OF THE 1%, BY THE 1%, FOR THE 1%

“Americans have been watching protests against oppressive regimes that concentrate massive wealth in the hands of an elite few. Yet in our own democracy, 1 percent of the people take nearly a quarter of the nation’s income – an inequality even the wealthy will come to regret”

By: Joseph E. Stiglitz

Published: Vanity Fair, May 2011 http://www.vanityfair.com/society/features/2011/05/top-one-percent-201105

Level of difficulty: ***

BEFORE YOU READ

·     ·  Income inequality  http://www.investopedia.com/video/play/income-inequality/  

·         How income inequality harms society https://www.ted.com/talks/richard_wilkinson

QUESTIONS

1.       The writer states “It would be misguided to contend that a rising tide lifts all boats.” How would you amend this statement so that it accurately reflects the writers views?

2.       How does America differ from Latin America in terms of income equality? America……………

3.       Why has the marginal productivity theory been treasured by the rich? Because it helps justify ………………………………………………………………………………………………………………(Use your own words)

4.       The reward system in America is ironical to say the least because while ………………………………………………., ……………………………………………………………………………………………

5.       What popular belief does the writer set about refuting?

6.       Underemployment and misemployment are results of………………………………..which is closely linked to income inequality

7.       A chain reaction is set off by the crookedness that produces the income disparity discussed thus far. The end result of this chain reaction is that……………………………………………………………..

8.       President Obama wished to invest in health care, schools and infrastructure but the Republicans blocked him in Congress. Who was right according to the text? Why?

9.       At the moment America has a Democrat government but a Republican Congress. Do you think the top 1% is satisfied with the status quo? Why or why not?

10.   There are two major reasons for the growing inequality in America:……………………….and ………………………………………………The first / the second is by far the most important reason.

11.   Which sentence best summarizes the paragraph beginning “But one big part…”

12.   What disastrous move has the Supreme Court recently made?

13.   Why does the writer say “It should not make jaws drop that a tax bill cannot emerge from Congress unless big tax cuts are put in place.” Use your own words.

14.   Read the details of how inequality distorts society and state clearly how this state of affairs can best be summarized.

15.   The perceived injustices in income distribution and the impossibility for the working and middle classes of attaining the American Dream are leading to ………………………………,which may in turn lead to …………………………………….as in the Middle East.

16.   Which of the following can’t be considered a cause for potential revolts in the USA  like the ones in Libya, Yemen, Bahrain, Egypt and Tunisia?

·         Vast inequalities in income distribution

·         Endemic fraudulency

·         An oppressive regime

·         Attempts to obstruct reforms

·         The close link between wealth and power

·         All of the above

·         None of the above

17.   Read the last section of the text where the views of Alexis de Tocqueville’s views are described. The writer’s purpose here is:

·         To enlighten

·         To praise

·         To applaud

·         To warn

·         All of the above

·         None of the above

18.   The digital copy of the text is divided into 5 sections but there are no subtitles. Match the following subtitles with the sections:

·         Self interest “properly” understood

·         The lay of the land

·         Size is not everything

·         The revolt of the masses

·         We look out for our own

WRITING TASK

Use the information you gleaned from the text to write an essay in which you discuss the causes and effects of income inequality in the USA. In your conclusion suggest solutions.

OF THE 1%, BY THE 1%, FOR THE 1% KEY AND TEACHER’S NOTES

This brilliant text is by far the best analysis of income inequality I have read in a long time and as such should be very informative and thought provoking. The related writing activity will not need any extra guidance.

1.       A rising tide lifts some boats and sinks others

2.       Has not been striving to improve the plight of the poor

3.       Their wealth, their incomes and the like,

4.       Those who contributed great positive innovations to our society received a pittance, those responsible for financial innovations that brought our global economy to the brink of ruin received large bonuses

5.       That it is not how the pie is divided but the size of the pie

6.       Diminishing equality of opportunity; OR, shrinking opportunity

7.       Efficiency is undermined even further

8.       Obama; a modern economy requires collective action

9.       They are satisfied; they can’t adjust the balance

10.   The ordinary demands of supply and demand; the top 1% want it that way; the second

11.   Much of today’s inequality is due to manipulation of the financial system enabled by changes in the rules that have been bought and paid for by the financial industry itself.

12.   It has enshrined the right of corporations to by government by removing limitations on campaign spending.

13.   Because the richest 1% also hold office in the Congress or something similar.

14.   Trickle down behaviorism

15.   Alienation; conflagrations

16.    3

17.   4

18.   The correct order is as follows:

·         The lay of the land

·         Size is not everything

·         We look out for our own

·         The revolt of the masses

·         Self interest “properly” understood