The policies followed during the past, starting with Ronald Reagan, are what led to our current situation. We have a self serving concentration of power and wealth in the hands of a small, less than 1%, of the population. Our revolution was to get away from that very concentration of power and our democratic system was designed to prevent its return. The powerful have found a way to subvert that system. If we are to get back to a well balanced society and economy we must change the policies to ones that will empower more of the middle class.
Thomas Jefferson wrote to George Logan, Nov. 12, 1816: "I hope we shall . . crush in its birth the aristocracy of our moneyed corporations, which dare already to challenge our government to a trial of strength and to bid defiance to the laws of their country."
Hacker and Pierson in their book, "Winner-Take-All Politics: How Washington Made the Rich Richer and Turned Its Back on the Middle Class," explain that the imbalance of power came about as a result of improved organization of the Republicans in the 70's at a time when the Democrats had become complacent. The organization focused on Republican becoming the party for powerful and wealthy. That focus brought money to the party in amounts many times greater than what the Democrats had to work with.
They show that the share of national income held by the richest 1% went from 8% of income in 1976 to 24% in 2007. Also that the U.S. in 2000 had the highest concentration of income in the top 1% of the 12 richest nations. At the same time, the marginal tax rate for the top 1% income group went from 45% in 1976 to 31% in 2004. The marginal rate for the top .01% income group went from 70% in 1976 to 33% in 2004 (approximate numbers).
