Reader citizen k has pointed to a remarkable op-ed by Senator elect Jim Webb in the Wall Street Journal: Class Struggle.
Starting with a description of the widening gap between rich and poor Webb writes:
Trickle-down economics didn’t happen. Despite the vaunted all-time highs of the stock market, wages and salaries are at all-time lows as a percentage of the national wealth.
[…]
Manufacturing jobs are disappearing. Many earned pension programs have collapsed in the wake of corporate "reorganization." And workers’ ability to negotiate their futures has been eviscerated by the twin threats of modern corporate America: If they complain too loudly, their jobs might either be outsourced overseas or given to illegal immigrants.
He then slams the corporate elite for their hybris and ignorance regarding the inequilities and continues:
[T]he true challenge is for everyone to understand that the current economic divisions in society are harmful to our future. It should be the first order of business for the new Congress to begin addressing these divisions, and to work to bring true fairness back to economic life. Workers already understand this, as they see stagnant wages and disappearing jobs.
America’s elites need to understand this reality in terms of their own self-interest. A recent survey in the Economist warned that globalization was affecting the U.S. differently than other "First World" nations, and that white-collar jobs were in as much danger as the blue-collar positions which have thus far been ravaged by outsourcing and illegal immigration. That survey then warned that "unless a solution is found to sluggish real wages and rising inequality, there is a serious risk of a protectionist backlash" in America that would take us away from what they view to be the "biggest economic stimulus in world history."
The last historic run of globalization, culminating in the roaring twenties of the last century, ended with revolutions, wars and devastation. It also was the beginning of the end of the British empire.
Webb seems to fear a repeat at least of the revolutionary part:
If it remains unchecked, this bifurcation of opportunities and advantages along class lines has the potential to bring a period of political unrest. Up to now, most American workers have simply been worried about their job prospects. Once they understand that there are (and were) clear alternatives to the policies that have dislocated careers and altered futures, they will demand more accountability from the leaders who have failed to protect their interests. The "Wal-Marting" of cheap consumer products brought in from places like China, and the easy money from low-interest home mortgage refinancing, have softened the blows in recent years. But the balance point is tipping in both cases, away from the consumer and away from our national interest.
Kudos to Webb for writing such a piece. Though I will wait for his coming legislative initiatives and his voteing record before putting him on a cloud.
What recipies does Webb have to fix the problems? He does not name any and seems to have no intend to slow down globalization or to use some protectionist tools to temporary dampen its effects.
Ideas?