Elizabeth Warren: "America's Middle Class Is In Deep Trouble."
"The spirit of trickle-down politics is to blame, according to Warren. It's just "magical accounting scams that pretend to cut taxes and raise revenue." In the 1980s, President Reagan and his economic swami Arthur Laffer pushed the concept that slashing taxes on the rich will actually benefit the poor; the top 1 percent would have more money to spend and would end up revving the entire economy. "Trickle-down was popular with big corporations and their lobbyists," Warren said, "but it never really made much sense." This theory has generally been debunked by economists but is still loved by Republicans. The new House majority has already changed the way Congress does math in order to align with trickle-down theories, and Republican governors have tanked state budgets by lowering taxes on the rich—all while promising those tax cuts will help state economies.
Add in Wall Street deregulation, and you've built a powder keg to keep the middle class down. "Pretty much the whole Republican Party—and, if we're going to be honest, too many Democrats—talked about the evils of 'big government' and called for deregulation," Warren said. "It sounded good, but it was really about tying the hands of regulators and turning loose big banks and giant international corporations to do whatever they wanted to do"."
