fformer Minister of Labor Robert Reich believes The greatest economic history of our time is not about supply and demand; rather, it is about institutions and politics. “It’s about power,” he said in late December 2022.

What happened: in one Video, Reich highlighted the fact that the average annual earnings for full-time employees and employees in 1979 in today’s dollars was $43,680. “The median income in 2018 was $45,708. If America’s economy nearly tripled between 1979 and 2018, where have the profits gone? Most went upstairs,” he said.

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Reich explained that, on conventional wisdom, the only realistic way to increase the wages of most Americans is to provide them with more and better education and job training to make them more competitive.

However, he argued that while conventional history is not entirely wrong, it omits some of the biggest and most important changes and therefore overlooks the most important solutions.

“To understand what really happened, it is important to understand that there is no such thing as a ‘free market’ in nature. The term “free market” suggests that the results are objectively fair and that any “interference” with the free market is somehow “unnatural”. But in reality, markets cannot exist unless humans construct them. Markets depend on rules, and rules come from legislators, law enforcement agencies, and courts. The biggest political change in the last four decades is the overwhelming dominance of big money in politics – and influencing how those rules should be.” declared rich.

Counterpower: Reich quoted the great economic thinker John Kenneth Galbraith which had raised the question: why does capitalism work so well for so many?

“His answer was as surprising as it was obvious: American capitalism contained hidden pools of what he called ‘counterforces’ that offset the power of big business, Wall Street, and the wealthy: workers…