This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Morici: What President Obama Doesn't Get About Inequality

NEW YORK (TheStreet) -- Inequality is President Obama's highest priority, but his solutions are wholly naive.

Disparities between the rich and the poor are as ancient as civilization, but in modern democracies, this condition is exacerbated by globalization and technologies that drive it.

Successive advances in communication and transportation, for example, permit top opera singers, athletes and other professionals to reach wider audiences and earn incomes many times greater than their peers.

Before the radio, phonograph and moving pictures virtually every city, small and large, had an opera house or music hall that offered live entertainment. The top stars sang in New York, London and Milan and earned considerable wealth, but many local performers and traveling journeymen could earn a decent living, too

Must Read: Dow Stocks IBM and United Technologies Up Next on Earnings

Caruso made 260 recordings for RCA Victor from 1904 to 1920, and radio sent his voice around the world. His income soared to levels unheard in past generations, but less renowned performers were displaced as regional opera companies folded.

Satellite communications, the Internet and jet travel permit star journalists to reach millions across the globe, but are causing the demise of newspapers and opportunities for local reporters and columnists. The same goes for Wall Street bankers, big-firm lawyers and multinational executives, but at the expense of their brethren in smaller enterprises.

For ordinary workers, cheaper ocean and rail transportation for goods and the Internet for services have magnified global competition. More workers in the United States must now compete with those in China. Workers in northern Europe must compete with those in southern Europe and in large Chinese cities with those elsewhere in Asia.

Governments have made extremes in income worse. Big cities, often with federal support, subsidize concert halls and sports stadiums, and further raise the salaries of top performers and big-league ball players.

The U.S. and European Union have gone along with trade and environmental agreements that permit China to charge high tariffs on imports and avoid pollution abatement, making made-in-China even cheaper. That pushes down wages for American and European workers and wreaks havoc on the global environment.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $114.64 0.00%
FB $94.06 0.00%
GOOG $629.25 0.00%
TSLA $266.28 0.00%
YHOO $37.12 0.00%

Markets

Chart of I:DJI
DOW 17,550.69 -47.51 -0.27%
S&P 500 2,093.32 -4.72 -0.22%
NASDAQ 5,105.5460 -9.8360 -0.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs