Money

June 2, 1997
This intriguing book has two aims: to describe how much individuals and groups in America make and to explain the reasons behind the distribution of income, earnings and wealth. Hacker's (Two Nations ) underlying concern is expressed early: less job security, weaker labor unions and the shrinking middle class exacerbate already large economic gaps. Drawing on secondary sources, he reminds us that we have the most glaring income gap between rich and poor of the industrialized countries. The rich, he stresses, get richer not from salaries but investment income. He suggests that broad-based investment institutions like mutual funds pressure corporate downsizing. Reminding us that welfare was not designed to let people live well, his study raises provocative questions: Why can't we allocate income and earnings more rationally? Why don't we recognize that money gaps lead to greater social misery than in other countries? Unfortunately, those questions range beyond the scope of Hacker's inquiry.