Reaganomics killed America’s middle class

[kpete]

Reaganomics killed America’s middle class
This country's fate was sealed when our government slashed taxes on the rich back in 1980
THOM HARTMANN, ALTERNET


......................

If you compare a chart showing the historical top income tax rate over the course of the twentieth century with a chart of income inequality in the United States over roughly the same time period, you’ll see that the period with the highest taxes on the rich – the period between the Roosevelt and Reagan administrations – was also the period with the lowest levels of economic inequality.

You’ll also notice that since marginal tax rates started to plummet during the Reagan years, income inequality has skyrocketed.

Even more striking, during those same 33 years since Reagan took office and started cutting taxes on the rich, income levels for the top 1 percent have ballooned while income levels for everyone else have stayed pretty much flat.






http://www.relandothompkins.com/wp-content/uploads/2013/03/Wealth+Distribution.jpg

Coincidence? I think not.



MORE:
http://lategreatmiddleclass.blogspot.com/2014/04/the-end-result-of-unfettered-free.html
http://www.salon.com/2014/04/19/reaganomics_killed_americas_middle_class_partner/
http://www.princeton.edu/~mgilens/Gilens%20homepage%20materials/Gilens%20and%20Page/Gilens%20and%20Page%202014-Testing%20Theories%203-7-14.pdf

[Demo_Chris]

1. Actually, I blame free trade. nt

[TBF]

2. I blame capitalism itself as well -

but it is worth noting that for approximately 50 years give or take (roughly late 30s to early 80s) this country did contain capitalism somewhat with high taxes and regulations. It's the only way it has a prayer of working.

As soon as Reagan pulled the plug by cutting the capital gains tax substantially the die was cast.

[Loudly]

6. To that point, the death of Mao in 1976.

[bvar22]

29. I agree.

The de-regulation of International Trade, and to a certain extent Interstate Trade (Big Boxes),
was the knife that cut the heart out of America's Working Class.
MFN (Most Favored Nation Trade Status) with China was a devastating mistake.


I will NEVER forget Bill Clinton telling our Working Class,
[font size=3]"The American Worker CAN compete with any Worker in the World"[/font]
...and we can...just as soon as we get as hungry, miserable, and desperate as the Workers in the 3rd World.
We are almost there.

[Demo_Chris]

30. Correct. Bill left put the critical part...

The contest is not between workers over who can work the hardest or smartest (and it escapes me how anyone would think subjecting American workers to this life and death struggle is a good thing) but between owners over who can spend the least. In any case, I seriously get tired of the empty talking points from both sides. The 'I blame Reagan and Reaganomics' nonsense is for Dittoheads and parrots. Every administration in HISTORY, both before Reagan and after, has had to make a decision about how much or little tax and regulation the government would and should do, and what programs government does well and which it does poorly. Reagan argued that the government of his day was a nit much, and that reducing taxes and simplifying the tax code would provide some stimulative effect. This isn't even all that interesting, and in fact he later decided that they had gone too far and taxes were increased..

That's some Armageddon level depravity there. It's amazing the world didn't end that day. Fortunately for all of us, we muddled through somehow, with each successive administration reconsidering the same questions (many times a year) and deciding how to move forward from there. But all of them--

ALL of them, Democrat and Republican alike--

Bound by the Titanium shackles of Reagan's preternatural and diabolical will. Or something.

[pampango]

35. Then Europe would be a cesspool of inequality. It is not.

The US also had terrible inequality in the 1920's when taxes were low and tariffs were high. There was little trade and the middle class suffered. The common factor then and now - low taxes on the rich.

[silvershadow]

39. NAFTA, CAFTA, and everything AFTA. Trade policies completely disconnected from reality

have doomed us to this fate. (Among other factors). But it's all connected to the rich, the powerful and the well-connected. Always looking for another buck. We need a real economic policy "reset" imho. (Probably won't happen).

[Octafish]

3. It was Reaganomics. Greatest wealth in human history and it's now offshore.

"Trickle Down" economics was a "Trojan Horse" -- David Stockman

EXCERPT...

In the 1980’s Ronald Reagan ushered in a new era in American economics as he cut the top tax bracket from 70% down to 50% and then down again to 28%. In order to get support for doing this from the people, and also from politicians, a very crafty set of lies were produced. As David Stockman, then Reagan’s budget director, put it: giving small tax cuts across the board to all brackets was simply a “Trojan Horse” that was used to get approval for the huge top tax bracket cuts. “Trickle-Down” was a term used by Republicans that meant giving tax cuts to the rich. Stockman explains that:
"It's kind of hard to sell 'trickle down,' so the supply-side formula was the only way to get a tax policy that was really 'trickle down.' Supply-side is 'trickle-down' theory."

