Here’s how we tackle wealth inequality.

[00:00:00]If you listen to AOC or Bernie Sanders in the US or Avi Lewis in Canada, you'll know that wealth inequality is the highest it's ever been.

[00:00:12]The rich keep getting richer while everyone else struggles to pay the bills.

[00:00:18]I wrote an article about this on my Substack. The link is in my bio.

[00:00:23]Most people think that unions are good for workers and good for the country.

[00:00:29]60% of Americans say the decline in union membership has been bad for the country.

[00:00:36]And yet membership keeps falling.

[00:00:40]It's a strange contradiction that we have record-high public approval for unions but near record-low membership.

[00:00:49]The reason this matters is that unions do not just redistribute a pie that has already been baked.

[00:00:56]They change how the pie is divided in the first place.

[00:01:00]When unions are strong, they ensure that worker compensation keeps pace with productivity.

[00:01:07]When unions are weak, that link breaks.

[00:01:11]The share of national income going to wages falls while the share going to profits climbs.

[00:01:18]Beyond their own members, unions set a standard that forces even non-union employees to raise wages to compete.

[00:01:27]This was the floor that once lifted the living standards across entire industries before it was allowed to crumble.

[00:01:36]We've reached a point where the divide between those who earn wages and those who grow wealth from assets is wider than ever.

[00:01:46]Tax policy is only one way to address this.

[00:01:50]If we only look at taxes, we are just arguing about how to slice a pie that was already cut in a way that favors capital over labor.

[00:02:01]To really close the gap, we have to go back to the bargaining table and restore the power of collective action. If you think the current state of inequality is inevitable, you might want to take another look at the past where the rules of the game were different and workers actually shared in the gains of a growing economy.

[00:02:23]If you're interested in this topic, you should check out Gary Stevenson.

[00:02:28]He's got a TikTok channel called Gary's Economics. Click the link in my bio to join our growing Substack community.

[00:02:37]We are welcoming new members to our tribe.