"…That social contract began to break down in the late 1970s. The power of unions was undermined, and taxes on the wealthy cut back. Typical workers' wages, which had previously increased in tandem with overall economic growth, started to lag behind. Inflation-adjusted wages stagnated and at times decreased. The result was a decline in many aspects of quality of life for the majority of Americans. One shocking way this became evident was in changes to the average life expectancy, which stalled and even went into reverse (and this started well before the Covid pandemic). That's what we term "popular immiseration".
With the incomes of workers effectively stuck, the fruits of economic growth were reaped by the elites instead. A perverse "wealth pump" came into being, siphoning money from the poor and channelling it to the rich. The Great Compression reversed itself. In many ways, the last four decades call to mind what happened in the United States between 1870 and 1900 – the time of railroad fortunes and robber barons. If the postwar period was a golden age of broad-based prosperity, after 1980 we could be said to have entered a Second Gilded Age..."
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