Notes
 

Introduction: The Thirty-Year War

1 Graham Bowley and Zachary Kouwe, “Rivals Await Blankfein’s Bonus at Goldman Sachs,” New York Times, February 3, 2010. Stephen Grocer and Aaron Lucchetti, “Traders Beat Wall Street CEOs in Pay,” Wall Street Journal, April 6, 2010.

2 Louise Story and Eric Dash, “Banks Prepare for Big Bonuses, and Public Wrath,” New York Times, January 9, 2010; “Goldman Sachs 2009 pay up as profit soars: Bank posts $4.79 billion 4Q profit; 2009 bonuses, pay up 47 percent,” MSNBC.com, January 21, 2010, http://www.msnbc.msn.com/id/34972351/.

3 Bloomberg, “John Paulson Tops Alpha Hedge Fund Pay List,” Telegraph, April 16, 2008.

4 Story and Dash, “Banks Prepare for Big Bonuses.”

5 John Arlidge, “I’m Doing ‘God’s Work.’ Meet Mr. Goldman Sachs,” Sunday Times, November 8, 2009.

6 Christian E. Weller and Jessica Lynch, Household Wealth in Freefall: Americans’ Private Safety Net in Tatters (Washington, D.C.: Center for American Progress, April 2009), 7.

7 Peter S. Goodman, “U.S. Job Seekers Exceed Openings by Record Ratio,” New York Times, September 26, 2009.

8 Calculated from the Congressional Budget Office (CBO), Historical Effective Tax Rates, 1979–2006 (Washington, D.C.: CBO, April 2009), available at www.cbo.gov/ftpdocs/100xx/doc10068/effective_tax_rates_2006.pdf (data available at www.cbo.gov/publications/collections/tax/2009/average_after-tax_income.xls); and CBO, “Historical Effective Tax Rates, 1979 to 2005: Supplement with Additional Data on Sources of Income and High-Income Households, Dec. 23, 2008), available at www.cbo.gov/ftpdocs/98xx/doc9884/12–23-EffectiveTaxRates_Letter.pdf (data available at www.cbo.gov/doc.cfm?index=9884&type=2). As discussed in chapter 1, the CBO uses both Census Bureau income data (which is good at capturing middle-class incomes) and income-tax data (which is good at capturing the incomes of the rich). Its measure of income is comprehensive (wages, salaries, self-employment income, rents, taxable and nontaxable interest, dividends, realized capital gains, cash transfer payments, and cash retirement benefits, as well as all in-kind benefits, such as Medicare, Medicaid, employer-paid health insurance premiums, food stamps, school lunches and breakfasts, housing assistance, and energy assistance). Federal taxes are subtracted from income and account for not just income and payroll taxes paid directly by individuals and households, but also taxes paid by businesses (corporate income taxes and the employer’s share of Social Security, Medicare, and federal unemployment insurance payroll taxes). The CBO assumes that the employer’s share of payroll taxes is passed on to employees in the form of lower wages, and that corporate income taxes are borne by owners of capital in proportion to their income from interest, dividends, capital gains, and rents.

9 Jodie T. Allen and Michael Dimock, “A Nation of ‘Haves’ and ‘Have-Nots,’” Pew Research Center for the People and for the Press, September 13, 2007, http://pewresearch.org/pubs/593/haves-have-nots.

10 Using individual income tax returns, Jon Bakija and Bradley T. Heim find that “executives, managers, supervisors, and financial professionals account for about 60 percent of the top 0.1 percent of income earners in recent years, and can account for 70 percent of the increase in the share of national income going to the top 0.1 percent of the income distribution between 1979 and 2005.” Bakija and Heim, “Jobs and Income Growth of Top Earners and the Causes of Changing Income Inequality: Evidence from U.S. Tax Return Data” (working paper, Williams College, Office of Tax Analysis, March 17, 2009).

Chapter 1. The Winner-Take-All Economy

1 What’s more, the statistics for the United States are available all the way back to the establishment of the income tax in 1913. The latest numbers released by Piketty and Saez are for 2007, thus covering a far longer period than any similar evidence. All of the data described here are available in Excel format through Emmanuel Saez’s website, http://elsa.berkeley.edu/~saez/TabFig2007.xls.

2 Robert Frank, Richistan: A Journey Through the American Wealth Boom and the Lives of the New Rich (New York: Crown Publishers, 2007).

3 Jon Bakija and Bradley T. Heim, “Jobs and Income Growth of Top Earners and the Causes of Changing Income Inequality: Evidence from U.S. Tax Return Data,” working paper, Williams College, Office of Tax Analysis (March 17, 2009).

4 For example, according to work done in 2009 by the economist Richard Burkhauser and his colleagues, this pattern also shows up in the so-called internal data for the Current Population Survey—the original responses to the survey, which are not as severely truncated at high income levels as the official results provided to outside researchers. Richard V. Burkhauser, Shuaizhang Feng, Stephen P. Jenkins, and Jeff Larrimore, “Recent Trends in Top Income Shares in the USA: Reconciling Estimates from March CPS and IRS Tax Return Data,” Institute for the Study of Labor Discussion Paper No. 4426 (September 2009).

5 For a more systematic exploration of the role of partisanship, see Lane Kenworthy, “How Much Do Presidents Influence Income Inequality?” (October 7, 2009), forthcoming, http://www.u.arizona.edu/~lkenwor/challenge2010.pdf. Kenworthy concludes: “If we turn to data that include the top 1%, we find only a weak association between president’s party and changes in inequality since the 1970s.”

6 A treasure trove of Congressional Budget Office data is available at http://www.cbo.gov/publications/collections/taxdistribution.cfm.

7 Jared Bernstein and Karen Kornbluh, “Running Faster to Stay in Place: The Growth of Family Work Hours and Incomes,” New America Foundation Work and Family Program research paper (June 2005), 5.

8 The data (from the Organization for Economic Cooperation and Development) are available at http://stats.oecd.org. The EU15 is comprised of Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden, and the United Kingdom. The measure used is GDP (expenditure approach) per head, adjusted for inflation and purchasing power.

9 The OECD data on “total labour force % of population” are not available for 2005 and 2006 for the United States.

10 This discussion is again based on OECD data—in this case, on “average annual hours actually worked per worker.” Output per hour worked was calculated for the U.S. and EU15 (excluding Germany, for which data are not available) using the Conference Board Total Economy Database, January 2010, available at http://www.conferenceboard.org/economics.database.cfm.

11 Paul Krugman, “The Big Zero,” New York Times, December 27, 2009.

12 Ron Scherer, “Number of Long-Term Unemployed Hits Highest Rate Since 1948,” Christian Science Monitor, January 8, 2010.

13 U.S. Census Bureau, “Census Bureau Reports on Residential Vacancies and Home Ownership,” Washington, D.C.: U.S. Department of the Commerce, April 27, 2009, available at http://www.census.gov/hhes/www/housing/hvs/qtr109/files/q109press.pdf.

14 Robert Greenstein, Sharon Parrott, and Arloc Sherman, “Poverty and Share of Americans Without Health Insurance Were Higher in 2007—And Median Income for Working-Age Households Was Lower—Than at the Bottom of Last Recession,” Center on Budget and Policy Priorities, Washington, D.C., August 26, 2008, available at http://www.cbpp.org/cms/?fa=view&id=621.

15 Emmanuel Saez, “Striking It Richer: The Evolution of Top Incomes in the United States (Update with 2007 Estimates),” University of California, Berkeley, August 5, 2009, available at http://elsa.berkeley.edu/~saez/saez-UStopincomes-2007.pdf.

16 Good summaries of recent mobility studies are contained in Katharine Bradbury and Jane Katz, “Trends in U.S. Family Income Mobility, 1967–2004,” Federal Reserve Bank of Boston Working Paper No. 09–7 (August 20, 2009); Thomas L. Hungerford, “Income Inequality, Income Mobility, and Economic Policy: U.S. Trends in the 1980s and 1990s,” Congressional Research Service Report for Congress (April 4, 2008); and Isabel Sawhill and John E. Morton, “Economic Mobility: Is the American Dream Alive and Well?” Economic Mobility Initiative: An Initiative of the Pew Charitable Trusts (February 2008).

17 Wojciech Kopczuk, Emmanuel Saez, and Jae Song, “Uncovering the American Dream: Inequality and Mobility in Social Security Earnings Data Since 1937,” National Bureau of Economic Research (NBER) Working Paper No. 13345 (August 2007), 14, 40.

18 Miles Corak, “Chasing the Same Dream, Climbing Different Ladders: Economic Mobility in the United States and Canada,” Economic Mobility Initiative: An Initiative of the Pew Charitable Trusts (January 2009), 7.

19 See table 3.13: Change in Private Sector Employer-Provided Pension Coverage, 1979–2006 in Lawrence Mishel, Jared Bernstein, and Heidi Shierholz, The State of Working America 2008/2009 (Cornell: Cornell University Press, 2008).

20 Jack VanDerhei, Sarah Holden, and Luis Alonso, “401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2008,” Employee Benefit Research Institute No. 335 (October 2009): 16.

21 Alicia H. Munnell, Anthony Webb, and Francesca Golub-Sass, “The National Retirement Risk Index: After the Crash,” Center for Retirement Research at Boston College Brief No. 9–22 (October 2009).

22 David Himmelstein, Deborah Thorne, Elizabeth Warren, and Steffie Woolhandler, “Medical Bankruptcy in the United States, 2007: Results of a National Study,” American Journal of Medicine 122: 8 (2007): 741–746.

23 Organization for Economic Cooperation and Development, OECD Health Data 2009—Frequently Requested Data (November 2009), http://www.irdes.fr/EcoSante/DownLoad/OECDHealthData_FrequentlyRequestedData.xls.

24 Jacob S. Hacker, “The New Push for American Health Security,” in Health at Risk: America’s Ailing Health System—and How to Heal It, Jacob S. Hacker, ed. (New York: Columbia University Press, 2008), 120; Ellen Nolte and C. Martin McKee, “Measuring the Health of Nations: Updating an Earlier Analysis,” Health Affairs 27, no. 1 (2008): 58–71.

25 Katherine Swartz, “Uninsured in America: New Realities, New Risks,” in Health at Risk: America’s Ailing Health System—and How to Heal It, Jacob S. Hacker, ed. (New York: Columbia University Press, 2008), 32–65.

