Monday, February 16, 2015
Two Graphs Which Depict The Post War America And the Post Reagan America
It is common knowledge, by now, that the post war period in America was very special. It was a period of rapidly rising equality. That period ended in the early 1980's and it has been followed by a period of rapidly rising inequality. PBS provided two graphs which tell this story exceptionally well. Some argue that the post war period was an anomaly and that we have returned to a more normal economic era. Others believe that the transition to the new normal was accelerated by changes in public policies. In any case, after inspecting the two graphs its hard to imagine a more striking economic transition. One wonders why it has not received the attention that it deserves from the economics profession.