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At Berkeley, Krugman’s warning becomes reality

Stashed in: politics, economics

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I make that point because it’s almost impossible to have a serious discussion about this country’s economic problems without getting trapped into partisan political bickering, which is almost irrelevant in this context. The activist Tea Party right (at least in its populist, non-elite form) and the activist Occupy left are essentially reacting to the same phenomenon – worsening inequality, and the long-term economic and psychic decay of the United States – but interpreting it in different ways. Working-class whites who feel an immense loss of relative privilege and social status are not wrong, for example – but it doesn’t have much to do with the Kenyan socialist Muslim in the White House, or his namby-pamby and admittedly screwed-up healthcare law. As Nobel-winning economist Joseph Stiglitz recently noted, census data reveals that men with high-school diplomas but without college degrees earn about 40 percent less today (in real terms) than they did in the 1970s. Obama didn’t do that; capitalism did.

Stiglitz concluded his essay on inequality – which argued that it was a political choice, rather than the inevitable result of macroeconomic forces – by writing that he saw us “entering a world divided not just between the haves and have-nots, but also between those countries that do nothing about it, and those that do. Some countries will be successful in creating shared prosperity — the only kind of prosperity that I believe is truly sustainable. Others will let inequality run amok.” Which kind of country do we live in? That was the question that ran through my mind this week while I was watching Frederick Wiseman’s magisterial documentary “At Berkeley,” a portrait of America’s most prestigious public university as it wrestles with piecemeal privatization and the near-total abandonment of its historic mission.

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