The great former Secretary of Labor under President Bill Clinton, Robert Reich, explains why are our economy is not going anywhere.
1. Since 1980 GDP has doubled but wages have been flat. (See graph one and graph two.)
It took me a couple of hours to figure out how to graph median income. I don’t know why it was so hard. Anyway, here it is. What do you see?
2. Almost all of the gains have gone to the super rich.
3. The power of the wealthy has driven the top marginal tax rate down since 1979.
4. Our total tax receipts are 14.9% of our GDP. The last time that our receipts were this low was 1943!
5. Consumer spending equals 60% of our GDP. In order to get our economy going we have to get the middle class feeling like they can spend money again.