Top 1% of Americans Get Largest Share of National Income Since 1928

Krugman weighs in.


PAUL KRUGMAN: Distract and Disenfranchise


I have a theory about the Bush administration abuses of power that are now, finally, coming to light. Ultimately, I believe, they were driven by rising income inequality.

Let me explain.

In 1980, when Ronald Reagan won the White House, conservative ideas appealed to many, even most, Americans. At the time, we were truly a middle-class nation. To white voters, at least, the vast inequalities and social injustices of the past, which were what originally gave liberalism its appeal, seemed like ancient history. It was easy, in that nation, to convince many voters that Big Government was their enemy, that they were being taxed to provide social programs for other people.

Since then, however, we have once again become a deeply unequal society. Median income has risen only 17 percent since 1980, while the income of the richest 0.1 percent of the population has quadrupled. The gap between the rich and the middle class is as wide now as it was in the 1920s, when the political coalition that would eventually become the New Deal was taking shape.

And voters realize that society has changed. They may not pore over income distribution tables, but they do know that today’s rich are building themselves mansions bigger than those of the robber barons. They may not read labor statistics, but they know that wages aren’t going anywhere: according to the Pew Research Center, 59 percent of workers believe that it’s harder to earn a decent living today than it was 20 or 30 years ago.

You know that perceptions of rising inequality have become a political issue when even President Bush admits, as he did in January, that “some of our citizens worry about the fact that our dynamic economy is leaving working people behind.”

But today’s Republicans can’t respond in any meaningful way to rising inequality, because their activists won’t let them. You could see the dilemma just this past Friday and Saturday, when almost all the G.O.P. presidential hopefuls traveled to Palm Beach to make obeisance to the Club for Growth, a supply-side pressure group dedicated to tax cuts and privatization.

The Republican Party’s adherence to an outdated ideology leaves it with big problems. It can’t offer domestic policies that respond to the public’s real needs. So how can it win elections?

The answer, for a while, was a combination of distraction and disenfranchisement.

The terrorist attacks on 9/11 were themselves a massive, providential distraction; until then the public, realizing that Mr. Bush wasn’t the moderate he played in the 2000 election, was growing increasingly unhappy with his administration. And they offered many opportunities for further distractions. Rather than debating Democrats on the issues, the G.O.P. could denounce them as soft on terror. And do you remember the terror alert, based on old and questionable information, that was declared right after the 2004 Democratic National Convention?

But distraction can only go so far. So the other tool was disenfranchisement: finding ways to keep poor people, who tend to vote for the party that might actually do something about inequality, out of the voting booth.

Remember that disenfranchisement in the form of the 2000 Florida “felon purge,” which struck many legitimate voters from the rolls, put Mr. Bush in the White House in the first place. And disenfranchisement seems to be what much of the politicization of the Justice Department was about.

Several of the fired U.S. attorneys were under pressure to pursue allegations of voter fraud — a phrase that has become almost synonymous with “voting while black.” Former staff members of the Justice Department’s civil rights division say that they were repeatedly overruled when they objected to Republican actions, ranging from Georgia’s voter ID law to Tom DeLay’s Texas redistricting, that they believed would effectively disenfranchise African-American voters.

The good news is that all the G.O.P.’s abuses of power weren’t enough to win the 2006 elections. And 2008 may be even harder for the Republicans, because the Democrats — who spent most of the Clinton years trying to reassure rich people and corporations that they weren’t really populists — seem to be realizing that times have changed.

A week before the Republican candidates trooped to Palm Beach to declare their allegiance to tax cuts, the Democrats met to declare their commitment to universal health care. And it’s hard to see what the G.O.P. can offer in response.

http://welcome-to-pottersville.blogspot.com/2007/04/paul-krugman-distract-and.html

 

A revealing graph from the Wall Street Journal-



Since, the economy began to rebound in 2002 the GDP has grown, but the median wage (middle class wage) has remained stagnant.

I wonder who is benefitting from the growth in GDP if it's not translating into rising wages?

Link

 

That was a rhetorical question.