Our friend John Huppenthal is now back posting comments after recovering from his post-election blues. No word yet on whether he’s gong to seek office again. Or whether he’s undergone counseling to confront his inner racist.
But his understanding of economics hasn’t changed. More directly, he still has no understanding of even the most basic concepts.
In recent comments, ole Thuckarooskie has been citing statistics comparing 1980 to 2008, in order to show that supply side economics works.
Lest nobody be taken in by the Thuckster’s hucksterism, here’s an apples-to-apples comparison of this supposed golden period, 1980 to 2008, to an earlier 28-year period, 1945 to 1973.
1980 – 2008: GDP increased (in inflation-adjusted dollars) from 6.5 trillion to 14.58 trillion, a 124% increase. The portion of that GDP flowing to the bottom 90% decreased from 68% to 55%, however, which means the percentage increase in GDP flowing to the bottom 90% was 81% over that period. Because population also increased 45% during that period, the increase in per capita GDP to the bottom 90% was 25%, or 25.12% to be fair, but under 1% per year.
1945 – 1973: GDP increased (again, inflation-adjusted dollars) from 2.22 trillion to 5.46 trillion, a 146% increase. The portion of that GDP flowing to the bottom 90% increased from 66% to 68%, so the percentage increase in GDP flowing to the bottom 90% was 153%. Because population also increased by 50% during that period, the increase in per capita GDP to the bottom 90% was 68.93%, close to triple the increase experienced by that group over the 1980 – 2008 period.
Doing the same analysis for the top 10%, the result would be the opposite: A 118% increase in per capita GDP during the 1980 to 2008 period, but only a 54% increase during the 1945 to 1973 period.
Between 1945 and 1973, 30% of the increase in GDP flowed to the top 10%. Between 1980 and 2008, 55% of the increase in GDP flowed to the top 10%.
Don’t listen to the man behind the curtain.