In this 2:38 minute video Robert Reich connects six dots to explain why the US Economy has fallen to its current level and why chances for recovery appear anemic, at best.
Dot 1: Since 1980 the US Economy has doubled, but middle class wages have not.
Dot 2: Virtually all economic gain since 1980 has gone to the richest 1% of Americans.
From 9% of total income in 1979 to over 20% today.
Dot 3: The rich have used this money to bribe Republicans AND Democrats to lower their tax rates.
From 70% in the 1970s to today's rate of 35% with many of the very rich paying a 15% rate on their capital gains.
The richest 400 Americans currently pay taxes at an average rate 17%, according to Reich.
Dot 4: This has helped to produce massive budget deficits.
Current tax revenues generate 15% of GDP.
The lowest percentage in 60 years.
The only solution provided by government is gutting social services
Dot 5: Divide and conquer the US middle class.
Pit union against non-union.
Public worker against private.
Natives v. evil immigrants.
Dot 6: Destroy the purchasing power of the middle class thereby guaranteeing any recovery from Wall Street's Recession will be anemic, at best.
The Truth About The Economy In 2 Minutes | Common Dreams
The only way back to sustained prosperity and growth in the US is to remake the basic social contract linking pay to productivity for all workers. This would give the American middle class the purchasing power necessary to revive their economy and keep it going strong.
Dot 1: Since 1980 the US Economy has doubled, but middle class wages have not.
Dot 2: Virtually all economic gain since 1980 has gone to the richest 1% of Americans.
From 9% of total income in 1979 to over 20% today.
Dot 3: The rich have used this money to bribe Republicans AND Democrats to lower their tax rates.
From 70% in the 1970s to today's rate of 35% with many of the very rich paying a 15% rate on their capital gains.
The richest 400 Americans currently pay taxes at an average rate 17%, according to Reich.
Dot 4: This has helped to produce massive budget deficits.
Current tax revenues generate 15% of GDP.
The lowest percentage in 60 years.
The only solution provided by government is gutting social services
Dot 5: Divide and conquer the US middle class.
Pit union against non-union.
Public worker against private.
Natives v. evil immigrants.
Dot 6: Destroy the purchasing power of the middle class thereby guaranteeing any recovery from Wall Street's Recession will be anemic, at best.
The Truth About The Economy In 2 Minutes | Common Dreams
The only way back to sustained prosperity and growth in the US is to remake the basic social contract linking pay to productivity for all workers. This would give the American middle class the purchasing power necessary to revive their economy and keep it going strong.