The Path to Inequality: How Presidential Policies of the Last 60 Years Have Empowered the 1% and Undermined the Average American
Over the last six decades, policies from various U.S. administrations have systematically concentrated wealth and power among the top 1% of earners. While each president’s intentions may have varied, their tax policies, economic reforms, and deregulation efforts have created a widening gap between the wealthy elite and the average American. This article explores which presidents contributed most significantly to this inequality and what must be done to restore balance and opportunity for all citizens.
Presidents Who Empowered the 1%
Ronald Reagan (1981–1989)
Perhaps the most significant shift toward favoring the wealthy came during Ronald Reagan’s presidency. His administration championed “supply-side economics,” colloquially known as “trickle-down economics.” Key policies included:
- Economic Recovery Tax Act of 1981: This legislation slashed the top marginal income tax rate from 70% to 50% and reduced capital gains taxes, overwhelmingly benefiting the wealthiest Americans.
- Tax Reform Act of 1986: This act lowered the top individual tax rate further to 28% while increasing taxes for lower-income Americans in some cases through the elimination of deductions.
- Union Busting: Reagan’s firing of striking air traffic controllers in 1981 set the tone for decades of declining union power, weakening worker protections and bargaining power.
While Reagan’s policies were heralded by some for spurring economic growth, the wealth created during this era overwhelmingly flowed to the top, while middle-class wages stagnated.
George W. Bush (2001–2009)
The Bush administration further tipped the scales in favor of the wealthy through two major tax cuts:
- Economic Growth and Tax Relief Reconciliation Act (2001) and the Jobs and Growth Tax Relief Reconciliation Act (2003): These tax cuts reduced the top income tax rate and significantly lowered capital gains and dividend taxes. The top 1% of earners benefited disproportionately, while deficits ballooned, placing strain on public services that benefit the middle and lower classes.
Bush’s policies also included deregulation in the financial sector, which contributed to the 2008 financial crisis. The resulting recession wiped out wealth for millions of average Americans, while the wealthiest rebounded quickly due to government bailouts and rising stock markets.
Bill Clinton (1993–2001)
While Clinton is often associated with economic prosperity, his policies also contributed to inequality:
- Financial Deregulation: The repeal of the Glass-Steagall Act in 1999 allowed commercial and investment banks to merge, paving the way for risky financial practices that ultimately benefited Wall Street while destabilizing the broader economy.
- Trade Policies: NAFTA (North American Free Trade Agreement) and other trade deals led to the offshoring of manufacturing jobs, decimating industries that had been the backbone of the middle class.
Although Clinton raised taxes on the wealthy early in his presidency, his deregulation and trade policies had long-term consequences that disproportionately harmed working Americans.
Donald Trump (2017–2021)
The Trump administration’s tax policies significantly benefited corporations and the wealthy:
- Tax Cuts and Jobs Act (2017): This act reduced the corporate tax rate from 35% to 21% and lowered individual tax rates, with the largest benefits going to high-income earners. Meanwhile, many of the cuts for middle- and lower-income taxpayers were set to expire, ensuring that the benefits for the wealthy would endure.
- Deregulation: Trump rolled back regulations in banking, labor, and environmental protections, further consolidating power and wealth among corporations and their executives.
Trump’s economic policies accelerated the trend of wealth concentration, with billionaires seeing record gains during his presidency while wages for most Americans remained stagnant.
The Challenges We Face Today
The cumulative effect of these policies has led to stark economic realities:
- Wealth Concentration: The top 1% now controls over 30% of the nation’s wealth, while the bottom 50% holds less than 2%.
- Stagnant Wages: Median household incomes have barely kept pace with inflation, while costs for housing, healthcare, and education have skyrocketed.
- Erosion of Worker Rights: Declining union membership and the gig economy have left workers with fewer protections and benefits.
- Political Influence: Wealthy individuals and corporations wield disproportionate influence through campaign contributions and lobbying, skewing policies in their favor.
What Needs to Change?
To restore balance and ensure a fair playing field, significant reforms are necessary:
1. Progressive Tax Reform
- Raise Taxes on the Wealthy: Reinstate higher marginal tax rates for top earners and increase taxes on capital gains and dividends to align them with income tax rates.
- Close Loopholes: End tax avoidance strategies used by corporations and the ultra-rich, such as offshore accounts and pass-through entities.
2. Strengthen Labor Protections
- Revitalize Unions: Pass laws to protect union organizing and collective bargaining.
- Increase the Minimum Wage: Ensure that full-time workers can afford a basic standard of living.
3. Campaign Finance Reform
- Overturn Citizens United: Limit the influence of money in politics by capping campaign contributions and requiring full transparency.
- Publicly Fund Elections: Level the playing field by reducing candidates’ dependence on wealthy donors.
4. Rein in Corporate Power
- Break Up Monopolies: Enforce antitrust laws to prevent corporations from dominating industries and suppressing competition.
- Hold Companies Accountable: Penalize businesses that exploit workers or avoid taxes.
5. Expand Social Safety Nets
- Healthcare Reform: Transition to a system that ensures affordable healthcare for all Americans, reducing the financial burden on families.
- Education and Training: Invest in affordable education and vocational training to prepare workers for the jobs of the future.
The Path Forward
The challenges facing the average American are not insurmountable, but they require bold action and collective will. We must demand accountability from our leaders and advocate for policies that prioritize the well-being of the many over the wealth of the few. The future of our democracy and republic depends on it. If we fail to act, the gap between the elite and the rest of us will only widen, threatening the very foundation of the American Dream.
Change begins with us—at the ballot box, in our communities, and through relentless advocacy for a more equitable and just society. Together, we can reclaim the promise of this nation and ensure that every American has the opportunity to live a comfortable, dignified life.
Written By Scott Randy Gerber for The Tipping Point Tampa Bay © 2025 All Right Reserved
Leave a Reply