By Matthew P. Drennan
Read or Download Income Inequality: Why It Matters and Why Most Economists Didn’t Notice PDF
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Extra resources for Income Inequality: Why It Matters and Why Most Economists Didn’t Notice
S. wages will tend to rise more slowly than in the past before globalization. Most economics texts and media analysts treat globalization as the end of the story, but there is a problem in that analysis: Canada, the United Kingdom, France, Germany, and Japan are subject to the same forces of globalization as the United States. Have they had the same increases 22 Possible Causes of Income Inequality of income inequality? The United Kingdom and Canada have had increases, though less extreme than in the United States.
S. unionization rate was 30 percent in 1960, the rate in Canada was 32 percent. S. unionization while in Canada the rate is where it was forty years ago? Jacob Hacker and Paul Pierson argue that the difference in labor law in the two countries account for union coverage shrinking in the United States and not in Canada. Some Canadian provinces have laws that allow for card check certification and first contract arbitration. Provinces ban the hiring of permanent strike replacements and employer interference into unionization campaigns.
22 Finally, shifts in organized interests are a major force in policy change. Hacker and Pierson document a huge rise of special-interest organizations in Washington beginning in the 1970s. Corporations with a public affairs office in Washington went from one hundred in 1968 to five hundred by 1978. Further, the three giants of promoting and protecting corporate interests, the National Association of Manufacturers, the Business Roundtable, and the Chamber of Commerce, greatly expanded their membership and budgets after 1970.