Posted at Hartmann Report on Nov. 26, 2023
Where Did America’s Middle Class Come From? : The Hidden History of Monopolies
We hear a lot about “the good old days,” as if to suggest that America was always an economically strong nation with a vibrant middle class. But the fact is that we got really, really rich—we being the bottom 90% of Americans—in just a few decades after World War II, as a result of Franklin Roosevelt putting into place the economic theories of Adam Smith and John Maynard Keynes, and those policies holding steady until the election of Ronald Reagan.
In 1900, the average yearly household income was $4497— the equivalent of around $13,800 in today’s dollars. That kind of income today guarantees a life of want and poverty, and it did in 1900 as well. The only buffer then was the family farm; while today only 1% of Americans live and work on farms, in 1900 it was around 40%.