By Pavlina R. Tcherneva
Growth in the US increasingly brings income inequality. A striking deterioration in this trend has occurred since the 80s, when economic recoveries delivered the vast majority of income growth to the wealthiest US households. This note updates my original inequality chart (reproduced below) with the latest data. For earlier discussions, see e.g., here, here, and here.
Figure 1: bottom 90% vs. top 10%, 1949-2012 expansions (incl. capital gains)
By William K. Black
March 28, 2017 Bloomington, MN
The good news is that the Kansas legislature, the land of the lunatics, experienced an outbreak of the reality virus (first diagnosed and named by Steve Keen among neoclassical economists). The bad news is that the Kansas’ Crazy-in-Chief, Governor Sam Brownback, has proven immune to the virus.
Brownback decided to put Art Laffer in charge of Kansas’ taxation policy. Even neoclassical economists roll their eyes when it comes to Laffer’s claims that dramatic tax decreases lead to significantly increased net tax revenues. Laffer’s batting average on this claim is .000 and his “proof” of his claim is a graph (the “Laffer curve”) that he drew that contradicts reality. Brownback knew that Laffer was batting .000 on his claims and that Laffer never drops his claims when reality (repeatedly) falsifies his graph. To no one’s surprise, Brownback’s tax cuts produced a fiscal disaster for Kansas.