Mgmt 380 - America’s 1 Percent Problem

Victor Huang

Reading 5

MGMT 380

        The chapter “America’s 1 Percent Problem” shows America currently has the most inequality, and the least equality of opportunity, among the advanced countries. While market forces play a role in this stark picture, politics has shaped those market forces. Although the United States has always been a capitalist country, our inequality or at least its current high level—is new. Some thirty years ago, the top 1 percent of income earners received only 12 percent of the nation’s income, which caused America’s inequality that is the rich are getting richer, the richest of the rich are getting still richer, the poor are becoming poorer and more numerous, and the middle class is being hollowed out.

        America does not forecast the status of the global economy. Markets have clearly not been working in the way that their boosters claim. Markets are supposed to be stable, but the global financial crisis showed that they could be very unstable, with devastating consequences. America should seek out the opportunities from the crisis. Belief in America’s essential fairness, that we live in a land of equal opportunity, helps bind us together. As people find the problem in America economy system, people have big chances to solve the problem and be better in the future. The policies in the America should be created to stimulate the corporations to shared the create value, therefore, they can reconceive products and markets, redefining productivity in the value chain, and enable local cluster development. The richs should lead the economy and make the poors to be wealthier.