Tags: Robert Reich | income | inequality | years

Robert Reich: Income Inequality Will Increase in Next 10 Years

By    |   Friday, 08 May 2015 07:02 AM

The technology revolution will exacerbate our country's unequal distribution of income over the next decade, says former Labor Secretary Robert Reich.

"Income and wealth will become even more concentrated than they are today," the University of California, Berkeley public policy professor writes on The Huffington Post.

"Those who create or invest in blockbuster ideas will earn unprecedented sums and returns. The corollary is they will have enormous political power."

But it won't be so hot for the rest of us, Reich says. "Most people will not share in the monetary gains, and their political power will disappear. The middle class's share of the total economic pie will continue to shrink."

But there is hope, Reich says.

"The current trend is not preordained to last. . . . We can--indeed, I believe we must--ignite a political movement to reorganize the economy for the benefit of the many, rather than for the lavish lifestyles of a precious few."

Meanwhile, growing income inequality represents a primary cause of last week's turmoil in Baltimore, says star economist Nouriel Roubini of New York University.

"We've seen race riots in parts of the United States because lots of people are poor and angry and resentful," he told CNNMoney.

"The solution can't just be to send more police in the streets or the National Guard. People are desperate. We have to deal with this issue of poverty, of unemployment and economic opportunities."

The median household income of African-Americans in Baltimore is just $33,610, more than 40 percent below the $60,550 total for white households.

"We have to deal with this gap because if we don't deal with it, eventually the biggest political problem is not going to be a geopolitical problem from the Middle East or Ukraine, Russia or Asia, but will be domestic," Roubini said.

The Federal Reserve's massive easing hasn't helped, he maintains. "All of this easy liquidity has not led to a strengthening of job creation, wages and opportunity. The gap between Main Street and Wall Street is widening."

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The technology revolution will exacerbate our country's unequal distribution of income over the next decade, says former Labor Secretary Robert Reich.
Robert Reich, income, inequality, years
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2015-02-08
Friday, 08 May 2015 07:02 AM
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