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.