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Old 07-15-2019, 06:43 AM
 
Location: Washington Park, Denver
7,261 posts, read 6,810,827 times
Reputation: 7894

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According to a new book by MIT economist, Peter Temin.

I buy this. The idea that most poor people are lazy just doesn’t pass the smell test.

Quote:
A lot of factors have contributed to American inequality: slavery, economic policy, technological change, the power of lobbying, globalization, and so on. In their wake, what’s left?

That’s the question at the heart of a new book, The Vanishing Middle Class: Prejudice and Power in a Dual Economy, by Peter Temin, an economist from MIT. Temin argues that, following decades of growing inequality, America is now left with what is more or less a two-class system: One small, predominantly white upper class that wields a disproportionate share of money, power, and political influence and a much larger, minority-heavy (but still mostly white) lower class that is all too frequently subject to the first group’s whims.

Temin identifies two types of workers in what he calls “the dual economy.” The first are skilled, tech-savvy workers and managers with college degrees and high salaries who are concentrated heavily in fields such as finance, technology, and electronics—hence his labeling it the “FTE sector.” They make up about 20 percent of the roughly 320 million people who live in America. The other group is the low-skilled workers, which he simply calls the “low-wage sector.”

Temin then divides workers into groups that can trace their family line in the U.S. back to before 1970 (when productivity growth began to outpace wage growth) and groups that immigrated later, and notes that race plays a pretty big role in how both groups fare in the American economy. “In the group that has been here longer, white Americans dominate both the FTE sector and the low-wage sector, while African Americans are located almost entirely in the low-wage sector,” he writes. “In the group of recent immigrants, Asians predominantly entered the FTE sector, while Latino immigrants joined African Americans in the low-wage sector.”
After divvying up workers like this (and perhaps he does so with too broad of strokes), Temin explains why there are such stark divisions between them. He focuses on how the construction of class and race, and racial prejudice, have created a system that keeps members of the lower classes precisely where they are. He writes that the upper class of FTE workers, who make up just one-fifth of the population, has strategically pushed for policies—such as relatively low minimum wages and business-friendly deregulation—to bolster the economic success of some groups and not others, largely along racial lines. “The choices made in the United States include keeping the low-wage sector quiet by mass incarceration, housing segregation and disenfranchisement,” Temin writes.

And how is one to move up from the lower group to the higher one? Education is key, Temin writes, but notes that this means plotting, starting in early childhood, a successful path to, and through, college. That’s a 16-year (or longer) plan that, as Temin compellingly observes, can be easily upended. For minorities especially, this means contending with the racially fraught trends Temin identifies earlier in his book, such as mass incarceration and institutional disinvestment in students, for example. Many cities, which house a disproportionate portion of the black (and increasingly, Latino) population, lack adequate funding for schools. And decrepit infrastructure and lackluster public transit can make it difficult for residents to get out of their communities to places with better educational or work opportunities. Temin argues that these impediments exist by design.
The rest at https://www.theatlantic.com/business...ource=facebook
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Old 07-15-2019, 01:14 PM
 
Location: NE Mississippi
14,264 posts, read 8,915,895 times
Reputation: 20715
Quote:
.......“The choices made in the United States include keeping the low-wage sector quiet by mass incarceration, housing segregation and disenfranchisement,” Temin writes....
I just don't buy it. No group of people is subject to being incarcerated without committing a crime. If one group commits more crimes than another, they should be locked up without regard to a "we got enough of those" arbitration.


Income inequality is largely due to differences in competency. I've seen rich kids fall on their face, poor fatherless kids become President and everything in between.
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Old 07-15-2019, 02:00 PM
 
Location: Boston
8,822 posts, read 2,580,250 times
Reputation: 6224
desire and work ethic = $$$$
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Old 07-15-2019, 02:07 PM
 
Location: Kentucky
607 posts, read 342,855 times
Reputation: 2467
Lack of desire and lack of work ethic = lot's of time to surf the net
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Old 07-15-2019, 02:10 PM
 
210 posts, read 67,799 times
Reputation: 664
Decision-making capabilities are key to escaping poverty.
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Old 07-15-2019, 02:39 PM
 
10,077 posts, read 4,883,722 times
Reputation: 15396
Why would anyone expect it to take less than a generation?

poverty tends to be generational... so 20 years to get out of it is reasonable

If you were asking how long it took someone to escape being poor, then less than 20 years is reasonable, but being poor isn't the same as being in poverty. Being poor means having no money, being in poverty means not knowing how to handle money. It takes a lot longer to educate people

living hand to mouth /paycheck to dinner plate then handing someone some money isn't going to teach them anything other than they get to buy more food because they dont know what else they can do with the money
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Old 07-15-2019, 02:46 PM
 
Location: Texas
10,867 posts, read 4,158,798 times
Reputation: 21510
Quote:
Originally Posted by CentralUSHomeowner View Post
Decision-making capabilities are key to escaping poverty.
Being poor and destitute sometimes means you can't make the same decisions that a rich person would make.

I heard someone say that a person who worked for minimum wage could invest all their money. Think about that for a minute. If you earned minimum wage you'd need all your money for food, bills, rent. You can't go invest it. You might be able to save coins in a jar, that's about it.

It's easy to criticize other people but hard to walk in their shoes.

Also, it's important to remember that how a poor person does with their finances is none of our business anyway, especially if they are being self-sufficient.
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Old 07-15-2019, 02:48 PM
 
Location: Texas
10,867 posts, read 4,158,798 times
Reputation: 21510
Quote:
Originally Posted by Listener2307 View Post

Income inequality is largely due to differences in competency. I've seen rich kids fall on their face, poor fatherless kids become President and everything in between.
Rich kids have trust funds and family money so they usually don't wind up on the street.

Poor, fatherless kids who wind up successful are outliers, not the norm.
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Old 07-15-2019, 03:23 PM
 
6,122 posts, read 1,574,028 times
Reputation: 4827
I stopped reading when the article listed 'slavery' as the first cause. That there is someone with an agenda.
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Old 07-15-2019, 03:41 PM
 
Location: Warwick, RI
2,654 posts, read 4,063,542 times
Reputation: 4418
Quote:
escaping poverty requires almost 20 years with nearly nothing going wrong

Not even CLOSE to being the truth. In 20 years of earning even a modest income, almost anyone can become a millionaire or pretty dram close to it. The ley is living below your means, staying out of debt, and saving and investing for the future. It really is that simple.
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