By Joelle Gamble
Americans don’t believe in guaranteed equal outcomes, but we do believe in equal opportunity and the ability to achieve a decent livelihood if one works hard. Unfortunately, the United States, despite being the world’s largest economy, is in the top quartile of the most unequal states, along with countries like Bulgaria, and is more unequal than all of Europe. In addition to high levels of income inequality, the United States still faces a jobs crisis, meaning that many people who want to work to achieve economic stability cannot find gainful employment.
Given the congressional gridlock impeding efforts to promote economic opportunity at the federal level, we should look to community-based solutions to mitigate our unsustainable levels of inequality.
Over the past several decades, political leaders have tried to stimulate the economy on the supply side. They have provided incentives for businesses to invest in capital improvements, loosened regulations to encourage business growth, and lowered tax rates to give investors an incentive to take risks and create jobs. But we do not have a supply-side problem.
Our problem is on the demand side. Average Americans have so little wealth that they cannot afford to consume what companies sell. Income inequality has grown to the extent that those who are not at the very top can no longer afford to participate in the market.
Hyper-partisanship and the special interests that fuel it make it impossible for the current Congress to address the declining wealth of America’s middle- and low-income communities. Just look to the Ryan-Murray budget compromise: Congress is refusing to extend unemployment insurance, claiming that an extension will discourage recipients from looking for new work, while at the same time, congressional Republicans complain that the president is not creating enough jobs for those same workers. While they focus on scoring political points, American workers continue to suffer.
Read More Local Government is the Secret Weapon in the Fight Against Economic Inequality | Next New Deal.
