Devious Circle


A few days ago, I watched a Documentary called “Inequality for All” from former US Labor Secretary Robert Reich who was focused on a critical crisis which bring a big gap between the haves and the haves not, in other terms, the rich and the poor, where the middle class is going under. Mr. Reich explained two “wheels” of the economy. The first one is the “Virtuous Circle” in which is:

Productivity Grows
Wages Increase
Workers Buy More
Companies Hire More
Tax Revenue Increase
Government Invest More
Workers are Better Educated
Economy Expands

The other one which every American is facing right now the Vicious Circle:

Wages Stagnate
Workers Buy Less
Companies Downsize
Tax Revenues Decrease
Government Cuts Programs
Workers are Less Educated
Unemployment Rises
Deficit Grows

The sad part about this, there’s no actual solutions to fix this problem. In this small town in Northwest Idaho, the mining industry, the primary source of income for many middle class, is at a stand still not because of the lack of employees, but federal government intervention doesn’t allow the mining industry to flourish. There’s no high paid jobs in decades unless you leave out to Washington, in the meantime, this small town people are going to deal with two or three jobs to sustain themselves and their families.

It’s tragic that, in the midst of this crisis, there’s desperate people doing desperate measures to get the things that their job won’t allow them to afford on things they want. Today, I found out a former employee from Walmart have been arrested because he stole an HP Laptop and it was plastered in the front page of the local newspaper. That’s nothing new, sometimes there’s people stealing food more often than tobacco or alcohol. With the stagnation of wages and the job crisis, and between Obama’s decision to raise the minimum wage, it feels that is already too little too late to alleviate it.

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