"Yes, Stockman conceded, when one stripped away the new rhetoric emphasizing across-the-board cuts, the supply-side theory was really new clothes for the unpopular doctrine of the old Republican orthodoxy."

"…the Reagan coalition prevailed again in the House and Congress passed the tax-cut legislation with a final frenzy of trading and bargaining. Again, Stockman was not exhilarated by the victory. On the contrary, it seemed to leave a bad taste in his mouth, as though the democratic process had finally succeeded in shocking him by its intensity and its greed. Once again, Stockman participated in the trading -- special tax concessions for oil -- lease holders and real-estate tax shelters, and generous loopholes that virtually eliminated the corporate income tax. Stockman sat in the room and saw it happen."

"'Do you realize the greed that came to the forefront?' Stockman asked with wonder. 'The hogs were really feeding. The greed level, the level of opportunism, just got out of control.'"

CONTINUED...

http://rationalrevolution.net/war/trickle_down.htm

Now, thanks to NSA and a few people with integrity, we've got a pretty good idea where the money is. Let's tax it.

On My Mind

Tax Offshore Wealth Sitting In First World Banks

James S. Henry
07.01.10, 09:00 AM EDT
Forbes Magazine dated July 19, 2010

Let's tax offshore private wealth.

How can we get the world's wealthiest scoundrels--arms dealers, dictators, drug barons, tax evaders--to help us pay for the soaring costs of deficits, disaster relief, climate change and development? Simple: Levy a modest withholding tax on untaxed private offshore loot.

Many aboveground economies around the world are struggling, but the economic underground is booming. By my estimate, there is $15 trillion to $20 trillion in private wealth sitting offshore in bank accounts, brokerage accounts and hedge fund portfolios, completely untaxed.

SNIP...

This wealth is concentrated. Nearly half of it is owned by 91,000 people--0.001% of the world's population. Ninety-five percent is owned by the planet's wealthiest 10 million people.

SNIP...

Is it feasible? Yes. The majority of offshore wealth is managed by 50 banks. As of September 2009 these banks accounted for $10.8 trillion of offshore assets--72% of the industry's total. The busiest 10 of them manage 40%.

CONTINUED....

http://www.forbes.com/forbes/2010/0719/opinions-taxation-tax-havens-banking-on-my-mind.html

Either that, or bring out the tumbrils.

[JHB]

34. To visualize tha...

Inflation:adjusted income tax brackets, 1942-2013



Close-up of selected years:



Number of brackets affecting ranges of income above the equivalent of $250K and $500K in 2012 dollars:

[99Forever]

4. Ronnie Rayguns makes me wish there were an afterlife...

... where he's burning in Hell for all eternity.

[2naSalit]

5. And no thanks to "Uncle Milty" nt

[L0oniX]

7. How Reagan and those that voted for him killed the 99%.

[Itchinjim]

8. As I've been saying since 1980:

Fuck Reagan.

[malthaussen]

9. Only since 1980?

I was saying it when he was governor of California. And I live in Pennsylvania.

-- Mal

[Itchinjim]

11. I was young and didn't know much about him.

But I learned fast.

[Maineman]

10. The election of Reagan was the most distressing during my lifetime -- I am 70.

Reagan, George W + Cheney, and the current corporate controlled supreme court have done more damage to this country than anything or anyone I know of.

[kpete]

15. Maineman

I am 62
you speak for me too

peace, kp

[Stainless]

19. Reagan was an "Affable Oaf"

I was absolutely disgusted when he was elected and I whole heartedly agree with the OP. I wish there was a hell so Ronald W. Reagan could burn in it for eternity.

[zeemike]

20. I also am 70

And I completely agree...they have trashed this country.

[cantbeserious]

41. Totally Agree

eom

[truebluegreen]

12. Yup. And on purpose:

can't have the blacks and wimmins and students and hippies and environmentalists gettin' uppity...gotta keep 'em busy and besieged and in their place.

[ErikJ]

13. Low top tax rate inspires them to do everything else

Low top tax rate inspires them to be greedier and more willing to do anything it takes to get more billions $ including screwing over the rest of Americans.

[Sherman A1]

14. Precisely

it was indeed Reagan and the alarm bell was the PATCO strike, when he fired the Air Traffic Controllers.

[brooklynboy49]

28. I vividly remember his firing of the air traffic controllers

And thinking, "This guy's an even bigger pig than I gave him credit for."

Is it no wonder that the pigs of today, the Cantors and the Ryans, worship at the altar of St. Ronald of Reagan?

We've been under siege since 1980. Good ole Billy didn't do much to reverse the direction of the country and, sadly, neither has our current president.

This country needs a president who is as radically left as Reagan was radically right. Personally, I would love to see a Sanders/Warren administration. But there ain't a snowball's chance in hell of that happening. Warren, however, does have a legitimate shot. Let's get behind her and stop crappin' around with "bipartisanship". This is war. We need a general to take it to the enemy, not a "statesman".

