Why the Rich Get Richer, While the Poor Get Poorer
21 February 2012
Our “Hourglass” Economy In these most recent economic times, it is clear to see that the rift between the extremely rich and the extremely poor is expanding, with those in the middle being stretched to one extreme or the other. There seems to be no reconciliations for this ever-growing disparity, as the corporations that used to comprise solely our economy lose national borders. Robert B. Reich discussed this issue in his work, Why the Rich Are Getting Richer and the Poor, Poorer. There are many reasons that go into play and many factors that sway each reason, but the major factors that influence our so-called “hourglass” economy are (but are not limited to) seniority, the …show more content…
In 1989, AT&T stopped hiring Singaporeans to make telephones and began hiring even cheaper routine producers in Thailand for the same reason (Reich 423).
As corporations lose national borders, another phenomenon occurs. The bond between employer and employee is severely strained or completely severed. As these corporations expand all over the globe, and as more and more job-searching can be accomplished through Internet job sites, the CEO’s of these companies become almost a myth to entry-level employees and lower-level management; a name on the training manuals they receive and that gets brought up every once in a while.
The same can be said for middle management jobs. As America’s core pyramids metamorphosed into global webs, many middle-level routine producers were as obsolete as routine workers on the line. Between 1981 and 1986, more than 780,000 foremen, supervisors, and section chiefs lost their jobs through plant closings and layoffs. Large numbers of assistant division heads, assistant directors, assistant managers, and vice presidents also found themselves jobless. GM shed more than 40,000 white-collar employees and planned to eliminate another 25,000 by the mid-1990s (Reich 426-427).
Finally, the most major factor of the schism between the rich and the poor is by a so-called “secession of the rich.” As the rich become richer, they are said to be more willing to invest and create more jobs. This is not