Economic Inequality In The 1970's

The 1970’s was time of great change in american politics. The hyperconcentration of rewards at the top (winner-take-all economy) is the defining feature of the post 1970’s economy. Most growth since the later 1970s has gone to the richest Americans. The statistic that the authors use to prove this is that “If the economy grew at the same right as it did but if the inequality had not increased, then the average income of households would be $12,000 higher” (24). Since 1980, America has moved away from the mixed-economy cluster and traveled towards the capitalist oligarchies (4). The authors use the study of Thomas Piketty and Emmanuel Saez to prove the growth of economic inequality. their evidence shows that the economy has become favorable
to those at the top of the economic ladder. Their study provided three clues: “most of the economic gains since the 1970’s have gone to the highest reaches of the top 1%” (14), “the shift of income toward the top has been sustained, increasing steadily since 1980” (17) and, “in a time where the top reaped the gains, the economy stopped working for the middle and working class americans” (19). The rise of economic inequality has caused: “erosion of job security, decline of health insurance, rise in home foreclosures, and an increasing number of personal bankruptcies/debt” (4). The main question now is Why are the rich getting richer and the poor left behind? Globalization, education, technology and skill shifts were thought to be a suspects. But the answers lies in american politics. All in all, the readers learn that people below the top of the economic ladder are falling behind the have-it-all’s; they only reap a few of the massive gains found at the top. This is an important argument because it shows how a democratic government is abandoning the principles of its foundation.