‘The Death of Horatio Alger’ Paul krugman

The main issue which Krugman is talking about is the issue of inequality in income distribution.  The latter is a major problem in U.S and it has created a gap between high-income and low-class income. American has changed from a democratic society to a class-ridden society where poor people remain poor despite their effort to free from poverty (Krugman, 387). Social mobility has declined and there a drastic increase of inequality in income distribution.  This issue is relevant in that it reveals the need to address the issue of income distribution between poor and wealth poor because if there are no solution, then there will be “a class of rentiers in the U.S” (Krugman, 387). The latter means that untalented children from wealth families will acess a great share of the assets while talented children from poor families will not have the opportunity to access American wealth. Inequality has spoiled the community and has led to social division which has contributed to social cohesion in the community. To address this issue, the author should consider the Piketty’s idea on wealth tax or progressive taxation. This means that upper income taxpayers should pay high income tax and this technique will lower the income, benefit the middle class, increase tax revenue and expand economic growth (Piketty, Thomas & Goldhammer, 492).

Globalization: The Super-Story

Friedman introduces the problems with globalization in world today. The author compares the state of globalization before the Cold war and globalization in world today. Before the cold war, nations were divided and were independent. In contrast, globalization in modern world is integrated and nations are connected with internet. There was a balance of power from two superpowers before the Cold war but in modern world there is “super-empowered individuals” (Friedman, 391).  The latter is the major factor which brings problems to the globalization. The super-empowered individuals have the dominance and shows bias in distribution of wealth. The problem with modern globalization is that it does not benefit all people and has changed the political economy. It has affected intellectual property, health, civil society and more. To address this issue, the author might consider the establishment of global programs as they are effective in implementing global collective action (Friedman, 391).

Both essays have similar values in addressing wealth inequality. Krugman focus on issue of inequality in wealth distribution which is socially constructed.  Friedman asserts that globalization’s position in modern world differs from that of Cold war periods. Both authors assert that American is controlled by super-empowered individuals and they have used their power to change America. From the essays, the theme of capitalism is apparent. This is a new social system which creates a class division, a profit motive and social inequality. 

 

 

 

 

 

 

 

 

 

 

 

 

Work cited

Krugman Paul. The Death of Horatio Alger. P. 387

 Friedman T.L. Globalization: The Super-Story. P. 391

 

Piketty, Thomas & Goldhammer. A. Capital in the Twenty-First Century. , 2014. Print.

 

Lele, U. J., Gerrard, C. D., & Banque mondiale. Addressing the challenges of globalization: An

independent evaluation of the World Bank's approach to global programs. Washington, D.C:

World Bank., 2004 print