Rigged⁚ How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer
In his book, “Rigged⁚ How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer,” Dean Baker, co-founder of the Center for Economic and Policy Research, argues that the upward redistribution of income in the United States over the past four decades was not a natural outcome of globalization and market forces. Instead, he asserts that it resulted from deliberate policy choices designed to benefit the wealthy at the expense of ordinary workers. Baker’s book delves into how rules governing trade, patents, copyrights, corporate governance, and macroeconomic policy have been manipulated to favor the rich, exacerbating income inequality.
Dean Baker’s Book
Dean Baker’s “Rigged⁚ How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer” is a compelling and thought-provoking analysis of the factors contributing to the widening gap between the rich and the poor in the United States. Published in 2016, the book has become a significant contribution to the discourse on economic inequality. Baker, a renowned economist and co-founder of the Center for Economic and Policy Research (CEPR), brings a wealth of experience and expertise to the topic. He meticulously examines the policies and economic trends that have shaped the modern economy, demonstrating how they have disproportionately favored the wealthy.
The book is available in multiple formats, including a downloadable PDF version, which can be accessed through Dean Baker’s website. This accessibility has contributed to its widespread readership and influence. “Rigged” has garnered attention from a diverse range of individuals and organizations, including academics, policymakers, and concerned citizens. It has been featured in numerous publications and media outlets, sparking discussions and debates on the critical issues of income inequality, globalization, and the role of government in shaping the economy.
Overview
“Rigged” presents a detailed examination of how globalization and the rules of the modern economy have been manipulated to create an environment where wealth concentrates at the top, leaving behind a growing number of Americans struggling to make ends meet. Baker argues that the current economic system is not a natural outcome of market forces but rather a result of deliberate policy choices designed to benefit a select few. He delves into specific areas where policies have been “rigged” to favor the wealthy, including trade agreements, intellectual property laws, corporate governance, and macroeconomic policy.
The book provides a comprehensive and accessible explanation of complex economic concepts, making it a valuable resource for readers seeking to understand the root causes of income inequality. Baker skillfully weaves together historical analysis, economic data, and insightful commentary to illustrate how the rules of the game have been tilted in favor of the rich. He challenges the conventional wisdom that globalization and free markets inevitably lead to prosperity for all, arguing that such claims are often used to justify policies that actually exacerbate inequality.
Key Arguments
Dean Baker’s “Rigged” rests upon a foundation of several key arguments that challenge the prevailing narrative surrounding globalization and its impact on income inequality. Baker asserts that the rules of the modern economy have been deliberately structured to favor the wealthy, leading to a significant upward redistribution of income. He identifies several key areas where policies have been manipulated to achieve this outcome, each contributing to the widening gap between the rich and the rest. These areas include⁚
- Trade Agreements⁚ Baker argues that trade agreements have often been designed to benefit large corporations at the expense of workers, particularly in industries where labor costs are a significant factor. He contends that these agreements have contributed to the decline of manufacturing jobs in the United States and the downward pressure on wages for many workers.
- Intellectual Property Laws⁚ Baker criticizes the strengthening of intellectual property laws, arguing that they have created longer and stronger patent and copyright monopolies, allowing corporations to extract higher profits and stifle competition. He contends that these laws have disproportionately benefited large pharmaceutical companies and technology firms, hindering innovation and access to affordable goods and services.
These are just a few of the key arguments presented in “Rigged.” Baker’s analysis paints a compelling picture of how the rules of the game have been rigged in favor of the wealthy, shedding light on the complex interplay between policy choices and economic outcomes.
Globalization and Market Forces
Dean Baker’s central argument in “Rigged” challenges the commonly held belief that globalization and market forces are inherently responsible for the widening gap between the rich and the poor. He asserts that the upward redistribution of income is not a natural outcome of these forces but rather a consequence of deliberate policy choices. Baker argues that globalization has been used as a tool to benefit corporations and the wealthy at the expense of workers. He points to trade agreements that have been negotiated to favor large corporations and multinational companies, often at the cost of American jobs and wages. The author contends that these agreements have contributed to the decline of manufacturing in the United States and the downward pressure on wages for many workers, particularly in industries where labor costs are a significant factor. Baker further emphasizes that the benefits of globalization have been unevenly distributed, with the wealthy and powerful reaping the majority of the rewards while many workers have experienced stagnant wages and declining job security. He argues that the market forces unleashed by globalization have been left unchecked, leading to a system where the wealthy have been able to manipulate the rules to their advantage.
