In our previous article – Progressive Taxation: Not on Hillary’s Agenda – we touched on the laundry list of proposals the Democratic front-runner was offering to help fix the economy. Many were good ideas – others like implying it is OK to tax millionaires and secretaries at the same effective rate – not so much. We don’t need a laundry list of great ideas – we need a basic acknowledgment that something is fundamentally wrong – and that it needs to be fixed.
What’s wrong is that the rate of economic growth is this country has been slowing over time to the point where it is barely keeping up with population growth. As shown in the above graph, from an average growth rate of more than 4% in the 1950’s and 1960’s, the rate of growth slowed in the decades from 1970 until 2000 to just over 3%, then slowed again to an average of under 2% since 2000.
The big issues of our day – lack of good jobs, stagnating wages and income inequity all stem in part from the fact that our economy is not keeping pace. How does the U.S. compare to other countries? What are some of reasons behind stagnating growth? And how do we fix our broken economy? These are some of the issues we will be discussing in upcoming editions of The Democratic View.