[zentrum]

16. He was the anti-FDR

I remember Tom Wolf saying, in retrospect, something like. "We, (the rich, the glitterati) all knew that when Reagan was elected it was going to be a huge party for us".

"Why?" asked his interviewer.

"Oh, the new tax rates---we didn't have to pay them any more."

Nan and Ron knew just what they were doing and the effect it would have for their friends----the oil guys who put Ronnie in office.

Used the new "Moral Majority" as a "virtuous" cover.

[kpete]

21. The "anti-FDR"

perfect descriptive title

thanks zentrum
and peace to you and yours,
kp

[zentrum]

47. Thanks for your many posts kpete n/t!

Last edited Wed Apr 23, 2014, 03:44 PM - Edit history (1)

[snot]

17. It's a lot of policies; but

de-funding public education and other public programs that helped the poor and middle class meant – surprise! – that we've been getting less help; things have been harder for us in various ways.

[SunSeeker]

18. Those charts do an excellent job tracking Reaganomics' damage.

I just wish people would get off their ass and vote the GOP out of office. GOTV 2014!

[yurbud]

22. That should have been in Obama's inaugural address

"Reagan and president's after him gave a free ride to the rich, but now it's time to say to those Americans, 'Ask not what your country can do for you, but what you can do for your country.' And actually, you don't even have to ask, I'm going to tell you, you coddled, inbred, morally degenerate trust fund babies. First, you will no longer be able to deduct cocaine and whores as a business expense on your taxes. Next..."

[HelenWheels]

23. Reagan was the start of the war on the middle class

He also was responsible for the start of the downfall of Unions. Nasty, nasty man and he did it all with a Hollywood smile on his face.

[bkanderson76]

24. Kind of a no-brainer

What else would ya expect when the man was nothing less than a bumbling Hollywood actor whose only highlighted achievement listed on his resume was his lead role in "Bedtime With Bonzo"?.....With his supporting actor played by a chimp.
Reagan sucked in Hollywood
Reagan sucked in politics
Reaganomics did kill the middle class and I'm thinkin that if Bonzo was smart enough to hand Ronnie the banana, then he was probably smart enough not to have voted for that clown.........a tad more smarter than the 44 million who did....idiots

[ErikJ]

25. Ryan Plan is Reagan on steroids

[jmowreader]

26. Big problem here

The Kemp-Roth Tax Cut was signed in August 1981. The president in 1980 would never have done such a thing.

[BillZBubb]

27. America's middle class killed America's middle class.

They voted for Reagan and his party. They overwhelmingly supported him and his policies. And they would still if he were around today.

Reagan was an evil man, no doubt. But, people who should have known better enthusiastically cheered on their own demise for a few cents a day in tax cuts.

Blaming Reagan lets the people who backed him off the hook. Without them, he could have done nothing.

[Initech]

32. It's Stockholm syndrome.

Last edited Mon Apr 21, 2014, 12:39 AM - Edit history (1)

Reagan and his cronies held America captive during his two terms. While that happened most Americans fell in love with him, despite his dangerous policies and allowed treason against the United States government to happen on his watch.

[Skittles]

40. can you say lots or most or whatever?

I never fell for that evil bastard's sorry act

[noiretextatique]

38. let's give an especial shout out to "reagan democrats"

who voted against their best interests, and their party, and the country. ironically, some of these folks dare to chastise people who voted for nader.

[deutsey]

43. I know average working people who still revere the bastard

People who weren't even born (or were infants) during his regime.

So he doesn't even have to be around anymore for people to support him.

[Initech]

31. Reagan should be vilified as public enemy number one.

Instead he's practically canonized by republicans as some kind if saint who got Americans started on this downward spiral of people voting against their best interests. A sad case of Stockholm syndrome if you ask me.

[moondust]

33. King of the Pigs

[indepat]

36. Speaks to the reason the gipper is sanctified by the far right

[WillyT]

37. Yep... K & R !!!

[Doctor_J]

42. True, and every president since, regardless of party, has continued it

So while blaming Reaganomics is acute, blaming Reagan is at this point missing the big picture.

[seabeckind]

44. Not just reaganomics and the shift of tax burden

but the entire agenda.

EOs that gutted regulatory agencies

EOs that gutted the anti-trust oversight

Busting the unions that were the block for outsourcing

Lack of enforcement of labor issues

Environmental issues

Privatization of gov't functions

Sale of public utilities, primarily energy that funnelled tax money into private coffers

Etc

Whole bunch of reasons why we should dig him up and rebury him face down.

[spixxen]

45. Wow....

never saw the effect that NAFTA has had represented better than in the second picture.

[The Magistrate]

48. And They Voted For It, Too, Ma'am --- Twice