For over 30 years, we have been consumed by the theory that giving to the ultra rich in the form of tax-breaks or loopholes, will allow them to give back to us in return. And for over 30 years, while this theory has been in full force, the economy for the most part, has been on a decline, the poor got poorer, the middle class just made enough to scrape by and the rich continued getting richer.
Explaining Reaganomics
The theory is called “Reaganomics,” and is based on what I call economic slavery - making sure the rich stay rich, while everyone else work double and triple shifts just to survive.
Like the name implies, Reaganomics was introduced in the Reagan administration back in the 1980’s and had four major principles. Among these principles, two stands out;
- Deregulation: According to William A. Niskanen, one of the authors of Reaganomics, “Reagan eased or eliminated price controls on oil and natural gas, cable TV, long-distance telephone service, interstate bus service, and ocean shipping. Banks were allowed to invest in a somewhat broader set of assets, and the scope of the antitrust laws was reduced.”
- Tax Cuts for the Wealthy: Mr. Niskanen also wrote about this, saying “The changes to the federal tax code were much more substantial. The top marginal tax rate on individual income was reduced from 70 percent to 28 percent. The corporate income tax rate was reduced from 48 percent to 34 percent.” (continue reading...)
