The Rich Better Run

[Coco]

The comments on this facebook post are very interesting.

Here's a chart showing what's happened during every economic expansion since World War II, and what portion of it went to the wealthiest 10 percent and the poorest 90 percent of households. As you can see, income growth every expansion has delivered more of its benefits to the top and less to the bottom 90. The drop in the bottom 90 percent's share really started to plummet in the 1982-1990 period, thanks to Reaganomics. Moreover, the real (inflation-adjusted) incomes of the bottom 90 dropped for the first time in the "recovery" we're now in.

In other words, this is not a business cycle problem. We're dealing with the underlying structure of the economy, which is tilting ever more in the direction of the top and away from the vast majority. This is not sustainable. The choice is either fundamental reform or social unrest.

https://www.facebook.com/RBReich/photos ... 90/?type=1

Also, this TED talk: http://www.ted.com/talks/nick_hanauer_b ... anguage=en

[Boogalou]

Very interesting.

What happened to 1974, 1980, 1981, and 2008?

[Pandora Spocks]

Very interesting.

What happened to 1974, 1980, 1981, and 2008?

Ford, Reagan, Reagan and most of George W?? Oh, wait -- that isn't what you meant. ;)

[Coco]

Very interesting.

What happened to 1974, 1980, 1981, and 2008?

maybe those were gap years in between recoveries? not sure. This is all a little above me but i do find it fascinating.

[Firiel]

Very interesting.

What happened to 1974, 1980, 1981, and 2008?

I didn't notice those gaps when I saw this before. Also didn't notice the year-clusters were all different lengths. I wonder why. I want to agree heartily with this graph, but those two discrepancies seem strange and make me wonder if the chart would be less stunning were those two things corrected. :|

EDIT: This is all a bit over my head too, so I'd love someone with economics experience to explain why the graph is put together the way it is.

[Maggie Mae]

This might help explain it http://www.nytimes.com/2014/09/27/upsho ... 0002&abg=1

The chart shows periods of economic expansion. 2008 was a recession.

[BrownieMomma]

Here's a little more explanation, it's wikipedia so take it for what it's worth

http://en.wikipedia.org/wiki/List_of_ec ... ted_States

Robert Reich, author of the article:

http://en.wikipedia.org/wiki/Robert_Reich

NBER:

http://en.wikipedia.org/wiki/National_B ... c_Research

and lastly Thomas Piketty, a proponent of global redistribution of wealth

http://en.wikipedia.org/wiki/Thomas_Piketty

[GolightlyGrrl]

Robert Reich is a national treasure and so smart on this topic. I highly recommend his documentary "Inequality for All," in which he explains how we've come to the clusterfuck we're in. Reich is very detailed but conveys his points in ways that are audience-friendly, witty and eye-opening. He talks to students, American workers of all stripes, Democrats and Republicans, those who are struggling, politicans, economists, and other assorted strategists. He even talks to a member of the 1%, a CEO of a large pillow factory who says he's not a job creator; it's the working Joes and Josephines who make up the 99%.