Book Analysis

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Book analysis-----“Winner-Take-All Politics”
Jingshu Xu
This book discusses the rising income inequality in America. During the last 30 years, the very wealthy people enjoy the unbalanced government politics and the middle class goes missing. The richer you are, the more you have benefited from economic changes. On the opposite, the poorer get the worse economic life and the middle class become vulnerable. The author give some statistics, since 1978—the richest 1% gaining 256% after inflation while the income of the lower earning 80% grew only 20%. In addition, the authors point out that it is not the market that makes this happen, but the politics.
This book is divided into three parts. First, in Part One, the authors raise a question about the how the puzzling politics of winner-take-all politics formed. In chapter 1, the authors use Piketty and Saez’s results of research. Rather than talking to witnesses, which is useless because it is not easy to find the super rich people and know their exact income, Piketty and Saez’s look into their income reported when paying taxes. However, the authors mention that argue that many of the explanations simply don't explain what is going on because it does not consider the government’s effect on incomes as well as tally up private noncash compensation. While the authors agree that technological change is part of the reason, they consider that politics plays a key role. Chapter 2 talks about the how the winner-take-all economy was made. In other words, what were the motives behind the public policies that fostered winner-take-all politics? The authors mention that government declines tax rates on the rich. Tax policy is one of reason that exacerbates American inequality. On the other hand, the absence of a government response to rising inequality can also be treated as a form of policy. Then the authors talk about the…...

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