26 The main survey that asks people about their spending (the Consumer Expenditure Survey) comes up with less than wholly reliable results, especially in the 1990s. In particular, it appears to miss a huge share of overall consumer spending: The survey misses almost half of aggregate spending on nondurable goods in 2000. More important, the share that is missing has been growing rapidly over time. (For example, the survey suggests implausibly that consumer spending fell sharply during the boom of the 1990s.) Orazio Attanasio, Erich Battistin, and Hidehiko Ichimura, “What Really Happened to Consumption Inequality in the U.S.?” NBER Working Paper No. 10338 (March 2004); Ian Dew-Becker and R. J. Gordon, “Unresolved Issues in the Rise of American Inequality,” Brookings Papers on Economic Activity 38, no. 2 (Fall 2007).

27 Christian Broda and John Romalis, “Inequality and Prices: Does China Benefit the Poor in America?” (March 26, 2008). For a sense of how much hype there has been around this argument, see Steven D. Levitt, “Shattering the Conventional Wisdom on Growing Inequality,” Freakonomics blog, May 19, 2008, http://freakonomics.blogs.nytimes.com/2008/05/19/shattering-the-conventional-wisdom-on-growing-inequality/.

28 E. N. Wolff, “Recent Trends in Household Wealth in the United States: Rising Debt and the Middle-Class Squeeze,” Levy Institute Working Paper No. 502 (June 2007), 15. See also Conchita D’Ambrosio and Edward N. Wolff, “The Distribution of Wealth and the Polarization of Income in the United States from 1983 to 2004: Inequality and Polarization,” paper prepared for the workshop “Income Polarization: Measurement, Determinants and Implications,” Israel (May 26–28, 2008).

29 Matthew Miller and Duncan Greenberg, eds., “Special Report: The Forbes 400,” Forbes, September 17, 2008; Nina Munik, “Money Trails: Don’t Blink. You’ll Miss the 258th-Richest American,” New York Times, September 25, 2005.

30 Wolff, “Recent Trends in Household Wealth”; D’Ambrosio and Wolff, “The Distribution of Wealth.”

31 N. Gregory Mankiw, “The Wealth Trajectory: Rewards for the Few,” New York Times, April 20, 2008.

32 Ben S. Bernanke, “The Level and Distribution of Economic Well-Being,” speech before the Greater Omaha Chamber of Commerce, February 6, 2007, http://www.federalreserve.gov/newsevents/speech/Bernanke20070206a.htm.

33 Michael Abramowitz and Lori Montgomery, “Bush Addresses Income Inequality,” Washington Post, February 1, 2007.

34 David H. Autor, Richard J. Murname, and Frank Levy, “The Skill Content of Recent Technological Change: An Empirical Exploration,” Quarterly Journal of Economics 118 (November 2003): 1279–1334; David H. Autor, Lawrence F. Katz, and Melissa S. Kearney, “Trends in U.S. Wage Inequality: Reassessing the Revisionists,” NBER Working Paper No. 11627 (2005); David H. Autor, Lawrence F. Katz, and Melissa S. Kearney, “The Polarization of the U.S. Labor Market,” American Economic Review Papers and Proceedings 96 (May 2006): 189–94; Claudia Goldin and Lawrence F. Katz, “Narrowing, Widening, Polarizing: The Changing Nature of U.S. Wage Inequality,” paper presented at Brookings Panel on Economic Activity, Washington, D.C. (September 7, 2007).

35 Claudia Goldin and Lawrence F. Katz, The Race Between Education and Technology (Cambridge, MA: Belknap Press, 2008).

36 National Center for Educational Statistics, “Economic Outcomes—Table 20–1. Median Annual Earnings of Full-Time, Full-Year Wage and Salary Workers Ages 25–34, by Educational Attainment, Sex, and Race/Ethnicity: Selected Years, 1980–2006,” U.S. Department of Education, Institute of Education Sciences, http://nces.ed.gov/programs/coe/2008/section2/table.asp?tableID=894.

37 Liana Fox and Elise Gould, “Employer-Provided Health Coverage Declining for College Grads in Entry-Level Jobs,” Economic Snapshots, Economic Policy Institute (July 18, 2007), http://www.epi.org/economic_snapshots/entry/webfeatures_snapshots_20070718/.

38 Leslie McCall, “Expanding Levels of Within-Group Wage Inequality in U.S. Labor Markets,” Demography 37, no. 4 (2000): 415–30; Thomas Lemieux, “Increasing Residual Wage Inequality: Composition Effects, Noisy Data, or Rising Demand for Skill?” American Economic Review 96, no. 3 (June 2006): 461–498.

39 Richard B. Freeman, America Works: Critical Thoughts on the Exceptional U.S. Labor Market (New York: Russell Sage Foundation, 2007), 44.

40 Ibid., 46.

41 Andrew Leigh, “How Closely Do Income Shares Track Other Measures of Inequality?” Economic Journal 117 (November 2007): 589–603. The data are available at http://people.anu.edu.au/andrew.leigh/pdf/TopIncomesPanel.xls.

42 On the U.S. and Canada, see Emmanuel Saez and Michael R. Veall, “The Evolution of High Incomes in Northern America: Lessons from Canadian Evidence,” American Economic Review 95, no. 3 (June 2005): 831–849; Sami Mahroum, “Highly Skilled Globetrotters: The International Migration of Human Capital,” Organization for Economic Co-operation and Development, http://www.oecd.org/dataoecd/35/6/2100652.pdf.

Chapter 2. How the Winner-Take-All Economy Was Made

1 Henry Paulson, Remarks Prepared for Delivery by Treasury Secretary Henry M. Paulson at Columbia University, August 1, 2006, http://www.treasury.gov/press/releases/hp41.htm.

2 Paul Krugman, The Conscience of a Liberal (New York: Norton, 2007), Ch. 7.

3 N. Gregory Mankiw, “The Wealth Trajectory: Rewards for the Few,” New York Times, April 20, 2008.

4 J. Bradford DeLong, “The Primacy of Politics for Income Distribution?” Grasping Reality with All Six Feet, blog entry, August 20, 2006, http://delong.typepad.com/sdj/2006/08/the_primacy_of_.html.

5 Ian Dew-Becker and R. J. Gordon, “Selected Issues in the Rise of American Inequality,” Brookings Papers on Economic Activity 38, no. 2 (Fall 2007): 176–81.

6 Sherwin Rosen, “The Economics of Superstars,” American Economic Review, 71, no. 5 (1981): 845–58; Robert H. Frank and Philip J. Cook, The Winner-Take-All Society: Why the Few at the Top Get So Much More Than the Rest of Us (New York: Penguin Books, 1995).

7 Alan Murray, “Paul Volcker: Think More Boldly,” Wall Street Journal, December 14, 2009.

8 Thomas Piketty and Emmanuel Saez, “How Progressive Is the U.S. Federal Tax System? A Historical and International Perspective,” Journal of Economic Perspectives 21, no. 1 (Winter 2007): 3–24; Thomas Piketty and Emmanuel Saez, Excel file containing stand-alone results reported in Journal of Economic Perspectives article, http://elsa.berkeley.edu/~saez/jep-results-standalone.xls.

9 Calculated from Piketty and Saez, “How Progressive Is the U.S. Federal Tax System?” 15. The 4.5 percent figure is simply what the after-tax income share would have been if the ratio of after-tax to pre-tax shares for the top 0.1 percent had remained at its 1970 level.

10 Benjamin I. Page and Lawrence R. Jacobs, Class War: What Americans Really Think About Economic Inequality (Chicago: University of Chicago Press, 2009), 85–87.

11 Max B. Sawicky, “Do-It-Yourself Tax Cuts: The Crisis in U.S. Tax Enforcement,” Economic Policy Institute Briefing Paper 160 (2005).

12 See David Cay Johnston, Perfectly Legal: The Covert Campaign to Rig Our Tax System to Benefit the Super Rich—and Cheat Everybody Else (New York: Penguin Group, 2005).

13 Jenny Anderson and Julie Creswell, “Top Hedge Fund Managers Earn Over $240 Million,” New York Times, April 24, 2007.

14 Vincent A. Mahler and David K. Jesuit, “Fiscal Redistribution in the Developed Countries: New Insights from the Luxembourg Income Study,” Socio-Economic Review 4, no. 3 (2006): 483–511; Luxembourg Income Study Project, Fiscal Redistribution Dataset, Version 2, compiled by David K. Jesuit and Vincent A. Mahler (February 2008), www.lisproject.org/publications/fiscalredistdata/fiscred.htm.

15 Thomas L. Hungerford, “Income Inequality, Income Mobility, and Economic Policy,” CRS Report for Congress, April 4, 2008. We are grateful to Dr. Hungerford for providing the underlying data on redistribution, drawn from the Panel Study of Income Dynamics, used in these calculations. We should emphasize, again, that as striking as these statistics are, they greatly understate the degree to which public policy contributed to rising inequality. First, they are based on income surveys that miss trends at the very top. Second, and for the same reason, they have little to say about shifts in taxation affecting those at the very top—which, as just shown, are substantial. And third, they are narrowly focused on the role of government taxes and benefits in altering the inequality of market incomes, thus missing entirely the role of public policy in shaping market incomes in the first place.

16 For more on drift, see Jacob S. Hacker, “Privatizing Risk Without Privatizing the Welfare State: The Hidden Politics of Social Policy Retrenchment in the United States,” American Political Science Review 98, no. 2 (2004): 243–260.

17 David S. Lee, “Wage Inequality in the United States During the 1980s: Rising Dispersion or Falling Minimum Wage?” Quarterly Journal of Economics 114, no. 3 (1999): 977–1023; David Card and John E. DiNardo, “Skill-Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles,” Journal of Labor Economics 20, no. 4 (2002): 733–83. Even Wal-Mart’s CEO has publicly stated that the minimum wage is “out of date with the times. We can see firsthand at Wal-Mart how many of our customers are struggling to get by. Our customers simply don’t have the money to buy basic necessities between pay checks.” Quoted in Richard B. Freeman, America Works: Critical Thoughts on the Exceptional U.S. Labor Market (New York: Russell Sage Foundation, 2007), 50.

18 On Alaska’s favored-state status, see Gary Richardson, “The Truth About Redistribution: Republicans Receive, Democrats Disburse,” Economists’ Voice 6, issue 10, article 3 (2009).

