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This contradiction is not easily explained by the dominant neoclassical economic discourse of our time. Nor is it resolved by neoconservative social policy. More helpful is the one book under review: James K. Galbraith's Created Unequal, a Keynesian analysis of increasing wage inequality.
James K. Galbraith provides a multicausal analysis that blames the current free market monetary policy for the increasing wage inequality. He calls for a rebellion in economic analysis and policy and for a reapplication of Keynesian macroeconomics to solve the problem. In Created Unequal, Galbraith successfully debunks the conservative contention that wage inequality is necessary because the new skill-based technological innovation requires educated workers who are in short supply. For Galbraith, this is a fantasy. He also critiques their two other assertions: first, that global competition requires an increase in inequality and that the maintenance of inequality is necessary to fight inflation. He points to transfer payments that are mediated by the state: payment to the poor in the form. of welfare is minor relative to payment to the elderly in the form. of social security or to the rich in the form. of interest on public and private debt.
Galbraith minimizes the social indicators of race, gender, and class and tells us that these are not important in understanding wage inequality. What is important is Keynesian macroeconomics. To make this point, he introduces a sectoral analysis of the economy.. Here knowledge is dominant (the K-sector) and the producers of consumption goods (the C-sector) are in decline. The third sector is large and low paid (the S-sector). The K-sector controls the new technologies and wields monopoly power. Both wages and profit decline in the other two sectors. As a result of monopoly, power inequality increases.
The author accuses President Clinton of ______.

A. being too optimistic about the economic prosperity
B. lying about the economic situation to the public
C. increasing the number of people on welfare
D. being reluctant to raise the salary of the average people

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The author seems to believe that outsourcing ______.

A. is the chief reason for the high unemployment rate in the U.S.
B. is nothing compared with the job loss within the U.S.
C. is profoundly changing the structure of the American economy
D. equals the number of jobs created each month in the U.S.

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According to the passage, Averroes held that ______.

A. Islamic theology was often subordinate to philosophy
B. religious truth was nothing but imaginative fantasy
C. real truth was inaccessible to many common people
D. imperfect expressions were result of flawed religion

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The author's purpose of writing this passage is to ______.

A. urge the governments to take effective measures
B. illustrate the urgent demand of clean energy
C. encourage developed nations to set up an example in the energy revolution
D. elaborate the difficulties in the use of clean energy

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It can be inferred from Paragraph 2 that ______.

A. the position of philosophy as a humble servant was accepted
B. religion had turned into a hamper to the functioning of philosophy
C. philosophers often quoted revelation to support themselves
D. philosophers were sometimes referred to in religious practice

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A. being too optimistic about the economic prosperity B. lying about the economic situation to the public C. increasing the number of people on welfare D. being reluctant to raise the salary of the average people

The author seems to believe that outsourcing ______.

According to the passage, Averroes held that ______.

The author's purpose of writing this passage is to ______.

It can be inferred from Paragraph 2 that ______.

A. being too optimistic about the economic prosperity
B. lying about the economic situation to the public
C. increasing the number of people on welfare
D. being reluctant to raise the salary of the average people