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Exclusive: New studies show that America's corporate chieftains are living like kings while the middle class stagnates and shrivels. Yet, the Tea Party and other anti-tax forces remain determined to protect the historically low tax rates of the rich and push the burden of reducing the federal debt onto the rest of society, a curious approach explored by Robert Parry.
If the "free-market" theories of Ayn Rand and Milton Friedman were correct, the United States of the last three decades should have experienced a golden age in which the lavish rewards flowing to the titans of industry would have transformed the society into a vibrant force for beneficial progress.
After all, it has been faith in "free-market economics" as a kind of secular religion that has driven U.S. government policies - from the emergence of Ronald Reagan through the neo-liberalism of Bill Clinton into the brave new world of House Republican budget chairman Paul Ryan.
By slashing income tax rates to historically low levels - and only slightly boosting them under President Clinton before dropping them again under George W. Bush - the U.S. government essentially incentivized greed or what Ayn Rand liked to call "the virtue of selfishness."
Further, by encouraging global "free trade" and removing regulations like the New Deal's Glass-Steagall separation of commercial and investment banks, the government also got out of the way of "progress," even if that "progress" has had crushing results for many middle-class Americans.
True, not all the extreme concepts of author/philosopher Ayn Rand and economist Milton Friedman have been implemented - there are still programs like Social Security and Medicare to get rid of - but their "magic of the market" should be glowing by now.
We should be able to assess whether laissez-faire capitalism is superior to the mixed public-private economy that dominated much of the 20th Century.
The old notion was that a relatively affluent middle class would contribute to the creation of profitable businesses because average people could afford to buy consumer goods, own their own homes and take an annual vacation with the kids. That "middle-class system," however, required intervention by the government as the representative of the everyman.
Comment: For more understanding of pathological behavior, ponerology and psychopathy, see these Sott links:
Beware the Corporate Psychopath
Psychopaths Among Us
What "Psychopath" Means; It is not quite what you may think
Political Ponerology: A Science of Evil Applied for Political Purposes
Political Ponerology: A Science on The Nature of Evil adjusted for Political Purposes
Political Ponerology book review: A science on the nature of evil adjusted for political purposes