TL/DR –
Despite standard economic measures indicating a robust U.S. economy, Americans’ confidence in the economy is at its lowest since 2008 due to perceived economic hardship. The authors argue that these sentiments stem from economic inequality, corporate power, and economic insecurity, with many facing low wages, irregular work hours, and struggles with rising living costs. They propose disrupting corporate power and redistributing it towards workers and consumers through actions like strikes, changing laws, and enforcing existing laws.
Understanding Economic Hardship Despite Strong Economic Measures
Despite traditional indicators showing the U.S. economy in good health, American confidence in the economy has fallen to 2008 levels.
Our research on instigating transformative change presents two critical insights for understanding this phenomenon.
Firstly, we should help people comprehend their world rather than dictate their thoughts. When people express fear about paying their bills, we should help understand this reality, rather than dismiss their concerns due to positive macroeconomic figures. Aggregate data often fails to mirror individuals’ realities. Low unemployment rates don’t imply economic well-being if available jobs offer low wages or irregular hours.
Addressing this reality means confronting economic inequality, corporate dominance, and economic insecurity.
Secondly, the crisis of extreme inequality and corporate power requires us to abandon traditional methods of change. Massive corporate power has resulted in higher prices for essential goods, limited housing supply, and blatant disregard for employment laws. To effectively aid the working class, we need to disrupt corporate power and change existing rules that favor corporations over people.
Actions like strikes or boycotts can facilitate this change, but these gains must be institutionalized, permanently redistributing power towards workers, consumers, and the environment. This could involve collective bargaining agreements, changes in laws, or enforcing existing laws.
For instance, the United Auto Workers’ (UAW) disruptive actions in 2023 led to significant gains. The introduction of the Inflation Reduction Act and new rulings at the National Labor Relations Board are positive steps, but we need more than these isolated fixes.
The key is to disrupt corporate power and help people collectively comprehend their continued struggle.
Recommended Readings
- Why economic pessimists are betting on a 2023 recession?
- COVID-19 vs Flu: A ‘much more serious threat,’ new study concludes
- Modern stoves can be a game-changer for Africa’s economic development
- Business exit over Ukraine: No Russian bonanza
Subscribe to our Fortune CEO Weekly Europe newsletter for more insights on European business stories.
—
Read More US Economic News