It started with Prof. Krugman's post from yesterday called Even More Gilded where he talks about a very important but overlooked report by Prof. Emmanuel Saez. Now, this morning the front page of Huffington Post. This issue needs to catch on.
I strong urge people to read to Prof. Saez report: Striking it Rich. Here is the most striking excerpt:
The labor market has been creating much more inequality over the last thirty years, with the very top earners capturing a large fraction of macroeconomic productivity gains. A number of factors may help explain this increase in inequality, not only underlying technological changes but also the retreat of institutions developed during the New Deal and World War II - such as progressive tax policies, powerful unions, corporate provision of health and retirement benefits, and changing social norms regarding pay inequality. We need to decide as a society whether this increase in income inequality is efficient and acceptable and, if not, what mix of institutional reforms should be developed to counter it.
Src: Paul Krugman, Saez Income Inequality U.S.
Worthwhile to note the research only goes to 2007.
Remember the equation? Income Inequality + Globalization + Financialization = Destruction of middle class
Sorry for the short post but still reading health care reform bills.