19 Karl Polanyi, The Great Transformation: The Political and Economic Origins of Our Time (Boston: Beacon Press, 1944).

20 Jelle Visser, “Union Membership Statistics in 24 Countries,” Monthly Labor Review, January 2006; Kris Maher, “Union Membership Drops,” Wall Street Journal, January 23, 2010.

21 David Card, “Effect of Unions on Wage Inequality in the U.S. Labor Market,” Industrial & Labor Relations Review 54, no. 2 (January 2001): 296–315; Freeman, America Works, 50.

22 For evidence that unions affect the degree to which governments reduce inequality primarily through their link with social-democratic parties, see David Bradley et al., “Distribution and Redistribution in Postindustrial Democracies,” World Politics 55, no. 2 (January 2003): 193–228.

23 Visser, “Union Membership Statistics.”

24 Freeman, America Works, 82–84.

25 Alex Bryson and Richard B. Freeman, “Worker Needs and Voice in the U.S. and the U.K.,” NBER Working Paper No. 12310 (June 2006).

26 In the early 1970s, AFL-CIO head George Meany obtusely opined that “the organized fellow is the fellow that counts.… Why should we worry about organizing groups of people who do not appear to want to be organized?… I used to worry… about the size of the membership… I stopped worrying because to me it doesn’t make any difference.” Freeman, America Works, 77.

27 For the story, see David Vogel, Fluctuating Fortunes: The Political Power of Business in America (New York: Basic Books, 1988), 150–59.

28 Frank S. Levy and Peter Temin, “Inequality and Institutions in 20th Century America,” NBER Working Paper No. 13106 (May 2007), 33.

29 John Logan, “The Union Avoidance Industry in the United States,” British Journal of Industrial Relations 44, no. 4 (December 2006): 654.

30 Robert J. Flanagan, “Has Management Strangled U.S. Unions?” Journal of Labor Research 26, no. 1 (December 2005): 48–49.

31 Henry S. Farber and Bruce Western, “Ronald Reagan and the Politics of Declining Union Organization,” British Journal of Industrial Relations 40 (2002): 385–401.

32 See Kate Bronfenbrenner, “No Holds Barred: The Intensification of Employer Opposition to Organizing,” Economic Policy Institute Briefing Paper No. 235 (May 30, 2009), 13.

33 Ibid., 9.

34 Jacob S. Hacker, The Divided Welfare State: The Battle over Public and Private Social Benefits in the United States (New York: Cambridge University Press, 2002); Jacob S. Hacker, The Great Risk Shift: The New Economic Insecurity and the Decline of the American Dream, (New York: Oxford University Press, 2006).

35 W. Craig Riddell, “Unionization in Canada and the United States: A Tale of Two Countries,” in Small Differences That Matter: Labor Markets and Income Maintenance in Canada and the United States, David Card and Richard Freeman, eds. (Chicago: University of Chicago Press and National Bureau of Economic Research, 1993), 109–148.

36 John Godard, “Do Labor Laws Matter? The Density Decline and Convergence Thesis Revisited,” Industrial Relations 42, no. 3 (2003): 458–492.

37 Mark Clothier, “Home Depot’s Nardelli Ousted After Six-Year Tenure,” Bloomberg, January 3, 2007, http://www.bloomberg.com/apps/news?pid=20601087&sid= aLphvT.qIqZI&refer=home.

38 Jon Bakija and Bradley T. Heim, “Jobs and Income Growth of Top Earners and the Causes of Changing Income Inequality: Evidence from U.S. Tax Return Data,” working paper, Williams College, Office of Tax Analysis (March 17, 2009).

39 There is a connection between the previous discussion of tax policy and the current discussion of executive compensation. The sharp fall in true tax rates on very high incomes may have stimulated the rise in executive pay, since the recipients capture so much more of any rise in compensation. Carola Frydman and Raven Saks estimate that “had tax rates been at their year 2000 level for the entire sample period, the level of executive compensation would have been 35 percent higher in the 1950s and 1960s.” Frydman and Saks, “Historical Trends in Executive Compensation,” Sloan School of Management, MIT, working paper (2005), 31.

40 Carola Frydman and Raven E. Saks, “Executive Compensation: A New View from a Long-Term Perspective,” FEDS Working Paper No. 2007–35 (July 6, 2007).

41 See figure 3AE, table 3.41 in Lawrence Mishel, Jared Bernstein, and Heidi Shierholz, The State of Working America 2008/2009 (Cornell: Cornell University Press, 2008), 221.

42 Ibid., table 3.42.

43 Hay Group, 2006 Top Executive Compensation Study (Philadelphia: Hay Group, 2007).

44 Kevin J. Murphy, “Politics, Economics, and Executive Compensation,” University of Cincinnati Law Review 63 (1995): 714–746.

45 Peter A. Gourevitch and James Shinn, Political Power and Corporate Control: The New Global Politics of Corporate Governance (Princeton: Princeton University Press, 2005).

46 John C. Bogle, “A Crisis of Ethic Proportions,” Wall Street Journal, April 21, 2009; John C. Bogle, The Battle for the Soul of Capitalism: How the Financial System Undermined Social Ideals, Damaged Trust in the Markets, Robbed Investors of Trillions—And What to Do About It (New Haven: Yale University Press, 2005).

47 Lucian Bebchuk and Jesse Fried, Pay Without Performance: The Unfulfilled Promise of Executive Compensation (Cambridge, MA: Harvard University Press, 2004).

48 Ibid., 100.

49 Ibid., 102, 105.

50 Ellen E. Schultz and Tom McGinty, “Executives Enjoy ‘Sure Thing’ Retirement Plans,” Wall Street Journal, December 16, 2009.

51 Gourevitch and Shinn, Political Power and Corporate Control.

52 Arthur Levitt, Take On the Street: How to Fight for Your Financial Future (New York: Vintage, 2002).

53 After more than a decade of delay, and following a wave of options-related scandals, FASB finally introduced expensing in 2004. Even then there was fierce bipartisan opposition in Congress.

54 John W. Cioffi, “Building Finance Capitalism: The Regulatory Politics of Corporate Governance Reform in the United States and Germany,” in Jonah Levy, ed., The State After Statism: New State Activities in the Age of Liberalization (Oxford: Oxford University Press, 2006).

55 Levitt, Take On the Street, 250; Brian J. Hall and Kevin Murphy, “The Trouble with Stock Options,” Journal of Economic Perspectives, 17, no. 3 (2003): 51.

56 Thomas Philippon and Ariell Reshef, “Wages and Human Capital in the U.S. Financial Industry: 1909–2006,” NBER Working Paper No. 14644 (January 2008).

57 Justin Lahart, “Has the Financial Industry’s Heyday Come and Gone?” Wall Street Journal, April 28, 2008.

58 Martin Wolf, “Regulators Should Intervene in Bankers’ Pay,” Financial Times, January 16, 2008.

59 Jenny Anderson, “Atop Hedge Funds, Richest of the Rich Get Even More So,” New York Times, May 26, 2006; Jenny Anderson and Julie Creswell, “Top Hedge Fund Managers Earn Over $240 Million,” New York Times, April 24, 2007; Jenny Anderson, “Wall Street Winners Get Billion-Dollar Paydays,” New York Times, April 16, 2008.

60 Christine Harper, “Wall Street Bonuses Hit Record $39 Billion for 2007,” Bloomberg, January 17, 2008, http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aHPBhz66H9eo.

61 Robert Kuttner, The Squandering of America (New York: Knopf, 2007).

62 David Moss, “An Ounce of Prevention: Financial Regulation, Moral Hazard, and the End of ‘Too Big to Fail,’” Harvard Magazine, September–October 2009, 24–29.

63 Robert J. Gordon and Ian Dew-Becker, “Controversies About the Rise of American Inequality: A Survey,” NBER Working Paper No. 13982 (May 2008), 25.

64 Philippon and Reshef, “Wages and Human Capital in the U.S. Financial Industry: 1909–2006.”

65 Kuttner, Squandering of America, 77.

66 Philippon and Reshef, “Wages and Human Capital,” 30.

67 Lucian A. Bebchuk, Alma Cohen, and Holger Spamann, “The Wages of Failure: Executive Compensation at Bear Sterns and Lehman 2000–2008,” Harvard Law and Economics Discussion Paper No. 657 (December 2009).

68 Andy Serwer and Allan Sloan, “How Financial Madness Overtook Wall Street,” Time, September 18, 2008.

69 Louis Uchitelle, “The Richest of the Rich, Proud of a New Golden Age,” New York Times, July 15, 2007.

70 Daniel Gross, Bull Run: Wall Street, the Democrats, and the New Politics of Personal Finance (New York: Public Affairs, 2000), 14.

Chapter 3. A Brief History of Democratic Capitalism

1 The two quotes are from Michael Thompson, The Politics of Inequality: A Political History of the Idea of Economic Inequality (New York: Columbia University Press, 2007), 25, 45; see also Sean Wilentz, “America’s Lost Egalitarian Tradition,” Daedalus, 131, no. 1 (Winter 2002): 66–80.

2 Thompson, The Politics of Inequality, 27, 45, 47–48.

3 James Madison, “Federalist #10: The Utility of the Union as a Safeguard Against Domestic Faction and Insurrection,” in The Federalist Papers, http://www.constitution.org/fed/federa10.htm, originally published in Daily Advertiser, November 22, 1787.

4 James Madison, “Federalist #39: Conformity of the Plan to Republican Principles,” in The Federalist Papers, http://www.constitution.org/fed/federa39.htm, originally published in Independent Journal, January 16, 1788.

5 Akhil Reed Amar, America’s Constitution: A Biography (New York: Random House, 2005), 17.

6 John Adams, “Defence of the Constitutions of Government of the United States,” in The Founders’ Constitution, vol. 1, Philip B. Kurland and Ralph Lerner, eds. (Chicago: University of Chicago Press, 1986).

7 Alexis de Tocqueville, Democracy in America, trans. and ed. by Harvey C. Mansfield and Delba Winthrop (Chicago: University of Chicago Press), 201.

8 Ibid.

9 The canonical model is Allen H. Meltzer and Scott F. Richards, “A Rational Theory of the Size of Government,” Journal of Political Economy 89, no. 5 (1981): 914–927. For a nice review, see Jo Thori Lind, “Why Is There So Little Redistribution?” Nordic Journal of Political Economy 31 (2005): 111–125.

