“Is it the gilded age again?” Paul Krugman, Professor of Economics at Princeton says it is. Other modern economists are also agreeing to this statement with theories and talks about economic inequality. To back up a bit, “The Gilded Age” is a term coined by Mark Twain in reference to the late 19th century social and economic conditions being masked by a thin ‘gold lining’. Are we in the same state today that we were in over 100 years ago?
Debates of inequality have been in discussion for about 20 years now, making an argument for disparity between high and low income earners. It has been said that the top 1% of wage earner’s potential have grown by over 100%, while the other 90% of wage earner’s potential have grown by only 17%. (Intelligence Debates).
To be fair, not all economists are completely on board with the inequality argument. Robert Reich, does author an equitable rebuttal to the topic; Robert Reich: Four Big Conservative Lies About Inequality.
There is more…
To further the topic on income disparity comes the noted ebook, Race Against the Machine (2011) by MIT Professor, Erik Brynjolfsson and MIT Associate Director for Digital Business, Andrew McAfee. The MIT pair contends that the revolutionary advances in computer technology is one of the main reasons for the decreasing rate of employment in the past 10-15 years. They go further to state that technology isn’t only slowing employment, but losing more jobs for workers than is creating – therefore helping to decimate the middle class and increase the disruption of economic equality.
Arguments on how we keep and maintain our livelihood has been in debate since before our country was even established. This pressing topic affects hundreds of publications and news releases, but how does it affect someone personally unless one sees the direct connection between issue and pocketbook?
Its certain that a lot of us felt the sting of the recession when jobs were lost and sums of our 401(k)s and other indexed investments just dropped out from beneath us. Though we might be ignorant to the first-hand effects of inequality, we can still understand the issue, and protect our individual economy.
Investing in the Road Ahead
This topic of inequality and unemployment is one of the very reasons we see the need to invest in life insurance. Life Insurance helps to ensure your financial protection. When you own a whole life policy, you are giving yourself the opportunity to absolve your personal economy from the volatility of the overall economy – regardless of any volatility climate.
Life Insurance insulates your money, creates a tax-deferred savings (possibly tax free savings), and a steady return rate that keeps your money growing.