Peter Passell, in his article, "The Rich are Getting Richer, Etc., and It's Likely to Remain That Way," cites various economists who note that from a statistical standpoint, the rich enjoyed a substantial increase in their standard of living during the early 1990s and the poorest Americans suffered a decrease in their own living standards during the same time. It also became more difficult for the 'average' American to move from one economic class to another, and Passell sees no reason for this trend to reverse.
Passell does not explore the reasons for the change and so he offers no prescription for fixing the problem. He intends his article to be a wake-up call to the rest of the country to "fix" the problem without clearing identifying what the problem is. The United States currently has the lowest unemployment it has had in years, but CEOs also make considerably more here than in other countries when measured as a multiple of their workers' wages. This offers some help as to what may be causing the problems that Passell cites.
Until American companies begin compensating all of their employees at levels commensurate with their profits, the situation observed by Passell is unlikely to change. However, more study needs to be done in order to identify the underlying causes of the symptoms Passell notes; without such study, his observation that the gap will only widen is likely to be all too accurate.
"Social Security on the Table," by Quinn and Mitchell, is an attempt to explain the three different alternatives developed by the Social Security Advisory Council formed by President Clinton in 1994. This council, composed of 13 members from labor, business, and other segments of society, was unable to reach consensus on a single plan to salvage Social Security (which all observers note will be unable to meet its obligations in the next century under the current system) and instead developed three alternatives. Only one of ...