Saturday August 30th, 2014, 4:17 pm (EDT)

Jerry Kloby

Wealth Gap Woes

Chuck Collins, Betsy Leondar-Wright and Holly Sklar, Shifting Fortunes: The Perils of the Growing American Wealth Gap (Boston: United for a Fair Economy, 1999), 94 pp., $6.95 paper.

It is a telling historical fact that during both the lean times of the late 1970s and early 1980s, and the boom times of the 1990s, one thing has remained relatively constant: economic inequality in the United States has been increasing. During recessions it is workers who are asked to tighten their belts and who have to cope with falling wages, shrinking fringe benefits, or even massive layoffs, while everything possible is done to preserve corporate profits and income that is derived through ownership. During times of expansion one might expect the incomes of both owners and workers to increase. However, in the boom of the 1990s, while income derived through ownership increased, wages for most workers continued to stagnate and fringe benefits continued to be whittled down. About the only thing that kept the poverty rate at a respectably low level was the low unemployment rate. The boom now seems to have ended without workers ever making substantial gains… | more |