Posted on

The opportunity to earn a good life through hard work is at risk in America: Sen. Mark Warner

Share

Senator Mark Warner

Dan Mescon | CNBC

The truth is, the opportunity to earn a good life through hard work is moving out of reach for too many Americans. As someone who has benefited greatly from our free enterprise system as an entrepreneur, I recognize that modern American capitalism just isn’t working for enough people in this country.

Over the last 50 years, globalization, automation and disruptive technologies have both destroyed and created millions of jobs. But the benefits have not been spread evenly. The result is an inequality of opportunity, with new, good-paying jobs increasingly concentrated in a handful of urban centers, available to a small, skilled workforce that does not represent the racial, geographic and socioeconomic diversity of our country.

Workers now face not only historic income inequality but great income insecurity due to the growing threat of their jobs being automated, outsourced or eliminated in the next round of corporate mergers. These problems are only made worse by companies that put short-term profits ahead of long-term growth — prioritizing mergers and acquisitions over investments in their physical and human capital.

More from Invest in You:
Millennials had been good at staying out of bad credit card debt. Not anymore
Gary Vaynerchuk: I’ve seen this side hustle generate up to $100,000 for kids in debt
Wealth manager: Here’s how to retire with $1 million in 20 years

Unfortunately, the temptation for policymakers is to treat the symptoms of inequality when what we really need is a new economic model to prepare Americans for work in the 21st century.

Let’s address the issue of income insecurity and recognize that many folks aren’t working one job for their entire career or even one job at a time. We need federal and local government to experiment with industry to develop a portable benefits system to follow workers from job to job and gig to gig.

One recent study found that by the year 2030, up to one-third of American workers will need to retrain or change jobs to keep up with disruptions due to automation and a changing economy. We need to radically change our approach to job training in this country.

We also need to think big. We need real bipartisan tax reform that rewards hard work and investments in American workers. Now, if a company buys a new robot to replace its workers, that’s an asset. If the company invests in training its workers, that’s an expense. Let’s fix that. While we’re at it, let’s replicate the success of the R&D tax credit and give companies an incentive to train low- and moderate-income workers to help them climb the economic ladder.

We need to do this if we are serious about closing a skills gap that will only get worse with automation. One recent study found that by the year 2030, up to one-third of American workers will need to retrain or change jobs to keep up with disruptions due to automation and a changing economy. We need to radically change our approach to job training in this country, from investments in community and technical colleges, to apprenticeship programs, to savings accounts that aid in lifelong learning.

The American dream might feel like it’s fading away. But it doesn’t have to be that way. Done right, we can rebalance the economic scales a little more in favor of American workers while nurturing the competitive spirit that built the U.S. economy into the dominant global force it is today.

WATCH Sen. Mark Warner today during Closing Bell at 4:45 pm ET.

Check out How a couple’s whiteboard strategy helped them pay off $18,000 in debt over two years via Grow with Acorns+CNBC.

Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.

Source:

Top News & Analysis


Author: