Sunday, October 11, 2015

Saint Reagan

I have been catching up on my Late Shows with Stephen Colbert and caught Elisabeth Warren on the show the from a week or two back. She didn't mention Ronnie, but she did have an interesting statistic. From 1935 to 1980, the US enjoyed tremendous growth and the bottom 90% of the income heap collected 90% of additional income. From 1980 to the present, the overall growth has been a good deal slower, but the top 10% has collected 100% of the additional income.

If these figures are even approximately correct, it's easy to see why Ronnie is the patron saint of the rich and the super rich. The Reagan presidency featured several things that strongly stimulated these trends: big income tax cuts, that strongly favored the very wealthy, big social security tax increases, which punished lower and middle income earners, and a relaxation of regulations that strongly favored the Wall Street predator/swindler.

These trends continued in the two Bushes, and the relaxation of regulation continued even in the Clinton Presidency, culminating in the W Bush depression of 2007-.