Why widening inequality is hobbling equal opportunity
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Robert Reich Guest blogger
Is it to be inequality or equal opportunity?聽
Under a headline 鈥淥bama Moves to the Right in a Partisan War of Words,鈥� The New York Times鈥� Jackie Calmes notes Democratic operatives have been hitting back hard against the President or any other Democratic politician talking about income inequality, preferring that the Democrats talk about equality of opportunity instead.
"However salient reducing inequality may be," Democratic pollster Mark Mellman, 鈥渋t is demonstrably less important to voters than any other number of priorities, including reducing poverty.鈥�
The President may be listening. Wags noticed that in his State of the Union, Obama spoke ten times of increasing 鈥渙pportunity鈥� and only twice of income inequality, while in a December speech he spoke of income inequality two dozen times.聽
But the President and other Democrats 鈥� and even Republicans, for that matter 鈥� should focus on the facts, not the polls, and not try to dress up what鈥檚 been happening with more soothing words and phrases.聽
In fact, America鈥檚 savage inequality is the main reason equal opportunity is fading and poverty is growing. Since the 鈥渞ecovery鈥� began, 95% of the gains have gone to the top 1 percent, and median incomes have dropped. This is a continuation of the trend we鈥檝e seen for decades.聽As a result:
(1) The sinking middle class no longer has enough purchasing power to keep the economy growing and creating sufficient jobs. The share of working-age Americans still in the labor force is the lowest in more than thirty years.聽
(2) The shrinking middle isn鈥檛 generating enough tax revenue for adequate education, training, safety nets, and family services. And when they鈥檙e barely holding on, they can鈥檛 afford to 鈥� and don鈥檛 want to 鈥� pay more.
(3) Meanwhile, America鈥檚 rich are accumulating not just more of the country鈥檚 total income and wealth, but also the political power that accompanies money. And they鈥檙e using that power to reduce their own taxes, and get corporate welfare (subsidies, bailouts, tax cuts) for their businesses.
All this means less equality of opportunity in America.聽
Obama was correct in December when he called widening inequality 鈥渢he defining challenge of our time.鈥� He mustn鈥檛 back down now even if Democratic pollsters tell him to. If we鈥檙e ever to reverse this noxious trend, Americans have to hear the truth.聽
