Problems Facing The Economy in the Greenspan Era :: Economics

The Economy Q: What is wrong with the economy? -  Ã‚  Ã‚  Ã‚  Ã‚  A terrible loss of jobs, over 2 million jobs have been lost. However I would like to state it isn’t just one person’s fault. -  Ã‚  Ã‚  Ã‚  Ã‚  The complete and utter desolation of the tech industry†¦ we all know about the dot com bust and how many problems that caused. -  Ã‚  Ã‚  Ã‚  Ã‚  Also September 11th didn’t help too much. The terrorist’s defiantly achieved their objectives in really messing up our way of life. While the wealthy are becoming richer and the number of millionaires and billionaires is skyrocketing, there is another reality. Since 1973, 80% of all families have seen their incomes decline or remain stagnant. The average American today is working longer hours for less income-and has every reason to worry that the future will be even worse for his or her children. Television news shows may not feature it. Reader's Digest may not discuss it, and the leaders of the Democratic and Republican parties may not make it a priority, but the decline in the standard of living of the average worker is, far and away, the most important and central issue facing this country. The rich are getting richer; the poor are getting poorer; and the middle class is shrinking. This is the great truth of contemporary U.S. society. It may sound dramatic but I believe that the future of the nation depends upon reversing this destructive process. There are a number of reasons why inequality in wealth and income in America has grown over the last 20 years. President Jimmy Carter in 1977 and President Ronald Reagan in 1981 and 1986 instituted "tax reform" with the support and approval of the Democratic Congress. The results were to lower taxes significantly on the wealthy and the large corporations, and raise them for almost everyone else. Taxes on the very wealthy were cut 12.3%; working- and middle-class Americans saw theirs grow. One of the "reforms" was a large increase in the regressive Social Security tax. Q: What steps have been taken to improve the economy?   Ã‚  Ã‚  Ã‚  Ã‚  There have been multiple interest rate cuts by Greenspan and tax cuts brought on by President Bush, which I believe didn’t really do much. Q: What are the solutions? - Raise the minimum wage. The minimum wage, which has lost 26% of its purchasing power over the last 20 years, must be increased. People cannot survive on $5.15 an hour.