Jared Bernstein — Opportunity, Inequality, Public Opinion, and Power

Class power on the table, along with rents.

Why does it matter that we as a nation understand this causal linkage [between economic inequality and lack of social mobility]? The answer has to do with both policy and power. One way of summarizing the fundamental problem of narrowly distributed growth is that those whose incomes are asset-driven hold disproportionate political power relative to those whose incomes depend on paychecks.

Thus, anti-inequality measures that threaten the top 1%–that attempt to reduce their economic “rents”—like collective bargaining, higher minimum wages, trade policy that protects workers’ rights and wages, full employment, robust safety nets, progressive taxation, are attacked as counterproductive to growth and jobs. 

That leaves us stuck in a cul-de-sac: we can’t increase opportunity because we can’t decrease inequality....

Bingo!

Unfortunately, I fear there are more Baltimores in our future.

Jared Bernstein | On the Economy

Opportunity, Inequality, Public Opinion, and Power
Jared Bernstein