Politics Becomes Nasty When My Gain Is Your Loss

Some people compare the politics and politicians of today unfavorably with those of 1950s and 1960s.  But two things different today compared to then.  Actually, many things are different, but two of them are especially important when it comes to our economy and our politics.

First, the economy today is growing at little more than 2% a year, if that.  In the 1950s and 1960s, it was growing much faster.  Second, government, and especially the federal government, was smaller back then.  Which means two things.

One, when the economy is growing faster, there is more for people each year (whether via the market or from the government).  When the economy is growing slower, there is less.  The lower the rate of growth, the smaller the extra amount in the economy that can be divided up among the people.