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Ideas promoted by Robert Reich in the aftershock
The book 'the next economy and America’s future' by Robert Reich is about the disparity in income levels in the Americans economy. The author is concerned about the increasing gap between the filthy rich Americans and the middle-class citizens who are the majority with the capacity to promote economic growth in the American economy. In his works, Reich expresses his sentiment over wealth concentration of the bigger part of the economy in a few hands. He argues that the disparity is the sole reason as to why the American economy is experiencing a recession and not the 1980 crisis. Statistics show that the period between 1930 and 1990 the total income was more distributed equally between the different classes of people. By then the top one percent richest people own below nineteen percent of the overall economy income. Since then the gap between the rich has continued to widen with the top one percent owning more than 23% of the total revenue. The great depression experienced between 1913 and 1928 saw a drastic increase in private credit and clash of the Dow Jones stock index. With time, the American experienced significant recession up to the period between 1947 and late 1970s when rage flattened. At that time for many Americans to survive they drew down savings, more women joined the workforce, and many people worked for long hours.
Repair the broken bargain
Robert Reich, therefore, recommends rectification of the broken basic bargain as his first idea. He suggests progressive tax rate to boost the bargaining power of the middle-class workers. The middle class is the frequent spender, and hence they act as the main engine of growth that drives economic growth. Adoption of this tax system would imply that the top earners are taxed more to supplement low-class income earners who are taxed less. This would, in the long run, improve the buying power of low-income earners who will then be able to spend and invest in the economy growth. Reich lays the burden to the government to sustain a just balance between the fiscal restraints and the public needs. No single country can survive on exports alone. For an economy to be able to export it has to be able to consume its production.
Mass economic machinery production consequently implies mass consumption and hence fair wealth distribution. He states that the American economy has no capacity to absorb what it is capable of producing what has in turn resulted in broken basic bargain. To support his recommended ideas, the author evokes an example of Henry Ford a man who has exclusive knowledge of the basic bargain. Ford raised his workers income by $5 per hour in a working day of eight hours. This was thrice the pay of other workers in other industries. As a result, he garnered a massive increase in his profits from $25M to $57M. The growth in profit was accounted for by increased consumption of his production by the workers. Ford is a perfect example of what is needed for the America economy. Reich examination of the economy complexities is succinct and at the same time rich in information. His argument on basic bargain is on point and well based on reasonable facts that are paramount to any economic growth. However, some people may argue that progressive tax system is unfair but according to the words of the great economist Wendell Holmes, tax is the price a civilized society has to pay. Application of this modest proposal would have a significant influence on the economic sector as well as the political arena.
Assurance of wage insurance and re-employment system
Economy thrive dependents upon the active manpower to run the diverse sector of the economy. Concentration of large sums of national income in a few hands is risk of economic backlash. Middle class are the majority, and unemployment would strategies on how to confront the government to offer job opportunities. The author in this book addresses the issue of use of machinery in the place of the manual manpower. Reich recommends an employment system that addresses not only the issue of financial support but also extra services such as re-training. For this to be, practical strict policies have to be designed to ensure consistent job creation and stop wage flattening or transfer of employment opportunities to low-wage countries. Movement of job to low-wage countries is a threat to the currently employed Americans who are forced to accept low wages in fear of losing their jobs. This will eventually result in rooting of an ethic of frugality that would lead to an unstable governing system. Reich also advocates wage insurance. He recommends that the salary insurance maintain a person’s job income at 90% of his original pay even after the loss or shift of position temporarily. This will have the worker an ample time to adapt and secure another job opportunity or device new way of getting income.
Redistribution as a prerequisite to growth

Reich acknowledges that he could have based his argument to fortify the issue of redistribution on morality. It pains him that one percent of the wealthy Americans holds close to a quarter of the total economy’s income. He cheerfully denounces the egocentric nature of the rich to hip a large amount of savings in the banks when the middle-class citizen has exhausted mechanisms of survival. He argues that according to psychology and economic studies, people low-class people find it hard to spend when their wealthy count counterparts are copiously spending.
The American families have been forced to turn to DINS (double income no sex) lifestyle since they have to work for extra hours for their family’s upkeep. Belt tightening has been a way of life, and the author warns this may at the long last prompt a political convulsion. One of the tangible threats he addresses is an economic downturn; he insists that unless the majority middle workers get their fair share they will have always to operate on debts. The level of debts will soon be intolerable and consequently the second threat will take its course, that is, political destabilization. To ensure redistribution, he proposes the imposition of higher marginal rate on the wealthy, treatment of capital gains as any other income and wage supplement. If these proposals are performed, the majority middle class will spend more and eventually gear the economic growth to full capacity.
Robustness in the conundrum of government deals
The American political system has been a corrupt organization that is a project of the rich. The wealth people are influential and hence have the capacity to manipulate the government to satisfy their interests. For instance, the author refers to the pending partnership as distorted since it is supposed to protect the interest of the American s workers and not some particular corporations. To address this issue, he proposes a reduction in the dominance of the wealthy in the American political arena. Otherwise, the puzzle in the government activity will result in the fall of democracy. This is possible since persistence of the wealthy in running the government will lead to autocracy. The ordinary citizenry will be oppressed in the big businesses firms of the rich who hardly pay taxes and yet pay minimal wage to its employees. The American citizens have now one option left to manage this problem before it goes beyond control. The only way is to elect a government that has the interest of the people at heart. The government should be able to bring an end the unwarranted intellectual protection and stringent restrictions on giant companies with undue market power. Additionally the incoming government should define a comprehensive way in which it will raise extra funds to finance projects such proper infrastructure and education system. Demand for higher tax from the long established multimillionaire and billionaires are a significant financing possibility that should be taken into consideration. Failure to address the interest of the 90% majority Americans will lead to a rotten governance and economic depression. The purchasing power o the multitude charged with the responsibility of ensuring economic growth will remain stagnant while the few filthy rich will continue accumulating vast sums of cash in the banks. Reich, therefore, has a high point of view which although may not be practical since it involves action of the stubborn government, it has a bright future for America and its people.

References
Reich, Robert B. Aftershock: The Next Economy and America's Future. New York: Alfred A. Knopf, 2010. Print.
Etzioni, Amitai, and Paul Jargowsky. "High Tech, Basic Industry, and the Future of the American Economy." Human Resource Management. 23.3 (1984): 229-240. Print.
Reich, Robert, and Roy Eisenhardt. Interview with Robert Reich, May 03, 2012. San Francisco: City Arts & Lectures, Inc, 2012. Internet resource.