10 Quoted in Steve Fraser, Wall Street: A Cultural History (London: Faber and Faber, 2005), 158.

11 Michael Waldman, ed., My Fellow Americans: The Most Important Speeches of America’s Presidents, from George Washington to George W. Bush (Naperville, IL: Sourcebooks, 2003), 72–73.

12 Melvin I. Urofsky, Louis D. Brandeis: A Life (New York: Pantheon Books, 2009), 326.

13 Quoted in Ibid., 320.

14 Cass Sunstein, The Second Bill of Rights: FDR’s Unfinished Revolution and Why We Need It More Than Ever (New York: Basic Books, 2004), 20–25.

15 Adam Smith, An Inquiry Into the Nature and Causes of the Wealth of Nations (Edinburgh: Thomas Nelson and Peter Brown, 1827), 277, 279.

16 Walter Lippmann, Drift and Mastery: An Attempt to Diagnose the Current Unrest (New York: Mitchell Kennerley, 1914), 36–37.

17 Ibid., 100.

18 Frances E. Lee and Bruce I. Oppenheimer, Sizing Up the Senate: The Unequal Consequences of Equal Representation (Chicago: University of Chicago Press, 1999); John D. Griffin, “Senate Apportionment as a Source of Political Inequality,” Legislative Studies Quarterly 31, no. 3 (2006).

19 Robert Dahl, How Democratic Is the American Constitution? (New Haven: Yale University Press, 2001).

20 Lee and Oppenheimer, Sizing Up the Senate, 10–11.

21 David Samuels and Richard Snyder, “The Value of a Vote: Malapportionment in Comparative Perspective,” British Journal of Political Science 31 (2002): 651–71.

22 Michael Schudson, The Good Citizen: A History of American Civic Life (New York: Martin Kessler Books, 1998), 182.

23 David Brian Robertson, “The Bias of American Federalism: Political Structure and the Development of America’s Exceptional Welfare State in the Progressive Era,” Journal of Policy History 1 (1989): 261–291.

24 Waldman, My Fellow Americans, 106.

25 Quoted in Kevin Phillips, The Politics of Rich and Poor (New York: Random House, 1990), 106.

26 William E. Leuchtenburg, Franklin D. Roosevelt and the New Deal (New York: Harper & Row, 1963), 21.

27 Rick Santelli, CNBC News, February 19, 2009 at 1 p.m. ET, http://www.youtube.com/watch?v=bEZB4taSEoA&feature=player_embedded#.

28 Frances Perkins, “Basic Idea Behind Social Security Program,” New York Times, January 27, 1935.

29 Bruce A. Ackerman, We the People, vol. 1 (Cambridge, MA: Belknap Press, 1991).

30 Leuchtenburg, Franklin D. Roosevelt and the New Deal, 333.

Chapter 4. The Unseen Revolution of the 1970s

1 Allen J. Matusow, The Unraveling of America: A History of Liberalism in the 1960s (New York: Harper & Row, 1984); Rick Perlstein, Nixonland: The Rise of a President and the Fracturing of America (New York: Scribner, 2008). See also Allen J. Matusow, Nixon’s Economy: Booms, Busts, Dollars, and Votes (Lawrence, KS: University Press of Kansas, 1998).

2 Kevin P. Phillips, The Emerging Republican Majority (New Rochelle, NY: Arlington House, 1969).

3 Phillips, The Emerging Republican Majority, 37, 464.

4 Robert D. McFadden, “Edmund Hillary, First on Everest, Dies at 88,” New York Times, January 10, 2008.

5 Ted Koppel, interview by Larry King, Larry King Live, CNN, October 4, 2000.

6 Michael Calderone, “Health Care Talk Sinks Obama Press Conference Ratings,” Politico, July 27, 2009, http://www.politico.com/news/stories/0709/25385.html.

7 Jeffrey H. Birnbaum and Alan S. Murray, Showdown at Gucci Gulch: Lawmakers, Lobbyists, and the Unlikely Triumph of Tax Reform (New York: Random House, 1987).

8 John Steinbeck, The Grapes of Wrath (New York: Penguin Classics, 2006), 38.

9 Jacob S. Hacker and Paul Pierson, Off Center: The Republican Revolution and the Erosion of American Democracy (New Haven: Yale University Press, 2005), 164.

10 Pew Research Center for the People & the Press, “Senate Legislative Process a Mystery to Many,” Pew Research Center survey report, January 8, 2010, http://people-press.org/report/586/.

11 Hacker and Pierson, Off Center, 164.

12 For an extended discussion of such scrounging, see Paul Pierson, “The Prospects for Democratic Control in an Age of Big Government,” in Politics at the Turn of the Century, Arthur M. Melzer, Jerry Weinberger, and M. Richard Zinman, eds. (Lanham, MD: Rowman & Littlefield, 2001), 140–61.

13 Authors’ calculations from National Election Studies: http://www.electionstudies.org.

14 Larry M. Bartels, Unequal Democracy: The Political Economy of the New Gilded Age (New York: Russell Sage Foundation, 2008); Martin Gilens, “Inequality and Democratic Responsiveness,” Public Opinion Quarterly 69, no. 5 (2005): 778–96.

15 Gilens, “Inequality and Democratic Responsiveness,” 794.

Chapter 5. The Politics of Organized Combat

1 National Journal, 1974, 14.

2 David Vogel, Fluctuating Fortunes: The Political Power of Business in America (New York: Basic Books, 1989), 59; R. Shep Melnick, “From Tax-and-Spend to Mandate-and-Sue: Liberalism After the Great Society,” in The Great Society and the High Tide of Liberalism, Sidney Milkis and Jerome Mileur, eds. (Amherst, MA: University of Massachusetts Press, 2005).

3 Lewis Powell, “Confidential Memorandum: Attack on the Free Enterprise System,” August 23, 1971, quoted in Kim Phelps-Fein, Invisible Hands: The Making of the Conservative Movement from the New Deal to Reagan (New York: Norton, 2009), 158, 160.

4 Thomas Byrne Edsall, The New Politics of Inequality (New York: Norton, 1984), 114.

5 Vogel, Fluctuating Fortunes, ch. 8.

6 Calculated from http://www.bea.gov/national/xls/gdplev.xls.

7 Ibid., 198.

8 Vogel, Fluctuating Fortunes, 198; John Judis, The Paradox of American Democracy: Elites, Special Interests, and the Betrayal of Public Trust (Pantheon: New York, 2000), 121.

9 Quoted in Sidney Blumenthal, The Rise of the Counter-Establishment: From Conservative Ideology to Political Power (New York: Times Books, 1986), 80.

10 Quoted in Leonard Silk and David Vogel, Ethics and Profits: The Crisis of Confidence in American Business (New York: Simon & Schuster, 1976), 65.

11 Blumenthal, Rise of the Counter-Establishment, 78.

12 Taylor E. Dark, The Unions and the Democrats: An Enduring Alliance (Ithaca, NY: Cornell University Press, 1999), 149.

13 Vogel, Fluctuating Fortunes, 209–10.

14 Ibid., 208.

15 Andrew Rich, “War of Ideas: Why Mainstream and Liberal Foundations and the Think Tanks They Support Are Losing in the War of Ideas in American Politics,” Stanford Social Innovation Review (Spring 2005): 24. This and the previous paragraph draw heavily on Rich’s research. See also Andrew Rich, Think Tanks, Public Policy, and the Politics of Expertise (New York: Cambridge University Press, 2004).

16 Judis, Paradox of American Democracy, 135.

17 Blumenthal, Rise of the Counter-Establishment, 80.

18 “Carter Dealt Major Defeat on Consumer Bills,” Congressional Quarterly Weekly Report, February 11, 1978.

19 Edsall, New Politics of Inequality, 152.

20 “House Rejects Labor-Backed Picketing Bill,” CQ Almanac 1977 (Washington: Congressional Quarterly, 1978).

21 Ibid.

22 Ibid.

23 Richard B. Freeman and James L. Medoff, What Do Unions Do? (New York: Basic Books, 1985), 203.

24 “Filibuster Kills Labor Law ‘Reform’ Bill,” CQ Almanac 1978 (Washington: Congressional Quarterly, 1979).

25 Freeman and Medoff, What Do Unions Do?, 203.

26 “Filibuster Kills Labor Law ‘Reform’ Bill,” CQ Almanac 1978.

27 Edsall, New Politics of Inequality, 125.

28 Quoted in Howard Zinn and Anthony Arnove, Voices of a People’s History of the United States, 2nd ed. (New York: Seven Stories Press, 2009), 530–33.

29 Frank Levy and Peter Temin, “Inequality and Institutions in Twentieth Century America,” NBER Working Paper No. 13106 (May 2007).

30 Thomas Ferguson and Joel Rogers, Right Turn: The Decline of the Democrats and the Future of American Politics (New York: Hill and Wang, 1986), 109.

31 Blumenthal, Rise of the Counter-Establishment, 81.

32 David O. Sears and Jack Citrin, Tax Revolt: Something for Nothing in California (Cambridge, MA: Harvard University Press, 1982), 233.

33 Mark Blyth, Great Transformations: Economic Ideas and Institutional Change in the Twentieth Century (New York: Cambridge University Press, 2002), 175–76.

34 Quoted in William A. Greider, “The Education of David Stockman,” Atlantic Monthly, December 1981.

Chapter 6. The Middle Goes Missing

1 Suzanne Mettler, Soldiers to Citizens: The GI Bill and the Making of the Greatest Generation (New York: Oxford University Press, 2005); Theda Skocpol, Diminished Democracy: From Membership to Management in American Civic Life (Norman, OK: University of Oklahoma Press, 2003).

2 Mettler, Soldiers to Citizens, 19.

3 Taylor E. Dark, The Unions and the Democrats: An Enduring Alliance (Ithaca, NY: Cornell University Press, 1999), 57.

4 Peter L. Francia, The Future of Organized Labor in American Politics (New York: Columbia University Press, 2006), 1.

5 Ibid., 1.

6 Jacob S. Hacker, The Divided Welfare State: The Battle over Public and Private Social Benefits in the United States (New York: Cambridge University Press, 2002).

7 “Statement of George Meany, President, American Federation of Labor, Social Security Amendments of 1954,” Committee on Finance, U.S. Senate, June 1954.

8 Sanford M. Jacoby, Modern Manors: Welfare Capitalism Since the New Deal (Princeton, NJ: Princeton University Press, 1997).

