Income Inequality: The Shrinking of the American Dream

The video discusses the decline in inflation-adjusted median household income over the past decades, highlighting the impact of the Great Recession and the need for productivity growth. It explores historical and institutional changes, such as the decline in labor unions and minimum wage value, which have shifted income away from labor. Solutions proposed include business tax reform, trade expansion, and investments in research and infrastructure to boost economic growth and reduce inequality.

What was the economic trend from 2001 to 2007 despite decent GDP growth?

• Increase in median household income

• Stagnation of GDP

• Decline in median household income

• Rise in unemployment

Which major event compounded the economic challenges discussed in the first section?

• The Great Recession

• The Dot-com Bubble

• The Housing Boom

• The Oil Crisis

What societal change has contributed to the shift in income distribution?

• Increase in labor unions

• Rise in minimum wage

• Decrease in corporate profits

• Decline in labor unions

Which of the following is NOT mentioned as a solution to economic challenges?

• Business tax reform

• Increasing corporate taxes

• Expanding trade

• Investing in infrastructure

What is emphasized as crucial for addressing economic challenges in the final section?

• Increasing interest rates

• Reducing government spending

• Cutting social programs

• Investing in research and infrastructure