Productivity keeps going up in this country. Then global competition pushes it up in other countries. The result of global competition is a greater disparity in incomes. Mean purchasing power goes up while median purchasing power goes down. That is, increasing compensation of top executives brings up the average income while over half the population earns less in constant dollars.
Workers become less eager taxpayers.
They want their purchasing power to yield the same quantity of goods and public services, although they need a tax break in order to purchase the same quantity of goods. All rights reserved.