I know all you young folks out there who might accidentally come across my blog know very little about the history of prosperity but most of the older folks have recollections of more prosperous times. I can remember the 1950s where everything seemed to be going well for many of us. We couldn’t build enough houses or cars to meet our needs. Instead of our returning vets coming home to unemployment, jobs were being created at a vigorous rate.
The 1960s was my decade for growth. Even though I was raised in the single parent household and my father was a milkman I managed to get accepted by a great State college and worked my way to a bachelor’s degree paying all the expenses by working in a dormitory cafeteria up to 40 hours a week. It was a struggling time but probably the happiest of my life. I made such good friends during those years before I became deaf.
In the 1970s things started to change. Good middle class jobs for those without a formal education beyond high school were starting to disappear.The Oil Embargo put a hamper on things and inflation was roaring along. Things were starting to change by the end of that decade and then came the 1980s.
The 1980s seemed to be a pivotal decade. It is the time when we elected a very conservative president who believed that government was the main problem in our society. It was a time when the elite among us began to get inordinate influence in our society. It was a time that the social conservative that seemed the dwarf the emphatic among us. It was a time when the rich started getting much richer. It was also a time when the MBA college degree started taking root. The MBA degree taught that people where no longer to be considered valuable members of a company but instead liabilities that needed to be trimmed as much as possible. At that point the middle class shrinking came fully into force.
The 1990s, or the Clinton years as I knew them, brought back prosperity at least the a degree and to a limited segment of society. These were my most productive years from a financial standpoint. My retirement funds and 401k’s grew at a rapid pace. The growth of the stock market rivaled that of the 1930s. A new thing called the Internet was taking hold of everyone including corporate America. I took advantage of the trend by re-purposing myself into an IT guy (information technology). I was suddenly in demand for my skills. but toward the end of the decade panic started. Luckily I got pretty much out of the stock market before the crash.
The 2000s were a very pivotal and dramatic decade that saw the stock bubble burst and then years of a stagnant economy. When Mr. Bush came into the Oval Office the DOW Industrial averages were at 11,000, When he left eight years later it was at 8,000 and due to too much deregulation much of the banks were on the verge of bankruptcy along with a couple of our biggest corporations.
The 2010s finally ushered out the president who started two wars and huge increase in military spending. The new president managed to get us out of these two catastrophic emergencies and as a result in six years the DOW averages went from 8,000 to 18,000.
So, studying the above graphs let’s recap all this. When the super rich were being taxed at up to 90% of their income we had prosperity. Then when that was reduced to about 30% things started falling apart. I think you should get the idea that giving big tax breaks to the super rich is not a way to get us once again to prosperity.
I am way over my word limit here so I have to stop.