Hedrick Smith. Who
Stole the American Dream? ©2012 For the last several years I have been
addicted to national and business news.
As a result I found almost nothing new in this book. Instead I found the most comprehensive and
well thought out statement of how shifts in the attitudes of corporate leadership
beginning in the early 1970s did just what the title of the book suggests. Corporate America, aided and abetted by
Congress stole the American dream and handed it over to the top 1%, who now
account for 23% of all income in the US.
We went from a society with a strong manufacturing sector that provided
jobs, decent incomes and pensions for its workers to a society that provides
none of that. In the virtuous circle
that prevailed from the end of WW II through the 1960s, workers were well paid
and felt their futures were secure. As a
result their spending provided the demand that allowed the economy to continue
to grow. Corporate decisions beginning
in the 1970s and perhaps a thousand fold increase in lobbying expenditures
resulted in legislation that ended the virtuous circle and benefitted only the
very wealthy, the so called “1%.” This gift
to the rich was provided by a Congress that now spends its time raising campaign money
instead of looking after the people’s business.
About 50% of baby boomers can look forward to living in poverty until the
end of their lives. Read this book or if
you can’t take it all in, read the appendix, which is a chronology of how our
economy became so warped that we have an extreme maldistribution of income and
millions of formerly so called middle class people living in poverty with
little or no hope of ever attaining financial security. So what do we do about it? Smith’s answer is political activism. He lays out a series of recommendations that
would basically take us back to the successful traditions of the past where
administrations from George Washington through maybe Bill Clinton took leadership
to develop infrastructure and promote technological development. When
government performs its leadership role, everyone benefits, both business and
the people at large.
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