Here are some of the nitty-gritty details about what really happened in the so-called “Decade of Greed.”
Average real family income grew by well over 15% from 1982 to 1989.
For the poorest fifth of Americans, real income grew almost 12%.
The
proverbial misery index took a nosedive: We experienced sustained economic growth without inflation, low unemployment, and low interest rates.
Some 20 million new jobs were created, 82% of which were in higher-skilled occupations.
The 1980s was a
decade of greatly increased personal and corporate charitable giving.
Cuts in marginal tax rates spur economic growth by providing entrepreneurs an incentive to invest their marginal tax dollars, causing many of them to earn more money and pay
more taxes on their earnings, albeit at a lower marginal rate, and create new jobs. These new jobs result in a bigger employment base and, thus, more taxpayers. More taxpayers translates into higher tax revenues-even at lower marginal rates.
