What GOP's "Trickle-Down" Has Done To Income Growth

The chart above is by Bard College and Levy Institute economist Pavlina Tcherneva. The chart was based on statistics from Thomas Piketty's best-selling book, Capital in the 21st Century. It paints a very clear picture of what has happened to income growth since 1949, and why most people are having such a tough time recovering from the Republican recession.

Note that between 1949 and 1979, rising productivity was shared with both the 90% and the top 10% getting a share of it. This resulted in a healthy economy and a large and growing middle class. But about 1980 the Republicans and their corporate buddies altered the economic playing field to favor the rich and the corporations. They told people that these new economic rules would benefit everyone, but they lied.

The chart shows just what happened. The rich and the corporations were able to start hogging nearly all of the rising productivity (income), and when the Bush administration doubled-down on these GOP "Trickle-Down" economic policies, they stopped sharing any of it. Income is still growing in this country, thanks to rising productivity, but it now is growing only for the richest 10%. The other 90% is falling further behind every year.

And it has resulted in the largest gap in income and wealth between the rich and the rest of America since before the Great Depression -- a gap that continues to grow (since the GOP has blocked all efforts to return to a sane and fair economic policy).

Americans are rightfully angry with Congress over their failure to fix the economy and create enough new jobs. But they need to understand that the economy will not be fixed as long as the Republicans retain any power in Washington. They sold out to the rich and corporations decades ago, and they must be voted out of power before a healthy economy can be restored.