America's Dual Economy
According to some analysts, the result of the 2016 presidential elections was influenced by the deep divisions of class and race existing in our nation:
On the one hand, ‘American Dream’ is over and now the middle class sees how their lives are not progressing nor getting weatlhier any more. On the other side, a small core of the society gets to high-paying opportunities and jobs on Wall Street and Silicon Valley.
MIT economic historian Peter Temin has documented the rise of America’s “Dual Economy" in The Vanishing Middle Class (to be published this coming March by MIT Press.). Temin calls the small privileged core of capitalists the FTE economy (for finance, technology, and electronics). These are capitalists encompass roughly 30 percent of the labor force and economy.
At the bottom is a much larger periphery of insecure low-wage service jobs, representing 70 to 80 percent of Americans. “The United States has come apart,” Temin writes, ”with the rich getting richer and workers not advancing at all.”
The reason for the “missing link” between these two sectors is education. And this class divide is strongly overlaid with race: large numbers of blacks and other minority groups trapped in the less advantaged sector of the economy.
According to Temin, “Trumponomics” is an extension and acceleration of the core policies that have warped the dual economy—heightened deregulation, tax cuts for the wealthy, cuts in safety net, protectionism.
As reported in City Lab /The Atlantic.