Big government isn't to blame for bad economy

The rich get richer .... (YAWN) ...

Robert Reich
San Francisco Chronicle
December 19, 2010

The tax deal negotiated between the president and Republicans is the latest version of trickle-down economics. It also confirms the Republican story of what happened to the economy and how to fix it: The bad economy is big government's fault, and the solution is to shrink government.

But the Republicans' story is wrong.

Here's the real story. Trickle-down economics has been a resounding failure. The Reagan and Bush tax cuts on the wealthy didn't help most Americans.

For three decades, an increasing share of the benefits of economic growth has gone to the top 1 percent. Thirty years ago, the top 1 percent got 9 percent of total income before taxes. Now they take in almost a quarter. Meanwhile, the earnings of the typical worker have barely budged, adjusted for inflation.

(More here.)