On Tuesday, President Obama gave
a major speech in a small town in Kansas, America's heartland and birthplace
of his mother. He said supply-side economics is a failure and called “gaping
inequality” across the country a moral shortcoming that is distorting American
democracy. He was responding to the case that America's social contract is
broken - - an issue that challenges the sustainability of conventional capitalism.
Meanwhile in recent times, George Packer, a writer at The New Yorker
and novelist, said that what is called "the mixed economy"; the term he prefers
is "middle-class democracy, " was until recent decades an unwritten social contract among labour,
business, and government -- between the elites and the masses.
In an example of
the contrast between private wealth and public squalor, he says that last year,
a Wall Street company that few people have ever heard of dug an 800-mile trench
under farms, rivers, and mountains between Chicago and New York and laid fiber-optic cable connecting the Chicago Mercantile Exchange and the New York
This feat of infrastructure building, which cost $300m, shaves
three milliseconds off high-speed, high-volume automated trades -- a big
competitive advantage. But passenger trains between Chicago and New York run
barely faster than they did in 1950, and the country no longer seems capable, at
least politically, of building faster ones.
reading this article, subscribe to Finfacts Premium
for the low annual charge of €25.
It's a simple fact that in the
prevailing economic climate, the provision of high quality content cannot be
sustained through advertising alone.
If you are a regular user of Finfacts, 50 euro cent a week is hardly a huge ask
to support the service.
This article can
be accessed here.