Robert Reich in SF Gate:
...Fairness isn't inconsistent with growth. It's essential to it. The only way the economy can grow and create more jobs is if prosperity is more widely shared.
For years, conservative "supply-side" economists have told America not to be worried about widening inequality. They have said tax cuts for corporations and the rich will lead to more economic growth and jobs.
It has been a cruel hoax. Nothing has trickled down. The Bush tax cuts of 2001 and 2003 - the lion's share of whose benefits went to the wealthy - ushered in an era of slow growth, fewer jobs, declining wages and mammoth budget deficits.
You want to know the real reason the economy crashed in 2008 and why the recovery has been so anemic? Because so much of the nation's income and wealth have become concentrated at the top that America's vast middle class doesn't have enough purchasing power to keep the economy going.
This was masked when members of the middle class borrowed billions of dollars against the rising values of their homes. But after the housing and debt bubbles burst, borrowing on that scale no longer was an option.
So when the top 1 percent rakes in more than 20 percent of total income - twice the share it had 30 years ago - there's insufficient demand for all the goods and services the economy is capable of producing at or near full employment. Without enough demand, the economy can't grow or generate nearly enough jobs.