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Originally Posted by opendoor
But starting in 1980, that completely changed. From 1980 to now, the median income only increased by about 20% in inflation-adjusted terms, and for lower income people it was more like 17-18%. But for the 95th percentile? It went up about 75-80% over the same time period.
What happened to change that? Neoliberalism and Reaganism. They lowered taxes on the rich significantly (funded by large deficits), started gutting things that benefited the working and middle classes (35% of private sector workers had a pension in 1980 vs. 15% today), and introduced rules to benefit those with capital (for instance, stock buybacks were illegal prior to 1982, now they're done all the time)
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The post-war boom ended in 1973, not 1980. Reagan and Thatcher swept to power because for most people the inflation-wracked 70s sucked. The economic malaise and stagflation of that decade set the stage for reaction. Americans were less happy in 1979 than they are today.
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High inflation and uneven economic performance soured the national mood. In November 1979, only 19% of Americans were satisfied in the U.S., compared with 22% in April 2022, according to a Gallup survey. Americans' satisfaction with the national trend in this poll peaked at 71% in 1999. In the 1970s, lower living standards and declining confidence in economic policy were commonplace.
https://www.investopedia.com/article...tagflation.asp
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Reaganism and Thatcherism weren’t the economic miracles that their champions claim. But they also didn’t bring about the downfall of the Golden Age - it was already over.
https://aeon.co/essays/how-economic-...came-to-an-end