9 Derek C. Bok and John T. Dunlop, Labor and the American Community (New York: Simon & Schuster, 1970), 393.

10 Harry M. Scoble, “Organized Labor in Electoral Politics: Some Questions for the Discipline,” Political Research Quarterly 16, no. 3 (1963): 666.

11 Bok and Dunlop, Labor and the American Community.

12 Ibid., 423.

13 Richard B. Freeman, “What Do Unions Do… to Voting?,” NBER Working Paper No. 9992 (September 2003); Benjamin Radcliff, “Organized Labor and Electoral Participation in American National Elections,” Journal of Labor Research 22, no. 2 (2001): 405–414. See also Patrick Flavin and Benjamin Radcliff, “Labor Union Membership and Voter Turnout Across Nations,” paper presented at the annual meeting of the Midwest Political Science Association, Chicago, IL (April 2–5, 2009).

14 Martin Gilens, “Interest Groups and Inequality in Democratic Responsiveness in the U.S.,” Social Science Research Network working paper (August 31, 2009).

15 Skocpol, Diminished Democracy, 153–56.

16 Ibid., 124.

17 Robert Putnam, “Bowling Alone: America’s Declining Social Capital,” Journal of Democracy 6, no. 1 (1995), and Bowling Alone: The Collapse and Revival of American Community (New York: Simon & Schuster, 2000).

18 Gabriel A. Almond and Sidney Verba, The Civic Culture: Political Attitudes and Democracy in Five Nations (California: Sage Publications, 1989).

19 Alex Kaplun, “‘Energy Citizens’ Take Aim at Climate Legislation,” New York Times, August 12, 2009.

20 Margaret Weir and Marshall Ganz, “Reconnecting People and Politics,” in The New Majority: Toward a Popular Progressive Politics, Stanley B. Greenberg and Theda Skocpol, eds. (New Haven: Yale University Press, 1997), 160.

21 Jeffrey M. Berry, The New Liberalism: The Rising Power of Citizen Groups (Washington, D.C.: Brookings, 1999).

22 EMILY’s List, Homepage, http://emilyslist.org/about/.

23 Berry, The New Liberalism, 57.

24 Frank R. Baumgartner et al., Lobbying and Policy Change: Who Wins, Who Loses, and Why (Chicago: University of Chicago Press, 2009), 258.

25 Elmer E. Schattschneider, The Semisovereign People: A Realist’s View of Democracy in America (New York: Holt, Rinehart and Winston, 1960), 35.

26 Skocpol, Diminished Democracy, 171.

27 Quoted in Andrew Gelman, Red State, Blue State, Rich State, Poor State: Why Americans Vote the Way They Do (Princeton, NJ: Princeton University Press, 2008), 3.

28 Nolan McCarty, Keith T. Poole, and Howard Rosenthal, Polarized America: The Dance of Ideology and Unequal Riches (Cambridge, MA: MIT Press, 2006), 96.

29 Gelman, Red State, Blue State, 102–04.

30 Mark A. Smith, The Right Talk: How Conservatives Transformed the Great Society into the Economic Society (Princeton, NJ: Princeton University Press, 2007); Larry M. Bartels, Unequal Democracy: The Political Economy of the New Gilded Age (New York: Russell Sage Foundation, 2008).

31 Smith, The Right Talk, 65.

32 For reviews, see Bartels, Unequal Democracy ; Gelman, Red State, Blue State.

33 McCarty, Poole, and Rosenthal, Polarized America: 99.

34 James L. Guth et al, “Religious Influences in the 2004 Presidential Election,” Presidential Studies Quarterly 36, no. 2 (2006).

35 Ross Douthat and Reihan Salam, Grand New Party: How Republicans Can Win the Working Class and Save the American Dream (New York: Doubleday, 2008); Jacob Felson and Heather Kindell, “The Elusive Link Between Conservative Protestantism and Conservative Economics,” Social Science Research 36, no. 2 (2007): 673–687.

36 American Political Science Association Task Force on Inequality and American Democracy, “American Democracy in an Age of Rising Inequality,” Perspectives on Politics 2 (2004): 651.

37 Joe Soss and Lawrence R. Jacobs, “The Place of Inequality: Non-participation in the American Polity,” Political Science Quarterly 124, no. 1 (2009): 95–125.

38 Andrea Louise Campbell, “Parties, Electoral Participation, and Shifting Voting Blocs,” in The Transformation of American Politics: Activist Government and the Rise of Conservatism, Paul Pierson and Theda Skocpol, eds. (Princeton, NJ: Princeton University Press, 2007), 85–87.

39 Martin Gilens, “Preference Gaps and Inequality in Representation,” PS: Political Science & Politics 42 (2009): 335–341; David W. Brady and Daniel P. Kessler, “Who Supports Health Reform?” PS: Political Science & Politics 43 (2010): 1–6.

40 Bartels, Unequal Democracy, 295.

41 Ibid., 287.

42 Benjamin I. Page and Lawrence R. Jacobs, Class War?: What Americans Really Think About Economic Inequality (Chicago: University of Chicago, 2009), 24, 96.

43 For reviews and exemplars of this research, see in particular Benjamin Page and Robert Shapiro, The Rational Public: Fifty Years of Trends in Americans’ Policy Preferences (Chicago: Chicago University Press, 1992); Morris P. Fiorina, with Samuel J. Abrams and Jeremy C. Pose, What Culture War? The Myth of a Polarized America (New York: Pearson, Longman, 2004); Page and Jacobs, Class War?; James A. Stimson, Public Opinion in America: Moods, Cycles, and Swings, 2nd ed. (Boulder: Westview, 1999); and Paul DiMaggio, John Evans, Bethany Bryson, “Have Americans’ Social Attitudes Become More Polarized?” The American Journal of Sociology, 102, No. 3 (1996): 690–755.

44 This finding is from the American National Election Studies, available online at http://www.electionstudies.org/nesguide/toptable/tab3_1.htm.

45 We review these findings in more depth in our 2005 book, Off Center: The Republican Revolution and the Erosion of American Democracy (New Haven: Yale University Press, 2005).

46 Jodie T. Allen and Michael Dimock, “A Nation of ‘Haves’ and ‘Have-Nots,’” Pew Research Center for the People & the Press, September 13, 2007, http://pew research.org/pubs/593/haves-have-nots; Lydia Saad, “More Americans Say U.S. a Nation of Haves and Have-Nots,” Gallup News, July 11, 2008, http://www.gallup.com/poll/108769/more-americans-say-us-nation-haves-havenots.aspx.

47 Page and Jacobs, Class War?, 121.

48 Lane Kenworthy and Leslie McCall, “Inequality, Public Opinion and Redistribution,” Socio-Economic Review (2007): 1–34.

49 Andrew Eggers, “Not So Deluded After All,” personal Web site, May 12, 2005, http://www.people.fas.harvard.edu/~aeggers/notsooptimistic.pdf.

50 The question reads: “Looking ahead, how likely is it that you will ever be rich: Very likely, fairly likely, not too likely or not likely at all?” Conducted by Gallup Organization, January 20–22, 2003, and based on 1,006 telephone interviews. Sample: national adult. [USGALLUP.03JNY20.R04]; Methodology: Conducted by Gallup Organization, May 17–20, 1990, and based on 1,255 telephone interviews. Sample: national adult. [USGALLUP.070190.R07].

51 Lars Osberg and Timothy Smeeding, “‘Fair’ Inequality? Attitudes Toward Pay Differentials: The United States in Comparative Perspective,” American Sociological Review 71 (2006): 450–473.

52 Page and Jacobs, Class War?, 43.

53 Osberg and Smeeding, “‘Fair’ Inequality?”

54 The 2008 question was asked in two ways: One told respondents how much households in the top 5 percent earned relative to those in the bottom 5 percent; the other informed respondents about household earnings in the top and bottom 20 percent. There was little difference in response between the two. The best source of consistent questions on public views of inequality is the General Social Survey. It has asked the “government should reduce income differences” question since 1978.

55 Leonard Downie Jr. and Robert G. Kaiser, The News About the News: American Journalism in Peril (New York: Knopf, 2002), 8.

56 Ibid., 138

57 Markus Prior, Post-Broadcast Democracy: How Media Choice Increases Inequality in Political Involvement and Polarizes Elections (New York: Cambridge University Press, 2007).

58 Hacker and Pierson, Off Center, 177.

59 Matthew Hindman, The Myth of Digital Democracy (Princeton, NJ: Princeton University Press, 2009).

60 McCarty, Poole, and Rosenthal, Polarized America, 1.

61 Fiorina, What Culture War?; Matthew Levundusky, The Partisan Sort: How Liberals Became Democrats and Conservatives Became Republicans (Chicago: University of Chicago Press, 2009); Sean M. Theriault, Party Polarization in Congress (New York: Cambridge University Press, 2008).

62 These statements are based on DW-Nominate scores, a measure of the ideological position of members of Congress based on their roll call votes. For more on these scores, see http://www.voteview.com/.

63 Hacker and Pierson, Off Center, 7; McCarty, Poole, and Rosenthal, Polarized America, 11.

64 On self-identification, see Morris P. Fiorina and Samuel J. Abrahams, “Political Polarization in the American Public,” Annual Review of Political Science 11 (2008): 563–588. Most striking is the increasing liberalism seen in James Stimson’s “public mood” series, which uses multiple survey questions asked with the same wording over time to track the liberalism or conservatism of the American public. Stimson’s data show that in 2004, the public mood was more liberal than at any point since 1961. Updated from Stimson, Public Opinion in America, http://www.unc.edu/~istimson/time.html.

Chapter 7. A Tale of Two Parties

1 Gary C. Jacobson, “Party Organization and Distribution of Campaign Resources: Republicans and Democrats in 1982,” Political Science Quarterly, vol. 100, no. 4 (Winter, 1985–1986): 613.

2 Quoted in Jacobson, “Party Organization and Distribution of Campaign Resources,” 616.

3 Ibid., 613.

4 Ibid., 618.

5 Ibid., 621.

6 Robert Kuttner, The Life of the Party (New York: Viking, 1987), 86.

7 Larry Bartels, Unequal Democracy: The Political Economy of the New Gilded Age (Princeton: Princeton University Press, 2008), 122.

