This post was written by Lou Kriesberg, Maxwell Professor Emeritus of Social Conflict Studies. It also appears on his website.
Four important developments are converging that could help reverse the income and wealth inequality that has been escalating in the United States since the 1980s. First, global warming is having increasingly devastating effects across the country. The frequency of disastrous climate-related events is increasing in the form of extreme heat and consequent droughts and fires and of frequent hurricanes and floods. Second, the Covid-19 pandemic and its variations has sickened and killed millions of people globally and hugely disrupted the economies of the world’s countries. Third, American opinion is turning away from the dominating role the U.S. has played in fighting terrorism and making the world over in our image. Fourth, the great increase in the divisions within the U.S. society is hampering dealing effectively with the societal problems arising from the other developments.
Each of these developments is conducive to taking action to reduce the U.S. hyper inequality. First, by 2020 global warming advanced far enough for the country to frequently suffer droughts and raging fires in the country’s northwest. Frequent powerful hurricanes and floods struck the people in the southern and eastern states. Lives were lost and the costs of recovery rose. Calls increase for the federal government to strengthen the country’s infrastructure to improve its resilience and to slow, even halt, global warming. Even many Republicans, who had denied that human activity was fueling the rising temperatures of the earth, began to acknowledge the reality.
Second, Covid-19 is a major development with two broad sets of profound consequences in the United States: what it revealed and what it changed in class inequality. The great vulnerability of low-income people to Covid-19 meant that they suffer higher rates of illness and death than middle and upper classes of people do. Moreover, the closing down of much of the country’s economy tends to harm low-income people much more than people who have good incomes prior to the locked-down economy. Indeed, the stock market rose to new heights and some corporations profited hugely.
Third, the intervening role the U.S. has played in the world has contributed to the lack of attention to the increasing domestic class inequality. The U.S. war in Vietnam quite directly stifled President Johnson’s War on Poverty. The Cold War against Soviet Communism rose during President Reagan’s first term, when class inequality began its steep rise. The end of the Cold War failed to result in a peace dividend and in a few years the Global War on Terrorism was launched after September 11, 2001. Significantly, by the 20th anniversary of the September 11 attacks, the U.S. had withdrawn in defeat from Afghanistan. Grave misgivings are being widely expressed, even by leading Republicans, about the mistaken invasion of Iraq and the harms the U.S. suffered by the way the war against terrorism had been waged. Preferences to attend to domestic concerns is now rising.
Finally, the U.S. society and political system has become divisive and antagonistic. Political Party fights often prevented collaboration to meet the country’s real problems. People increasingly want to re-build trust and collective action to reduce our shared problems, including extreme income and class inequality.
These four profound developments converge to support government actions that would reduce the extreme class inequality in the United States. One indicator of that had been the popularity of Bernie Sanders in his run for the Democratic Party’s nomination for president in 2016 and 2020. His primary theme was to greatly increase income and wealth equality. He aroused a large following. Trump also expressed the resentments of working people who felt they were being left behind. Of course, he did not offer to overcome the reasons for the resentments by reducing class inequality, but by blaming immigrants and bad international trade deals.
The hyper inequality of income and wealth in the United States has many unfortunate consequences for the country as a whole. It distorts the political system to serve the interests and concerns of the wealthiest people; for example in relation to military contracts. This uses funds that might otherwise serve the needs of other, less fortunate, Americans. It warps the economy as a whole by advancing production and profits for their interests at the expense of production and incomes for most other people. More and more people are relatively worse off than the ever-richer wealthy people. Social problems, including physical and mental illness and crimes are associated with income inequality among the U.S. states and among the economically advanced countries in the world. Furthermore, the country continued to include a substantial proportion of people living in poverty.
Many of the Biden Administration’s actions and proposals are responsive to the convergence identified here. Recognizing the magnitude of the present challenges should embolden taking even greater actions. For example, increase estate taxes and introduce Federal wealth taxes. This is an excellent way to increase the funds needed to confront the converging challenges. The great convergence indeed provides a great opportunity to creatively and constructively meet those great challenges we face.