Are we turning a corner here. Back to back posts from Robert Reich (liberal) and American Enterprise Institute’s John H. Makin (conservative). I must admit, even though they talk about the economy it is from two different angles of attack. Makin wants us to continue stimulating the economy and disregard the debt; Reich wants spread the wealth and the result will be a broader recovery. If we continue with inequality there is less for the broad middle to spend, therefore less growth and less wealth for the entire country.
….Walmart is a microcosm of the American economy. It has brazenly fought off unions. But it could easily afford to pay its workers more. It earned $16 billion last year. Much of that sum went to Walmart’s shareholders, including the family of its founder, Sam Walton.
The wealth of the Walton family now exceeds the wealth of the bottom 40 percent of American families combined, according to an analysis by the Economic Policy Institute.
But how can Walmart expect to continue to show fat profits when most of its customers are on a downward economic escalator?