...It's this devaluing of middle-class workers, says economist William Galston in The Wall Street Journal, that more than any other factor has created the cavernous income gap between the wealthiest 1 percent and everyone else. The implicit contract that created America's postwar economic boom — in which loyal, productive employees got big raises when the company enjoyed big profits — has given way to a new ethos. Nearly all profits go to executives and stockholders; workers get tiny raises at most, along with a cut in benefits. This philosophy, Harold Meyerson points out in The Washington Post, got its start in the 1970s and '80s, when American business "abandoned its earlier stakeholder model," in which workers were valued partners. In the current "shareholder model," the only goal is to maximize profits and stock value. Until corporations get consciences or workers get more leverage, the income gap will keep widening. Got that? Now stop whining, you ingrates, and get back to work.
Monday, February 24, 2014
The real cause of income inequality - The Week: