The lack of money in the pockets of the many – who spend proportionately more than the wealthy – has led many experts to cite it as a fundamental crisis in capitalism. In the US, economists such as Paul Krugman and Robert Reich support the analysis of Thomas Piketty, author of Capital in the 21st Century, which states that squeezing the majority while allowing the richest to accrue unprecedented levels of wealth does not create a rising tide that lifts all boats. On the contrary, unrestrained capitalism that ignores the rules of fair play in employment destroys its own customer. In his documentary Inequality for All, Reich points out that 70% of the US economy is dependent on consumer spending. The problem is that more and more people have less and less money to spend. In America, middle-class wages have stayed the same or fallen since the 1970s. American billionaire Nick Hanauer, who describes himself as one of the .01%-ers, is now a supporter of the Seattle $15 minimum wage (compared with $7.25 elsewhere in the US). He asks why it is that the CEO-to-worker pay ratio since the 1950s has risen by a staggering 1,000%. He warns: I see pitchforks … it is the masses that are the source of growth and prosperity, not us rich guys. This story of wage stagflation and the working poor is just as applicable in Britain. Beyond chancellor George Osbornes talk of economic recovery, the stories are legion of families and communities across the whole of Britain who are only just managing to keep afloat. No matter how often Osborne says it, it doesnt make it true. Large numbers of Britons are not in recovery. The gulf between those getting by and those getting on grows each month. theguardian/society/2014/aug/30/low-pay-britain-fightback-begins?CMP=fb_gu
Posted on: Thu, 04 Sep 2014 17:27:15 +0000
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