Finally, A Simple Plan That Can Reverse Inequality and Save America's Sinking Middle-Class

By Steven Rosenfeld

August 8, 2014 | Editor’s Note: As economic inequality grows in America, very few people have put forth solutions that can revive the middle class. Peter Barnes is a writer and entrepreneur whose focus is improving capitalism to solve big problems like climate change and inequality. Steven Rosenfeld spoke with Barnes about his latest book [3],With Liberty and Dividends For All: How To Save Our Middle Class When Jobs Don’t Pay Enough.

Steven Rosenfeld: Your book starts with a very sober assessment of the American middle-class. It’s shrinking. It’s disappearing in our lifetime. And the reason is that most work-related income is not enough. It’s insufficient and that’s getting worse. Tell me about that.

Peter Barnes: One can throw out all the numbers, but rather than do that, just think back. Some of us, like myself, are old enough to remember when there were lots of good-paying steady jobs, both in the private sector and public sector. They had benefits, covered health insurance, and provided pensions. That was what the middle-class was built on when I was growing up. Now, for a variety of reasons, including globalization, and automation, and the decline of labor unions, that is no longer the case. And most of the younger people who are entering the labor market today don’t get jobs like that.