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The most important chart about the American economy you'll see this year
- api 12y agoHmm.... cutting taxes on the super-wealthy while raising regressive taxes such as sales tax and payroll tax results in a massive income divergence. Big surprise. http://upload.wikimedia.org/wikipedia/commons/f/fa/Share_of_Federal_Revenue_from_Different_Tax_Sources_(Individual,_Payroll,_and_Corporate)_1950_-_2010.gif http://upload.wikimedia.org/wikipedia/commons/f/fa/Share_of_... I doubt this is the only factor, but it's certainly one of them. Others include letting the financial industry run completely wild, and asymmetrical neoliberal trade policies that seem almost designed to export jobs and depress wages. We open our markets to foreign competitors while at the same time permitting them to manipulate their currencies, engage in borderline slave labor practices, and erect their own barriers to trade. It's basically economic unilateral disarmament. I'm actually concerned that if this trend doesn't reverse we're going to see a massive shift to the economic left in the near to mid term future. I'm leaning that way myself more now, but I'm afraid the reaction could go too far. I would not want to see an American Hugo Chavez, but I can easily imagine it in the next 10-20 years if things do not change. I can also imagine populist crypto-fascist types having wider appeal, which would be even worse.