The Vanishing Middle Class: Prejudice and Power in a Dual Economy (The MIT Press)

Why the United States has developed an economy divided between rich and poor and how racism helped bring this about. The United States is becoming a nation of rich and poor, with few families in the middle. In this book, MIT economist Peter Temin offers an illuminating way to look at the vanishing middle class. Temin argues that American history and politics, particularly slavery and its aftermath, play an important part in the widening gap between rich and poor. Temin employs a well-known, simple model of a dual economy to examine the dynamics of the rich/poor divide in America, and outlines ways to work toward greater equality so that America will no longer have one economy for the rich and one for the poor. Many poorer Americans live in conditions resembling those of a developing country―substandard education, dilapidated housing, and few stable employment opportunities. And although almost half of black Americans are poor, most poor people are not black. Conservative white politicians still appeal to the racism of poor white voters to get support for policies that harm low-income people as a whole, casting recipients of social programs as the Other―black, Latino, not like "us." Politicians also use mass incarceration as a tool to keep black and Latino Americans from participating fully in society. Money goes to a vast entrenched prison system rather than to education. In the dual justice system, the rich pay fines and the poor go to jail. The United States Is Becoming A Nation Of Rich And Poor, With Few Families In The Middle. In This Book, Mit Economist Peter Temin Offers An Illuminating Way To Look At The Vanishing Middle Class. Temin Argues That American History And Politics, Particularly Slavery And Its Aftermath, Play An Important Part In The Widening Gap Between Rich And Poor. Temin Employs A Well-known, Simple Model Of A Dual Economy To Examine The Dynamics Of The Rich/poor Divide In America, And Outlines Ways To Work Toward Greater Equality So That America Will No Longer Have One Economy For The Rich And One For The Poor. Many Poorer Americans Live In Conditions Resembling Those Of A Developing Country--substandard Education, Dilapidated Housing, And Few Stable Employment Opportunities. And Although Almost Half Of Black Americans Are Poor, Most Poor People Are Not Black. Conservative White Politicians Still Appeal To The Racism Of Poor White Voters To Get Support For Policies That Harm Low-income People As A Whole, Casting Recipients Of Social Programs As The Other--black, Latino, Not Like Us. Politicians Also Use Mass Incarceration As A Tool To Keep Black And Latino Americans From Participating Fully In Society. Money Goes To A Vast Entrenched Prison System Rather Than To Education. In The Dual Justice System, The Rich Pay Fines And The Poor Go To Jail. -- Publisher's Description Introduction -- A Dual Economy -- The Fte Sector -- The Low-wage Sector -- Transition -- Race And Gender -- The Investment Theory Of Politics -- Preferences Of The Very Rich -- Concepts Of Government -- Mass Incarceration -- Public Education -- American Cities -- Personal And National Debts -- Comparisons -- Conclusions. Peter Temin. Includes Bibliographical References And Index. Présentation de l'éditeur : "The United States is becoming a nation of rich and poor, with few families in the middle. In this book, MIT economist Peter Temin offers an illuminating way to look at the vanishing middle class. Temin argues that American history and politics, particularly slavery and its aftermath, play an important part in the widening gap between rich and poor. Temin employs a well-known, simple model of a dual economy to examine the dynamics of the rich/poor divide in America, and outlines ways to work toward greater equality so that America will no longer have one economy for the rich and one for the poor. Many poorer Americans live in conditions resembling those of a developing country-substandard education, dilapidated housing, and few stable employment opportunities. And although almost half of black Americans are poor, most poor people are not black. Conservative white politicians still appeal to the racism of poor white voters to get support for policies that harm low-income people as a whole, casting recipients of social programs as the Other-black, Latino, not like "us." Politicians also use mass incarceration as a tool to keep black and Latino Americans from participating fully in society. Money goes to a vast entrenched prison system rather than to education. In the dual justice system, the rich pay fines and the poor go to jail." The United States is becoming a nation of rich and poor, with few families in the middle. In this book, MIT economist Peter Temin offers an illuminating way to look at the vanishing middle class. Temin argues that American history and politics, particularly slavery and its aftermath, play an important part in the widening gap between rich and poor. Temin employs a well-known, simple model of a dual economy to examine the dynamics of the rich/poor divide in America, and outlines ways to work toward greater equality so that America will no longer have one economy for the rich and one for the poor. Many poorer Americans live in conditions resembling those of a developing country -- substandard education, dilapidated housing, and few stable employment opportunities. And although almost half of black Americans are poor, most poor people are not black. Conservative white politicians still appeal to the racism of poor white voters to get support for policies that harm low-income people as a whole, casting recipients of social programs as the Other -- black, Latino, not like us. Moreover, politicians use mass incarceration as a tool to keep black and Latino Americans from participating fully in society. Money goes to a vast entrenched prison system rather than to education. In the dual justice system, the rich pay fines and the poor go to jail. This book analyses the American economy in the twenty-first century as a __dual economy__ in the spirit of W. Arthur Lewis. Adapting the subsistence and capitalist sectors characterized by Lewis, the American dual economy contains a low-wage sector and a FTE (Finance, Technology, and Electronics) sector. The transition from the low-wage to the FTE sector is through education, which is becoming increasingly difficult for members of the low-wage sector because the FTE sector largely abandoned the American tradition of quality public schools and universities. Policy debates about public education and other policies that serve the low-wage sector often characterize members of the low-wage sector as black even though the low-wage sector is largely white. The model of a modern dual economy and the American history of race relations explain difficulties in both current politics and governmental actions in criminal justice, education, infrastructure and household debts. Contents 9 Introduction 11 I An American Dual Economy 21 1 A Dual Economy 23 2 The FTE Sector 35 3 The Low-Wage Sector 47 4 Transition 61 II Politics in a Dual Economy 67 5 Race and Gender 69 6 The Investment Theory of Politics 81 7 Preferences of the Very Rich 97 8 Concepts of Government 107 III Government in a Dual Economy 119 9 Mass Incarceration 121 10 Public Education 135 11 American Cities 149 12 Personal and National Debts 157 IV Comparisons and Conclusions 165 13 Comparisons 167 14 Conclusions 173 Appendix: Models of Inequality 181 Notes 187 References 203 Index 229 Introduction A dual economy The FTE sector The low-wage sector Transition Race and gender The investment theory of politics Preferences of the very rich Concepts of government Mass incarceration Public education American cities Personal debts Conclusions and comparisons Conclusions.