From the Post-War Boom to a New Gilded Age by Henry Mantel
After World War II, the United States experienced an economic boom. Years of rationing created an American population that was hungry for luxury goods. While the rest of the world was focusing on rebuilding, America was producing and consuming.
Workers in America were in a strong bargaining position. The GI Bill gave returning veterans access to higher education, low-priced loans, and healthcare. Labor unions made sure that workers were receiving a fair share of the country's new wealth. In 1965, nearly a third of US workers belonged to a union. Between 1945 and 1975, American wages increased at roughly the same rate as productivity.
Even among the richest Americans, excessive wealth was considered immoral. The average CEO made twenty times the amount the average worker did. Mitt Romney's father once said, "no executive needed to make more than $225,000 (about $1.4 million in today’s dollars)." In 1955, Forbes wrote an article describing the "average" top executive as someone who "lives on an economic scale not too different from that of the man on the next-lower income rung," "owns two cars... gets along with one or two servants," and "spends almost no time on politics." That same year, the highest marginal tax rate was 91%.
In the 1980s, America's attitude towards government began to change. Ronald Reagan was elected in 1980 by an overwhelming majority. He ran on a platform of cutting taxes and government spending. In his inaugural address, Reagan famously stated: "government is not the solution to our problem, government is the problem."
Under Reagan, the top marginal tax rate fell significantly, dropping from 70% to 50% in 1982, then to 28% in 1988. Reagan undermined the bargaining power of American workers by busting unions. He slashed funds for programs that helped working-class families and protected consumers.
Since Reagan, trickle-down economics, undermining workers, and slashing the social safety net have been the Republican Party's entire economic platform. The Bush tax cuts passed in 2003 benefited the wealthy more than the middle class. Workers' rights have been scrapped in Republican controlled states, causing union membership to fall to record lows. Republicans frequently employ a strategy called "Starve the Beast," in which they cut taxes in order to raise the deficit, thereby justifying cuts to popular programs like Medicare, Social Security, and education.
As a result, income and wealth inequality have grown. Wages for the average worker have stagnated while income for the wealthiest Americans continues to rise. Today, the ratio between average CEO pay and worker pay is around 271-to-1. The wealthiest 1% of Americans possess more wealth than the bottom 90% combined. A single minimum wage job is not enough to cover the rent anywhere in the country. The costs of healthcare, higher education, and housing have all skyrocketed. The government spends $153 billion a year helping McDonald's and Wal-Mart's workers make ends meet.
America has more billionaires than any other country in the world. At the same time, according to the UN, America also has 40 million people living in poverty and another 18.5 million living in extreme poverty. America's GDP is the highest in the world while 78% of American workers are living paycheck-to-paycheck. 63% of Americans do not have enough savings to cover a $500 emergency. America is the only developed nation that does not have some form of universal healthcare or mandated paid leave.
Despite economic inequality almost as bad as the Gilded Age of the 1880s, Republicans are still giving the wealthiest Americans more while cutting government programs that help everyone else. The GOP's latest tax bill overwhelmingly benefits the rich. President Trump is considering another $100 billion tax cut for the wealthy. The GOP's latest budget proposal cuts Medicare, Medicaid, education, welfare, and Social Security.
If America is living in a new Gilded Age, then there may be a new Progressive Era coming. During the Progressive Era that followed the first Gilded Age, socialism became much more popular, child labor and antitrust laws were passed, and union membership increased. Today, 51% of Millennials do not support capitalism while 68% view labor unions positively. 70% of all Americans support Medicare-for-All and 85% support mandated paid sick leave for workers. There is strong support for progressive ideas, whether or not they are implemented will depend entirely on how America votes on November 6.
Workers in America were in a strong bargaining position. The GI Bill gave returning veterans access to higher education, low-priced loans, and healthcare. Labor unions made sure that workers were receiving a fair share of the country's new wealth. In 1965, nearly a third of US workers belonged to a union. Between 1945 and 1975, American wages increased at roughly the same rate as productivity.
Even among the richest Americans, excessive wealth was considered immoral. The average CEO made twenty times the amount the average worker did. Mitt Romney's father once said, "no executive needed to make more than $225,000 (about $1.4 million in today’s dollars)." In 1955, Forbes wrote an article describing the "average" top executive as someone who "lives on an economic scale not too different from that of the man on the next-lower income rung," "owns two cars... gets along with one or two servants," and "spends almost no time on politics." That same year, the highest marginal tax rate was 91%.
In the 1980s, America's attitude towards government began to change. Ronald Reagan was elected in 1980 by an overwhelming majority. He ran on a platform of cutting taxes and government spending. In his inaugural address, Reagan famously stated: "government is not the solution to our problem, government is the problem."
Under Reagan, the top marginal tax rate fell significantly, dropping from 70% to 50% in 1982, then to 28% in 1988. Reagan undermined the bargaining power of American workers by busting unions. He slashed funds for programs that helped working-class families and protected consumers.
Since Reagan, trickle-down economics, undermining workers, and slashing the social safety net have been the Republican Party's entire economic platform. The Bush tax cuts passed in 2003 benefited the wealthy more than the middle class. Workers' rights have been scrapped in Republican controlled states, causing union membership to fall to record lows. Republicans frequently employ a strategy called "Starve the Beast," in which they cut taxes in order to raise the deficit, thereby justifying cuts to popular programs like Medicare, Social Security, and education.
As a result, income and wealth inequality have grown. Wages for the average worker have stagnated while income for the wealthiest Americans continues to rise. Today, the ratio between average CEO pay and worker pay is around 271-to-1. The wealthiest 1% of Americans possess more wealth than the bottom 90% combined. A single minimum wage job is not enough to cover the rent anywhere in the country. The costs of healthcare, higher education, and housing have all skyrocketed. The government spends $153 billion a year helping McDonald's and Wal-Mart's workers make ends meet.
America has more billionaires than any other country in the world. At the same time, according to the UN, America also has 40 million people living in poverty and another 18.5 million living in extreme poverty. America's GDP is the highest in the world while 78% of American workers are living paycheck-to-paycheck. 63% of Americans do not have enough savings to cover a $500 emergency. America is the only developed nation that does not have some form of universal healthcare or mandated paid leave.
Despite economic inequality almost as bad as the Gilded Age of the 1880s, Republicans are still giving the wealthiest Americans more while cutting government programs that help everyone else. The GOP's latest tax bill overwhelmingly benefits the rich. President Trump is considering another $100 billion tax cut for the wealthy. The GOP's latest budget proposal cuts Medicare, Medicaid, education, welfare, and Social Security.
If America is living in a new Gilded Age, then there may be a new Progressive Era coming. During the Progressive Era that followed the first Gilded Age, socialism became much more popular, child labor and antitrust laws were passed, and union membership increased. Today, 51% of Millennials do not support capitalism while 68% view labor unions positively. 70% of all Americans support Medicare-for-All and 85% support mandated paid sick leave for workers. There is strong support for progressive ideas, whether or not they are implemented will depend entirely on how America votes on November 6.
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