I’m a bit annoyed at the fact that Krugman’s book – which I have not read – makes almost precisely the same point I’ve been making – but which I thought was mine independently, though inspired a bit by a phrase Stephen Metcalf tossed off in an essay on Tom Cruise:
The ’80s did for money what the ’60s did for sex.
Instead, from that phrase – likely inspired by Metcalf’s reading of Krugman – I reconstructed the view of history Krugman was advancing. I wrote:
This stability of the 1950s and 1960s came at the expense of tamping down certain social and economic forces. The social stability was torn apart by the Civil Rights movement, feminism, free love, and the later radicalisms of the late 1960s and early 1970s. This culture war has been dominating politics since then.
The economic stability of this period was destroyed by the forces of extreme capitalism, greed, deregulation, and other economic radicalisms of the 1970s and early 1980s – as labor unions were undermined, executive compensation grew exponentially, social mobility was impeded, and economic power concentrated in a handful of large corporations.
Lindsey quotes Krugman’s book in his essay:
For a generation after World War II, fear of outrage kept executive salaries in check. Now the outrage is gone. That is, the explosion in executive pay represents a social change…like the sexual revolution of the 1960’s—a relaxation of old strictures, a new permissiveness, but in this case the permissiveness is financial rather than sexual.