cash at their disposal (400 richest Americans own more than the income of the lowest 150 million earners combined), even have politicians at their knees and have much to say about running the country and in their favour too.
There is no single magic bullet to save the underprivileged without their voice being heard.
Billionaires, now with a large stash of cash at their disposal (400 richest Americans own more than the income of the lowest 150 million earners combined), even have politicians at their knees and have much to say about running the country and in their favour too.
There is no single magic bullet to save the underprivileged without their voice being heard.
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