As battle cries go, the Tea Party's "Take our country back" is a pretty good one. It's short and punchy, and it addresses a very widespread sense that the nation that Americans once lived in has changed, and not for the better.
When the Tea Partyers get around to identifying how America has changed and to whose benefit, however, they get it almost all wrong. In the worldview of the American right -- and the polling shows conclusively that that's who the Tea Party is -- the nation, misled by President Obama, has gone down the path to socialism. In fact, far from venturing down that road, we've been stuck on the road to hyper-capitalism for three decades now. The Tea Partyers are right to be wary of income redistribution, but if they had even the slightest openness to empiricism, they'd see that the redistribution of the past 30 years has all been upward -- radically upward. From 1950 through 1980, the share of all income in America going to the bottom 90 percent of Americans -- effectively, all but the rich -- increased from 64 percent to 65 percent, according to an analysis of tax data by economists Thomas Piketty and Emmanuel Saez. Because the nation's economy was growing handsomely, that means that the average income of Americans in the bottom 90 percent was growing, too -- from $17,719 in 1950 to $30,941 in 1980 -- a 75 percent increase in income in constant 2008 dollars.
Since 1980, it's been a very different story. The economy has continued to grow handsomely, but for the bottom 90 percent of Americans, it's been a time of stagnation and loss. Since 1980, the share of all income in America going to the bottom 90 percent has declined from 65 percent to 52 percent. In actual dollars, the average income of Americans in the bottom 90 percent flat-lined -- going from the $30,941 of 1980 to $31,244 in 2008.
In short, the economic life and prospects for Americans since the Reagan Revolution have grown dim, while the lives of the rich -- the super-rich in particular -- have never been brighter. The share of income accruing to America's wealthiest 1 percent rose from 9 percent in 1974 to a tidy 23.5 percent in 2007.
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