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  • Essay / The Middle Class in Robert Reich's Inequality for All

    Inequality for All Robert Reich is on a mission to change the economic status of America. In his documentary Inequality for All, he highlights some of the shortcomings of the American government's laws, while confirming and justifying the growing difficulties facing the middle class. He starts the discussion with the effect of the suspension bridge. In 1978, the average American middle-class worker earned about $48,302 per year, while the average salary for the top 1 percent was $390,000 per year. More recently, in 2010, the average salary of middle-class workers fell to $30,000, while that of the richest 1 percent rose to around a million. Emmanuel Saez and Thomas Piketty studied IRS tax data as early as 1928. They found that when the economy began to boom, money began to concentrate in the hands of fewer people. As a result, the middle class began spending more money to maintain a living status by falling deeper and deeper into debt. Soon the debt bubble burst, resulting in the Great Depression. According to Reich, the stability of an economy depends on the prosperity of its middle class. The cause of the depression was rising wages and the fact that money was not being returned to the middle class. The virtuous cycle of a healthy economy occurs in 6 stages: productivity growth, rising wages, job creation, increased tax revenue, government investment and educated workers. A healthy economy is possible, but it is not our reality today. The two factors that led to wage stagnation in the 1970s were globalization and technology. Walmart, Exxon and Apple are some of the companies that have succumbed to globalization. Result: there are fewer jobs in America. Fewer jobs in America leads to less money in circulation and higher wages. The middle class is the heart of the economy, and if they are struggling, then our. I understood that yes, education and family trust favored certain people. I just didn't understand why my mother worked hard and why her bosses sitting behind a desk made more money than her. I found this documentary very interesting, captivating and inspiring. Comparisons between the crashes of 1978 and 2010 are shocking, given that history is taught in schools to prevent such a situation from happening again. I also found Riech to be very passionate about his fight for equality. I would have liked to hear more of some of the opposing viewpoints. I didn't want to have a biased opinion on the subject. After watching Inequality for All, I returned to my dorm looking for reasonable opposition to Professor Reich's data and claims. Most reviews agree that this documentary is truthful and well made. While other comments indicated that Reich knew nothing about economics and that it was all hogwash, these comments had no events or reasons to back them up. Finally, rare.us uniquely takes some of the key points of Reich's argument and combats them one by one. Overall, it was very difficult for me to find valid responses to his arguments. This documentary left me with three questions: what is the most logical solution to this problem, how can we prevent this problem from happening again in the future, and does the increase in population affect the data in any way? whatever.