For the vast majority of consumers, the capital we hold, whether financial, environmental, social, or human, is dwindling and as labor retains less of its income and wealth and the wealthy increase theirs, the policy debate is really about validating our economic system. I get bored with the discussion of “what are we going to leave for our children”, but the reality is, if we cannot pass on all forms capital to our kids, will they be left with no choice but to prostitute themselves in an American economic and social dystopia?
Sorry, but when you drink T.E.A., you have to eat the hard cookie of reality along with it.
Here is an excerpt from a piece by Thomas Edsall in The New York Times touching on a similar question.
“The essential political question emerging from this debate is whether the forces driving down labor’s share of income, exacerbating inequality and vastly increasing the wealth of those at the top can be redirected to produce more equitable and beneficial results while fostering continued growth.
‘What do we do,’ Noah Smith, an economist at Stony Brook University, asks in the Atlantic, “if the ‘endowment of human capital’ with which people are born gets less and less valuable?”
Has the train left the station? Has the momentum behind the hollowing out of middle class jobs and the increasing replacement of human beings by machines gained so much strength that it cannot be reversed? Obama has put the goal of a revived middle class at the top of his agenda, but he has not publicly voiced an understanding of the size and scope of the problem he seeks to address.”-Thomas Edsall