Friday, October 7, 2011

Why the Rich Get Richer


Hacker and Pierson refreshingly break free from the conceit that skyrocketing inequality is a natural consequence of market forces and argue instead that it is the result of public policies that have concentrated and amplified the effects of the economic transformation and directed its gains exclusively toward the wealthy. Since the late 1970s, a number of important policy changes have tilted the economic playing field toward the rich. Congress has cut tax rates on high incomes repeatedly and has relaxed the tax treatment of capital gains and other investment income, resulting in windfall profits for the wealthiest Americans. 

From Foreign Affairs

10 comments:

  1. Interesting review. And yet the Republicans want you to believe that it is individual initiative that makes these people rich. Government (or public policy) has nothing to do with it.

    Herman Cain said the other day if you don't have a job and you aren't rich, the only one you should blame is yourself. Sounds like he might have a nice role as VP coming his way, particularly since his other argument is that black people have been brainwashed into voting for Democrats.

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  2. http://www.c-spanvideo.org/program/301858-3

    Excellent speech by Robert Reich on this subject. It runs for 54 minutes and reveals much truth.

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  3. I don't imagine we will see a Wall St. Spring, but it is good to see so many protesting Wall St.

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  4. I got a good laugh reading about the Republican "economic debate." Leave it to Bachmann to provide the zinger,

    "I think if you look at the problem with the economic meltdown, you can trace it right back to the federal government."

    http://news.yahoo.com/republicans-blame-government-economic-mess-013426616.html

    That's right honey. You can thank your fellow Repugs, Gramm, Leach and Biley, along with all the dumbasses who voted for this Act, which Big Bill signed onto in 1999,

    http://banking.senate.gov/conf/

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  5. I'm not sure who was dumber -- Bachmann or me for actually watching the entire thing.

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  6. Sadly, it seems we have all been dumbed down during this political process.

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  7. ... and getting dumber by the minute. Meet SimCain,

    http://news.yahoo.com/blogs/ticket/simcain-herman-cain-9-9-9-plan-resembles-202458219.html

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  8. It all seems to be a game to him in any event, although he stole the show at the last debate. The tax plan that everyone seems to like would push support of the government down on the lowest taxpayers -- I guess that's why everyone except Bachmann likes it. But even Jefferson said you should tax the rich at a higher rate.

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  9. It's nothing new. Even Jerry Brown promoted a 14% flat tax. But, of course 9-9-9 is pretty catchy. I guess the idea of a federal sales tax makes up for the shortfall in income and corporate taxes, but then everyone and his uncle will be applying for "non-profit" status. Megachurches already make out like bandits on this tax exemption, and from what I read Mel Gibson hides his assets behind his church in California.

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  10. I've been non-profit for most of my life!

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