Policy Choices
Dean Baker contends that the widening gap between the rich and the poor is not an inevitable outcome of globalization and market forces, but rather a result of deliberate policy choices designed to benefit the wealthy. He argues that policymakers have actively weakened regulations and protections for workers while strengthening the position of corporations and the wealthy. Baker identifies specific policy choices that have contributed to this upward redistribution of income. He highlights the weakening of labor unions, which has eroded the bargaining power of workers and contributed to stagnant wages. He also criticizes the deregulation of the financial industry, which he argues has led to instability and economic crises that have disproportionately impacted ordinary people. Baker further points to policies that have favored corporations and the wealthy, such as tax cuts for the rich, reductions in social safety net programs, and the weakening of environmental regulations. He argues that these policies have shifted the burden of economic hardship onto working-class families while providing significant benefits to those at the top. Baker’s analysis emphasizes that the upward redistribution of income is not a natural phenomenon but rather a consequence of political choices that have favored the wealthy at the expense of the majority of the population.
Upward Redistribution of Income
Baker’s central argument in “Rigged” is that the United States has experienced a dramatic upward redistribution of income in recent decades, with the wealthy accumulating a disproportionate share of the nation’s wealth. He meticulously documents this trend, highlighting the widening gap between the top 1% and the rest of the population. He demonstrates that the average worker has seen little to no increase in their real wages over the past several decades, while the incomes of the wealthiest individuals have skyrocketed. Baker argues that this divergence is not simply a reflection of natural market forces but rather a consequence of deliberate policy choices that have favored the rich. He emphasizes the role of globalization, deregulation, and tax cuts for the wealthy in driving this trend. Baker’s analysis reveals a system where the rules of the economy are tilted in favor of those at the top, allowing them to extract a greater share of the nation’s wealth while leaving the majority of the population struggling to make ends meet. He contends that this redistribution of income has profound consequences for the health of the American economy and society, leading to increased inequality, reduced social mobility, and a decline in living standards for many.
Impact and Reception
“Rigged” has been widely praised by economists and policymakers for its clear and compelling analysis of the forces driving income inequality in the United States. The book has garnered significant attention in the media, with Baker’s insights being featured in numerous publications and news programs. Critics have lauded Baker’s ability to break down complex economic concepts into accessible language, making the book a valuable resource for both experts and the general public. The book’s impact extends beyond academic circles, sparking discussions about economic fairness and the need for policy changes to address income inequality. Baker’s work has contributed to a growing awareness of the structural factors that contribute to the wealth gap and has inspired calls for policies aimed at redistributing income and creating a more equitable economy. While “Rigged” has received widespread acclaim, it has also faced criticism from some who argue that Baker’s analysis oversimplifies the issue of income inequality. These critics contend that factors such as technological change and globalization play a more significant role than Baker acknowledges. However, despite these critiques, “Rigged” remains a powerful and influential work that has significantly shaped the discourse on income inequality in the United States.
Dean Baker’s Background
Dean Baker is a renowned economist and co-founder of the Center for Economic and Policy Research (CEPR), a non-profit think tank dedicated to promoting progressive economic policies. Baker’s expertise lies in the areas of housing and macroeconomics, intellectual property, Social Security, Medicare, and European labor markets. He has authored numerous books and articles, including “Rigged,” which has become a seminal work on income inequality. Baker’s background is rooted in academia. He holds a Ph.D. in economics from the University of Michigan and has held teaching positions at various universities, including the University of California, Berkeley. His research and commentary have been featured in prominent publications such as The Atlantic Monthly and The Washington Post, and he has been a regular guest on news programs like PBS’s NewsHour. Baker’s work is characterized by his commitment to empirical analysis and his willingness to challenge conventional economic wisdom. He has been a vocal critic of policies that he believes contribute to income inequality and has advocated for policies aimed at promoting economic fairness and social justice. Baker’s deep understanding of economics, coupled with his passion for social justice, has made him a leading voice in the debate over income inequality and the role of government in shaping the economy.
Availability and Formats
Dean Baker’s “Rigged⁚ How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer” is readily accessible in various formats to cater to different reader preferences. The book is available for purchase in paperback format on Amazon, with the ISBN 9780692793367. For those who prefer digital reading, “Rigged” can be downloaded as an e-book in EPUB format. Furthermore, Baker’s website, deanbaker.net, offers a free PDF download of the book, allowing readers to access its content without any cost. The website also provides additional resources, including commentaries and analysis related to the book’s themes. This multifaceted approach ensures that readers can choose the format that best suits their needs and interests, making “Rigged” easily accessible to a broad audience.
Further Reading and Resources
For those interested in delving deeper into the topics explored in “Rigged,” Dean Baker provides a wealth of resources and further reading materials. His website, deanbaker.net, serves as a hub for his work, featuring articles, blog posts, and research reports on various economic issues, including globalization, income inequality, and the role of government policy. Readers can find additional insights into the arguments presented in “Rigged” by exploring these materials. Additionally, Baker’s analyses have appeared in numerous publications, including The Atlantic Monthly and the Washington Post, providing further perspectives on his economic views. For those seeking a broader understanding of economic inequality and its implications, exploring the works of other economists, such as Thomas Piketty and Joseph Stiglitz, can offer valuable complementary perspectives. Engaging with these resources can help readers develop a more nuanced understanding of the complex issues surrounding economic inequality and the role of policy in shaping its trajectory.