Quote:
Originally Posted by CliffFletcher
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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There was still good Real wage growth in the '70s for lower income earners.
But that's not really the point; it's not a question of a boom ending. Whatever economic issues there were in the '70s, it was primarily the result of having three recessions in the span of a decade. And in that period, every quintile's wage growth was pretty similar. So the top 5% saw the same growth as the median, which was a continuation of the post WWII trend.
The difference post-1980 is, during the boom times high earners and the wealthy have seen massive gains that the rest of society hasn't really benefited from. That didn't happen in the 40 years prior but it did happen in the '80s and beyond.
Asset prices really drive this home. From WWII to 1980, the S&P 500 increased by about 90% after inflation. In that same period, median inflation-adjusted wages went up by over 100%, so wages outpaced asset growth. Since 1980 though, and after a significant overhaul in laws and policies designed to benefit the wealthy and those with capital, median Real wages have gone up by only ~20%, while the S&P 500 has increased 800% after adjusting for inflation. And this trend is only accelerating.