Wednesday, September 25, 2013

Yves Smith — Robert Reich, Inequality’s Intellectual Fraudster

Yves smacks down Volvo liberalism.
Now we have to point out that there is a wee problem with Reich’s list, which is that the tacit assumption is rising income disparity is primarily the result of American workers being insufficiently productive by world standards. This chart shows what has really happened....
The big culprit is that companies no longer share the benefits of productivity gains with workers....

Now you can say that Reich does acknowledge that problem; for instance, he speaks of how companies don’t see their fate as linked to that of worker, and he derides their rampant short-termism. But his policy remedies tell you what problems he’s trying to fix, as opposed to give lip service to. His proposals are simply way too milquetoast to address the huge power imbalance between workers and corporations. If you are going to talk pie in the sky ideas like child care for all and free or close to free college education, something like Randy Wray’s job guarantee is much more on target.
But more important, did you notice what is missing from Reich’s list? Trade policy. Reich is explicit that he believes that Americans can’t fight the march of more globalization. 
Naked Capitalism
Robert Reich, Inequality’s Intellectual Fraudster
Yves Smith

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