Study By MIT Economist: U.S. Has Regressed To A Third-World Nation For Most Of Its Citizens – The Intellectualist

Study By MIT Economist: U.S. Has Regressed To A Third-World Nation For Most Of Its Citizens – The Intellectualist

The parallels are unsettling. As noted by the Institute for New Economic Thinking:

In the Lewis model of a dual economy, much of the low-wage sector has little influence over public policy. Check*. The high-income sector will keep wages down in the other sector to provide cheap labor for its businesses.* Check*. Social control is used to keep the low-wage sector from challenging the policies favored by the high-income sector.* Mass incarceration – check*. The primary goal of the richest members of the high-income sector is to lower taxes.* Check*. Social and economic mobility is low.* Check*.*

Temin describes multiple contributing factors in the nation’s arrival at this place, from exchanging the War on Poverty for the War on Drugs to money in politics and systemic racism. He outlines the ways in which racial prejudice continues to lurk below the surface, allowing politicians to appeal to the age old “desire to preserve the inferior status of blacks”, encouraging white low-wage workers to accept their lesser place in society.

“We have a structure that predetermines winners and losers. We are not getting the benefits of all the people who could contribute to the growth of the economy, to advances in medicine or science which could improve the quality of life for everyone – including some of the rich people,” he laments.

via Study By MIT Economist: U.S. Has Regressed To A Third-World Nation For Most Of Its Citizens – The Intellectualist

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