4 ms·

In the same way that it’s a fact that the sun, not earth is the center of the solar system, it’s also a fact that the middle class, not rich business people lik

In the same way that it’s a fact that the sun, not earth is the center of the solar system, it’s also a fact that the middle class, not rich business people like me are the center of America’s economy I think the author is slightly overestimating the extent to which he understands economics. No doubt the author has some very sound data to support this thesis, although he has chosen to support it with anecdotes and incorrect economics instead. For instance, he complains about the 39% top marginal rate on middle-class, ordinary Americans. Now, it is an actual fact that people who make this top marginal rate are not "middle class" by many common definitions. In his imaginary pro-worker universe which he incorrectly labels "Keynesian", that rate would also be a lot higher.

mapt 13y ago
Most people point to the reduction in the top marginal rate as the primary mechanism by which the progressive income tax has been weakened and has contributed to income inequality. Others will say this is all bunk and capital gains becoming a primary compensation mechanism is what has caused the destabilizing imbalance. There is another thing we've been doing, though - Reagan in 1986 dramatically reduced the boundary of the top tax bracket versus its trajectory in the rest of the 20th century, to 5% of what it had been. Until then, you could reasonably argue about trashing the millionaire's extra yacht so that the $200k-ionaire could succeed. Later politicians raised it somewhat, but never to levels approaching the 50's - 70's. We appear to have tied it all together in order to mobilize the high-skill working people & entrepreneurs to defend the truly rich from having to contribute a larger share.