The story is captured in this snippet borrowed from a larger infographic from the New York Times. The middle class is under historic assault in the US, explains Robert Reich, and this bodes badly for democracy, not just here, but all over the world.
Here’s the money quote:
Look back over the last hundred years and you’ll see the pattern. During periods when the very rich took home a much smaller proportion of total income — as in the Great Prosperity between 1947 and 1977 — the nation as a whole grew faster and median wages surged. We created a virtuous cycle in which an ever growing middle class had the ability to consume more goods and services, which created more and better jobs, thereby stoking demand. The rising tide did in fact lift all boats.
During periods when the very rich took home a larger proportion — as between 1918 and 1933, and in the Great Regression from 1981 to the present day — growth slowed, median wages stagnated and we suffered giant downturns. It’s no mere coincidence that over the last century the top earners’ share of the nation’s total income peaked in 1928 and 2007 — the two years just preceding the biggest downturns.
We’re losing our competitiveness, as well as our ability to lead.
There’s a growing sense in the business community that we must find a way to work together again. To do this, we have to reject political terrorism - the political brinksmanship which prevents us from finding common ground or even beginning to look for honest solutions. Howard Schultz, the CEO of Starbucks, recently created a stir when he suggested that it was time to halt all political donations. Warren Buffett did the same with his no-nonsense plea to raise his taxes.
Welcome to the third world, America! Looks like we’re headed on the fast-track back to serfdom. Brought to you in large part by the GOP and corporate Democrats.