The Non Zero-Sum Society: How the Rich Are Destroying the US Economy
▻http://www.globalpolicy.org/social-and-economic-policy/global-injustice-and-inequality/inequality-of-wealth-and-income-distribution/52228-the-non-zero-sum-society-how-the-rich-are-destroying-the-us-econ
Recent reports reveal an 8.2% wage increase for the wealthiest US citizens while the majority is increasingly employed in low-wage jobs. This highlights the widespread inequality in the US and the eroding purchasing power of the general population. The growth of low-wage jobs coincides with the decline in labor unions since the 1950s due to an increase in anti-union laws in the US. Neo-liberal globalization, technological changes and anti-union corporations like Wal-Mart have all contributed to the rise oflow-paying jobs, stagnating wages and a decline in purchasing power. According to Robert Reich, this trend will eventually hurt the wealthiest classes since as much as 70% of the US economy is based on consumer spending. Hence, he argues that this is a “Non Zero-Sum situation” where wealthy Americans would profit more from lessening their monopoly on the economy. While this is an optimistic outlook, it ignores the fact that wealth of the 1% has increasingly been decoupled from the “real economy” through financialization and foreign investments.