Let us assume that Reaganomics was actually an economic theory ... Part of it was tax cuts for all ... Most of it was to inject lower prices for goods by supplying an overabundance of goods.
It worked well in the early 1980's because we had a much larger manufacturing base back then.
Since then, we have had four administrations whose policies have resulted in driving that same manufacturing base overseas. In 1980, the largest4 corporations represented 20% of the jobs in this country. Now it is about 5%.
In addition, the BLS reports for the median wage in the country is 28,000 and change. People do not have the spending power to fill the gaps, and we do not have the manufacturing jobs to hire these people back.
75% of the jobs are part of the tertiary economy and not the primary or secondary natural creation of materials or the mechanism to make products out of those materials.
In short, everything has changed in terms of the U.S. economy in the last 30 years, yet the policies have not changed in terms of adjusting.
In the early 1970's ... When Nixon took us off the Gold Standard ... He stated "We are all Keynsians now" ... Not a lot has really changed since then.
That was the last major change in monetary policy ... The next one could very well be far more tragic.
Shermann
