Trump’s economy is leaving his right-wing base stranded in poverty — and it’s only going to get worse

Robert Reich

Robert Reich Former U.S. Secretary of Labor, Professor at Berkeley

You’ve heard me talk about inequalities of income and wealth and political power. But another kind of inequality needs to be addressed as well: widening inequalities of place.

On the one hand, booming mega-cities. On the other hand, an American heartland that’s becoming emptier, older, whiter, less educated, and poorer. Trump country.

To understand what’s happening you first need to see technology not as a thing but as a process of group learning – of talented people interacting with each other continuously and directly, keying off  each other’s creativity, testing new concepts, quickly discarding those that don’t work, and building cumulative knowledge.

This learning goes way beyond the confines of any individual company. It now happens in geographic clusters – mostly along the east and west coasts in places like Seattle, San Francisco, Los Angeles, New York, Boston and suburban Washington D.C.

Bright young college graduates are streaming into these places, where their talents generate more value–and higher wages–together than they would separately.

As money pours into these places, so do service jobs that cater to the new wealth – lawyers, wealth managers and management consultants, as well as cooks, baristas and pilates instructors.

Between 2010 and 2016, according to Brookings, nearly half of America’s employment growth centered in just 20 large metro areas that are now home to about a third of the US population.

One consequence is a more distorted democracy. California, now inhabited by almost 40 million people, gets two senators – as does Wyoming, with just 579,000.

Even though Democratic Senate candidates in the 2018 midterm elections received 18 million more votes than Republican Senate candidates, Republicans still gained 2 more Senate seats.

A second consequence is turbo-charged gentrification in these mega-urban clusters, creating growing populations of poor who have been stranded.

These gleaming cities are becoming the most Dickensian locales in America, with homelessness and squalor among luxury high-rises and trendy restaurants.

So as the American middle class disappears, the two groups falling most perilously behind are white, rural, non-college Trump supporters, and the very poor inside America’s trendiest mega-urban centers, who are disproportionately black and Latino.

This inequality is unsustainable. It’s literally tearing America apart.

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Reposted from AlterNet

Robert Reich served as the nation’s 22nd Secretary of Labor and now is a professor of public policy at the University of California at Berkeley. His latest book, Aftershock: The Next Economy and America’s Future, is now in bookstores. His earlier book, “Supercapitalism,” is out in paperback. For copies of his articles, books, and public radio commentaries, go to www.RobertReich.org.

Posted In: Allied Approaches

Union Matters

A Just, Inclusive and Sustainable Economy

From the AFL-CIO

This week, labor leaders from across the country descended on New Orleans to map out the path ahead for our movement. From trade and public education to equal pay and paid leave to back pay for federal contract workers and bargaining power for all, the AFL-CIO Executive Council tackled the issues that will define working people’s fight for economic justice in 2019 and beyond.

Sending waves through Washington yesterday, the Executive Council’s most notable decision was its announcement that, “if the administration insists on a premature vote on the new NAFTA in its current form, we will have no choice but to oppose it.” Here are a few highlights from the statement:

  • Trade policy must be judged by whether it leads to a just, inclusive and sustainable economy....By that measure, the North American Free Trade Agreement (NAFTA), which has driven the outsourcing of so many good jobs, has been a catastrophic failure. More than 850,000 U.S. jobs were shipped overseas under NAFTA between 1993 and 2013.
  • By design, NAFTA distorted power relationships in favor of global employers over workers, weakened worker bargaining power and encouraged the de-industrialization of the U.S. economy.
  • After a quarter-century of this race to the bottom, workers in all three NAFTA countries find it more difficult to form unions and negotiate collective bargaining agreements.
  • The NAFTA renegotiation requires strong labor rights provisions and strong enforcement provisions that as of today are not yet in the agreement.
  • The current effort by the business community to pass the new NAFTA is premature, and if it continues, we will be forced to mobilize to defeat it, just as we mobilized to kill the Trans-Pacific Partnership.

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New NAFTA Must Create an Economy for All

New NAFTA Must Create an Economy for All