UGC 211 1st Edition Lecture 17 FILMo Inequality in Americao Wealth and povertyo When does inequality become a problem? o The US has the most unequal distribution of wealth o 400 people have more wealth than half the population of the US o After 1928 and 2007 – crash in economy o Middle class in both periods were stagnating o A strong middle class makes an economy stableo Consumer spending is 70% economy – middle class keeps economy going o Woman had only $25 in her checking account o No official definition of middle class o $50,000 – median income o Top 1% - $380,000 o Entrepreneur – makes over 10 million, invests in lots of funds, most of the return is only creating a return for himo The problem of the rich isn’t that they spend too much, it’s that they spend too little – they save it o Productivity is increasing over the years o The average hourly earning of production workers continued to rise until the late 1970s and thenflattened wages o The decline in unions – late 1970s o The anatomy of an iPhone – most of your dollars is going to Japan, Germany and South Korea. It’s assembled in China – pieces are coming from everywhere o Assembly lines are gone o Amazon employees – 60,000 people o Automated checkout lines take away people’s jobs o Rising costs of rents, health care, child care, and higher education o Middle class families working harder and harder and getting nowhere o 1947-1977 The Great Prosperity o Inequality is linked to higher education o Putting people first – Bill Clinton o 1978 wage decline began o Executive pay keeps going up o Many corporate executives raise their wages even when their employees are being put of out work o Even rich people need a couple million – only need a few pairs of jeans, etc. o It’s the middle class pushing the economy o The unions control or encourage wage increase o It’s not happening now because their aren’t many unions in the USThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.o While globalization has been great for tearing down borders, lowing costs of many goods, there is a flip side (bad side, two sides) – need to explore both sides o Union – organization you join and pay salary too, they have leaders, lawyers that fight for your