Tuesday, October 02, 2012

60 Years of American Economic History, Told in One Graph

Jordan Weissmann wrote in The Atlantic 60 Years of American Economic History, Told in 1 Graph

"Here's the arc it captures: In the immediate postwar period, America's rapid growth favored the middle and lower classes. The poorest fifth of all households, in fact, fared best. Then, in the 1970s, amid two oil crises and awful inflation, things ground to a halt. The country backed off the postwar, center-left consensus -- captured by Richard Nixon's comment that 'we're all Keynesians now' -- and tried Reaganism instead. We cut taxes. Technology and competition from abroad started whittling away at blue collar jobs and pay. The financial markets took off. And so when growth returned, it favored the investment class -- the top 20 percent, and especially the top 5 percent (and, though it's not on this chart, the top 1 percent more than anybody). "

Pew History Middle Class Families Income History thumb 615x447 96949 copy

No comments: