Wealth and poverty class (UC Berkeley): 3 questions
1. What is happening in terms of distribution and income
3. Is it a problem? (or maybe it’s not a problem)
Why the system works as it does?
Inequality, capitalism have the function. But how much inequality can we tolerate?
Measure of equality: top & the middle income: greater and greater. 400 people have more wealth than half of the United States.
What made the economy stable is strong middle class. The middle class is the heart of consumer spending.
There is no official definition of middle class. Household median income: $50000. >< $10000000+/year of entrepreneurs…
The problem isn’t that the rich spend too much. The problem is that they spend too little. They like to save.
But we need spending. The rich is not the center of the economy. The middle class is.
However, we find vast middle class people in poor meowwwwww
Who is the rule benefit and who is hurt? (economic freedom)
Why inequality has been widening? The economy overall has done well. But the average hour earning continued, but something happened in the late 1990s => decrease
Employers try to prevent union. Globalization and technology. Where your money actually goes? Cut wages of a lot of working Americans.
The global transformation hasn’t really reduced the number of jobs for Americans, but reduced their pay. While the cost for health care, education… is rising. The life of middle class is getting harder and harder and getting nowhere.
As income inequality is too high, people…