Europe and the rest of the world call it political economy, viewing and weighing the way markets are influenced by politics–by power and wealth. Not only is the height of the tide important, but the force of the currents underneath.
America, with the world’s largest GDP and per capita income, with its record business profits, finds deadly turbulence underneath its rising tides–the working and middle classes have capsized and are being swept away! Despite the pain, they remain divided from their own interests!
State legislatures and private boards raised the costs of colleges from affordable to elite, narrowing the path of upward mobility. Home values in working class neighborhoods stalled, but when these communities gentrify, the higher taxes push out the elderly and poor. Charter schools, a powerful current, have not raised the level of the tide. Corporations no longer offer a lifetime ladder to higher wages, safety nets, and retirement; these benefits stripped away long before Obamacare.
Now foreign workers are entering on H1B2 visas, displacing middle income workers here at home. It’s not jobs returning but foreign workers entering–trained by laid-off Americans. The riptide’s undertow caused by labor’s decline and worker’s rejection of collective organizing left power solely in corporate hands. After the housing bubble, the junk bond crash, balance sheet politics, we surely know what that means. Don’t blame the Chinese, we have wealth and means.
Anger and blame aside, do we still have the will?
Republican Elite’s Reign of Disdain – The New York Times http://nyti.ms/1RpMNsn