Entries Tagged 'Reviews' ↓

Taxes – Impact on Income Inequality

“These jobs are goin’ boys and they ain’t comin’ back” Bruce Springsteen “My Hometown”

Review of Robert Reich’s 2013 Documentary “Inequality for All” – part 3 of 4

Two economists, Piketty and Saez have studied US income tax rates over the past one hundred years. Their graph of income inequality looks similar to the iconic Golden Gate Bridge with its two peaks occurring in 1928 and 2007, right before the biggest economic crises in the US.

Golden Gate Bridge stock photo

From this study, Robert Reich can conclude that:

Income inequality correlates directly with lower taxes on the rich and higher taxes on the middle class

Yes, history shows that the lower the tax rates for the wealthy, the higher income inequality in the US becomes. The higher the tax rates on the wealthy, the lower income inequality becomes. Continue reading →

Why High Income Inequality Heralds Economic Crises

Review of Robert Reich’s 2013 Documentary “Inequality for All” – part 2 of 4

‘There comes a point where money has no real utility” (Warren Buffett, September 2016)

In his 2013 film, economist Robert Reich says: Income inequality appears to be a harbinger of oncoming economic depression

Reich bases this hypothesis on research by two other economists about US income tax rates over the 100 year period from 1913 to 2013. In particular, a graph that takes the same shape as the iconic Golden Gate bridge.

Golden Gate Bridge stock photo

Reich points out the two peaks of highest US income inequality between the rich and middle class on the graph occurred in 1928 and 2007, the year before the Great Depressions of 1929 and 2008.

Robert Reich’s answer to why income inequality ‘correlates’ (is associated) with economic depressions in the United States is: because the wealthiest Americans do not spend enough money.

The rich save money instead, by putting it in funds of funds, i.e. hedge funds. Consumer spending makes up 70% of US national income. This is why Reich thinks we need a middle class.

Reich points out that this spending makes the middle class the TRUE JOB CREATORS. Continue reading →

Why Our Economy is Struggling

Review of Robert Reich’s 2013 Documentary “Inequality for All” – Part 1 of 4

“You can’t step twice into the same river” (Heraclitus, ancient Greek philosopher)

“Inequality for All” (available on YouTube) is an auto-biography {at one point literally :-)} of the life and career of economist Robert Reich along with Reich’s take on the rise and decline of ‘income inequality’ in the US over the past 100 years

Early on we see TV commentator, Jon Stewart quipping that the US ranks as the 64th highest country in terms of ‘economic fairness’—we’re just under Cameroon and above Uruguay, Jamaica, and Uganda. Robert Reich adds: Of all the developed countries in the world, the US has the most income inequality. Continue reading →