Tags: Ronald Reagan | Robert Reich | job creation | economics | economic recovery

Robert Reich: Reagan Policies Killed Job Creation

By    |   Tuesday, 30 Sep 2014 10:00 AM

Ronald Reagan's economic policies that allowed the rich to accumulate wealth have stifled job creation and hurt the economic position of the vast majority of people in the country, Robert Reich said.

In a blog on his website, the former secretary of labor under President Bill Clinton contends that even though America's wealthiest people are richer than they've ever been and corporate profits are at record levels, these entities are not investing in creating jobs in the way conservatives insisted would happen.

"Conservatives believe the economy functions better if the rich have more money and everyone else has less. But they're wrong. It's just the opposite," Reich wrote.

"The real job creators are not CEOs or corporations or wealthy investors. The job creators are members of America's vast middle class and the poor, whose purchases cause businesses to expand and invest."

Reich said that in the current financial recovery since 2009, all of the economic gains have been experienced by the top 10 percent of the population while the bottom 90 percent, as measured in median household income, has lost ground.

"Why did the playing field start to tilt against the middle class in the Reagan recovery, and why has it tilted further every since?" he said. "Don't blame globalization. Other advanced nations facing the same global competition have managed to preserve middle class wages."

Reich argues that the sharp decline in union membership was one factor that has prevented most workers from benefiting from economic growth. He also says that the decline in value of the minimum wage since 1979 has played a role as well.

As a solution, he argues for an increase in the minimum wage and stronger unions to give lower wage workers more economic power. He said that a hike in the minimum wage, such as the one in Seattle, will create jobs by giving low-wage workers more money to spend at local businesses.

"The only way to grow the economy in a way that benefits the bottom 90 percent is to change the structure of the economy. At the least, this requires stronger unions and a higher minimum wage," he wrote.

"It also requires better schools for the children of the bottom 90 percent, better access to higher education, and a more progressive tax system."

He concluded by saying, "If the median household's income is heading upward, the economy is in good shape. If it's heading downward, as it's been for this entire recovery, we're all in deep trouble."

Related stories:

© 2017 Newsmax. All rights reserved.

   
1Like our page
2Share
US
Ronald Reagan's economic policies that allowed the rich to accumulate wealth have stifled job creation and hurt the economic position of the vast majority of people in the country, Robert Reich said.
Ronald Reagan, Robert Reich, job creation, economics, economic recovery
437
2014-00-30
Tuesday, 30 Sep 2014 10:00 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved