Analysis Of The Price Of Inequality By Joseph E. Stiglitz
Chapter One Summary In chapter one of Joseph E. Stiglitz, book; “The Price of Inequality:How today’s Divided Society Endangers Our future.” He talks about America’s one percent Problem in which he includes the 2007- 2008 financial crisis and the Great recession america went through that affected millions of American families. As a result a lot of families lost their homes, lifetime savings, and jobs. During the Great Recession the middle aged people were greatly affected as many were straight out of college with a lot of debt on them that they could not pay off because jobs were so scared making it very difficult to find employment. Many families who had lost their jobs, and homes had to move in with family members or friends in order to
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I wish that were so, but it’s not.” The idea is that everyone benefits from trickle-down economics, but in reality it is not like that, because people’s slices are not enlarged. Stiglitz emphasises how this idea does not work through an example he gives of a student who has completed his bachelors degree but still has a hard time making ends meet. Furthermore stiglitz includes the Polarization, which address how low class jobs require low skills, medium class jobs require medium level skills and high class jobs require high level skills ,but with polarization the middle class jobs have diminished . Therefore creating only two sets of groups top being the rich and bottom being the …show more content…
As said before many people lost their homes, earning and jobs, which lead to a lot of homelessness. People worked in jobs that did not offer them insurance so if they got hurt the employer was not responsible for it, and with unemployment those people who did have insurance, lost their insurance so if they were sick they could not get treated because they did not have money. As a consequences there was economic insecurity meaning that many people had to go into their retirement savings in order to pay for things, while others completely lost all their retirement saving when they lost their jobs. Thus causing people’s standard of living to decline as times were so hard and money was very hard to obtain. During this time people were not getting married, or moving out of their parents home, in addition many women had to start working in order to help maintain the household.Poverty was seen during this to a massive extent , there was people surviving with one or two dollars a
I wish that were so, but it’s not.” The idea is that everyone benefits from trickle-down economics, but in reality it is not like that, because people’s slices are not enlarged. Stiglitz emphasises how this idea does not work through an example he gives of a student who has completed his bachelors degree but still has a hard time making ends meet. Furthermore stiglitz includes the Polarization, which address how low class jobs require low skills, medium class jobs require medium level skills and high class jobs require high level skills ,but with polarization the middle class jobs have diminished . Therefore creating only two sets of groups top being the rich and bottom being the …show more content…
As said before many people lost their homes, earning and jobs, which lead to a lot of homelessness. People worked in jobs that did not offer them insurance so if they got hurt the employer was not responsible for it, and with unemployment those people who did have insurance, lost their insurance so if they were sick they could not get treated because they did not have money. As a consequences there was economic insecurity meaning that many people had to go into their retirement savings in order to pay for things, while others completely lost all their retirement saving when they lost their jobs. Thus causing people’s standard of living to decline as times were so hard and money was very hard to obtain. During this time people were not getting married, or moving out of their parents home, in addition many women had to start working in order to help maintain the household.Poverty was seen during this to a massive extent , there was people surviving with one or two dollars a