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Robert Reich – What’s Wrong With the Economy in 2 Minutes

Posted by Pharmboy - June 18th, 2011 12:54 pm

Excerpt from the Pragmatic Capitalist's THE TRUTH ABOUT THE ECONOMY IN 2 MINUTES

Robert Reich describes what’s wrong with the economy in 2 minutes (Video HERE). His bullet points (thanks to Stephanie Kelton):

  • The economy doubles since 1980, but wages flat.  Where did the money go…
  • All (or most) of the gains went to the super rich.  And…
  • With money comes political power.  Taxes on super rich slashed, revenues evaporate.  This leads to…
  • Huge budget deficits.  Middle class agitated, fights for scraps…
  • Middle class divided.  Buying and borrowing slow.  Resulting in:
  • Anemic recovery/economy. 

I would add one very important point that Mr. Reich misses here:

The real destruction has come in the growth of the financialization of the US economy.  Since the 1970′s when the financialization of the USA began we have seen an increasing number of would-be entrepreneurs leave productive positions for Wall Street jobs where they largely help devise ways to help separate the middle class from their savings.  

More here > 

 

See also, the cannibalization of capitalism.