TruthOut: Salvatore Babones- “Why Inequality Is a Problem and Growth a Red Herring”: How People Are Paid Based on The Skills and Production

Fact or Fiction

Fact or Fiction

Source: TruthOut: Salvatore Babones- Why Inequality Is a Problem and Growth a Red Herring

I really dislike the term income inequality because it assumes that with some people making a lot more money than others and with income rising with part of the population and falling in others that is somehow unfair. That it’s unfair for a CEO of a company to make five-million-dollars a year let’s say when that company is doing very well and where the employees are paid very well with benefits and everything when employees in the fast-food industry are making let’s say eight bucks an hour or a delivery person for the Post Office is making forty thousand dollars a year and if they live in a big wealthy area, they would be struggling. But if let’s say Social-Democrats were in charge in America and wrote our Constitution, that these things wouldn’t happen because the Federal Government would collect most of the nations resources. And then give them back after keeping a big chunk of it to spend on our behalf for us. And then give the money back to us based on what they believe we need to survive and live well.

American capitalism does not work like that, in this country workers are paid based on what they bring to the table. Meaning skills and what they do with their skills meaning how productive they are. The problem with America is not that we have too many rich people, but that we have too many poor people and too many people who are technically in the middle-class, but struggle just to pay their bills and have huge debts. And are an injury or sickness away or getting laid off from being in a huge financial hole and having to collect public assistance for the first time in their lives. You want to have fewer lower middle-class Americans and fewer low-income Americans. Then we need a better skilled workforce and stop tolerating failing schools and students being stuck in failing schools just because of where they live. And we need to make quality affordable education available to everyone universal so all Americans have the opportunity to be successful in life.

Rising poverty, falling wages, rising personal-debt is not good for anyone especially the people who are experiencing those things. But taxing successful people more just because they are doing so well and you somehow see that as unfair. Is not what we should be doing but instead encouraging people to be successful in America and empowering more Americans to be successful and be able to build their own wealth which benefits the entire economy. Better skilled workforce, more consumers and more consumers with money to spend who can afford to spend.

ARC CUNY: Paul Krugman & Tony Atkinson- Conversation on Income Inequality & Economic Growth

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About Ederik Schneider

Blogger on a whole host of subjects.
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