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Why Income Inequality Is America'€™s Biggest (and Most Difficult) Problem

Why Income Inequality Is America'€™s Biggest (and Most Difficult) Problem

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But, here'€™s the problem: The same political forces that allowed the 1 percent to take our political system hostage have only worsened in the past decade. As Nick Hanauer notes in a recent Intelligence Squared debate, "At the same time, the percent of '€” of labor '€” the percent of GDP devoted to labor has gone from 52 to 42. So that difference is about a trillion dollars annually. So that '€” here'€™s the thing you have to understand. That trillion dollars isn'€™t profit because it needs to be or should be or has to be. It'€™s profit because powerful people like me and [Edward Conrad] prefer it to be. That trillion dollars could very easily be spent on wages. Or '€” or on discounts for consumers. This isn'€™t a consequence of some magical law of economics. This is a consequence of differentials in power."