1. Reich’s thesis is all about fairness and taxes. Reich believes the rich have received higher percentages of earnings in the last decade and middle class have received less.

2. Big business, big wall street, and big government could become the resentment of the middle class.

3. Resentment is unstable.

4. 24 million Americans receive wage supplements. Reich is pushing for a wage supplement law. A full time worker earning $20k would receive $15k in wage supplements; $30k/$10k wage supplement, $40k/$5k wage supplement. Incomes of $50k to $90k would pay 10% of earnings, $90k to $160k would pay 20% of earnings. Wage supplement will cost $633 billion. Who is going to foot the bill? A carbon tax ($115 per ton of carbon) and higher taxes on the rich will yield $600 billion. A carbon tax would reduce company operating funds, increase unemployment, and reduce profit margins. Reich wants the middle class to have more disposable money to spend and the super rich and big business to earn less through force redistribution of wealth. The justification for imposing a carbon tax is to force companies to find cleaner and cheaper energy. Reich believes a carbon tax will boost aggregate demand.

5. Higher marginal tax rates: for incomes of more than $410k, a tax rate of 55 percent; earnings over $260k, a tax rate of 50 percent; and earnings over $160k, a tax rate of 40 percent.

6. Wage insurance guarantee sets the person up too 90% of original wages, for up to 2 years. Wage insurance speeds up laid-off workers to accept lower paying jobs. Workers will need new skills that are marketable and in demand by companies. Workers who need additional skills will receiving income support while attending school. Long-term training will reskill the worker for new jobs, in short supply. The short falls to the reemployment system will be covered by an new severance tax; a new one-time severance tax on any layoff equal to 75 percent of the full cost of the annual salary.

7. Medicare costs up to $400 billion a year. Reich believes the high health care cost result from private and for-profit insurers. Is public HC administration cheaper than private HC administration.

8. Reich wants a sizable increase in public parks, recreational facilities, and large mass transportation projects. Mass transportation includes large high speed rail systems to reduce carbon emissions.

9. The study of Spain’s economy reflects serious social and economic problems. Over 45 savings banks have seen their capital erode due to doubtful loans, repositions, and writeoffs. Spanish banks are borrowing from the ECB, to pay debt coming due. Unemployment in Spain is approaching 20%, housing prices are deflating, and debt is increasing. Unemployment in Spain has risen for all categories of workers. Technology displacement is moving jobs away from agriculture and basic industries. More women are working. Workers are required to negotiate with unions and government approval. Regulation makes the cost of dismissing workers expensive and involve legal litigation. Redundant workers are eligible for full- unemployment compensation. There is inertia in pay wages.