“Inequality for All” was a great documentary--entertaining, educational, and inspiring, and that’s a hard combination to achieve. I do have one problem with the film, however, and it’s a biggie.
Reich said 70% of the American economy depends on consumer spending. If the workforce is underpaid, less money is available for purchasing, layoffs and stagnation occur, and we enter a downward cycle. Much of the movie was about how to raise the income of the people on the bottom by increasing their wages (stronger unions) or their productivity (better education).
One way to address inequality is to take from the rich and give to the poor, but redistributive policies are always difficult, especially when the Supreme Court in its “Citizens United” decision has given the top 1% a powerful ability to influence politics. On the other hand, a healthy growing economy can benefit those of us on the bottom.
And here’s my problem. Our current level of consumption is already killing the planet. Not only that, but the rest of the world, all 7 billion of them, want to consume at our level, which will make matters far worse. If the world’s economy and population keep growing, the next century will make the last one seem like a Sunday School picnic.
How could we achieve some kind of income equality in a steady state economy? A number of Green Party economists have wrestled with that problem, but so far they haven’t come up with any answers. Unfortunately, most economists still take the short view--how can we make the economy grow this year.
John Maynard Keynes was once asked,”What about the long run?” He glibly replied, “In the long run we’re all dead.” I once thought that was so clever. I don’t anymore. I think about our grandchildren and our great-grandchildren.
After two years of following your blog, I would like to say this is the most insightful posts I have read.
ReplyDeleteIn saying that, let me allay your fears. The economy in 50 years will in no way, shape or form resemble this one. Twice a year, another teacher and I do presentations on Technology for "Tech Wek" or "Technology Week". This last Tech Week we focused on robotics. We pulled clips from You Tube about how Robotics are changing labor. Fast food workers in Japan, assembly workers in the US, and the list goes on. Remember, this is "Robotics" not "Automation".
This is Baxter. He costs $29,000 (as much as one year salary for a laborer). Baxter can work 24/7 and he never gets sick, doesn't need vacation, and cause very little office drama!
http://www.youtube.com/results?search_query=baxter%20robot&sm=1
I liked the "insightful" comment.
ReplyDeleteI suppose the good part of robotics is that the robots won't need to buy anything, so consumption may go down. On the other hand, do we then really need workers? And what do we do all day?
I am a fan of Star Wars not Star Trek. But Star Trek has predicted many technologies, tablet computing, google glass, virtual reality, the tri-corder. But one thing Star Trek may have predicted is that no one works.
ReplyDeleteStar Trek has a "replicator" that can just produce things at will. We have the 3-D printer. If they want a chair, they don't build it they "print" it. No one needs to work.
We call it a Star Trek Socialism. It will save us from Drudgery. It could be a better society, less resource intense, things run on electricity which is 100% free because it is all renewable. Believe me, we know this would be a hard transition but humans have to evolve. This is unsustainable!