COMMENTARY ON LAWYERING, LANGUAGE, AND POLITICS
Friday, March 7, 2014
Robert Reich (The Great U-Turn)
We had five kids in a Levitt house like this with a finished attic.
My father is 94. He was a salesman for Hallmark Cards. Our post-war family history was similar - in Levittown, NY - the archetypal post-war suburb. Union wages created demand for more production. Long Island thrived on post-war military spending - Grumman, Republic, and Fairchild Aviation were big employers. - gwc Robert Reich (The Great U-Turn):
Do you recall a time in America when the income of a single school teacher or baker or salesman or mechanic was enough to buy a home, have two cars, and raise a family?
I remember. My father (who just celebrated his 100th birthday) earned enough for the rest of us to live comfortably. We weren’t rich but never felt poor, and our standard of living rose steadily through the 1950s and 1960s.
That used to be the norm. For three decades after World War II, America created the largest middle class the world had ever seen. During those years the earnings of the typical American worker doubled, just as the size of the American economy doubled. (Over the last thirty years, by contrast, the size of the economy doubled again but the earnings of the typical American went nowhere.)
In that earlier period, more than a third of all workers belonged to a trade union — giving average workers the bargaining power necessary to get a large and growing share of the large and growing economic pie. (Now, fewer than 7 percent of private-sector workers are unionized.)
Then, CEO pay then averaged about 20 times the pay of their typical worker (now it’s over 200 times).
In those years, the richest 1 percent took home 9 to 10 percent of total income (today the top 1 percent gets more than 20 percent).
Then, the tax rate on highest-income Americans never fell below 70 percent; under Dwight Eisenhower, a Republican, it was 91 percent. (Today the top tax rate is 39.6 percent.)