Home > Uncategorized > USA income growth for the 1% vs the 90% 1917 to 2012

USA income growth for the 1% vs the 90% 1917 to 2012

  1. Jeff
    February 14, 2019 at 3:35 am

    The gold standard ended… Or… Maybe we all learned that Unions were bad in the 1970s.

  2. Stefanos Skiadas
    February 17, 2019 at 4:08 pm

    This is a great example of how a simple annotation carries so much ideological weight.

    Are we to believe from this graph+annotation that there is a causal relationship between ending of the US gold standard and tapering off of the 90% income growth?

  3. Scott Baker
    February 18, 2019 at 9:03 am

    There’s actually 10-year gap between getting off the gold standard when income stagnated for the bottom 90% – assuming, I think, that the chart is adjust for inflation – and when income (including capital gains) started Skyrocketing for the top 1%. The latter is directly attributal to Reagan and his slashing taxes on the wealthy, and shows most clearly why Reagan is revered by that class as a God.
    The Gold standard had nothing to do with that.

  4. February 19, 2019 at 10:18 am

    Nixon also instituted a wage/price freeze and was in the middle of an oil price shock on the same weekend as abandoning the gold standard. The “stagflation of the 70’s was used by Reaganites to batter the quasi-Keynesianism of the earlier period. Note the 90-99 percentiles not shown in this chart did fairly well during the 70’s. If this is after-tax income, it also demonstrates the effects of payroll taxes imposed by Reagan.

  5. February 20, 2019 at 1:26 am

    Let’s not forget Warren Buffett’s candid admission that his class, the hyper-rich class waged the best financial warfare (against the rest of us) that their national-debt-money could buy, and “won it.” Any notional conjectures & preposterous hypotheses to the contrary are no better than puppycock [sic]. Buffett was clearly the most successful US investor & plutonomist for nearly 50 years. The only plutonomists I can think of with a record superior to Buffett’s are the patriarchs & matriarch’s of the trillionaire dynasties. Please, correct me if I’m wrong about any of that. Thanks.

  6. February 20, 2019 at 1:49 am

    BTW, if you look closely, and remember the Great Upward Mobility of the US middle-class, you will see it in the line rising from 1941 to ’73 or so. The decline was cased as much by the changing potentials, luck and attitudes of each successive generation of baby-boomers who were increasingly less able to achieve the SOL & QOL of their parents, because the buying of their dollars actually declined in approximately inverse proportion to the rising line in the graph. Another thing that hides the realities is that the attitudes and tax rates of ever more business owners were progressively inverted until Reaganomics & Voodoo Economics. I know, my parents were prime examples of the early proto-yuppie entrepreneurs that helped drive the upward trend from the mid-50s to the mid-70s. As professor emeritus Robert Reich points out correctly, they didn’t mind the high tax rate invested in making America truly great, with great infrastructure, evolutionary culture, and seemingly great opportunities for their children. That last great hope was illusory, doomed by the rising tide of sociopathic greed and the gradual coup engineered by the kleptocrats and their hyper-rich puppet-masters. Remember?

  7. Ken Zimmerman
    February 25, 2019 at 12:50 pm

    All the events and actions mentioned are merely results from a cultural shift that had been started in the 1950s. This shift can be seen in the literature, art, science, and even recreational trends beginning during the 1950s. Credit for the past and future success of the USA was gradually shifted from the “working man” to the middle-class (1960s) and by the 1990s wholly to wealthy individuals and the corporate elite. This was a change in legitimacy first and foremost. Only afterwards did it have significant economic impacts that we see today.

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