8 Here we are drawing on several recent works that are forcing political scientists to reconsider the way they think of political parties. Marty Cohen, David Karol, Hans Noel, and John Zaller, The Party Decides: Presidential Nominations Before and After Reform (Chicago: University of Chicago Press, 2008); David Karol, Party Position Change in American Politics (Cambridge, U.K.: Cambridge University Press, 2009).

9 Paul Krugman, The Conscience of a Liberal (New York: Norton, 2007), 23. Krugman cites Historical Statistics 1975 for his spending figures.

10 Calculated from Campaign Finance Institute, www.cfinst.org/pdf/VitalStats_t2.pdf.

11 Calculated from Campaign Finance Institute, www.cfinst.org/pdf/vital/VitalStats_t9.pdf; www.cfinst.org/pdf/vital/VitalStats_t10.pdf; and www.cfinst.org/pdf/vital/VitalStats_t11.pdf.

12 Philip A. Klinkner, The Losing Parties: Out-Party National Committees, 1956–1993 (New Haven: Yale University Press, 1994), 133.

13 Ibid., 139.

14 Federal Election Commission data in Paul S. Herrnson, “National Party Organizations at the Dawn of the Twenty-First Century,” in L. Sandy Maisel, The Parties Respond: Changes in American Parties and Campaigns 4th ed. (Boulder: Westview Press, 2002), table 3.1, 55.

15 Gary C. Jacobson, “The Republican Advantage in Campaign Finance,” in John E. Chubb and Paul E. Peerson, eds., The New Direction in American Politics (Washington, D.C.: The Brookings Institution Press, 1985), 154.

16 Kuttner, Life of the Party, 83.

17 Herrnson, “National Party Organizations,” 55; Campaign Finance Institute, table 3–10.

18 Klinkner, The Losing Parties, 64–77.

19 Herrnson, “National Party Organizations,” table 3.1, 55.

20 Klinkner, The Losing Parties, 143.

21 Ibid., 157.

22 Ibid., 159.

23 Ibid., 164.

24 Herrnson, “National Party Organizations,” 55.

25 David Vogel, Fluctuating Fortunes: The Political Power of Business in America (New York: Basic Books, 1989), 245.

26 Kuttner, Life of the Party, 62, 63.

27 Ibid., 71.

28 Klinkner, The Losing Parties, 181–82.

29 Karol, Party Position Change, 67.

30 The next three paragraphs draw on Kenneth S. Baer’s sympathetic history of the DLC, Reinventing Democrats: The Politics of Liberalism from Reagan to Clinton (Lawrence: University Press of Kansas, 2000).

31 Baer, Reinventing Democrats, 73–74.

32 DLC, “New Orleans Declaration: A Democratic Agenda for the 1990s,” statement endorsed by the Fourth Annual DLC Conference, March 1, 1990.

33 Jonathan Chait, The Big Con: The True Story of How Washington Got Hoodwinked and Hijacked by Crackpot Economics (Boston: Houghton Mifflin, 2007), 223.

34 David A. Stockman, The Triumph of Politics: The Inside Story of the Reagan Revolution (Avon: New York, 1986), 241. On Breaux’s successful brand of “non-partisan chic” see Chait, The Big Con, 225–28.

35 Kuttner, Life of the Party, 53.

36 For a detailed discussion see Mark Smith, The Right Talk: How Conservatives Transformed the Great Society into the Economic Society (Princeton: Princeton University Press, 2007), chapter 7.

37 Quoted in Paul Barrett, “What Brought Down Wall Street?” MSNBC.com, September 19, 2008, http://www.msnbc.msn.com/id/26793500.

38 Barbara Rudolph, Gisela Bolte, Richard Hornik, and Thomas McCarroll, “The Savings and Loan Crisis: Finally, the Bill Has Come Due,” Time, February 20, 1989, http://www.time.com/time/printout/0,8816,957083,00.html.

39 See Thomas Ferguson and Joel Rogers, Right Turn: The Decline of the Democrats and the Future of American Politics (New York: Hill and Wang, 1986), 130–37.

40 Eisenhower, Dwight D. Personal and confidential to Edgar Newton Eisenhower, November 8, 1954. In The Papers of Dwight David Eisenhower, L. Galambos and D. van Ee, eds., doc. 1147.

41 Jeffrey Eisenach, executive director of GOPAC, quoted in Daniel J. Balz and Ronald Brownstein, Storming the Gates: Protest Politics and the Republican Revival (Boston: Little, Brown, 1996), 145.

42 Thomas Byrne Edsall, The New Politics of Inequality (New York: Norton, 1984).

43 Balz and Brownstein, Storming the Gates.

Chapter 8. Building a Bridge to the Nineteenth Century

1 Calculated from http://elsa.berkeley.edu/~salz/TabFig2007.xls. These figures include capital gains.

2 Patrice Hill, “McCain Adviser Talks of ‘Mental Recession,’” Washington Times, July 9, 2008; “Obama on Gramm: ‘America Already Has One Dr. Phil,’” Associated Press, July 10, 2008.

3 Arthur Levitt, Take On the Street: How to Fight for Your Financial Future (New York: Pantheon, 2002), 205.

4 Eric Lipton and Stephen Labaton, “A Deregulator Looks Back, Unswayed,” New York Times, November 17, 2008.

5 Ibid.

6 David Corn, “Foreclosure Phil,” Mother Jones, May 28, 2008.

7 “Transportation—DeLay Stands in Path of Proposal to Expand TEA-21 Spending,” Congress Daily PM, March 17, 2003.

8 Kevin Drum, “The New Model Republican Party,” www.washingtonmonthly.com/archives/individual/2003_10/002380php.

9 Lyman A. Kellstedt, John C. Green, James L. Guth, and Corwin E. Smidt, “Religious Voting Blocs in the 1992 Election: The Year of the Evangelical?” Sociology of Religion 55, no. 3 (1994): 311.

10 Thomas Byrne Edsall with Mary D. Edsall, Chain Reaction: The Impact of Race, Rights, and Taxes on American Politics (New York: Norton, 1992), 131–34.

11 Kimberly H. Conger and John C. Green, “Spreading Out and Digging In: Christian Conservatives and State Republican Parties,” Campaigns and Elections, February 2002, http://www.find.articles.com/p/articles/mi_m2519/is_I_23;shai_ 82757259.

12 Thomas Frank, What’s the Matter with Kansas? How Conservatives Won the Heart of America (New York: Metropolitan Books, 2004), 109.

13 Bob Woodward, The Agenda: Inside the Clinton White House (New York: Simon & Schuster, 1994), 161.

14 Quoted in Dan Balz and Ronald Brownstein, Storming the Gates: Protest Politics and Republican Revival (Boston: Little, Brown, 1996), 175.

15 Ibid., 182, 183.

16 David Maraniss and Michael Weisskopf, “Speaker and His Directors Make the Cash Flow Right,” Washington Post, November 27, 1995, http://www.washington post.com/wp-srv/politics/special/campfin/stories/cf112795.htm.

17 Calculated from http://www.opensecrets.org.

18 Data from the Senate Office of Public Records. Calculations by Center for Responsive Politics, www.opensecrets.org/lobby/index.php.

19 This discussion draws from Jacob S. Hacker and Paul Pierson, “Tax Politics and the Struggle Over Activist Government,” in Paul Pierson and Theda Skocpol, eds., The Transformation of American Politics: Activist Government and the Rise of Conservatism (Princeton: Princeton University Press, 2007), 256–80.

20 Eliza Newlin Carey, “Moore’s Club for Growth Causing a Stir in the GOP,” National Journal, October 26, 2002, 3128.

21 William G. Gale, Peter R. Orszag, and Isaac Shapiro, “Distributional Effects of the 2001 and 2003 Tax Cuts and their Financing,” Washington, DC: Brookings Institution and Tax Policy Center, available at http://www.brook.edu/views/papers/gale/20040603.htm.

22 Carey, “Moore’s Club for Growth Causing a Stir in the GOP,” 3128; Matt Bai, “Fight Club,” New York Times Magazine, August 10, 2003, 24.

23 Sean M. Theriault, Party Polarization in Congress (New York: Cambridge, 2008), 197.

24 Quoted in Balz and Brownstein, Storming the Gates, 15.

25 David R. Mayhew, “Clinton, the 103rd Congress, and Unified Party Control: What Are the Lessons?” in Parties and Policies: How the American Government Works (New Haven: Yale University Press, 2008), 114.

26 Calculated from data available at the Tax Policy Center, a joint project of the Urban Institute and the Brookings Institution: http://www.taxpolicycenter.org/numbers/Content/Excel/T02–0024.xls. Includes provisions affecting marginal tax rates, the 10 percent bracket, the child tax credit, the child and dependent care credit, the limitation on itemized deductions, the personal exemption phaseout, the AMT, as well as the standard deduction, 15 percent bracket, and EITC provisions for married couples. Excludes retirement and education provisions.

27 Jacob S. Hacker and Paul Pierson, “Abandoning the Middle: The Bush Tax Cuts and the Limits of Democratic Control,” Perspectives on Politics 3 (2005): 39; Memo from Michele Davis to Treasury Secretary Paul O’Neill, February 2, 2001. From Ron Suskind, “The Bush Files,” http://thepriceofloyalty.ronsuskind.com/thebush files/archives/000058.html.

28 Citizens for Tax Justice, “Year-by-Year Analysis of the Bush Tax Cuts Shows Growing Tilt to the Very Rich,” 2002, http://www.ctj.org/html/gwb0602.htm.

29 Joint Economic Committee, U.S. House, “The Alternative Minimum Tax for Individuals: A Growing Burden,” Washington, D.C., May 2001, http://www.house.gov/jec/tax/amt.htm.

30 Aviva Aron-Dine and Robert Greenstein, “The AMT’s Growth Was Not ‘Unintended’: How the Administration and Congressional Leaders Anticipated the AMT Problem and Knowingly Made It Worse,” Washington, D.C., Center on Budget and Policy Priorities, November 30, 2007, available at http://www.cbpp.org/files/11–30–07tax.pdf.

31 Ibid., 2.

32 Ron Suskind, The Price of Loyalty: George W. Bush, the White House, and the Education of Paul O’Neill (New York: Simon & Schuster, 2004).

33 Michael Graetz and Ian Shapiro, Death by a Thousand Cuts (New Haven: Yale University Press, 2006).

34 Peter A. Gourevitch and James Shinn, Political Power and Corporate Control: The New Global Politics of Corporate Governance (Princeton: Princeton University Press, 2005).

