August 15, 2006 at 13:08:21

Delusional Democracy Breeds Delusional Prosperity

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By Joel S. Hirschhorn (about the author) Page 2 of 2 page(s)

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The long-term trend in American economic inequality is clear. The government has measured family or household inequality since 1947. In the post-World War II era of 1947 to 1968, the coefficient decreased. In other words, in that period of prosperity, economic inequality decreased; there was real upward economic mobility. Not coincidentally, during that period the top marginal federal income tax rate was 90 or 70 percent. The coefficient dropped from 1947 to 1969. It remained stable from 1973 to 1980. Since around 1980, the coefficient has risen pretty consistently, under President Reagan, under Bush I, under Clinton, and under Bush II. The government uses pre-tax income, making the coefficient numerically higher than disposable income; it has risen from 0.35 in 1980 to 0.46 more recently. Experts believe that a coefficient of 0.5 likely precipitates social unrest. So the national mood of political discontent and disgust with the two-party duopoly is consistent with economic reality.

When will the Second American Revolution begin? How much more economic misery will it take? Maybe just a little more will bring the American population to the tipping point. We can hope.

[Joel S. Hirschhorn's new book is Delusional Democracy Fixing the Republic Without Overthrowing the Government; he can be reached through www.delusionaldemocracy.com; he welcomes comments on his thinking.]

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Joel S. Hirschhorn is the author of Delusional Democracy - Fixing the Republic Without Overthrowing the Government (www.delusionaldemocracy.com). His current political writings have been greatly influenced by working as a senior staffer for the (more...)

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