Inequality: Government Is a Perp, Not a Bystander
Category: BUSINESS
Congress and the president have decided to craft budgets that lead to tens of millions of people being unemployed or underemployed. High levels of unemployment put downward pressure on workers' wages, especially those in the bottom third of the labor force. This means we have a federal budget that limits growth and employment in a way that redistributes income upwards. So, inequality didn't just happen; it was the result of government policy. That is why people who actually want to see inequality reduced, and for poor and middle class to share in the benefits from growth, are not likely to be very happy about President Obama's speech on the topic. His comment about the government being a bystander ignores the real source of the problem. Therefore it is not likely that he will come up with much by way of real solutions.
By Dean Baker, Guest Writer
Guest Writer, 2013-12-24