why is the gap between the rich and the poor growing according to Robert Reich in "What happned to the American Social Compact"?
To understand Robert Reich's perspective on why the gap between the rich and the poor is growing, we need to refer to his book, "What Happened to the American Social Compact?" However, as an AI, I don't have direct access to specific books or texts. But I can offer you a general understanding of some factors that contribute to this gap based on research and common knowledge.
According to various economists and social critics like Robert Reich, there are several key reasons why the gap between the rich and the poor has been widening:
1. Technological advancements: Technological progress has led to automation and increased productivity in many sectors, benefiting those with the necessary skills and resources to adapt and capitalize on these changes. This has left many low-skilled workers at a disadvantage and caused wage stagnation for a significant portion of the population.
2. Globalization: The globalization of markets and international trade has placed pressure on domestic industries, leading to job losses in certain sectors. Additionally, globalization has allowed multinational corporations to exploit lower-cost labor in developing countries, further widening income disparities.
3. Shift in labor market demands: The demand for skilled or specialized labor has increased, while demand for low-skilled or routine jobs has declined. This shift has made it difficult for individuals without advanced education or specialized skills to secure well-paying jobs, exacerbating the wealth gap.
4. Policy changes and taxation: Changes in tax policies and regulations have benefitted wealthier individuals and corporations, allowing them to accumulate more wealth and pay a lower proportion of their income in taxes. This has contributed to a concentration of wealth among the richest individuals and widened the income gap.
5. Decline in workers' bargaining power: The decline of labor unions and weakened labor protections have diminished the ability of workers to negotiate for higher wages and better working conditions. This has resulted in a smaller share of economic gains going to workers and a larger share going to business owners and top executives.
It is important to note that these are general reasons mentioned by economists and social critics, and Robert Reich may have additional or more specific arguments in his book. To get a more nuanced understanding of his perspective, it would be best to refer directly to "What Happened to the American Social Compact?"