signalmankenneth
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During Reagan's presidency, the federal debt held by the public nearly tripled in nominal terms, from $738 billion to $2.1 trillion. This led to the U.S. moving from the world's largest international creditor to the world's largest debtor nation.
Under Reagan is when we abandoned the Greatest Economy in History and been paying the price ever since?!!
If there is one statistic that best captures the transformation of the American economy over the past half century, it may be this: Of Americans born in 1940, 92 percent went on to earn more than their parents; among those born in 1980, just 50 percent did. Over the course of a few decades, the chances of achieving the American dream went from a near-guarantee to a coin flip.
What happened?
One answer is that American voters abandoned the system that worked for their grandparents. From the 1940s through the ’70s, sometimes called the New Deal era, U.S. law and policy were engineered to ensure strong unions, high taxes on the rich, huge public investments, and an expanding social safety net. Inequality shrank as the economy boomed. But by the end of that period, the economy was faltering, and voters turned against the postwar consensus. Ronald Reagan took office promising to restore growth by paring back government, slashing taxes on the rich and corporations, and gutting business regulations and antitrust enforcement.
The idea, famously, was that a rising tide would lift all boats. Instead, inequality soared while living standards stagnated and life expectancy fell behind that of peer countries. No other advanced economy pivoted quite as sharply to free-market economics as the United States, and none experienced as sharp a reversal in income, mobility, and public-health trends as America did. Today, a child born in Norway or the United Kingdom has a far better chance of outearning their parents than one born in the U.S.
This story has been extensively documented. But a nagging puzzle remains. Why did America abandon the New Deal so decisively? And why did so many voters and politicians embrace the free-market consensus that replaced it?
Since 2016, policy makers, scholars, and journalists have been scrambling to answer those questions as they seek to make sense of the rise of Donald Trump—who declared, in 2015, “The American dream is dead”—and the seething discontent in American life. Three main theories have emerged, each with its own account of how we got here and what it might take to change course. One theory holds that the story is fundamentally about the white backlash to civil-rights legislation. Another pins more blame on the Democratic Party’s cultural elitism.
And the third focuses on the role of global crises beyond any political party’s control. Each theory is incomplete on its own. Taken together, they go a long way toward making sense of the political and economic uncertainty we’re living through.
“The American landscape was once graced with resplendent public swimming pools, some big enough to hold thousands of swimmers at a time,” writes Heather McGee, the former president of the think tank Demos, in her 2021 book, The Sum of Us. In many places, however, the pools were also whites-only. Then came desegregation.
Rather than open up the pools to their Black neighbors, white communities decided to simply close them for everyone. For McGhee, that is a microcosm of the changes to America’s political economy over the past half century: White Americans were willing to make their own lives materially worse rather than share public goods with Black Americans.
From the 1930s until the late ’60s, Democrats dominated national politics. They used their power to pass sweeping progressive legislation that transformed the American economy. But their coalition, which included southern Dixiecrats as well as northern liberals, fractured after President Lyndon B. Johnson signed the Civil Rights Act of 1964 and the Voting Rights Act of 1965. Richard Nixon’s “southern strategy” exploited that rift and changed the electoral map. Since then, no Democratic presidential candidate has won a majority of the white vote.
Crucially, the civil-rights revolution also changed white Americans’ economic attitudes. In 1956, 65 percent of white people said they believed the government ought to guarantee a job to anyone who wanted one and to provide a minimum standard of living. By 1964, that number had sunk to 35 percent. Ronald Reagan eventually channeled that backlash into a free-market message by casting high taxes and generous social programs as funneling money from hardworking (white) Americans to undeserving (Black) “welfare queens.”
In this telling, which has become popular on the left, Democrats are the tragic heroes. The mid-century economy was built on racial suppression and torn apart by racial progress. Economic inequality was the price liberals paid to do what was right on race.
https://www.msn.com/en-us/money/mar...n&cvid=e9c74860800a41ada03db5d26abd65df&ei=13
Under Reagan is when we abandoned the Greatest Economy in History and been paying the price ever since?!!
If there is one statistic that best captures the transformation of the American economy over the past half century, it may be this: Of Americans born in 1940, 92 percent went on to earn more than their parents; among those born in 1980, just 50 percent did. Over the course of a few decades, the chances of achieving the American dream went from a near-guarantee to a coin flip.
What happened?
One answer is that American voters abandoned the system that worked for their grandparents. From the 1940s through the ’70s, sometimes called the New Deal era, U.S. law and policy were engineered to ensure strong unions, high taxes on the rich, huge public investments, and an expanding social safety net. Inequality shrank as the economy boomed. But by the end of that period, the economy was faltering, and voters turned against the postwar consensus. Ronald Reagan took office promising to restore growth by paring back government, slashing taxes on the rich and corporations, and gutting business regulations and antitrust enforcement.
The idea, famously, was that a rising tide would lift all boats. Instead, inequality soared while living standards stagnated and life expectancy fell behind that of peer countries. No other advanced economy pivoted quite as sharply to free-market economics as the United States, and none experienced as sharp a reversal in income, mobility, and public-health trends as America did. Today, a child born in Norway or the United Kingdom has a far better chance of outearning their parents than one born in the U.S.
This story has been extensively documented. But a nagging puzzle remains. Why did America abandon the New Deal so decisively? And why did so many voters and politicians embrace the free-market consensus that replaced it?
Since 2016, policy makers, scholars, and journalists have been scrambling to answer those questions as they seek to make sense of the rise of Donald Trump—who declared, in 2015, “The American dream is dead”—and the seething discontent in American life. Three main theories have emerged, each with its own account of how we got here and what it might take to change course. One theory holds that the story is fundamentally about the white backlash to civil-rights legislation. Another pins more blame on the Democratic Party’s cultural elitism.
And the third focuses on the role of global crises beyond any political party’s control. Each theory is incomplete on its own. Taken together, they go a long way toward making sense of the political and economic uncertainty we’re living through.
“The American landscape was once graced with resplendent public swimming pools, some big enough to hold thousands of swimmers at a time,” writes Heather McGee, the former president of the think tank Demos, in her 2021 book, The Sum of Us. In many places, however, the pools were also whites-only. Then came desegregation.
Rather than open up the pools to their Black neighbors, white communities decided to simply close them for everyone. For McGhee, that is a microcosm of the changes to America’s political economy over the past half century: White Americans were willing to make their own lives materially worse rather than share public goods with Black Americans.
From the 1930s until the late ’60s, Democrats dominated national politics. They used their power to pass sweeping progressive legislation that transformed the American economy. But their coalition, which included southern Dixiecrats as well as northern liberals, fractured after President Lyndon B. Johnson signed the Civil Rights Act of 1964 and the Voting Rights Act of 1965. Richard Nixon’s “southern strategy” exploited that rift and changed the electoral map. Since then, no Democratic presidential candidate has won a majority of the white vote.
Crucially, the civil-rights revolution also changed white Americans’ economic attitudes. In 1956, 65 percent of white people said they believed the government ought to guarantee a job to anyone who wanted one and to provide a minimum standard of living. By 1964, that number had sunk to 35 percent. Ronald Reagan eventually channeled that backlash into a free-market message by casting high taxes and generous social programs as funneling money from hardworking (white) Americans to undeserving (Black) “welfare queens.”
In this telling, which has become popular on the left, Democrats are the tragic heroes. The mid-century economy was built on racial suppression and torn apart by racial progress. Economic inequality was the price liberals paid to do what was right on race.
https://www.msn.com/en-us/money/mar...n&cvid=e9c74860800a41ada03db5d26abd65df&ei=13
