I know economic inequality was on a rise before his presidency but there was a notable spike during it, does anyone know why this happened?
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Implementation of tax cuts for the rich on belief of “trickle down” and “supply side” economics. The idea was if rich keep more of their money, they’ll spend it and/or invest it and that will create more jobs. But upgrading from a 3-series BMW to a 5-series, dumping more money into one’s Fidelity stock portfolio didn’t generate all that much in the way of American jobs for the working class.
Also, businesses began to focus more on “increasing shareholder value” at their primary end goal vs. taking care of employees, providing the best products and customer services, etc. And consolidation/ economies of scale gave rise to large brands, big box retailers that decimated mom & pop businesses that had created many middle class lifestyles. Gone was Al’s Appliances providing an upper middle class income for Al and middle class salaries for his otehr workers, killed off by Best Buy and it’s minimum wage jobs.
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