Ronald ReaganPosted By David Cotterell |
Carter was only president for 5 minutes...and he only continued what was going on before.Originally Posted by James Brown
This is a more defensible position rather than the wildly exaggerated "vanished" middle class you started with. I think the data likely does show that the cost of housing, transportation, medical care and food have gone up faster than wages in the last 45 years.
There are a lot of reasons for this - inflation being a big one, with rampant consumerism thrown in.
I understand that income equality is, in your opinion, the root cause of decreased middle class spending power. Consider this however: you have not answered whether you would have preferred that Jimmy Carter win in 1980 and continue with his tax policies. You lived through the economic disaster that was Carter's presidency. This is the reason Reagan won 46 states in '80 and a historic 49 states in '84. Also, history shows that when the Democrats re-took the White House (Clinton, Obama, Biden) they did not revert to Carter's failed tax policies. Indeed, these Democrats who were in the White House for about half of the time since Reagan more or less kept the Reagan tax policies in place. Why? In my opinion they knew that reasonable tax rates on high income earners supports economic growth, even though this was obviously not a talking point for them.
The total top tax rate was >79% from 1936 to 1963 and 60% or higher from 1932 to 1981. citation
Were all those administrations, on both sides of the ball, incorrect in their tax policies? This period of time, especially from 1945 to 1980, was the era of the rise of the middle class in which we both grew up - parents one income yet able to own a home, car and put us through school.
Reagan did two tax cuts: (wiki) The first tax cut (Economic Recovery Tax Act of 1981) among other things, cut the highest personal income tax rate from 70% to 50% and the lowest from 14% to 11% and decreased the highest capital gains tax rate from 28% to 20%.[1]
The second tax cut (Tax Reform Act of 1986) among other things, cut the highest personal income tax rate from 50% to 38.5% but decreasing to 28% in the following years[2] and increased the highest capital gains tax rate from 20% to 28%.[1]
And, as you note, there the rates have stayed ever since - the exact time period when the middle class started to leak spending power.
Is the economy 'booming' - yes. Does the wealth from the boom make it to the middle class? Not much. The Uber wealthy KEEP THE MONEY.
Dave