35 Robert Kuttner, The Squandering of America: How the Failure of Our Politics Undermines Our Prosperity (New York: Knopf, 2007), 78.

36 Jesse Westbrook and David Scheer, “Cox’s SEC Hindered Probes, Slowed Cases, Shrank Fines, GAO Says,” Bloomberg, May 6, 2009.

37 Christine Dugas, “Workers Sue over 401k Losses,” USA Today, August 20, 2001; Albert B. Crershow, “A 401(k) Post Mortem: After Enron, Emphasis on Company Stock Draws Scrutiny,” Washington Post, December 16, 2001, H1.

38 John W. Cioffi, “Building Finance Capitalism: The Regulatory Politics of Corporate Governance Reform in the United States and Germany,” in Jonah Levy, ed., The State after Statism: New State Activities in the Age of Liberalization (Oxford: Oxford University Press, 2006), 185–229.

39 Ibid.

40 Ibid.

41 CBS News, “Bush and Gore Do New York,” October 18, 2000, available at http://www.cbsnews.com/stories/2000/10/18/politics/main 242210.shtml.

Chapter 9. Democrats Climb Aboard

1 Terry McAuliffe, What a Party! (New York: St. Martin’s, 2007), 212–18.

2 Patrick Healy, “The Schumer Book (No, He’s Not Running for President),” New York Times, January 30, 2007, http://thecaucus.blogs.nytimes.com/2007/01/30/the-schumer-book-no-hes-not-running-for-president/.

3 Eric Lipton and Raymond Hernandez, “A Champion of Wall Street Reaps the Benefits,” New York Times, December 14, 2008, A1. The next two paragraphs draw on this article.

4 On this “invisible primary,” see Marty Cohen, David Karol, Hans Noel, and John Zaller, The Party Decides: Presidential Nominations Before and After Reform (Chicago: University of Chicago Press, 2008).

5 Lipton and Hernandez, “Champion of Wall Street.”

6 Fredreka Schouten, Ken Dilanian, and Matt Kelley, “Lobbyists in ‘Feeding Frenzy,’” USA Today, September 25, 2008.

7 Center for Responsive Politics, “Finance Sector Gave 51 Percent More to House Bailout Bankers,” Capitol Eye Blog, weblog entry posted on September 29, 2008, http://www.opensecrets.org/news/2008/09/finance-sector-gave-50-percent.html; Center for Responsive Politics, “Finance/Insurance/Real Estate—Long-Term Contribution Trends,” http://www.opensecrets.org/industries/indus.php? ind=F.

8 Schouten, Dilanian, and Kelley, “Lobbyists in ‘Feeding Frenzy.’”

9 Louise Story, “Top Hedge Fund Managers Do Well in a Down Year,” New York Times, March 24, 2009.

10 Lipton and Hernandez, “Champion of Wall Street.”

11 Patrick McGeehan, “Wall Street Must Recover Before City Can Overcome Recession, Economists Say,” New York Times, April 14, 2010.

12 FEC figures from Paul S. Herrnson, “National Party Organizations at the Dawn of the Twenty-First Century,” in L. Sandy Maisel, The Parties Respond: Changes in American Parties and Campaigns (Boulder: Westview Press, 2002), 55, 58.

13 John Judis, “Abandoned Surgery: Business and the Failure of Health Reform,” American Prospect, March 21, 1995.

14 Paul Pierson, “The Deficit and the Politics of Domestic Reform,” in Margaret Weir, ed., The Social Divide (Washington, D.C.: Brookings Institution Press, 1998).

15 Bob Woodward, The Agenda: Inside the Clinton White House (New York: Simon & Schuster, 2005), 161.

16 Irving Kristol, “The Battle for Reagan’s Soul,” Wall Street Journal, May 16, 1980, A22.

17 Malcolm Gladwell, “Game Theory,” New Yorker, May 29, 2006.

18 Michael Lewis, Moneyball: The Art of Winning an Unfair Game (New York: Norton, 2003).

19 Larry Bartels, Unequal Democracy: The Political Economy of the New Gilded Age (Princeton: Princeton University Press, 2008); Mark Smith, The Right Talk: How Conservatives Transformed the Great Society into the Economic Society (Princeton: Princeton University Press, 2007).

20 George Packer, “The Hardest Vote,” New Yorker, October 13, 2008.

21 John D. Griffin, “Senate Apportionment as a Source of Political Inequality,” paper presented at the American Political Science Association Meeting, September 2004.

22 Matthew Shugart, “Reform the Senate, But Don’t Take Away the Filibuster.” Daily Herald (Provo, Utah), May 5, 2005, 3.

23 Ari Berman, “K Street’s Favorite Democrat,” Nation, March 19, 2007.

24 Quoted in Ibid.

25 Jacob S. Hacker and Paul Pierson, Off Center: The Republican Revolution and the Erosion of American Democracy (New Haven: Yale University Press, 2005).

26 David R. Mayhew, Parties and Policies: How the American Government Works (New Haven: Yale University Press, 2008), 273–87.

27 Barbara Sinclair, “The ’60-Vote Senate’: Strategies, Process and Outcomes,” in Bruce I. Oppenheimer, ed., U.S. Senate Exceptionalism (Columbus: Ohio State University Press, 2002), 241–61.

28 Sarah A. Binder, Minority Rights, Majority Rule: Partisanship and the Development of Congress (Cambridge: Cambridge University Press), 1997; Gregory J. Wawro and Eric Schickler, Filibuster: Obstruction and Lawmaking in the U.S. Senate (Princeton: Princeton University Press, 2006).

29 Ezra Klein, “The Rise of the Filibuster: An Interview with Barbara Sinclair,” Washington Post, December 26, 2009.

30 Mark Schmitt, “When Did the Senate Get So Bad?” American Prospect, November 24, 2009.

31 Klein, “The Rise of the Filibuster.”

32 Michael C. Jensen, Kevin J. Murphy, Eric G. Wruck, “Remuneration: Where We’ve Been, How We Got to Here, What Are the Problems, and How to Fix Them,” Harvard NOM Working Paper No. 04–28 (July 12, 2004).

33 Arthur Levitt, Take on the Street: What Wall Street and Corporate America Don’t Want You to Know (New York, Pantheon, 2002), 118. Fed researchers suggest that between 1995 and 2000, expensing stock options would have lowered earnings growth in the S&P 500 from 12 percent to 9.4 percent.

34 Levitt, Take On the Street, 112–18.

35 Richard Posner, A Failure of Capitalism: The Crisis of ’08 and the Descent into Depression (Cambridge: Harvard University Press, 2009), 294.

36 Louis Uchitelle, “The Richest of the Rich, Proud of a New Gilded Age,” New York Times, July 15, 2007.

37 Eric Dash and Louise Story, “Rubin Leaving Citigroup; Smith Barney for Sale,” New York Times, January 9, 2009.

38 Naftali Bendavid, The Thumpin’: How Rahm Emanuel and the Democrats Learned to be Ruthless and Ended the Republican Revolution (New York: Doubleday, 2007), 156–57.

39 John Carney, “Rahm Emanuel: Wall Street’s Man in the White House,” Business Insider, November 7, 2008, http://www.businessinsider.com/2008/11/rahm-emanuel-wall-street-s-man-in-the-white-house.

40 Bendavid, The Thumpin’, 157.

Chapter 10. Battle Royale

1 Emmanuel Saez, “Striking It Richer: The Evolution of Top Incomes in the United States (Update with 2007 Estimates),” August 5, 2009, http://elsa.berkeley.edu/~saez/saez-UStopincomes-2007.pdf.

2 Carmen DeNavas-Walt, Bernadette D. Proctor, and Jessica C. Smith, Income, Poverty, and Health Insurance Coverage in the United States: 2008 (Washington, D.C.: U.S. Census Bureau, September 2009), http://www.census.gov/prod/2009pubs/p60–236.pdf.

3 Lynnley Browning, “Ex-UBS Banker Pleads Guilty in Tax Evasion,” New York Times, June 20, 2008.

4 Andrew Ross Sorkin, Too Big to Fail: The Inside Story of How Wall Street and Washington Fought to Save the Financial System—and Themselves (New York: Viking, 2009), 489.

5 Barbara Sinclair, “Barack Obama and the 111th Congress: Politics as Usual?” Extensions (Spring 2009).

6 Barack Obama, “Renewing the American Economy,” March 27, 2008. http://www.nytimes.com/2008/03/27/us/politics/27text-obama.html?pagewanted=print.

7 Charles Homans, “The Party of Obama,” Washington Monthly, January 2010. www.washingtonmonthly.com/features/2010/1001.homans.html.

8 Lisa Taddeo, “The Man Who Made Obama,” Esquire, November 3, 2009. www.esquire.com/features/david-plouffe-0309.

9 Doris Kearns Goodwin, Team of Rivals (New York: Simon & Schuster, 2005).

10 Matt Bai, “Taking the Hill,” New York Times Magazine, June 2, 2009.

11 Ibid.

12 Ezra Klein, “The ‘Congressionalist’ White House,” The Washington Post, June 8, 2009. http://voices.washingtonpost.com/ezra-klein/2009/06/the_congressional ist_white_hou.html.

13 Rebecca Johnson, “On the Money,” Vogue, March 2010.

14 Dan Balz and Ronald Brownstein, Storming the Gates: Protest Politics and the Republican Revival (Boston: Little Brown, 1996), 118–26; Julian E. Zelizer, On Capitol Hill: The Struggle to Reform Congress and Its Consequences 1949–2000 (New York: Cambridge University Press, 2004).

15 Alexander Bolton, “Collins, Snowe Stymie Dems’ Tactics,” The Hill, April 21, 2010.

16 Jacob Hacker and Paul Pierson, Off Center (New Haven: Yale Press, 2005), 110.

17 Project calculated from DW nominate scores, a measure of the ideological placement of members of Congress developed by Keith Poole and Howard Rosenthal, available at www.voteview.com/dwnomin.htm.

18 Arguably, the real puzzle is why the GOP did not become more moderate as it grew. As the Democrats expanded their ranks in 2006 and 2008, their scores in the House moderated somewhat. Through good times and bad, however, the GOP maintained its steady rightward march.

