Americans live in Russia, but they think they live in Sweden. – Chrystia Freeland

This is my review of the book:
Winner-Take-All Politics:  How Washington Made the Rich Richer—and Turned its Back on the Middle Class, by Paul Pierson and Jacob Hacker


No one should doubt the rising income inequality in America, which the authors trace back to the late 1970s since the latter part of Carter's presidency in what they call the "30 Year War".  Zachary Roth, in a March 4th Time magazine article stated "A slew of conservative economists of unimpeachable academic credentials--including Martin Feldstein of Harvard, Glenn Hubbard, who was President Bush's top economic adviser, and Federal Reserve chair Ben Bernanke--have all acknowledged that inequality is on the rise."

And why should we care that most of the after tax income growth since 30 years ago has gone the way of the richest Americans in a "winner-take-all" economy?  Because as Supreme Court justice biographer Melvin Urofsky stated, "in a democratic society the existence of large centers of private power is dangerous to the continuing vitality of a free people." (p. 81)  Because if unchecked, a new economic aristocracy may replace the old hereditary aristocracy America's Founders fought to defeat (p. 298).  Because unequal societies are unhappy societies, and inequality can foster individual resentment that may lead to a pervasive decline in civility and erosion of culture.

And why should we be concerned that this trend in rising inequality may not experience the period of renewal the authors are optimistic about?  Because unlike the shock of the 1930s' Great Depression that served as the impetus for the politics of middle class democracy, the potential shockwaves of the 2008 Great Recession were tempered by massive government stimulus, resulting in no meaningful financial reform, and an extension of the tax cuts for the wealthy.  And because of the lottery mentality of a large swath of the population which opposes tax increases on the rich.  One day, they or their children too can share in the American dream.  According to an October 2000 Time-CNN poll, 19 percent of Americans were convinced they belonged to the richest 1 percent.  Another 20 percent thought they'd make the rank of the top 1 percent at some point in their lives.  That's quite a turnover in the top 1 percent category to accommodate 20 percent of the population passing through.

Mr. Hacker and Mr. Pierson have put together powerful arguments on the root causes of income inequality in the U.S., its political and economic ramifications, and to a lesser extent, a roadmap to returning democracy to the masses.  This is an eye opening and disturbing, yet informative book, even for readers who may disagree with their opinions.