2. Economic Inequality  Good news –unemployment is very low, 3.7% –per capita income grew 9.4% since 1992  Bad News –wages 8.4% below 1979 level –family income is up 9% since 1979, hours worked increased by 19% –1998- 29% of jobs pay $8.20 an hour, poverty wages  Nickel and Dimed, Ehreinch

3. Benefits  share of the work force with health insurance fell from 80% in 1979 to 75% in 1998  49% of workers have a pension through their employer

4. Economic Inequality  99% of income gains from 1979 to 94 went to top 5% of income distribution  top.1% of Americans have 20% of national income  CEO compensation –1980, CEO pay= 20 x worker –1996, CEo pay 326 x avg worker

5. Is Inequality a Problem?  Alms and Cox –Income mobility –Track individual incomes over years –of the lowest 20% of income earners in 1979 86% move to higher group by 1988; 15% make it to top tier Quickest rise is among the young!

6. Is Inequality a Problem?  Alms and Cox- source of changes –Shift from blue – white collar economy –Increasing rewards to education & experience  Inequality is inevitable

7. Is Inequality a Problem?  Krugman –Economic Globalization – bunk! McDs  Source of Inequality –Values change- Idolatry of CEOs Jack Welch –Decline of labor- 12% in unions  Consequences –government for the comfortable