Free Essay: Why the Rich Are Getting Richer and the Poor, Poorer by Robert Reich

There have been concerns in decades regarding the increasing gap between the rich and the poor. Reich in his book has tried to use metaphors to explain why there is disarray in the level of the economy between the rich and the poor where the richs economy keeps growing while for the poor people keeps going down. Reich has been able to describe some of the causes of poverty among the poor people. Often there are job losses for the poor people due to work being automated and manual jobs being replaced by machines. There is also the fact that most countries are using cheap labor and are willing to pay less for the jobs done. Those that are in the middle class are also not safe in that their economy is slowly declining because of the automation, decreased salaries among others (Robert, 1). The cause of the decrease in salaries is mostly due to the monies being taken from employees salaries to cater for the social security fund. There is also the competition for jobs from the increasing numbers of immigrants coming into the country from other countries.

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The rich on the other hand are rising and doing better because of the fact they are selling the ideas they have to the foreign nations. The rich include the engineers, information technicians and architects among others. This is because these are the people who are mainly involved in the designing and bringing up of megastructures that are used in transportation as well as in the day to day lives of people. In this case, the rich are earning more and getting more money than their counterparts in the middle and lower class. Reich has also talked about the remedies that have been designed to make sure that the salary of the poor does not continue decreasing. However, Reich says that the richer are still getting richer. According to Reich, the richer are becoming richer because they take the largest slice from the national wages. They own most of the companies and can pay whichever amount they deem fit and can also fire and hire freely. The American economy has been on the downhill, and Reich predicts that soon the gap between the rich and poor will increase and that the poor will not share their wealth with the poor even with their capability. This essay will, therefore, seek to the extent to which the government can give jobs to those who are not able to get jobs as well as whether the government ought to give temporary jobs to those whose opportunities run out.

When the labor force is unemployed, their families, as well as the country, suffers in the process. The workers will lose their daily salaries together with their families, and the nation will lose the products as well as services that the workforce could have produced. The powers of the workers to purchase are also lost and this in turn leads to loss of jobs for other personnel. For the government to be able to dress the issue of job loss, it requires to know the extent to which the problem has spread. The government needs to know the cause of the unemployment, the areas that have the highest number of people who are unemployed among others. These and other answers can help the government in putting together policies and measures that will influence the employment rates of those without jobs thus reducing the gaps between the rich and the poor. The government should, therefore, create job opportunities for all the people it governs. The government cannot necessarily create jobs, but it can clear the way for jobs to be available. There are several stringent measures that the government can put into place to ensure that every person can access employment.

To begin with, the best program that there is that can ensure that people get jobs is by making sure that the economy is stable and can accommodate the needs of its citizens. The government can do so by creating markets that are free. This is one of the best ways to grow an economy and create employment. Another way of making sure that the economy is stable is by reducing the taxes. Taxes in their nature often are known to reduce the freedom of citizens. The role of taxes is to be able to fund the services that the constitution authorizes and those that help in making the lives of citizens better especially those that are not able to take care of themselves. Taxes should not be a means to distribute income and provide money for projects that are not necessary. Taxes can also create an avenue for corruption among the politicians is money is free at their disposal. It is, therefore, the duty of the government that the tax system does not burden the economy.

Secondly the government ought to support the small businesses so as to be able to grow the economy and create jobs for the unemployed. At the moment, America is facing a situation where the government will make the small businesses flourish or break them as well as those who own the businesses. The middle class has been eroded over the years whereby the rich have incomes that rise every single day even after the famous American recession that saw the downfall of the economy from which America is trying to recover. The government can improve the small businesses by ensuring that the businesses have access to credit. The government over the years through the budget has been able to set aside some money to support the small businesses. This has been through loan guarantees as well as debentures. The government can also ensure that the small businesses have their taxes cut. The government has tabled proposals for introducing laws that will see the tax for small businesses cut to boost growth as well as investments in the small businesses. The government has also eliminated taxes on all gains emanating from capital for small businesses and by simplifying the tax credits for all small businesses.

