Paul Krugman Confronting Inequality Analysis

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“Confronting Inequality” is an article from Paul Krugman’s book The Conscience of a Liberal (2007). Krugman gained worldwide recognition after winning the Nobel Prize in 2008, and in his regular time he writes a column in the New York Times and teaches economics at Princeton. Contrary to most of the literary examples of criticizing modern economic conditions, Paul Krugman provides his suggestions in the mode of problem-solution. The author stresses attention to the radical shift his generation has experienced during his lifetime: having grown up in a relatively equal middle class society, these days people find themselves living in the situation of a rapidly growing level of inequality, which primarily affects living standards that are getting worse and worse. Due to this, Paul Krugman assumes that the actual situation needs to be reconsidered and certain measures need to be taken. After providing a profound articulation of the state of inequality that the world and the United States in particular face today, he illustrates his own suggestions and the ones made by other scholars on possible consequences of rising inequality that could result in political and economic crisis. According to Paul Krugman, in order to diminish the level of inequality, the United States government needs to perform tax-cut rollback, a…show more content…
When certain scholars suggest the decline of unions as a result of globalization, Krugman perceives this as a consequence of the actual political climate created by conservative forces that declare punishments to those workers who support union organizations. Still, the restoration of unions might bring a lot of benefits for ordinary workers that will result in them feeling much safer, for “unions raise the wages of their members, who tend to be in the middle of the wage distribution; they also tend to equalize wages among their members”

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