Thomas Piketty on the rise of Bernie Sanders: the US enters a new political era
about 2 years ago
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"Because he is facing the Clinton machine, as well as the conservatism of mainstream media, Sanders might not win the race. But it has now been demonstrated that another Sanders – possibly younger and less white – could one day soon win the US presidential elections and change the face of the country. In many respects, we are witnessing the end of the politico-ideological cycle opened by the victory of Ronald Reagan at the 1980 elections."
"From 1930 to 1980 – for half a century – the rate for the highest US income (over $1m per year) was on average 82%, with peaks of 91% from the 1940s to 1960s (from Roosevelt to Kennedy), and still as high as 70% during Reagan’s election in 1980. This policy in no way affected the strong growth of the post-war American economy, doubtless because there is not much point in paying super-managers $10m when $1m will do. The estate tax, which was equally progressive with rates applicable to the largest fortunes in the range of 70% to 80% for decades (the rate has almost never exceeded 30% to 40% in Germany or France), greatly reduced the concentration of American capital, without the destruction and wars which Europe had to face."
I have often told people the election of Reagan was a watershed moment but many don't believe me... Glad to have some backup.
I tend to think that US economy has transitioned significantly enough, so it constantly grinds those in power and turns them to poverty, effectively growing numbers of left and grinding numbers of right. And they can't do much, as general high-level setup of economy is made to do that.
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