Posts tagged "labor"
The Dual Economy

The Dual Economy

In his new book The Vanishing Middle Class, MIT economist Peter Temin provides a short and accessible take on this country’s deeply unequal economy, which he argues now represents two different Americas. The first is comprised of the country’s elite workers: well-educated bankers, techies, and other highly skilled workers and managers, members of what he calls the “finance, technology, and electronics sector” (FTE)—the leading edges of the modern economy. A fifth of America’s population, these individuals command six-figure incomes and dominate the nation’s political system, and over the past half-century, they have taken a greater and greater share of the gains of economic growth. The other America, what he calls the “low-wage sector,” is the rest of the population—the dwindling ranks of clerks, assemblers, and other middle-income workers, and an expanding class of laborers, servers, and other lowly paid workers.

Drawing on the work of the Nobel Prize-winning economist W. Arthur Lewis, Temin describes this new reality as a “dual economy,” where the fortunes of the first America are all but disconnected from those of the second. Free trade and technological advances allow the FTE elites to make more money, pay lower prices, and enjoy an integrated global market’s many conveniences, even as those trends sweep aside many of the good jobs that the rest of America relies upon. Increasingly isolated, elites have little reason to care about less affluent communities, and much reason to want to reduce their taxes, so they tend to favor stripping away the safety net and pulling public funds from the schools the poor and middle class depend on. The American educational system, which used to be an engine of upward mobility that lifted many children of parents with few means into society’s upper echelons, has been split into two systems—separate and unequal.

Maybe in America: A Review of Captain Phillips

Maybe in America: A Review of Captain Phillips

Captain Phillips, the new film based on a real-life encounter between an American commercial-shipping crew and Somalian pirates, opens with the titular character in Vermont, driving to the airport with his wife. Richard Phillips expresses concern about the state of the shipping industry, sunk by the global recession that struck a year earlier. On the other side of the globe, Muse, a poor Somalian fisherman forced into piracy by his own economic woes, wakes up to news that the local warlord has demanded that his village capture another ship, or suffer violent consequences. The angular fisherman-turned-pirate is an obvious foil for Phillips, their stories woven together through crosscut scenes that emphasize the economic anxieties shared by the men, even as they highlight the brutality of the Horn of Africa’s most chaotic state.