Robert Reich solves U.S. economy in 2 minutes
Former Secretary of Labor Robert Reich should know what’s wrong with the economy. He explains it to viewers on YouTube in less than 2:15 minutes. Here are highlights, followed by the video.
- Productivity is way up since 1980, but wages are mostly flat – for average workers, but not the top 1%.
- The super rich have used their wealth to buy political power to increase their wealth even more.
- Before 1980, the top tax rate was over 70%. Now it’s 35%, and capital gains tax is just 15%, so the top earners pay only about 17%.
- Tax revenues are down to just 15% of the total economy, the lowest in 60 years, creating huge budget deficits.
- So public services are being cut at all levels of government, including Education, Healthcare, Public Safety, and Infrastructure Maintenance.
- The middle class is being divided, as they compete for scarce jobs and resources, turning the old against the young, healthy against frail, unions against non-unions, workers against unemployed, public employee against private, and native born against emigrant.
- The middle class, unable to borrow, has less purchasing power.
- NET: A strong economy needs a strong middle class.
