Should the federal government do anything about the growing income inequality? I hear a lot of people saying, "no". They do not want progressive taxation policies, where the rich pay tax at higher rates. They do not want laws favoring labor unions. They do not want minimum wage laws. Many don't even want unemployment payments, funding of schools and hospitals, Social Security, Medicare, or Medicaid. But without such things where would we be?
Consider what happened after the Roman Empire fell. With the collapse of central government, all of the means of production was scooped up by powerful people. The rest of the people had no real choice but to sell themselves as serfs in service to these powerful lords. Is this what anyone wants? Is this not the natural progression of things if the rich are allowed to get richer and dominate all means of production?
Everybody loves what we had in the later half of the twentieth century. But to achieve that there was a groundswell of support for progressive government programs. The highest tax rates on the rich were often 70% to 90%. Government supported unions. Programs like Social Security, Medicare, and Welfare were started. Government helped make higher education affordable. The government was there as the tool to help needy people.
And think of how things were in the pioneer days. Various homestead acts allowed the poor to claim 160 acres or more for almost nothing. The government could have sold all that land to the highest bidder, allowing rich conglomerates to control it all, but they didn't. They gave opportunities to the poor. They gave away land for practically nothing. Image the outcry if the government were to announce a giveaway program like that today!
Do we need the government again to support the poor as it once did? Or should they adopt a Laissez Faire policy, letting businesses scoop up control of whatever they can, with the poor hoping that they too can somehow gain a part of the American Dream, even though they start with no capital, no higher education, and few opportunities for good jobs? It seems to me that if we want the opportunities we had in the twentieth century, we need to return to the progressive policies we had back then.
What do you think?