“That the U.S. economy is generating historically high levels of economic inequality, by wages, incomes, and wealth, is not under dispute (I mean, you can always find “flat-earthers” but they are, or at least should be, irrelevant). Why and whether it matters, on the other hand, is an active and important question.

In recent work with my CBPP colleague Ben Spielberg, we’ve identified four basic reasons why our historically high levels of inequality are problematic. First, inequality creates a wedge between any level of growth and the income of many in the economy. Think of the productivity/compensation split pictured here — the “wedge” is evident.

Second, while inequality is a pervasive factor in economies across the globe, when it gets high enough it can create barriers to opportunity and mobility, often through human capital investment channels.”* The Young Turks hosts Cenk Uygur, John Iadarola (TYT University), Wes Clark Jr and Jimmy Dore (The Jimmy Dore Show) break it down.

*Read more here:
http://www.washingtonpost.com/posteverything/wp/2014/11/14/inequality-and-the-economic-shampoo-cycle-bubble-bust-repeat/

Support TYT for FREE by doing your Amazon shopping through this link (bookmark it!)
http://www.amazon.com/?tag=theyoungturks-20