Kevin Phillips criticizes the Reagan administration

Kevin Phillips criticizes the Reagan cheek for grossly redistributing wealth from the poor to the rich. He refers to this phenomenon as the up state of ward redistribution of wealth. He feels that the countrys current economic climate continues to exceed an un reliable advantage to the rich, by means of tax revenue-code restructuring and deregulation of secluded enterprises. Phillips maintains that the tax burden on rich people has to be considerably adjoin and tax benefits for corporation has to be cut down to facilitate fair distribution of wealth.Phillips draws up on statistical data to reiterate his views on economic inequality one percent of Americans belonging to the rich selected class own more than 40 percent of the nations total wealth, according to a 1997 study. Such striking diversity in wealth distribution was witnessed before only during the Great Depression of tardily 1920s. Citizens from middle income group have experienced a meager increase of 2.8 percent in s tock market during the 90s, while being responsible for 38.7 percent of the rise in debt. A majority of people in this group are religious and conservative voters. According to the Wall pass Journal, 90 percent of private stocks are owned by the bird feeder 10 percent. This trend has resulted in widening of the economic divide and mute degradation of the middle class in America.Middle-class Americans becoming wealthier in the eighties was primarily due to a surge in the economy, and certainly not due to the Governments redistribution of existing wealth (National Review). The eighties withal marked a period of decent employment opportunities of the poor and nonage groups. During the 80s, a CEOs salary was 93 times that of a normal worker, and this figure has leaped to 419 times in the 90s (Phillips 1991). The wage distribution patterns of private corporations clearly indicate the extent of income disparity and explain difference in lifestyles.The Cold War marked the period betwe en the post war 1940s and 1991, when the USA and USSR were competing in a virtual war comprising of armor race, creating espionage and forging strategic alliances. This also included fighting proxy wars much(prenominal) as Korean War, Vietnam War and Afghan War by utilise political pawns. America was spending a great sum of currency to gain strategic advantage and political pride over the Soviet Union.The two-tier wage system is policy adopted by corporations, by which impertinently hired employees are paid much lesser wages compared to fastness employees (Kebler). Although this results in a lot of cost saving to the employers, it leads also to secernment discontent among one class of workers. This system also encourages companies to lay transfer senior employees through retirement schemes and buyouts, thereby leading to insecurity among senior workers. Bargain basement is also short term credit propose concept which was prevalent during this period wherein money comes at a lesser value, but helps to improve the economy since the inflow of money is consistent. separate out-down economics is characterized by tax benefits for rich citizens and corporations (Wikipedia). This policy is justified by the assumption that calling will use tax savings to further contribute to economic growth. Reagans economic policy was aligned towards trickle-down economics and also vouched for deregulation. It also gruelling on cut down on government spending, so as to control the money supply and bring down inflation. Trickle-down economics, also sleep with as Reaganomics, led to problems such as tax evasions for the government. Kevin Phillips suggests that these policies did more pervert rather than good to the US economy.ReferenceKebler, Harry. Unions Accepting a Two-Tier Pay body are Giving a Major Concession to Bosses. Retrieved 14 December, 2007, Phillips, Kevin. (1991). The political relation of the rich and poor Wealth and the American Electorate in the Reagan Aftermath. Harpercollins.National Review. (1991). The Eighties Economy. Retrieved 14 December, 2007,Rast, Ben. Book Review The Politics Of Rich And Poor. Retrieved 14 December, 2007,Wikipedia. Kevin Phillips. Retrieved 14 December, 2007,Wikipedia. Trickle Down Economics. Retrieved 14 December, 2007,