Reich’s thesis is that some inequality is inevitable, even necessary, in a free-market system. But what makes an economy stable and prosperous is a strong, vibrant, growing middle class. In the three decades after World War II, a period that Reich calls “the great prosperity,” the G.I. Bill, the expansion of public universities and the rise of labor unions helped create the biggest, best-educated middle class in the world. Reich describes this as an example of a “virtuous circle” in which productivity grows, wages increase, workers buy more, companies hire more, tax revenues increase, government invests more, workers are better educated. On the flip side, when the middle class doesn’t share in the economic gains, it results over time in a downward vicious cycle: Wages stagnate, workers buy less, companies downsize, tax revenues decrease, government cuts programs, workers are less educated, unemployment rises, deficits grow. Since the crash that followed the deregulation of the financial markets, we have struggled to emerge from such a cycle.