Originally posted by newcovenant
reply to post by NavyDoc
About a third of American benefited but your Pro-Reagan rant still overlooks the vast majority - 70% of Americans that saw nothing during the Bush years except their lives go downhill and their financial straights get worse. You present the upside and it was boom times for the stock market and people who'd invested but not for anyone else which if it matters was the MAJORITY OF AMERICANS.
Not-Quite-So-Good Times Off Wall Street
... the expansion of stockownership to nearly 30% of American households still left more than two-thirds of the country shut out of direct benefits from the great bull market of the Age of Reagan.
For the 70% of American households that still lacked any stake at all in the stock market, the Reagan economy was not quite so lustrous as it seemed to those enjoying the fruits of rising equity values.
Real wages, which had increased steadily from 1945 to 1972 but then stalled through the stagflation era, remained flat through the 1980s...
In short, the economic outlook for middle- and working-class families who depended on wages for their incomes was... worse than it had been during the 1950s and '60s.
The uneven distribution of benefits from the Reagan boom reflected a growing trend toward what has been called the "financialization" of the American economy.
As the financial sector displaced industrial manufacturing as the dominant economic force in American society, the gains from growth came to accrue almost entirely to those with major investments in the market, while individuals dependent solely upon wages and salaries found it harder and harder to get ahead.
During Ronald Reagan's presidency, the wealthiest one-fifth of American households (those who naturally owned the most stock) saw their incomes increase by 14%.
Meanwhile, the poorest one-fifth (who presumably owned no stock) endured an income decline of 24%, while the incomes of the middle three-fifths of American families stayed more or less flat.
This uneven pattern represented a marked departure from the earlier economic expansions of the 1940s, '50s, and '60s, which had generated smaller returns for investors but raised income levels across all classes of society.