Question

Choose one of the solutions that Reich discusses in the documentary "Inequality for All" What do you think are the strengths and weaknesses of his concern and solution? Are their weaknesses to Reich's premise that the U.S. middle class is in decline - think about the data used.

Answer 1

One of the solution that Reich discusses is to replace trickle down economics with middle out economics.The most important thing that businesses should do is to make the middleclass survive .Prosperity comes by investing in the middle class and the poor because they are the true job creators..

The strength of his concern is that he believes that some inequality in Capitalism cannot be avoided but  he  discusses how much inequality can be tolerated and still the economy and democracy will function .Certain data examined by him pointed out that in 2012, the richest 400 hundred Americans had more wealth than half the population of America.Weakness is that Reich uses himself as an example .He says he has no idea what happens with his money but is sure that it does not create social utility but only increases his return.He says ,contrary to the general belief, that globalization has not reduced the job for Americans..

Reich points out that the middle class in America keeps the economy going.He points out that household and family spending accounts for 70%of the US economy and middle class is the most important group.He says that the economy cannot be sustained in the long term without a strong middle class .But the US middle class is on the decline . The data says that the middle class is struggling for many years and is declining.So there is no weakness in Reich's view that middle class is on decline.