September 03, 2010 05:44 PM UTC

Econ 101

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• by: JO

(In an age when billionaires fund “faux populist” tax revolts, a whiff of old fashioned class consciousness can’t hurt.  JO offers this thought provoking look at inequality in America.   – promoted by Voyageur)

Required reading: Robert Reich in today’s NYT on ending the Great Recession: http://www.nytimes.com/2010/09…

For those in a hurry, Reich’s main points:

–Since 1970 real wages of American workers have declined. To compensate working families adopted three stratagems: a second member of the household went to work, typically the wife/mother; work more hours per year; go into debt, esp. home equity loans.

–Since 1970 the share of national income flowing to the top one per cent rose from 9% to 23.5%. In effect this siphoned off demand for goods and services produced by the larger work force that was working more hours.

–Increased production from abroad (China) put further downward pressure on real American wages.

(These are Facts, or what American Teahadists refer to as a “pack of lies.” http://coloradopols.com/showCo… )

Solutions?

Reich suggests several specific measures and I won’t further crib from his piece by borrowing from them here. BUT, suffice it to say that at root, these involve a re-redistribution of income. It’s no surprise, therefore, that billionaire Libertarians like the Koch brothers are eager to finance Teahadists posing as Mall-town preachers (Beck) or a flock of High Plains shysters selling hokum by the barrelful.

As one prominent Louisianan once said, “It’s the economy, stupid.” Seems like an easy enough lesson. Odd that the official Democratic ticket seems to have such a hard time learning it, especially since FDR already showed the way!