We are near or have already reached that tipping point. As French economist Thomas Piketty shows beyond doubt in his “Capital in the Twenty-First Century,” we are heading back to levels of inequality not seen since the Gilded Age of the late 19th century. The dysfunctions of our economy and politics are not self-correcting when it comes to inequality.
But a return to the Gilded Age is not inevitable. It is incumbent on us to dedicate ourselves to reversing this diabolical trend. But in order to reform the system, we need a political movement for shared prosperity.
Herewith a short summary of what has happened, how it threatens the foundations of our society, why it has happened, and what we must do to reverse it.
So much of this issue has been exacerbated by public policy that ignore the role of public policy that exacerbates this issue.
And to be clear, I’m not one that thinks removing regulations like a minimum wage would *help*. I’m more along the lines of wondering why we tax income from wealth at a lower rate that income from work.
And the other stuff Reich covers. Lots of stuff that we can do, but we have to actually do it.