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Home Publications Blogs Beat the Press More Evidence that Income Inequality Is Due to the Loss of Middle Class Jobs

More Evidence that Income Inequality Is Due to the Loss of Middle Class Jobs

Monday, 30 September 2013 20:54

Yes, we all know that income inequality is due to the hollowing out of the middle. Technology is destroying the jobs that used to support the middle class. Somehow technology doesn't destroy the jobs that pay people in the financial industry millions and tens of millions a year to do absolutely nothing useful as consultants to pension funds. It's hard to believe that anyone would take this technology story seriously if it were not so appealing to the rich and powerful.

Comments (4)Add Comment
written by watermelonpunch, September 30, 2013 10:08
I guess what it comes down to is...
What do we, as humans in a society, see as being the purpose of businesses and the financial sector?

If we see business as a cash cow for the already well off, its purpose to enrich the owners...
If we see the financial sector as a gambling casino as free-ride generator for a select few...

Then our economy is a huge rollicking success!!

If, on the other hand, we want a thriving, advancing civilization...
And you see the purpose of businesses as entities that are meant to provide items and services...
And the purpose of the financial sector to provide the service of viscosity to barter, trade, savings, and investment...

It's obvious we have an EPIC FAIL here.
And it continues to fail, and fail, and fail.

This story is just another example of you can't have it both ways...
Either there's some purpose consultants serve, or it's just about everyone who can, getting in on a piece of the action.

If the high pay was justified, they would be held accountable somehow for their work, wouldn't they be?
But nobody seems to be held accountable in the financial sector, no matter how poorly they do their jobs, no matter the grave detriment to our civilization, and even if their jobs are very obviously serving no functional purpose.
Full Employment Plan for Robots: Stop Digging Holes and Filling Them Up Again
written by Last Mover, October 01, 2013 6:21

Dean Baker just doesn't get it. The financial sector of Wall Street is full of devout Keynesians, experts in spending to dig holes and fill them up again.

Just because technology has not displaced them, and just because full employment has not been attained, doesn't mean they're not trying really hard to save America with more added demand from the private sector.

They are. With huge risk-free fees they collect daily for economically useless or even counterproductive efforts that crowd out other spending.

Wake up America. You can't have it both ways. Either let Wall Street dig holes and fill them up again or open the floodgates and allow the robots to take their jobs like they took yours.

But don't expect the financial fees to be lower from the added productivity. Somehow that never happens.
I remember....
written by Alex Bollinger, October 01, 2013 11:24
a week or two ago there was some whining plutocrat in some paper who had a sentence that said something like, "everyone is paid their marginal productivity, so the finance sector is really valuable because they make so much money."

It's easy to laugh at such circular logic and such a poor application of Principles of Microeconomics, but still, good to have evidence that his job is about as useful as, say, a psychic hotline. But that's unfair to the psychic hotline, which doesn't charge nearly as much for what it's giving out.
Income inequality
written by bakho, October 02, 2013 6:38
During the Clinton era, there was a time when income inequality stopped getting worse. The economy was at full employment and everyone was getting richer, including the wealthy. Despite full employment, inequality was not reversed. Wealth buys influence and positions to use wealth to make more money. This is a structural advantage. The tax system must be changed to reverse inequality.

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.