It has been the duty of the government to salvage the economy by trying their best to build an economy that will last. In the year 2013, the budget of the President was built such that the country would do better when there is equitability, and people do their part to aid in the growth of the economy by practicing fairness. The government should, therefore, transform the economy by changing it from one that is speculative, has a lot of spending as well as a government that is rooted to excessive borrowing to an economy that is solid with innovation, education as well as one that seeks to build the nation. When the government puts the nation in a place where the citizens can live within their means and by avoiding unnecessary spending will help in growing the economy and creating more jobs. The citizens should also assists in the growth of the economy by ensuring that there are fair and can make stringent picks on things that they cannot meet the expense for keeping the investments that are needed to grow the economy as well in the creation of jobs.

The government has for years been targeting areas that have the potential for growth and restoring the money security for the citizens by directing the resources to those areas. These include education, innovation, good infrastructure and unpolluted energy among others. All these areas are critical for businesses especially the small businesses. The budget if formulated properly can be the blueprint that can shape the countrys economy whereby those that work hard and are responsible are rewarded handsomely. It is important for every government to know that the backbone of every economy is the small businesses that act as engines for economic growth (Bittle, Scott and Jean, 109). For businesses to thrive there needs to be lots of planning that people in the business world calls business plans. For the business plans to be effective, they ought to be based on conditions that are known and those that are unknown. If the conditions are stable, the plan is likely to bear fruits and the business is likely to acquire more investments from outside sources.

This will make the business thrive and will open doors for growth. However, if all is not stable within the business, the business will drop considerably. For the environment to conduct business to be stable, a stable economy is required. For a person to have the will to invest, they need assurance that the there will be no foreseeable inflation in the long run. Uncertainty makes the investors hold back their monies. The government, therefore, needs to be more vibrant and try to balance the spending, borrowing within the budget. If there are minimal investments the economy will be depressed and this will lead to unemployment and job loss. Over time, people are interested in investing in businesses that are tied to the government, Medicare as well as the aging populace.

For the government to create employment, it needs to control its budget and print less money so as to control inflation. By doing so, the government will at no point in time require the use of T-Bills to finance its economy neither will they need to borrow from outside sources. By the government spending more and borrowing more as well as creating regulatory and administrative obstacles will hinder the creation of employment. By borrowing less and spending less as well as removing the regulatory and administrative barriers will help in creating jobs for those that are jobless. Playing fewer politics and focusing on building the economy of the country will have long term benefits. This will be able to create more opportunities for investments and jobs.

Though many may suggest that the government ought to give jobs to routine workers, this might not be a viable option if there are no jobs to offer. Moreover, there are many people who are jobless and will claim that they are routine workers. The government should instead come up with policies that will create jobs and make them available for the jobless to apply. There are some policies that a government can adopt (Drew, 89). Each country will have a choice of the number of policies that they can adapt or combine to encourage the growth of an economy and be able to tackle barriers in the job market that make the jobless not able to access available jobs. These policies can be long term and short term. These short term and long term policies are what will reverse the problem of unemployment.

To prevent the rise of unemployment the country should consider promoting the creation of quality jobs and make sure that there are enough infrastructures that will encourage investment and development. They should put the stringent measure on employers who dismiss their workers any time they feel like it. Another way that the government can help those that are unemployed is by providing income support to those that are unemployed and work towards re-employing them after some time. The government can also in the short term develop the skills of their citizens as needs change because of the ever changing world of innovation. One of the major reasons why most people are rendered jobless is because over time their skills are replaced by innovations and thus they are required to train themselves again.

The government can adopt other policies in the long run to curb the menace of unemployment. The labor markets should be structured fresh and reforms are made effective so that it can be resilient to the changes that occur over time. To do this, the government requires encouraging the workforce to find employment in the formal sector within the rural and urban setting. The government should strive to work and engage the private sector in formulating policies that will ease the burden that employment brings to the affected. This can be effected by the government setting a minimum wage that should cut across all sectors both formal and informal. This means that the government becomes a watch guard so that there is equality in the employment sector and the salaries that t...