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Robert Reich had a very good article in The Nation this past week. The former labor secretary pointed out that just before the Great Depression, income inequality had reached a zenith that could not support the economic system in the US. The richest 1% of Americans had accumulated 23.9% of the total income in the US, and, according to Reich, it was unsustainable. After the crash, through a series of progressive public policies, the disparity decreased until by the mid-70's, the top 1% had 8% to 9% of the income. Want to guess where we are today? Here's Reich from the article:
Consider: in 1928 the richest 1 percent of Americans received 23.9 percent of the nation's total income. After that, the share going to the richest 1 percent steadily declined. New Deal reforms, followed by World War II, the GI Bill and the Great Society expanded the circle of prosperity. By the late 1970s the top 1 percent raked in only 8 to 9 percent of America's total annual income. But after that, inequality began to widen again, and income reconcentrated at the top. By 2007 the richest 1 percent were back to where they were in 1928-with 23.5 percent of the total.
Are people paying attention? I think that they're beginning to, but can't say for sure. Congressional Democrats have not done themselves any favors by listing toward the deficit hawks and blue dogs while the economy has punished millions of hard-working Americans. There have been some recent indications that the public is becoming frustrated with the tactics of the GOP and the inability of Congress to effectively deal with the economy. Last week, I pointed to this Bloomberg poll that reported that, by a almost 3:1 margin, respondents believed it was more important to reduce the unemployment level than it was to reduce the deficit. After weeks of GOP deficit fear-mongering, more than 2/3 of the public rejected the premise. Deficit hawk = FAIL.
New polls indicate that between 52% and 61% of the American public think that Congress should extend unemployment insurance for people whose benefits have lapsed. It looks like this might be working, as Congress is poised to pass the extension - a month late for many, but perhaps better late than never. The president seems to have the message and has been sharpening his rhetoric over the past few weeks, shining a light on Republican obfuscation and obstruction. Is it working? The latest Gallup pollon Congressional generic ballot shows Democrats jumping out to a substantial lead after months of lagging behind the GOP. You can't fool all the people all the time.
As an aside, we've been treated to humorous stories about Sarah Palin the past several weeks. The half-term governor of Alaska has a loose grip on facts and an insight on malapropisms that truly connects with 12% of the public and 85% of the MSM. But she's nothing more than a diversion - the inside politics machinations of Palin endorsements and Granite Grizzleys only distracts us from the real issues - the economy, wars in two countries, and the environment. The candidates and political party that offers the best solutions to these real issues will have the best chances in November.
