Falling Behind: How Rising Inequality Harms the Middle Class (Wildavsky Forum Series)
Economist Frank argues that rising economic inequality harms the middle class, and he uses familiar examples to teach us about consumer behavior. One interesting example is the buying of larger and larger houses by those at the top levels of income and wealth, which leads families in the middle to spend a greater percentage of income on housing in order to send their children to a school of average quality. They must then spend less on other important categories while their real purchasing power over decades stagnates. We learn about the role of technology in shaking out industries where a few become big winners and the rest hardly make it, explaining why foreign competition isn't always the reason. Frank's recommendation in favor of a progressive consumption tax is certain to draw controversy. This is an excellent book, written in an easy, understandable manner, alive with important examples of how our society spends its money and who are the winners and losers. Whaley, Mary--This text refers to an out of print or unavailable edition of this title.