Wudil A decent piece – it gets better as you go along – on the growing inequality in America that has made politicians rich paid servants of the rich. And indirectly a rebuke of Obama, who has no obvious relevance to this problem at all.
http://viningsnaturalhealthcentre.co.uk/tag/alternative-therapies/page/6/
Between 1979 and 2006, middle-class Americans saw their annual incomes after taxes increase by 21 percent (adjusted for inflation). The poorest Americans saw their incomes rise by only 11 percent. The top one percent, meanwhile, saw their incomes increase by 256 percent. This almost tripled their share of the national income, up to 23 percent, the highest level since 1928. The graph that shows their share over time looks almost flat under Kennedy, Johnson, Nixon, Ford, and Carter, followed by continual spikes under Reagan, the elder Bush, Clinton, and the younger Bush.
Some argue that this inequality was an unavoidable result of deeper shifts: global competition, cheap goods made in China, technological changes. Although those factors played a part, they have not been decisive. In Europe, where the same changes took place, inequality has remained much lower than in the United States. The decisive factor has been politics and public policy: tax rates, spending choices, labor laws, regulations, campaign finance rules. Book after book by economists and other scholars over the past few years has presented an airtight case: over the past three decades, the government has consistently favored the rich. This is the source of the problem: our leaders, our institutions.
But even more fundamental than public policy is the long-term transformation of the manners and morals of American elites — what they became willing to do that they would not have done, or even thought about doing, before. Political changes precipitated, and in turn were aided by, deeper changes in norms of responsibility and self-restraint. In 1978, it might have been economically feasible and perfectly legal for an executive to award himself a multimillion-dollar bonus while shedding 40 percent of his work force and requiring the survivors to take annual furloughs without pay. But no executive would have wanted the shame and outrage that would have followed — any more than an executive today would want to be quoted using a racial slur or photographed with a paid escort. These days, it is hard to open a newspaper without reading stories about grotesque overcompensation at the top and widespread hardship below. Getting rid of a taboo is easier than establishing one, and once a prohibition erodes, it can never be restored in quite the same way. As Leo Tolstoy wrote, “There are no conditions of life to which a man cannot get accustomed, especially if he sees them accepted by everyone around him.”
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