19 Sean Theriault, “Party Polarization in the 111th Congress,” www.apsanet.org/~lss/Newsletter/jan2009/Theriault.pdf.

20 Ibid; extension of remarks, published in the Legislative Studies Newsletter, American Political Science Association, January 2009.

21 Andrew Ross Sorkin, Too Big to Fail (New York: Penguin, 2009), 499, 504; Eve Fairbanks, “From the GOP’s New Guard, The Audacity of Nope,” Washington Post, October 5, 2008.

22 Theriault sees little rise in conservatism in the GOP Senate caucus after 2008, but he wrote assuming that Coleman would win and before Specter left the caucus. The Poole-Rosenthal scores reported January 4, 2010 show a considerable rightward shift.

23 William E. Brock, “A Recipe for Incivility,” Washington Post, June 27, 2004, B7.

24 For a detailed discussion of asymmetric polarization, see Hacker and Pierson, Off Center.

25 Jim DeMint, “The American Option: A Jobs Plan That Works,” Heritage Lecture #1108, January, 2009.

26 Ben Furnas, “Senate Conservatives Propose $3.1 Trillion ‘Stimulus Plan,’ Three Times More Costly Than Obama’s Plan,” Center for American Progress, February 2, 2009, http://wonkroom.thinkprogress.org/2009/02/02/senate-conservatives-plan.

27 However, according to the National Journal, ten senators were more conservative than him on economic issues in 2007, http://nj.nationaljournal.com/voteratings/sen/cons.htm?o1=con_economic&o2=desc#vr.

28 Bruce Bartlett, “Supply-Side Economics, RIP,” October 13, 2009, www.capitalgains andgames.com/blog/bruce-bartlett/1168/supply-side-economics-rip.

29 Bruce Bartlett, “Why I Am Anti-Republican,” August 30, 2009, www.frumforum.com/why-i-am-anti-republican.

30 Pete Nickeas, “Enzi Sees Healthcare Impasse: Senator Takes Credit for Blocking Democrats’ Reform Legislation,” Star-Tribune (Casper, Wyoming), February 16, 2010.

31 The House bill received support from one Republican, Joseph Cao, who had won a fluke victory in 2008 as a result of the scandal involving William Jefferson and found himself marooned in an overwhelmingly Democratic district.

32 The letter, originally posted and discussed in a blog by Ezra Klein, “How a Letter from 1964 Shows What’s Wrong with the Senate Today,” Washington Post Blog, November 25, 2009, http://voices.washingtonpost.com/ezra-klein/2009/11/how_a_letter_from_1964_shows_w.html.

33 Lindsay Renick Mayer, Michael Beckel, and David Levinthal, “Crossing Wall Street,” Center for Responsive Politics, November 16, 2009.

34 Gregory Koger and Jennifer Nicoll Victor, “Polarized Agents: Campaign Contributions by Lobbyists,” PS: Political Science and Politics, July 2009, 485–88.

35 This and the following paragraph draw from Jeffrey Birnbaum, “Big Bank Brings In a Face from the Clinton Administration,” Washington Post, May 27, 2008, A11.

36 The next paragraphs draw heavily on the important efforts of the Sunlight Foundation to chart networks connecting lobbying operations to particular members of Congress. See for example www.sunlightfoundation.com/projects/2009/health care_lobbyist_complex and www.sunlightfoundation.com/projects/2009/11/09/the-max-baucus-energy-climate-lobbyist-complex/.

37 Center for Responsive Politics, “Federal Lobbying Climbs in 2009 As Law-makers Execute Aggressive Congressional Agenda,” Capital Eye Blog, February 12, 2010.

38 Center for Responsive Politics, “New Lobbying Reports Show Big Business Keeps Spending to Influence Politics,” Capital Eye Blog, January 21, 2010.

39 Public Citizen report cited in Eliza Newlin Carney, “Big Banks Are Back in the Game,” National Journal’s Under the Influence blog, December 14, 2009.

40 Eliza Newlin Carney, “Big Banks Are Back In The Game,” National Journal.com, December 14, 2009, www.nationaljournal.com/njonline/rg_20091214_8881.php.

41 Brody Mullins and Neil King Jr., “GOP Chases Wall Street Donors: Data Show Fund-Raisers Begin Capitalizing Over Banker Regret On Backing Obama,” Wall Street Journal Online, February 4, 2010, http://online.wsj.com/article/SB10001424052748703575004575043612216461790.html?mod=WSJ_hps_MIDDLEThird News; Center for Responsive Politics, “Efforts by Health Business Industries Help Push Influence Peddling to New Heights,” February 12, 2010.

42 Peter H. Stone, “Health Insurers Funded Chamber Attack Ads,” National Journal, January 12, 2010, http://undertheinfluence.nationaljournal.com/2010/01/health-insurers-funded-chamber.php

43 Jim VandeHei, “Political Cover: Major Business Lobby Wins Back Its Clout by Dispensing Favors,” Wall Street Journal, September 11, 2001, A1; Stephen Power, “No Deal: Chamber Battles Obama,” Wall Street Journal, November 2, 2009.

44 Associated Press, “Chamber of Commerce Opposes Obama’s Plans,” August 9, 2009, http://abcnews.go.com/Business/wireStory?id=8286157.

45 Kimberly A. Strassel, “The Weekend Interview: Business Fights Back,” Wall Street Journal, October 23, 2009. Spending figures from Center for Responsive Politics, “New Lobbying Reports.”

46 Strassel, “Weekend Interview.”

47 Noam Schreiber, “Could Wall Street Actually Lose Congress?” November 23, 2009, www.tnr.com/blog/the-stash/could-wall-street-actually-lose-congress.

48 Media Matters for America, “Report: Despite Warnings from Many Economists That Stimulus May Be Too Small, Network News Rarely Raised the Issue,” March 6, 2009, http://mediamatters.org/reports/200903060025.

49 Elizabeth Drew, “The Thirty Days of Barack Obama,” New York Review of Books, March 26, 2009; Ryan Lizza “The Gatekeeper,” New Yorker, March 2, 2009.

50 Frank Luntz, “The Language of Financial Reform,” The Word Doctors, Arlington, VA, January 2010; Eric Dash and Nelson D. Schwartz, “As Reform Takes Shape, Some Relief on Wall Street,” New York Times, May 24, 2010, B1.

51 Carl Hulse and Adam Nagourney, “Senate GOP Leader Finds Weapon in Unity,” New York Times, March 16, 2010.

52 Michael Tomasky, “Something New on the Mall,” New York Review of Books, October 22, 2009. On the conflicting estimates of the crowd size, see www.politifact.com/truth-o-meter/article/2009/sep/14/tea-party-photo-shows-large-crowd-different-event/.

53 CNN Opinion Research Poll of 1,023 adult Americans, including 954 registered voters, February 12–15, 2010, http://i2.cdn.turner.com/cnn/2010/images/02/17/rel4b.pdf.

54 Pew Research Center survey of 1,003 adult Americans, January 14–17, 2010, http://people-press.org/reports/questionnaires/586.pdf.

55 CNN Opinion Research Poll of 1,160 adult Americans, December 16–20, 2009, http://i2.cdn.turner.com/cnn/2009/images/12/21/rel19a.pdf.

56 Kaiser Health Tracking Poll of 2,002 American adults, January 7–12, 2010, ww.kff.org/kaiserpolls/upload/8042-C.pdf; Nate Silver, “Health Care Polls: Opinion Gap or Information Gap?” FiveThirtyEight.com, January 23, 2010, www.fivethirtyeight.com/2010/01/health-care-polls-opinion-gap-or.html.

Conclusion: Beating Winner-Take-All

1 The golden ticket analogy has been offered by Gregory Mankiw, “The Wealth Trajectory: Rewards for the Few,” New York Times, April 20, 2008.

2 Ronald D. Orol, “If Senate OKs Bank Bill, Expect a Year of Debate,” Marketwatch.com, March 17, 2010.

3 “Gohmert Calls for Amendment Convention by States,” March 23, 2010, http://gohmert.house.gov/index.cfm?sectionid=125&parentid=44&sectiontree=4,44,125 &itemid=805.

4 ABC News, “Boehner: ‘Hell No’ on Bill,” March 22, 2010, http://abcnews.go.com/Health/video/john-boehner-blasts-health-care-bill-10165837.

5 Carl Hulse and Adam Nagourney, “Senate GOP Leader Finds Weapon in Unity,” New York Times, March 16, 2010.

6 Glenn Beck has gone so far as to liken proposals for filibuster reform to repealing the Bill of Rights. Former vice president Dan Quayle complained that completing health-care reform legislation through the reconciliation process is to “effectively… take away the filibuster in the United States Senate… so therefore you have… 51 votes in the Senate. That is not what our Founding Fathers had in mind. That is not the constitutional process.” Dan Quayle appearance on Fox News, http://tpmlivewire.talkingpointsmemo.com/2010/02/quayle-51-votes-not-what-our-founding-fathers-had-in-mind.php.

7 Alexander Hamilton, Federalist #22, in Alexander Hamilton, James Madison, and John Jay, The Federalist Papers (Oxford University Press, 2008), Lawrence Goldman, ed.

8 James Madison, Federalist #58, ibid.

9 Indeed, we have offered many of them in our past writings. Jacob S. Hacker and Paul Pierson, Off Center: The Republican Revolution and the Erosion of American Democracy (New Haven, CT: Yale University Press, 2005); Jacob S. Hacker, The Great Risk Shift: The New Economic Insecurity and the Decline of the American Dream, rev. and exp. (New York: Oxford University Press, 2008).

10 James Fallows, “How America Can Rise Again,” Atlantic Monthly, January/February 2010, 49.

11 Eric Patashnik, Reforms at Risk: What Happens After Major Policy Changes Are Enacted (Princeton, N.J.: Princeton University Press, 2008).

12 Paul Ryan, “A Road Map for America’s Future Version 2.0,” U.S. House of Representatives, Washington, D.C., January 2010, http://www.roadmap.republicans.budget.house.gov/UploadedFiles/Roadmap2Final2.pdf.

13 Ari Melber, “Year One of Organizing for America,” President Special Report (January 2010), www.techpresident.com/ofayear1.

14 Michael Waldman, My Fellow Americans: The Most Important Speeches of American Presidents, From George Washington to George W. Bush (Naperville, IL: Sourcebooks, 2003), 106; Michael Sandel, “Obama and Civic Idealism,” Democracy 16 (Spring 2010): 10.