A question of power

Tom Paine
by Thomas Palley

10/19/06

There has been growing recognition recently of the enormous increase in U.S. income disparities in the last 25 years, bringing back levels of inequality not seen since 1929. Paul Krugman has written of the danger of a new oligarchy, whose wealth is such that it may be able to control an economy and society as large as the United States. So real is growing income inequality that even libertarian-minded Alan Greenspan has mused on its dangers to 'democratic society.' Greenspan's fear is not the undemocratic character of oligarchy -- rather, Greenspan worries that too much inequality may promote economically disruptive political rebellion from below. This expanding awareness by the prominent and powerful of the acute income distribution problem is extremely welcome. Now that we have their attention, advocates of an equal opportunity society have an opening to influence the debate over how the gap between America’s haves and have-nots became so wide. The short answer is that economic power between workers and corporations has shifted...

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