(click on image to enlarge)
While many stick to the idea of an "invisible hand" operating in the market, the truth is, the invisible, or perhaps, more correctly,the hidden hand is operating in the political system.
The above graph takes data from USDA's Economic Research Service (ERS)"Marketing Bill" information.
As can be seen,something happened beginning with Reagan. Corporate profits took off. Tax rates on those profits fell.
The Census Bureau has a significant amount of information on income inequality. Looking at incomes in five groups, in constant 2008 dollars, those in the bottom group, the working poor basically stood still from 1980 to 2006. The next two groups faired about the same. However, the to fifth gained almost 50 % in income.
John Rawls wrote "A Theory of Justice" in 1971. Rawls talked about an "original position", which meant if the world were to be reorganized tomorrow, everyone would have an equal interest in justice, including economic justice. As it is there are some who have a vested interest in things being unfair.
