The Next Economy And America s Future Essay - 1949 Words

The following memorandum is a direct response to Robert Reich’s book Aftershock: The Next Economy and America’s Future (2013). It includes an overview of Reich’s diagnosis of the economic issues facing America, as well as relevant analysis for consideration by the President and Congress. The following text considers a potential prescription for the issue of income equality and a prediction regarding the potential action or inaction of the United States government on these issues. 1. Diagnosis According to Robert Reich, the problems in the American economy do not stem directly from Wall Street bonuses or failed regulation, but instead from the reneging of the promise Reich refers to as the â€Å"basic bargain† (Reich, 2013). The basic bargain underlines a contract between employers and their employees that stipulates that employees will be able to earn enough to purchase the products their employer sells. The author cites Henry Ford as a primary example of how the unstated contract brings about prosperity. In 1914, Ford announced that he would pay his workers three times the typical factory salary at the time. The result was that the people who built his Model T automobiles were able to purchase them themselves, and only two years later, Ford’s profits doubled (Reich, 2013). Reich believes that the failure of this contract has resulted in a lack of collective buying power available to the middle class, and is characterized by a failure to create higher standards of living, betterShow MoreRelatedRobert B. Reich s Aftershock The Next Economy And America s Future 1900 Words   |  8 Pagesclaiming it can help in achieving overall happiness and allowing members of the society to have a right to individual freedom when coping with the changes brought by public policy. On the other hand, Robert B. Reich’s â€Å"Aftershock the next Economy and America’s Future† talks about overcoming our problems by keeping a tier of classes. This paper discusses the contradicting views of these two writers. There are several essential differences in Reich’s and Murray’s points of view. According to ReichRead MoreIndonesi A Successful Model Of A Muslim Nation Practicing Democracy1489 Words   |  6 PagesIndonesia is the world’s third largest democracy and the world’s largest Muslim country. The country is also the largest economy in Southeast Asia and a member of the G-20 major economies. (G-20, 2015) The bilateral relationship between the United Sates and Indonesia is significant if for no other reason than the first two facts mentioned. 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The country has traded with other nations for centuries hence it is an important economic partner (Jensen, Quinn Weymouth, 2015). The country normally has a lot of influence in the world trade since it serves almost all the nations worldwide. In fact, most of the trade policies that affect the whole world have been proposed by the United States of America. Moreover, the country isRead MoreIsrael Is Considering For Their Easy Sailing Economy1413 Words   |  6 PagesIsrael, also known as the Holy Land. Most people only recognize Israel for the history of the City and for becoming allies w ith America. What most people do not know is the impact of foreigners in their economy. Israel is considering for their easy sailing economy. Israel currently has a modern market economy and excels in natural gas that was discovered off shore. Local business are supported by continuous high technology startups per capita. In 2013 Israel ranked ninetieth as one of the highly-developed